Plains All American Pipeline, L.P. (NYSE: PAA)
today announced a quarterly cash distribution of $0.5625 per unit ($2.25
per unit on an annualized basis) on all of its outstanding limited
partner units. The distribution will be payable on February 14, 2013, to
holders of record of such units at the close of business on February 1,
2013. As of this distribution, PAA will have increased its quarterly
distribution to limited partners in 33 out of the past 35 quarters and
consecutively in each of the past 14 quarters.
"We are pleased to announce a distribution increase of 9.8% over the
distribution paid in February 2012 and 3.7% over the distribution paid
in November 2012," said Greg L. Armstrong, Chairman and CEO. "As a
result of continued strong financial results, extended visibility for
organic growth, recent acquisitions and very solid distribution coverage
we are increasing the range of our targeted distribution growth for 2013
to 9% to 10%. This compares to the preliminary 2013 target range of 7%
to 8% discussed during our third quarter earnings conference call in
November 2012."
Concurrent with its fourth-quarter and full-year 2012 earnings
announcement in early February, the Partnership expects to increase the
midpoint of its 2013 guidance for adjusted earnings before interest,
taxes, depreciation and amortization ("adjusted EBITDA") by
approximately 5% over the $1.925 billion preliminary adjusted EBITDA
midpoint guidance provided in early November 2012. Based on the midpoint
measures of targeted distribution growth and adjusted EBITDA guidance,
management expects distribution coverage for 2013 to be approximately
120%.
Non-GAAP Financial Measures
EBITDA and adjusted EBITDA are non-GAAP financial measures. Adjusted
EBITDA excludes selected items impacting comparability. Net income and
cash flows from operations are the most directly comparable GAAP
measures to adjusted EBITDA. The Partnership maintains a reconciliation
of all non-GAAP financial information, such as EBITDA, to the most
comparable GAAP measures under the "Investor Relations – Non-GAAP
Reconciliations" section of its website (www.paalp.com).
For additional information regarding the Partnership's preliminary
guidance for 2013, please refer to the Partnership's Form 8-K furnished
on November 5, 2012, which is available on the Partnership's website (www.paalp.com)
under "Investor Relations – Operating and Financial Guidance," or
"Investor Relations – SEC Filings."
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,
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; 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);
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 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; 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 the Partnership's filings with the
Securities and Exchange Commission.
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.
Plains All American Pipeline, L.P.
Roy I. Lamoreaux, 713-646-4222
or 800-564-3036
Director, Investor Relations