Plains All American Pipeline, L.P. (NYSE: PAA)
reported strong first-quarter 2013 results as summarized below:
|
| |
|
| |
|
| |
Summary Financial Information(1) | | | | | | | | |
(in millions, except per unit data)
| | | | | | | | |
| | Three Months Ended March 31, | | | |
|
| 2013 |
|
| 2012 |
|
| % Change |
Net income attributable to Plains | |
$
|
528
| | |
$
|
230
| | |
130
|
%
|
Diluted net income per limited partner unit | |
$
|
1.27
| | |
$
|
0.51
| | |
149
|
%
|
EBITDA |
|
$
|
748
|
|
|
$
|
382
|
|
|
96
|
%
|
| | | | | | | |
|
| | Three Months Ended March 31, | | | |
|
| 2013 |
|
| 2012 |
|
| % Change |
Adjusted net income attributable to Plains | |
$
|
524
| | |
$
|
320
| | |
64
|
%
|
Diluted adjusted net income per limited partner unit | |
$
|
1.26
| | |
$
|
0.79
| | |
59
|
%
|
Adjusted EBITDA |
|
$
|
739
|
|
|
$
|
472
|
|
|
57
|
%
|
Distribution declared for the period |
|
$
|
0.5750
|
|
|
$
|
0.5225
|
|
|
10.0
|
%
|
(1) |
| The Partnership's reported results include the impact of
items that affect comparability between reporting periods. The
impact of these items is excluded from adjusted results. See the
section of this release entitled "Non-GAAP Financial Measures and
Selected Items Impacting Comparability" and the tables attached
hereto for information regarding selected items that the
Partnership believes impact comparability of financial results
between reporting periods, as well as for information regarding
non-GAAP financial measures (such as adjusted EBITDA) and their
reconciliation to the most directly comparable GAAP measures. |
| |
|
"PAA reported very strong first-quarter results, which meaningfully
exceeded 2012's comparable results as well as our guidance," said Greg
L. Armstrong, Chairman and CEO of Plains All American. "This performance
was underpinned by solid fee-based results in our Transportation and
Facilities segments and outstanding execution in our margin-based Supply
and Logistics segment. We have increased our 2013 adjusted EBITDA
guidance by $135 million, representing an approximate 7% increase over
our guidance issued at the beginning of the year. This updated guidance
incorporates the benefit of our strong first-quarter performance as well
as a slightly improved outlook for the second quarter of 2013.
"As of the distribution payable next week, PAA will have increased
year-over-year distributions by 10%. PAA ended the quarter with solid
distribution coverage, a strong balance sheet, credit metrics favorable
to our targets and approximately $2.8 billion in committed liquidity.
"Looking forward, PAA's 2013 capital program and multi-billion dollar
project portfolio provide visibility for continued distribution growth.
As a result of advancements in several attractive projects over the last
few months, we are also increasing our 2013 capital program by $300
million to $1.4 billion. These new projects include our recently
announced Cactus pipeline that will connect our Permian Basin and Eagle
Ford assets. Furthermore, we continue to make progress on a number of
other projects across the US and Canada. "
The following table summarizes selected financial information by segment
for the first quarter of 2013:
|
| |
| |
| |
|
| |
| |
| |
Summary of Selected Financial Data by
Segment(1) | | | | | | | | | | | | | |
(in millions)
| | | | | | | | | | | | | |
| | Three Months Ended | | | Three Months Ended |
| | March 31, 2013 | | | March 31, 2012 |
| | Transportation |
| Facilities |
| Supply and Logistics | | | Transportation |
| Facilities |
| Supply and Logistics |
Reported segment profit
| |
$
|
164
| | |
$
|
150
| | |
$
|
434
| | | |
$
|
162
| |
$
|
90
| |
$
|
128
|
Selected items impacting the comparability of segment profit (2) | |
|
11
|
| |
|
6
|
| |
|
(27
|
)
| | |
|
11
| |
|
10
| |
|
69
|
Adjusted segment profit | | $ | 175 |
| | $ | 156 |
| | $ | 407 |
| | | $ | 173 | | $ | 100 | | $ | 197 |
Percentage change in adjusted segment profit over 2012 | |
| 1 | % | |
| 56 | % | |
| 107 | % | | | | | | | |
(1) |
| The Partnership's reported results include the impact of
items that affect comparability between reporting periods. The
impact of these items is excluded from adjusted results. See the
section of this release entitled "Non-GAAP Financial Measures and
Selected Items Impacting Comparability" and the tables attached
hereto for information regarding selected items that the
Partnership believes impact comparability of financial results
between reporting periods. |
(2) | | Certain of our non-GAAP financial measures may not be
impacted by each of the selected items impacting comparability. |
| |
|
First-quarter 2013 Transportation adjusted segment profit increased 1%
over comparable 2012 results. This slight increase was primarily related
to benefits from the BP NGL acquisition and increased pipeline volumes,
which were largely offset by higher operating expenses related to
response and remediation costs from two pipeline releases and costs
incurred inspecting idled pipelines to determine if these pipelines
could be placed into service.
First-quarter 2013 Facilities adjusted segment profit increased 56% over
comparable 2012 results. This increase was primarily related to capacity
additions from the BP NGL and rail terminal acquisitions and recently
completed organic growth projects.
First-quarter 2013 Supply and Logistics adjusted segment profit
increased 107% over comparable 2012 results. This increase was primarily
related to solid execution during favorable crude oil market conditions,
higher lease gathering volumes and margins and increased NGL sales
volumes and margins.
The Partnership will hold a conference call on May 7, 2013 (see details
below). Prior to this conference call, the Partnership will furnish a
current report on Form 8-K, which will include material in this news
release as well as financial and operational guidance for the second
quarter and full year of 2013. A copy of the Form 8-K will be available
on the Partnership's website at www.paalp.com,
where PAA routinely posts important information about the Partnership.
Conference Call
The Partnership's conference call will be held at 11:00 a.m. EDT on
Tuesday, May 7, 2013 to discuss the following items:
1. The Partnership's first-quarter 2013 performance;
2. The status of major expansion projects;
3. Capitalization and liquidity;
4. Financial and operating guidance for the second quarter and full year
of 2013; and
5. The Partnership's outlook for the future.
Conference Call Access Instructions
To access the Internet webcast of the conference call, please go to the
Partnership's website at www.paalp.com,
choose "Investor Relations," and then choose "Conference Calls."
Following the live webcast, the call will be archived for a period of
sixty (60) days on the Partnership's website.
Alternatively, access to the live conference call is available by
dialing toll free (800) 230-1059. International callers should dial
(612) 234-9959. No password is required. The slide presentation
accompanying the conference call will be available a few minutes prior
to the call under the "Conference Call Summaries" portion of the
"Conference Calls" tab of the "Investor Relations" section of the PAA
website at www.paalp.com.
Telephonic Replay Instructions
To listen to a telephonic replay of the conference call, please dial
(800) 475-6701 (or, for international callers, (320) 365-3844), and
enter replay access code 285955. The replay will be available beginning
Tuesday, May 7, 2013, at approximately 1:00 p.m. EDT and will continue
until 12:59 a.m. EDT on June 8, 2013.
Non-GAAP Financial Measures and Selected Items Impacting
Comparability
To supplement our financial information presented in accordance with
GAAP, management uses additional measures that are known as "non-GAAP
financial measures" (such as adjusted EBITDA and implied distributable
cash flow) in its evaluation of past performance and prospects for the
future. Management believes that the presentation of such additional
financial measures provides useful information to investors regarding
our performance and results of operations because these measures, when
used in conjunction with related GAAP financial measures, (i) provide
additional information about our core operating performance and ability
to generate and distribute cash flow, (ii) provide investors with the
financial analytical framework upon which management bases financial,
operational, compensation and planning decisions and (iii) present
measurements that investors, rating agencies and debt holders have
indicated are useful in assessing us and our results of operations.
These measures may exclude, for example, (i) charges for obligations
that are expected to be settled with the issuance of equity instruments,
(ii) the mark-to-market of derivative instruments that are related to
underlying activities in another period (or the reversal of such
adjustments from a prior period), (iii) items that are not indicative of
our core operating results and business outlook and/or (iv) other items
that we believe should be excluded in understanding our core operating
performance. We have defined all such items as "selected items impacting
comparability." We consider an understanding of these selected items
impacting comparability to be material to our evaluation of our
operating results and prospects.
Although we present selected items that we consider in evaluating our
performance, you should also be aware that the items presented do not
represent all items that affect comparability between the periods
presented. Variations in our operating results are also caused by
changes in volumes, prices, exchange rates, mechanical interruptions,
acquisitions and numerous other factors. These types of variations are
not separately identified in this release, but will be discussed, as
applicable, in management's discussion and analysis of operating results
in our Quarterly Report on Form 10-Q.
Adjusted EBITDA and other non-GAAP financial measures are reconciled to
the most directly comparable GAAP measures for the periods presented in
the tables attached to this release, and should be viewed in addition
to, and not in lieu of, our condensed consolidated financial statements
and notes thereto. In addition, the Partnership maintains on its website
(www.paalp.com)
a reconciliation of adjusted EBITDA and certain commonly used non-GAAP
financial information 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 Reconciliation"
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,
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); the availability of, and our ability to consummate,
acquisition or combination opportunities; 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; the occurrence of a natural
disaster, catastrophe, terrorist attack or other event, including
attacks on our electronic and computer systems; tightened capital
markets or other factors that increase our cost of capital or limit our
access to capital; 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; declines in the volumes of
crude oil, refined product and NGL shipped, processed, purchased,
stored, fractionated and/or gathered at or through the use of our
facilities, whether due to declines in production from existing oil and
gas reserves, failure to or slowdown in the development of additional
oil and gas reserves or other factors; shortages or cost increases of
supplies, materials or labor; 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;
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;
non-utilization of our assets and facilities; 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 also owns and operates natural gas storage facilities. PAA is
headquartered in Houston, Texas.
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
|
| |
| |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in millions, except per unit data)
| | | | |
| | | |
|
| | Three Months Ended |
| | March 31, |
| | 2013 | | 2012 |
| | | |
|
REVENUES | |
$
|
10,620
| | |
$
|
9,218
| |
| | | |
|
COSTS AND EXPENSES | | | | |
Purchases and related costs
| | |
9,437
| | | |
8,502
| |
Field operating costs
| | |
340
| | | |
249
| |
General and administrative expenses
| | |
106
| | | |
94
| |
Depreciation and amortization
| |
|
82
|
| |
|
60
|
|
Total costs and expenses
| |
|
9,965
|
| |
|
8,905
|
|
| | | |
|
OPERATING INCOME | | |
655
| | | |
313
| |
| | | |
|
OTHER INCOME/(EXPENSE) | | | | |
Equity earnings in unconsolidated entities
| | |
11
| | | |
7
| |
Interest expense, net
| | |
(77
|
)
| | |
(65
|
)
|
Other income, net
| |
|
-
|
| |
|
2
|
|
| | | |
|
INCOME BEFORE TAX | | |
589
| | | |
257
| |
Current income tax expense
| | |
(46
|
)
| | |
(17
|
)
|
Deferred income tax expense
| |
|
(7
|
)
| |
|
(3
|
)
|
| | | |
|
NET INCOME | | |
536
| | | |
237
| |
Net income attributable to noncontrolling interests
| |
|
(8
|
)
| |
|
(7
|
)
|
NET INCOME ATTRIBUTABLE TO PLAINS | |
$
|
528
|
| |
$
|
230
|
|
| | | |
|
NET INCOME ATTRIBUTABLE TO PLAINS: | | | | |
LIMITED PARTNERS | |
$
|
433
|
| |
$
|
162
|
|
GENERAL PARTNER | |
$
|
95
|
| |
$
|
68
|
|
| | | |
|
BASIC NET INCOME PER LIMITED PARTNER UNIT | |
$
|
1.28
|
| |
$
|
0.52
|
|
| | | |
|
DILUTED NET INCOME PER LIMITED PARTNER UNIT | |
$
|
1.27
|
| |
$
|
0.51
|
|
| | | |
|
BASIC WEIGHTED AVERAGE UNITS OUTSTANDING | |
|
336
|
| |
|
314
|
|
| | | |
|
DILUTED WEIGHTED AVERAGE UNITS OUTSTANDING | |
|
339
|
| |
|
316
|
|
| | | |
|
| | | |
|
ADJUSTED RESULTS: | | | | |
(in millions, except per unit data)
| | Three Months Ended |
| | March 31, |
| | 2013 | | 2012 |
| | | |
|
ADJUSTED NET INCOME ATTRIBUTABLE TO PLAINS | |
$
|
524
|
| |
$
|
320
|
|
| | | |
|
DILUTED ADJUSTED NET INCOME PER LIMITED PARTNER UNIT | |
$
|
1.26
|
| |
$
|
0.79
|
|
| | | |
|
ADJUSTED EBITDA | |
$
|
739
|
| |
$
|
472
|
|
|
| |
| |
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
| | | |
|
CONDENSED CONSOLIDATED BALANCE SHEET DATA |
(in millions)
| | | | |
| | March 31, | | December 31, |
| | 2013 | | 2012 |
ASSETS | | | | |
Current assets
| |
$
|
5,140
| | |
$
|
5,147
| |
Property and equipment, net
| | |
9,883
| | | |
9,643
| |
Goodwill
| | |
2,520
| | | |
2,535
| |
Linefill and base gas
| | |
704
| | | |
707
| |
Long-term inventory
| | |
244
| | | |
274
| |
Investments in unconsolidated entities
| | |
392
| | | |
343
| |
Other, net
| |
|
557
|
| |
|
586
|
|
Total assets
| |
$
|
19,440
|
| |
$
|
19,235
|
|
| | | |
|
LIABILITIES AND PARTNERS' CAPITAL | | | | |
Current liabilities
| |
$
|
5,022
| | |
$
|
5,183
| |
Senior notes, net of unamortized discount
| | |
6,010
| | | |
6,010
| |
Long-term debt under credit facilities and other
| | |
321
| | | |
310
| |
Other long-term liabilities and deferred credits
| |
|
598
|
| |
|
586
|
|
Total liabilities
| | |
11,951
| | | |
12,089
| |
| | | |
|
Partners' capital excluding noncontrolling interests
| | |
6,985
| | | |
6,637
| |
Noncontrolling interests
| |
|
504
|
| |
|
509
|
|
Total partners' capital
| |
|
7,489
|
| |
|
7,146
|
|
Total liabilities and partners' capital
| |
$
|
19,440
|
| |
$
|
19,235
|
|
| | | |
|
DEBT CAPITALIZATION RATIOS | | | | |
(in millions)
| | | | |
| | March 31, | | December 31, |
| | 2013 | | 2012 |
Short-term debt
| |
$
|
689
| | |
$
|
1,086
| |
Long-term debt
| |
|
6,331
|
| |
|
6,320
|
|
Total debt
| |
$
|
7,020
|
| |
$
|
7,406
|
|
| | | |
|
Long-term debt
| |
$
|
6,331
| | |
$
|
6,320
| |
Partners' capital
| |
|
7,489
|
| |
|
7,146
|
|
Total book capitalization
| |
$
|
13,820
|
| |
$
|
13,466
|
|
Total book capitalization, including short-term debt
| |
$
|
14,509
|
| |
$
|
14,552
|
|
| | | |
|
Long-term debt-to-total book capitalization
| | |
46
|
%
| | |
47
|
%
|
Total debt-to-total book capitalization, including short-term debt
| | |
48
|
%
| | |
51
|
%
|
|
| |
| |
| |
|
| |
| |
| |
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
| | | | | | | | | | | | |
|
SELECTED FINANCIAL DATA BY SEGMENT |
(in millions)
| | | | | | | | | | | | | |
| | Three Months Ended | | | Three Months Ended |
| | March 31, 2013 | | | March 31, 2012 |
| | | | | | Supply and | | | | | | | Supply and |
| | Transportation | | Facilities | | Logistics | | | Transportation | | Facilities | | Logistics |
Revenues (1) | |
$
|
368
| | |
$
|
354
| | |
$
|
10,225
| | | |
$
|
317
| | |
$
|
236
| | |
$
|
8,877
| |
Purchases and related costs (1) | | |
(35
|
)
| | |
(90
|
)
| | |
(9,636
|
)
| | | |
(28
|
)
| | |
(74
|
)
| | |
(8,608
|
)
|
Field operating costs (excluding equity compensation expense) (1) | | |
(131
|
)
| | |
(86
|
)
| | |
(115
|
)
| | | |
(98
|
)
| | |
(46
|
)
| | |
(101
|
)
|
Equity compensation expense - operations
| | |
(9
|
)
| | |
(1
|
)
| | |
(1
|
)
| | | |
(6
|
)
| | |
(1
|
)
| | |
(1
|
)
|
Segment G&A expenses (excluding equity compensation expense) (2) | | |
(23
|
)
| | |
(17
|
)
| | |
(26
|
)
| | | |
(22
|
)
| | |
(14
|
)
| | |
(27
|
)
|
Equity compensation expense - general and administrative
| | |
(17
|
)
| | |
(10
|
)
| | |
(13
|
)
| | | |
(8
|
)
| | |
(11
|
)
| | |
(12
|
)
|
Equity earnings in unconsolidated entities
| |
|
11
|
| |
|
-
|
| |
|
-
|
| | |
|
7
|
| |
|
-
|
| |
|
-
|
|
Reported segment profit
| |
$
|
164
| | |
$
|
150
| | |
$
|
434
| | | |
$
|
162
| | |
$
|
90
| | |
$
|
128
| |
Selected items impacting comparability of segment profit (3) | |
|
11
|
| |
|
6
|
| |
|
(27
|
)
| | |
|
11
|
| |
|
10
|
| |
|
69
|
|
Segment profit excluding selected items impacting comparability
| |
$
|
175
|
| |
$
|
156
|
| |
$
|
407
|
| | |
$
|
173
|
| |
$
|
100
|
| |
$
|
197
|
|
| | | | | | | | | | | | |
|
Maintenance capital
| |
$
|
32
|
| |
$
|
7
|
| |
$
|
5
|
| | |
$
|
24
|
| |
$
|
7
|
| |
$
|
4
|
|
(1) |
| Includes intersegment amounts. |
(2) | | Segment general and administrative expenses (G&A) reflect
direct costs attributable to each segment and an allocation of
other expenses to the segments. The proportional allocations by
segment require judgment by management and are based on the
business activities that exist during each period. Includes
acquisition-related expenses for the 2012 period. |
(3) | | Certain non-GAAP financial measures may not be impacted by
each of the selected items impacting comparability. |
|
| |
| |
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
| | | |
|
| | Three Months Ended |
| | March 31, |
OPERATING DATA(1) | | 2013 | | 2012 |
| | | |
|
Transportation activities (average daily volumes in thousands of
barrels): | | | | |
Crude Oil Pipelines
| | | | |
All American
| |
40
| |
25
|
Bakken Area Systems
| |
123
| |
137
|
Basin / Mesa
| |
725
| |
642
|
Capline
| |
156
| |
122
|
Eagle Ford Area Systems
| |
48
| |
10
|
Line 63/Line 2000
| |
118
| |
118
|
Manito
| |
47
| |
68
|
Mid-Continent Area Systems
| |
268
| |
221
|
Permian Basin Area Systems
| |
477
| |
454
|
Rainbow
| |
122
| |
142
|
Rangeland
| |
67
| |
64
|
Salt Lake City Area Systems
| |
135
| |
139
|
White Cliffs
| |
22
| |
18
|
Other
| |
817
| |
786
|
NGL Pipelines
| | | | |
Co-Ed
| |
57
| |
-
|
Other
| |
207
| |
-
|
Refined Products Pipelines
| |
101
| |
112
|
Tariff activities total
| |
3,530
| |
3,058
|
Trucking
| |
111
| |
108
|
Transportation activities total
| |
3,641
| |
3,166
|
| | | |
|
Facilities activities (average monthly volumes): | | | | |
Crude oil, refined products and NGL terminalling and storage
(average monthly capacity in millions of barrels)
| |
94
| |
78
|
Rail unload/load volumes (average throughput in thousands of barrels
per day)
| |
216
| |
-
|
Natural gas storage (average monthly capacity in billions of cubic
feet)
| |
93
| |
76
|
NGL fractionation (average throughput in thousands of barrels per
day)
| |
100
| |
11
|
Facilities activities total (average monthly capacity in millions of
barrels) (2) | |
119
| |
91
|
| | | |
|
Supply and Logistics activities (average daily volumes in
thousands of barrels): | | | | |
Crude oil lease gathering purchases
| |
857
| |
798
|
NGL sales
| |
284
| |
134
|
Waterborne cargos
| |
4
| |
-
|
Supply and Logistics activities total
| |
1,145
| |
932
|
(1) |
| Volumes associated with acquisitions represent total volumes
(attributable to our interest) for the number of days or months we
actually owned the assets divided by the number of days or months
in the period. |
(2) | | Facilities total is calculated as the sum of: (i) crude oil,
refined products and NGL terminalling and storage capacity; (ii)
rail load and unload volumes multiplied by the number of days in
the period and divided by the number of months in the period;
(iii) natural gas storage capacity divided by 6 to account for the
6:1 mcf of gas to crude Btu equivalent ratio and further divided
by 1,000 to convert to monthly volumes in millions; and (iv) NGL
fractionation volumes multiplied by the number of days in the
period and divided by the number of months in the period. |
|
| |
| |
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
| | | |
|
COMPUTATION OF BASIC AND DILUTED EARNINGS
PER LIMITED PARTNER UNIT |
(in millions, except per unit data)
|
| | Three Months Ended |
| | March 31, |
| | 2013 | | 2012 |
Basic Net Income per Limited Partner Unit: | | | | |
Net income attributable to Plains
| |
$
|
528
| | |
$
|
230
| |
Less: General partner's incentive distribution (1) | | |
(86
|
)
| | |
(65
|
)
|
Less: General partner 2% ownership (1) | |
|
(9
|
)
| |
|
(3
|
)
|
Net income available to limited partners
| | |
433
| | | |
162
| |
Less: Undistributed earnings allocated and distributions to
participating securities (1) | |
|
(3
|
)
| |
|
-
|
|
Net income available to limited partners in accordance with
application of the two-class method for MLPs
| |
$
|
430
|
| |
$
|
162
|
|
| | | |
|
Basic weighted average number of limited partner units outstanding
| | |
336
| | | |
314
| |
| | | |
|
Basic net income per limited partner unit
| |
$
|
1.28
|
| |
$
|
0.52
|
|
| | | |
|
Diluted Net Income per Limited Partner Unit: | | | | |
Net income attributable to Plains
| |
$
|
528
| | |
$
|
230
| |
Less: General partner's incentive distribution (1) | | |
(86
|
)
| | |
(65
|
)
|
Less: General partner 2% ownership (1) | |
|
(9
|
)
| |
|
(3
|
)
|
Net income available to limited partners
| | |
433
| | | |
162
| |
Less: Undistributed earnings allocated and distributions to
participating securities (1) | |
|
(1
|
)
| |
|
-
|
|
Net income available to limited partners in accordance with
application of the two-class method for MLPs
| |
$
|
432
|
| |
$
|
162
|
|
| | | |
|
Basic weighted average number of limited partner units outstanding
| | |
336
| | | |
314
| |
Effect of dilutive securities: Weighted average LTIP units (2) | |
|
3
|
| |
|
2
|
|
Diluted weighted average number of limited partner units outstanding
| |
|
339
|
| |
|
316
|
|
| | | |
|
Diluted net income per limited partner unit
| |
$
|
1.27
|
| |
$
|
0.51
|
|
(1) |
| We calculate net income available to limited partners based
on the distributions pertaining to the current period's net
income. After adjusting for the appropriate period's
distributions, the remaining undistributed earnings or excess
distributions over earnings, if any, are allocated to the general
partner, limited partners and participating securities in
accordance with the contractual terms of the partnership agreement
and as further prescribed under the two-class method. |
(2) | | Our Long-term Incentive Plan ("LTIP") awards that contemplate
the issuance of common units are considered dilutive unless (i)
vesting occurs only upon the satisfaction of a performance
condition and (ii) that performance condition has yet to be
satisfied. LTIP awards that are deemed to be dilutive are reduced
by a hypothetical unit repurchase based on the remaining
unamortized fair value, as prescribed by the treasury stock method
in guidance issued by the FASB. |
|
| |
| |
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
| | | |
|
| | | |
|
SELECTED ITEMS IMPACTING COMPARABILITY |
(in millions, except per unit data)
| | | | |
| | Three Months Ended |
| | March 31, |
| | 2013 | | 2012 |
Selected Items Impacting Comparability - Income/(Loss)
(1): | | | | |
Gains/(losses) from derivative activities (2) | |
$
|
24
| | |
$
|
(59
|
)
|
Equity compensation expense (3) | | |
(24
|
)
| | |
(26
|
)
|
Net gain on foreign currency revaluation
| | |
8
| | | |
-
| |
Tax effect on selected items impacting comparability
| | |
(5
|
)
| | |
-
| |
Significant acquisition-related expenses
| | |
-
| | | |
(4
|
)
|
Other (4) | |
|
1
|
| |
|
(1
|
)
|
Selected items impacting comparability of net income attributable to
Plains
| |
$
|
4
|
| |
$
|
(90
|
)
|
| | | |
|
Impact to basic net income per limited partner unit
| |
$
|
0.01
|
| |
$
|
(0.27
|
)
|
Impact to diluted net income per limited partner unit
| |
$
|
0.01
|
| |
$
|
(0.28
|
)
|
(1) |
| Certain of our non-GAAP financial measures may not be
impacted by each of the selected items impacting comparability. |
(2) | | Includes mark-to-market gains and losses resulting from
derivative instruments that are related to underlying activities
in future periods. |
(3) | | Equity compensation expense for the three months ended March
31, 2013 and 2012 excludes the portion of equity compensation
expense represented by grants under LTIP that, pursuant to the
terms of the grant, will be settled in cash only and have no
impact on diluted units. |
(4) | | Includes other immaterial selected items impacting
comparability, as well as the noncontrolling interests' portion of
selected items. |
|
| |
| |
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
| | | |
|
COMPUTATION OF ADJUSTED BASIC AND DILUTED
EARNINGS PER LIMITED PARTNER UNIT |
(in millions, except per unit data)
|
| | Three Months Ended |
| | March 31, |
| | 2013 | | 2012 |
Basic Adjusted Net Income per Limited Partner Unit | | | | |
Net income attributable to Plains
| |
$
|
528
| | |
$
|
230
| |
Selected items impacting comparability of net income attributable
to Plains (1) | |
|
(4
|
)
| |
|
90
|
|
Adjusted net income attributable to Plains
| | |
524
| | | |
320
| |
Less: General partner's incentive distribution (2) | | |
(86
|
)
| | |
(65
|
)
|
Less: General partner 2% ownership (2) | |
|
(9
|
)
| |
|
(5
|
)
|
Adjusted net income available to limited partners
| | |
429
| | | |
250
| |
Less: Undistributed earnings allocated and distributions to
participating securities (2) | |
|
(3
|
)
| |
|
-
|
|
Adjusted limited partners' net income
| |
$
|
426
|
| |
$
|
250
|
|
| | | |
|
Basic weighted average number of limited partner units outstanding
| | |
336
| | | |
314
| |
| | | |
|
Basic adjusted net income per limited partner unit
| |
$
|
1.27
|
| |
$
|
0.79
|
|
| | | |
|
Diluted Adjusted Net Income per Limited Partner Unit | | | | |
Net income attributable to Plains
| |
$
|
528
| | |
$
|
230
| |
Selected items impacting comparability of net income attributable
to Plains (1) | |
|
(4
|
)
| |
|
90
|
|
Adjusted net income attributable to Plains
| | |
524
| | | |
320
| |
Less: General partner's incentive distribution (2) | | |
(86
|
)
| | |
(65
|
)
|
Less: General partner 2% ownership (2) | |
|
(9
|
)
| |
|
(5
|
)
|
Adjusted net income available to limited partners
| | |
429
| | | |
250
| |
Less: Undistributed earnings allocated and distributions to
participating securities (2) | |
|
(1
|
)
| |
|
-
|
|
Adjusted limited partners' net income
| |
$
|
428
|
| |
$
|
250
|
|
| | | |
|
Diluted weighted average number of limited partner units outstanding
| | |
339
| | | |
316
| |
| | | |
|
Diluted adjusted net income per limited partner unit
| |
$
|
1.26
|
| |
$
|
0.79
|
|
(1) |
| Certain of our non-GAAP financial measures may not be
impacted by each of the selected items impacting comparability. |
(2) | | We calculate adjusted net income available to limited
partners based on the distributions pertaining to the current
period's net income. After adjusting for the appropriate period's
distributions, the remaining undistributed earnings or excess
distributions over earnings, if any, are allocated to the general
partner, limited partners and participating securities in
accordance with the contractual terms of the partnership agreement
and as further prescribed under the two-class method. |
|
| |
| |
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
FINANCIAL DATA RECONCILIATIONS |
(in millions)
| | Three Months Ended |
| | March 31, |
| | 2013 | | 2012 |
Net Income to Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA") and Excluding
Selected Items Impacting Comparability ("Adjusted EBITDA")
Reconciliations | | | | |
Net Income
| |
$
|
536
| | |
$
|
237
| |
Add: Interest expense
| | |
77
| | | |
65
| |
Add: Income tax expense
| | |
53
| | | |
20
| |
Add: Depreciation and amortization
| |
|
82
|
| |
|
60
|
|
EBITDA
| |
$
|
748
| | |
$
|
382
| |
Selected items impacting comparability of EBITDA (1) | |
|
(9
|
)
| |
|
90
|
|
Adjusted EBITDA
| |
$
|
739
|
| |
$
|
472
|
|
| | | |
|
(1) Certain of our non-GAAP financial measures may not be
impacted by each of the selected items impacting comparability.
|
| | | |
|
| | Three Months Ended |
| | March 31, |
| | 2013 | | 2012 |
Adjusted EBITDA to Implied Distributable Cash Flow ("DCF") | | | | |
Adjusted EBITDA
| |
$
|
739
| | |
$
|
472
| |
Interest expense
| | |
(77
|
)
| | |
(65
|
)
|
Maintenance capital
| | |
(44
|
)
| | |
(35
|
)
|
Current income tax expense
| | |
(46
|
)
| | |
(17
|
)
|
Equity earnings in unconsolidated entities, net of distributions
| | |
-
| | | |
(1
|
)
|
Distributions to noncontrolling interests (1) | |
|
(12
|
)
| |
|
(12
|
)
|
Implied DCF
| |
$
|
560
|
| |
$
|
342
|
|
| | | |
|
(1) Includes distributions that pertain to the current
period's net income, which are paid in the subsequent period.
|
| | | |
|
| | Three Months Ended |
| | March 31, |
| | 2013 | | 2012 |
Cash Flow from Operating Activities Reconciliation | | | | |
EBITDA
| |
$
|
748
| | |
$
|
382
| |
Current income tax expense
| | |
(46
|
)
| | |
(17
|
)
|
Interest expense
| | |
(77
|
)
| | |
(65
|
)
|
Net change in assets and liabilities, net of acquisitions
| | |
303
| | | |
(22
|
)
|
Other items to reconcile to cash flows from operating activities:
| | | | |
Equity compensation expense
| |
|
51
|
| |
|
39
|
|
Net cash provided by operating activities
| |
$
|
979
|
| |
$
|
317
|
|
Plains All American Pipeline, L.P.
Roy I. Lamoreaux, 713-646-4222 -
800-564-3036
Director, Investor Relations
or
Al Swanson,
800-564-3036
Executive Vice President, CFO