Plains All American Pipeline, L.P. (NYSE: PAA)
today announced that it expects adjusted earnings before interest,
taxes, depreciation and amortization ("EBITDA") for the second quarter
of 2014 to exceed the mid-point of its quarterly guidance by
approximately 8 to 10%. This expected level of performance is driven by
continued strong fundamentals and favorable market conditions.
On May 7, 2014, PAA furnished a Form 8-K providing midpoint adjusted
EBITDA guidance of $455 million for the second quarter of 2014 based on
a guidance range of $430 million to $480 million. The Partnership's
updated outlook does not incorporate potential adjustments associated
with equity compensation expense due to variations in PAA's unit price
or the Partnership's outlook for future distribution levels.
Plains All American Pipeline, L.P. is a publicly traded master limited
partnership that owns and operates midstream energy infrastructure and
provides logistics services for crude oil, natural gas liquids ("NGL"),
natural gas and refined products. PAA owns an extensive network of
pipeline transportation, terminalling, storage and gathering assets in
key crude oil and NGL producing basins and transportation corridors and
at major market hubs in the United States and Canada. On average, PAA
handles over 3.5 million barrels per day of crude oil and NGL on its
pipelines. PAA is headquartered in Houston, Texas.
Non-GAAP Financial Measures and Selected Items Impacting
Comparability
EBITDA and adjusted EBITDA are non-GAAP financial measures that are most
directly comparable to GAAP measures of net income and cash flow from
operating activities. We do not, however, reconcile cash flows from
operating activities to EBITDA or adjusted EBITDA because such
reconciliations are impractical for a forecasted period. Adjusted EBITDA
excludes selected items impacting comparability, which are items that
management believes should be excluded in understanding the
partnership's core operating performance. The Partnership's Form 8-K
furnished on May 7, 2014 presents a calculation of EBITDA and adjusted
EBITDA, a reconciliation of these non-GAAP measures to the most directly
comparable GAAP measures and further discussion regarding why management
believes that the presentation of such financial measures provides
useful information to investors regarding performance. A copy of the May
7th Form 8-K is available on the Partnership's website (www.plainsallamerican.com)
under "Investor Relations – Guidance & Non-GAAP Reconciliations," or
"Investor Relations – SEC Filings." In addition, the Partnership
maintains a reconciliation of all non-GAAP financial information, such
as EBITDA and adjusted EBITDA, to the most comparable GAAP measures
under "Investor Relations – Guidance & Non-GAAP Reconciliations" section
of its website.
Forward Looking Statements
The matters discussed in this release are forward-looking statements
that involve certain risks and uncertainties that could cause actual
results to differ materially from results anticipated in the
forward-looking statements. These risks and uncertainties include, among
other things, failure to implement or capitalize, or delays in
implementing or capitalizing, on planned internal growth projects;
unanticipated changes in crude oil market structure, grade differentials
and volatility (or lack thereof); environmental liabilities or events
that are not covered by an indemnity, insurance or existing reserves;
declines in the volumes of crude oil, refined product and NGL shipped,
processed, purchased, stored, fractionated and/or gathered at or through
the use of our facilities, whether due to declines in production from
existing oil and gas reserves, failure to develop or slowdown in the
development of additional oil and gas reserves or other factors;
fluctuations in refinery capacity in areas supplied by our mainlines and
other factors affecting demand for various grades of crude oil, refined
products and natural gas and resulting changes in pricing conditions or
transportation throughput requirements; the occurrence of a natural
disaster, catastrophe, terrorist attack or other event, including
attacks on our electronic and computer systems; tightened capital
markets or other factors that increase our cost of capital or limit our
access to capital; maintenance of our credit rating and ability to
receive open credit from our suppliers and trade counterparties;
continued creditworthiness of, and performance by, our counterparties,
including financial institutions and trading companies with which we do
business; the currency exchange rate of the Canadian dollar; the
availability of, and our ability to consummate, acquisition or
combination opportunities; the successful integration and future
performance of acquired assets or businesses and the risks associated
with operating in lines of business that are distinct and separate from
our historical operations; weather interference with business operations
or project construction, including the impact of extreme weather events
or conditions; the effectiveness of our risk management activities;
shortages or cost increases of supplies, materials or labor; our ability
to obtain debt or equity financing on satisfactory terms to fund
additional acquisitions, expansion projects, working capital
requirements and the repayment or refinancing of indebtedness; the
impact of current and future laws, rulings, governmental regulations,
accounting standards and statements and related interpretations;
non-utilization of our assets and facilities; the effects of
competition; increased costs or lack of availability of insurance;
fluctuations in the debt and equity markets, including the price of our
units at the time of vesting under our long-term incentive plans; risks
related to the development and operation of our facilities, including
our ability to satisfy our contractual obligations to our customers at
our facilities; factors affecting demand for natural gas and natural gas
storage services and rates; general economic, market or business
conditions and the amplification of other risks caused by volatile
financial markets, capital constraints and pervasive liquidity concerns;
and other factors and uncertainties inherent in the transportation,
storage, terminalling and marketing of crude oil and refined products,
as well as in the storage of natural gas and the processing,
transportation, fractionation, storage and marketing of natural gas
liquids discussed in PAA's filings with the Securities and Exchange
Commission.
Plains All American Pipeline, L.P.
Ryan Smith, (866) 809-1291
Director,
Investor Relations