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 2013 to exceed the mid-point of its quarterly guidance by
approximately 10%. This expected level of performance is driven by
continued strong fundamentals and favorable market conditions, albeit
less favorable than experienced during the first quarter of 2013.
On May 6, 2013, PAA furnished a Form 8-K providing midpoint adjusted
EBITDA guidance of $435 million for the second quarter of 2013 based on
a guidance range of $415 million to $455 million. The Partnership's
updated outlook does not incorporate potential adjustments associated
with equity compensation expense due to variations in PAA's unit price
or the Partnership's outlook for 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 and Selected Items Impacting
Comparability
EBITDA and adjusted EBITDA are non-GAAP financial measures that are most
directly comparable to GAAP measures of net income and cash flow from
operating activities. We do not, however, reconcile cash flows from
operating activities to EBITDA or adjusted EBITDA because such
reconciliations are impractical for a forecasted period. Adjusted EBITDA
excludes selected items impacting comparability, which are items that
management believes should be excluded in understanding the
partnership's core operating performance. The Partnership's Form 8-K
furnished on May 6, 2013 presents a calculation of EBITDA and adjusted
EBITDA, a reconciliation of these non-GAAP measures to the most directly
comparable GAAP measures and further discussion regarding why management
believes that the presentation of such financial measures provides
useful information to investors regarding performance. A copy of the May
6th 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 and adjusted 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,
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 develop, 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.
Roy I. Lamoreaux, 713-646-4222 –
800-564-3036
Director, Investor Relations