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 2012 to exceed the mid-point of its quarterly guidance by
approximately 15%. This expected level of performance is driven by
strong fundamentals, favorable market conditions and solid execution in
all three business segments.
On May 7, 2012, PAA furnished a Form 8-K providing midpoint adjusted
EBITDA guidance of $460 million for the second quarter of 2012 based on
a guidance range of $440 million to $480 million. 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.
Additionally, adjusted EBITDA excludes selected items that impact
comparability between periods, including significant acquisition-related
expenses, non-cash compensation expense and certain impacts of
derivatives activities.
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 May 7, 2012 presents a calculation
of Adjusted EBITDA and a reconciliation of EBITDA to net income. A copy
of the May 7th Form 8-K is available on the Partnership's
website (www.paalp.com)
under "Investor Relations – Operating and Financial Guidance," or
"Investor Relations – SEC Filings." In addition, the Partnership
maintains a reconciliation of all non-GAAP financial information, such
as EBITDA, to the most comparable GAAP measures under "Investor
Relations – Non-GAAP Reconciliations" section of its website.
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
or 800-564-3036
Director, Investor Relations