Plains All American Pipeline, L.P. (NYSE:PAA)
today announced that it currently anticipates adjusted earnings before
interest, taxes, depreciation and amortization ("EBITDA") for the second
quarter of 2011 will meet or exceed the high end of its adjusted EBITDA
guidance range of $290 million to $320 million contained in the
Partnership's Form 8-K furnished on May 4, 2011. Such expectations
incorporate the most current estimate for PAA's net unreimbursed costs
and other impacts to income associated with the second quarter 2011
crude oil release on its Rainbow Pipeline system in Alberta, Canada as
well as downtime during the second quarter of 2011 due to electrical
outages associated with recent fires experienced throughout Northern
Alberta, Canada.
Based on PAA's most recent estimates, the total response, repair and
remediation cost associated with the Rainbow crude oil release is
expected to range from $65 million to $75 million, the majority of which
is expected to be covered by insurance. The Partnership cautioned that
its estimates remain subject to further refinement and adjustment as
additional information is collected.
Non-GAAP Financial Measures
EBITDA is a non-GAAP financial measure. Net income and cash flows from
operations are the most directly comparable GAAP measures to EBITDA.
Adjusted EBITDA excludes selected items impacting comparability. The
Partnership's Form 8-K furnished on May 4, 2011 presents a calculation
of Adjusted EBITDA and a reconciliation of EBITDA to net income. A copy
of the May 4th Form 8-K is available on the Partnership's website (www.paalp.com)
under "Investor Relations – Operating and Financial Guidance." In
addition, the Partnership maintains on its website a reconciliation of
all non-GAAP financial information, such as EBITDA, that it reconciles
to the most comparable GAAP measures. To access the information,
investors should click on the "Investor Relations" link on the
Partnership's home page and then the "Non-GAAP Reconciliations" link on
the Investor Relations page.
Plains All American Pipeline, L.P. is a publicly traded master limited
partnership engaged in the transportation, storage, terminalling and
marketing of crude oil, refined products and liquefied petroleum gas and
other natural gas related petroleum products. Through its general
partner interest and majority equity ownership position in PAA Natural
Gas Storage, L.P. (NYSE: PNG), PAA is also engaged in the development
and operation of natural gas storage facilities. PAA is headquartered in
Houston, Texas.
Forward-Looking Statements
Except for the historical information contained herein, 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 on planned internal growth projects;
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 effectiveness of
our risk management activities; environmental liabilities or events that
are not covered by an indemnity, insurance or existing reserves; abrupt
or severe declines or interruptions in outer continental shelf
production located offshore California and transported on our pipeline
systems; shortages or cost increases of supplies, materials or labor;
the availability of adequate third-party production volumes for
transportation and marketing in the areas in which we operate, and other
factors that could cause declines in volumes shipped on our pipelines by
us and third-party shippers, such as declines in production from
existing oil and gas reserves or failure to develop additional oil and
gas reserves; 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 availability
of, and our ability to consummate, acquisition or combination
opportunities; 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 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; unanticipated changes in crude oil market structure, grade
differentials and volatility (or lack thereof); the impact of current
and future laws, rulings, governmental regulations, accounting standards
and statements and related interpretations; the effects of competition;
interruptions in service on third-party pipelines; 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; the currency exchange rate of the
Canadian dollar; weather interference with business operations or
project construction; risks related to the development and operation of
natural gas storage facilities; future developments and circumstances at
or after the time distributions are declared; 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,
refined products and liquefied petroleum gas and other natural gas
related petroleum products discussed in the Partnership's filings with
the Securities and Exchange Commission.
Plains All American Pipeline, L.P. Roy I. Lamoreaux,
713-646-4222 or 800-564-3036 Director, Investor Relations |