Plains All American Pipeline, L.P. (NYSE:PAA)
today announced that it expects adjusted earnings before interest,
taxes, depreciation and amortization ("EBITDA") for the first quarter of
2012 to exceed the mid-point of its quarterly guidance by approximately
15% to 20%. This expected level of performance is driven by strong
fundamentals, generally favorable market conditions and solid execution
in all three business segments.
On February 8, 2012, PAA furnished a Form 8-K providing midpoint
adjusted EBITDA guidance of $400 million for the first quarter of 2012
based on a guidance range of $380 million to $420 million. The
Partnership's first-quarter operating results will not be impacted by
the acquisition of the Canadian natural gas liquids (NGL) business from
a subsidiary of BP Corporation North America, Inc., which closed
effective April 1, 2012, but PAA's first-quarter results will reflect
the impact of certain debt and equity financing activities completed in
March 2012 in support of such closing. The Partnership's updated outlook
does not incorporate potential adjustments for equity compensation
expense due to variances in PAA's unit price or its probability
assessment with respect to future distribution levels.
Plains All American Pipeline, L.P. is a publicly traded master limited
partnership engaged in the transportation, storage, terminalling and
marketing of crude oil and refined products, as well as in the
processing, transportation, fractionation, storage and marketing of
natural gas liquids. Through its general partner interest and majority
equity ownership position in PAA Natural Gas Storage, L.P. (NYSE: PNG),
PAA owns and operates natural gas storage facilities. PAA is
headquartered in Houston, Texas.
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 February 8, 2012 presents a
calculation of Adjusted EBITDA and a reconciliation of EBITDA to net
income. A copy of the February 8th 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.
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,
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; the impact of current and
future laws, rulings, governmental regulations, accounting standards and
statements and related interpretations; fluctuations in the debt and
equity markets, including the price of our units at the time of vesting
under our long-term incentive plans; 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, in each case as discussed in the Partnership's
filings with the Securities and Exchange Commission.
Plains All American Pipeline, L.P.
Roy I. Lamoreaux, 713-646-4222 –
800-564-3036
Director, Investor Relations