Contacts:
Phillip D. Kramer Executive Vice President and CFO 713-646-4560 – 800-564-3036
Brad A. Thielemann Manager, Special Projects 713-646-4222 – 800-564-3036
FOR IMMEDIATE RELEASE
Plains All American Expands and Extends Credit Facilities
(Houston – Tuesday, November 8, 2005) Plains All American Pipeline, L.P. (NYSE: PAA) announced today that is has increased the committed borrowing capacity on its principal revolving credit facility from $900 million to $1 billion. The credit facility includes a sub-facility for Canadian borrowings that was increased from $360 to $400 million. In addition, the amendment increased the aggregate capacity of the facility to $1.5 billion at the option of the Partnership, subject to obtaining additional commitments from lenders. The facility, as amended, has a final maturity of November 2010.
The Partnership also extended the maturity of its $800 million, uncommitted hedged inventory facility to November 2006. This facility is used to finance the purchase of hedged crude oil inventory for storage when market conditions warrant.
Al Swanson, Vice President – Finance and Treasurer of the Partnership, noted that the amendments are part of the Partnership's ongoing efforts to preserve and increase the Partnership's liquidity and financial flexibility.
Except for the historical information contained herein, the matters discussed in this news 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: abrupt or severe production declines or production interruptions in outer continental shelf production located offshore California and transported on our pipeline systems; the success of our risk management activities; the availability of, and ability to consummate, acquisition or combination opportunities; our access to capital to fund additional acquisitions and our ability to obtain debt or equity financing on satisfactory terms; 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 historical operations; environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; maintenance of our credit rating and ability to receive open credit from our suppliers and trade counterparties; declines in volumes shipped on the Basin Pipeline, Capline Pipeline and our other pipelines by the Partnership or third party shippers; the availability of adequate third party production volumes for transportation and marketing in the areas in which we operate; successful third party drilling efforts in areas in which we operate pipelines or gather crude oil; demand for natural gas or various grades of crude oil and resulting changes in pricing conditions or transmission throughput requirements; fluctuations in refinery capacity in areas supplied by our transmission lines; interruptions in service and fluctuations in rates of third party pipelines; the effects of competition; continued credit worthiness of, and performance by, our counterparties; the impact of crude oil and natural gas price fluctuations; the impact of current and future laws, rulings and government regulations; shortages or cost increases in power supplies, materials and labor (including the direct and indirect effects of Hurricanes Katrina and Rita on the availability of materials, the cost of natural gas and the demand for oil-field services); weather interference with business operations or project construction, including the continued impact of hurricanes Katrina and Rita; the currency exchange rate of the Canadian dollar; fluctuation in the debt and equity capital markets (including the price of our units at the time of vesting under our LTIP); general economic, market or business conditions; and other factors and uncertainties inherent in the marketing, transportation, terminalling, gathering and storage of crude oil and liquefied petroleum gas ("LPG") discussed in the Partnership's filings with the Securities and Exchange Commission.
Plains All American Pipeline, L.P. is engaged in interstate and intrastate crude oil transportation and crude oil gathering, marketing, terminalling and storage, as well as the marketing and storage of liquefied petroleum gas and other petroleum products, in the United States and Canada. Through its 50% ownership in PAA/Vulcan Gas Storage LLC, the Partnership is engaged in the development and operation of natural gas storage facilities. The Partnership's common units are traded on the New York Stock Exchange under the symbol "PAA." The Partnership is headquartered in Houston, Texas.
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