Aug 02, 2016 |
Plains All American Pipeline, L.P. and Plains GP Holdings Report Second-Quarter 2016 Results |
Plains All American Pipeline, L.P. (NYSE: PAA)
and Plains GP Holdings (NYSE: PAGP)
today reported second-quarter 2016 results.
Plains All American Pipeline, L.P. Summary Financial Information
(1) (unaudited)
|
| |
| |
(in millions, except per unit data)
| | | | | |
| Three Months Ended |
| |
|
| Six Months Ended | | | | | June 30, | | | | | June 30, | | |
| |
| 2016 |
|
|
| 2015 |
| | % Change | | |
| 2016 |
| |
| 2015 | | % Change | Net income attributable to PAA | |
$
|
101
| | |
$
|
124
| | |
(19
|
)%
| | |
$
|
302
| | |
$
|
407
| |
(26
|
)%
| Diluted net income/(loss) per common unit | |
$
|
(0.20
|
)
| |
$
|
(0.06
|
)
| |
(233
|
)%
| | |
$
|
(0.13
|
)
| |
$
|
0.29
| |
(145
|
)%
| Diluted weighted average common units outstanding | | |
398
| | | |
397
| | |
-
|
%
| | | |
398
| | | |
393
| |
1
|
%
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Three Months Ended | | | | | Six Months Ended | | | | | June 30, | | | | | June 30, | | |
| |
| 2016 |
| |
| 2015 |
| | % Change | | |
| 2016 |
| |
| 2015 | | % Change | Adjusted net income attributable to PAA | |
$
|
136
| | |
$
|
255
| | |
(47
|
)%
| | |
$
|
491
| | |
$
|
624
| |
(21
|
)%
| Diluted adjusted net income/(loss) per common unit | |
$
|
(0.12
|
)
| |
$
|
0.27
| | |
(144
|
)%
| | |
$
|
0.33
| | |
$
|
0.83
| |
(60
|
)%
| EBITDA | |
$
|
415
| | |
$
|
372
| | |
12
|
%
| | |
$
|
863
| | |
$
|
881
| |
(2
|
)%
| Adjusted EBITDA | |
$
|
461
|
| |
$
|
486
|
| |
(5
|
)%
| | |
$
|
1,082
|
| |
$
|
1,108
| |
(2
|
)%
| Distribution per common unit declared for the period | |
$
|
0.700
|
| |
$
|
0.695
|
| |
0.7
|
%
| | | | | | | |
|
| | (1) | |
PAA's reported results include the impact of items that affect
comparability between reporting periods. The impact of certain 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 certain selected items that PAA 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 measures as reported in accordance with GAAP.
| | |
|
"PAA continues to execute well during a challenging environment," said
Greg Armstrong, Chairman and CEO of Plains All American. "We reported
second-quarter adjusted EBITDA of $461 million, which was approximately
$21 million or 5% above the midpoint of our second-quarter guidance."
"Although we remain cautious over the near term and have left our full
year 2016 adjusted EBITDA guidance midpoint unchanged at $2.175 billion,
we believe PAA is well positioned to manage through near term industry
challenges and to prosper over the intermediate to long term.
Importantly, based on PAA's 2016 guidance and accounting for our
recently announced simplification transaction and intended distribution
reset, PAA's pro forma distribution coverage for the full year of 2016
is expected to be approximately 1.05 times."
Armstrong added, "PAA has $2.9 billion of liquidity and our performance
is expected to benefit from increases in minimum volume commitments on
existing assets as well as numerous capital projects scheduled to come
on line over the next 18 months. Additionally, PAA has a large
interconnected crude midstream platform that has significant leverage to
a sustained increase in U.S. crude oil production with no-to-low
incremental capital investment."
The following table summarizes selected PAA financial information by
segment for the second quarter and first half of 2016:
Summary of Selected Financial Data by
Segment (1) (unaudited)
|
| | |
| |
| |
(in millions)
| | | | | | | | |
| Three Months Ended | | | Three Months Ended | | | June 30, 2016 | | | June 30, 2015 | | | Transportation |
| Facilities |
| Supply and Logistics | Transportation | | Facilities | | Supply and Logistics |
Reported segment profit/(loss)
| |
$
|
252
| | |
$
|
156
| | |
$
|
(18
|
)
| | |
$
|
186
| |
$
|
144
| |
$
|
41
|
Selected items impacting comparability of segment profit (2) | |
|
9
|
| |
|
5
|
| |
|
57
|
| | |
|
70
| |
|
2
| |
|
43
|
Adjusted segment profit
| |
$
|
261
|
| |
$
|
161
|
| |
$
|
39
|
| | |
$
|
256
| |
$
|
146
| |
$
|
84
| Percentage change in reported segment profit/(loss) versus
2015 period | |
| 35 | % | |
| 8 | % | |
| (144 | )% | | | | | | | | Percentage change in adjusted segment profit versus 2015 period | |
| 2 | % | |
| 10 | % | |
| (54 | )% | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended | | | Six Months Ended | | | June 30, 2016 | | | June 30, 2015 | | | Transportation | | Facilities | | Supply and Logistics | Transportation | | Facilities | | Supply and Logistics |
Reported segment profit
| |
$
|
499
| | |
$
|
315
| | |
$
|
19
| | | |
$
|
428
| |
$
|
285
| |
$
|
171
|
Selected items impacting comparability of segment profit (2) | |
|
31
|
| |
|
12
|
| |
|
205
|
| | |
|
74
| |
|
5
| |
|
144
|
Adjusted segment profit
| |
$
|
530
|
| |
$
|
327
|
| |
$
|
224
|
| | |
$
|
502
| |
$
|
290
| |
$
|
315
| Percentage change in reported segment profit versus 2015 period | |
| 17 | % | |
| 11 | % | |
| (89 | )% | | | | | | | | Percentage change in adjusted segment profit versus 2015 period | |
| 6 | % | |
| 13 | % | |
| (29 | )% | | | | | | | |
|
| | (1) | |
PAA's reported results include the impact of items that affect
comparability between reporting periods. The impact of certain 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 certain selected items that PAA 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.
| | |
|
Plains GP Holdings
PAGP's sole assets are its ownership interest in PAA's general partner
and incentive distribution rights. As the control entity of PAA, PAGP
consolidates PAA's results into its financial statements, which is
reflected in the condensed consolidating balance sheet and income
statement tables included at the end of this release. Information
regarding PAGP's distributions is reflected below:
|
|
|
| Q2 2016 |
|
|
| Q1 2016 |
|
|
| Q2 2015 | Distribution per Class A share declared for the period | | | |
$
|
0.231
| | | |
$
|
0.231
|
| | | |
$
|
0.227
|
| Q2 2016 distribution percentage growth from prior periods | | | | | | | |
|
-
|
%
| | | |
|
1.8
|
%
| | | | | | | | | | | | | | | | |
|
Conference Call
PAA and PAGP will hold a conference call on August 3, 2016 (see details
below). Prior to this conference call, PAA will furnish a current report
on Form 8-K, which will include material in this news release as well as
PAA's financial and operational guidance for the third quarter and full
year of 2016. A copy of the Form 8-K will be available at www.plainsallamerican.com,
where PAA and PAGP routinely post important information.
The PAA and PAGP conference call will be held at 11:00 a.m. ET on
Wednesday, August 3, 2016 to discuss the following items:
1. PAA's second-quarter 2016 performance;
2. The status of major expansion projects;
3. Capitalization and liquidity;
4. Financial and operating guidance for the third quarter and full year
of 2016; and
5. PAA and PAGP's outlook for the future.
Conference Call Webcast Instructions
To access the Internet webcast of the conference call, please go to www.plainsallamerican.com,
under the "Investor Relations" section of the website (Navigate to:
Investor Relations / either "PAA" or "PAGP" / News & Events / Quarterly
Earnings). Following the live webcast, an audio replay in MP3 format
will be available on the website within two hours after the end of the
call and will be accessible for a period of 365 days.
Non-GAAP Financial Measures and Selected Items Impacting
Comparability
To supplement our financial information presented in accordance with
GAAP, management uses additional measures known as "non-GAAP financial
measures" in its evaluation of past performance and prospects for the
future. The primary additional measures used by management are adjusted
earnings before interest, taxes, depreciation and amortization
("adjusted EBITDA") and implied distributable cash flow ("DCF").
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
to supplement related GAAP financial measures, (i) provide additional
information about our core operating performance and ability to fund
distributions to our unitholders through cash generated by our
operations and (ii) provide investors with the same financial analytical
framework upon which management bases financial, operational,
compensation and planning/budgeting decisions. We also present these and
additional non-GAAP financial measures, including adjusted net income
attributable to PAA, basic and diluted adjusted net income per common
unit and adjusted segment profit, as they are measurements that
investors, rating agencies and debt holders have indicated are useful in
assessing us and our results of operations. These non-GAAP 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), the mark-to-market related to our Preferred Distribution
Rate Reset Option, gains and losses on derivatives that are related to
investing activities (such as the purchase of linefill) and inventory
valuation adjustments, as applicable, (iii) long-term inventory costing
adjustments, (iv) items that are not indicative of our core operating
results and business outlook and/or (v) other items that we believe
should be excluded in understanding our core operating performance.
These measures may further be adjusted to include amounts related to
deficiencies associated with minimum volume commitments whereby we have
billed the counterparties for their deficiency obligation and such
amounts are recognized as deferred revenue in "Accounts payable and
accrued liabilities" in our Condensed Consolidated Financial Statements.
Such amounts are presented net of applicable amounts subsequently
recognized into revenue. Furthermore, the calculation of these measures
contemplates tax effects as a separate reconciling item, where
applicable. We have defined all such items as "Selected Items Impacting
Comparability." Due to the nature of the selected items, certain
selected items impacting comparability may impact certain non-GAAP
financial measures, referred to as adjusted results, but not impact
other non-GAAP financial measures. We consider an understanding of these
selected items impacting comparability to be material to the evaluation
of our operating results and prospects.
Our definition and calculation of certain non-GAAP financial measures
may not be comparable to similarly-titled measures of other companies.
Adjusted EBITDA, Implied DCF and other non-GAAP financial measures are
reconciled to the most comparable measures as reported in accordance
with GAAP 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, we encourage you to visit our website at
www.plainsallamerican.com (in particular the section under "Financial
Information" entitled "Non-GAAP Reconciliations" within the "Investor
Relations" tab), which presents a reconciliation of EBITDA as well as
certain other commonly used non-GAAP and supplemental financial measures.
Forward Looking Statements
Except for the historical information contained herein, the matters
discussed in this release consist of forward-looking statements that
involve certain risks and uncertainties that could cause actual results
or outcomes to differ materially from results or outcomes anticipated in
the forward-looking statements. These risks and uncertainties include,
among other things, declines in the volume of crude oil, refined product
and NGL shipped, processed, purchased, stored, fractionated and/or
gathered at or through the use of our assets, 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, whether
from reduced cash flow to fund drilling or the inability to access
capital, or other factors; the effects of competition; failure to
implement or capitalize, or delays in implementing or capitalizing, on
expansion projects; unanticipated changes in crude oil market structure,
grade differentials and volatility (or lack thereof); environmental
liabilities or events that are not covered by an indemnity, insurance or
existing 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
occurrence of a natural disaster, catastrophe, terrorist attack or other
event, including attacks on our electronic and computer systems;
maintenance of our credit rating and ability to receive open credit from
our suppliers and trade counterparties; tightened capital markets or
other factors that increase our cost of capital or limit 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 currency exchange rate of
the Canadian dollar; continued creditworthiness of, and performance by,
our counterparties, including financial institutions and trading
companies with which we do business; inability to recognize current
revenue attributable to deficiency payments received from customers who
fail to ship or move more than minimum contracted volumes until the
related credits expire or are used; non-utilization of our assets and
facilities; increased costs, or lack of availability, of insurance;
weather interference with business operations or project construction,
including the impact of extreme weather events or conditions; 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 effectiveness of our risk management
activities; shortages or cost increases of supplies, materials or labor;
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; risks related to the development and operation of our
assets, including our ability to satisfy our contractual obligations to
our customers; 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 as discussed in the Partnerships' filings with the Securities
and Exchange Commission.
Plains All American Pipeline, L.P. is a publicly traded master limited
partnership that owns and operates midstream energy infrastructure and
provides logistics services for crude oil, natural gas liquids ("NGL"),
natural gas and refined products. PAA owns an extensive network of
pipeline transportation, terminalling, storage and gathering assets in
key crude oil and NGL producing basins and transportation corridors and
at major market hubs in the United States and Canada. On average, PAA
handles over 4.6 million barrels per day of crude oil and NGL in its
Transportation segment. PAA is headquartered in Houston, Texas.
Plains GP Holdings is a publicly traded entity that owns an interest in
the general partner and incentive distribution rights of Plains All
American Pipeline, L.P., one of the largest energy infrastructure and
logistics companies in North America. PAGP is headquartered in Houston,
Texas.
|
| |
| |
| |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES | | | | | | | | | FINANCIAL SUMMARY (unaudited)
|
|
|
|
|
|
|
|
| | | | | | | | |
| CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(1) | | | | | | | | |
(in millions, except per unit data)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | |
| 2016 |
| |
| 2015 |
| |
| 2016 |
| |
| 2015 |
| | | | | | | | |
| REVENUES | |
$
|
4,950
| | |
$
|
6,663
| | |
$
|
9,060
| | |
$
|
12,605
| | | | | | | | | |
| COSTS AND EXPENSES | | | | | | | | |
Purchases and related costs
| | |
4,224
| | | |
5,848
| | | |
7,571
| | | |
10,890
| |
Field operating costs
| | |
303
| | | |
417
| | | |
603
| | | |
763
| |
General and administrative expenses
| | |
73
| | | |
79
| | | |
140
| | | |
157
| |
Depreciation and amortization
| |
|
204
|
| |
|
108
|
| |
|
319
|
| |
|
212
|
|
Total costs and expenses
| | |
4,804
| | | |
6,452
| | | |
8,633
| | | |
12,022
| | | | | | | | | |
| OPERATING INCOME | | |
146
| | | |
211
| | | |
427
| | | |
583
| | | | | | | | | |
| OTHER INCOME/(EXPENSE) | | | | | | | | |
Equity earnings in unconsolidated entities
| | |
40
| | | |
52
| | | |
87
| | | |
89
| |
Interest expense, net
| | |
(114
|
)
| | |
(107
|
)
| | |
(227
|
)
| | |
(212
|
)
|
Other income/(expense), net
| |
|
25
|
| |
|
1
|
| |
|
30
|
| |
|
(3
|
)
| | | | | | | | |
| INCOME BEFORE TAX | | |
97
| | | |
157
| | | |
317
| | | |
457
| |
Current income tax expense
| | |
(9
|
)
| | |
(19
|
)
| | |
(40
|
)
| | |
(61
|
)
|
Deferred income tax benefit/(expense)
| |
|
14
|
| |
|
(14
|
)
| |
|
27
|
| |
|
12
|
| | | | | | | | |
| NET INCOME | | |
102
| | | |
124
| | | |
304
| | | |
408
| |
Net income attributable to noncontrolling interests
| |
|
(1
|
)
| |
|
-
|
| |
|
(2
|
)
| |
|
(1
|
)
| NET INCOME ATTRIBUTABLE TO PAA | |
$
|
101
|
| |
$
|
124
|
| |
$
|
302
|
| |
$
|
407
|
| | | | | | | | |
| NET INCOME PER COMMON UNIT: | | | | | | | | |
Net income/(loss) allocated to common unitholders - Basic
| |
$
|
(81
|
)
| |
$
|
(23
|
)
| |
$
|
(53
|
)
| |
$
|
113
| |
Basic weighted average common units outstanding
| | |
398
| | | |
397
| | | |
398
| | | |
390
| |
Basic net income/(loss) per common unit
| |
$
|
(0.20
|
)
| |
$
|
(0.06
|
)
| |
$
|
(0.13
|
)
| |
$
|
0.29
|
| | | | | | | | |
|
Net income/(loss) allocated to common unitholders - Diluted
| |
$
|
(81
|
)
| |
$
|
(23
|
)
| |
$
|
(53
|
)
| |
$
|
113
| |
Diluted weighted average common units outstanding
| | |
398
| | | |
397
| | | |
398
| | | |
393
| |
Diluted net income/(loss) per common unit
| |
$
|
(0.20
|
)
| |
$
|
(0.06
|
)
| |
$
|
(0.13
|
)
| |
$
|
0.29
|
| | | | | | | | |
| (1) The 2015 periods have been retroactively adjusted
to reflect the reclassification of the amortization of debt
issuance costs from "Depreciation and amortization" to "Interest
expense, net" as a result of our adoption of revised debt issuance
costs guidance issued by the FASB.
|
|
|
|
|
|
|
|
|
| ADJUSTED RESULTS | | | | | | | | |
(in millions, except per unit data)
| | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | |
| 2016 |
| |
| 2015 |
| |
| 2016 |
| |
| 2015 |
| | | | | | | | |
|
Adjusted net income attributable to PAA
| |
$
|
136
|
| |
$
|
255
|
| |
$
|
491
|
| |
$
|
624
|
| | | | | | | | |
|
Diluted adjusted net income/(loss) per common unit
| |
$
|
(0.12
|
)
| |
$
|
0.27
|
| |
$
|
0.33
|
| |
$
|
0.83
|
| | | | | | | | |
|
Adjusted EBITDA
| |
$
|
461
|
| |
$
|
486
|
| |
$
|
1,082
|
| |
$
|
1,108
|
| | | | | | | | | | | | | | | | |
|
|
| |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES | | | | | FINANCIAL SUMMARY (unaudited)
|
|
|
|
| | | | |
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | | | | |
(in millions)
| | | | | | | June 30, | | December 31, | | |
| 2016 |
| |
| 2015 |
| ASSETS | | | | |
Current assets
| |
$
|
3,603
| | |
$
|
2,969
| |
Property and equipment, net
| | |
13,598
| | | |
13,474
| |
Goodwill
| | |
2,396
| | | |
2,405
| |
Investments in unconsolidated entities
| | |
2,161
| | | |
2,027
| |
Linefill and base gas
| | |
902
| | | |
898
| |
Long-term inventory
| | |
184
| | | |
129
| |
Other long-term assets, net
| |
|
319
|
| |
|
386
|
|
Total assets
| |
$
|
23,163
|
| |
$
|
22,288
|
| | | | |
| LIABILITIES AND PARTNERS' CAPITAL | | | | |
Current liabilities
| |
$
|
4,029
| | |
$
|
3,407
| |
Senior notes, net of unamortized discounts and debt issuance costs
| | |
9,128
| | | |
9,698
| |
Other long-term debt
| | |
358
| | | |
677
| |
Other long-term liabilities and deferred credits
| |
|
678
|
| |
|
567
|
|
Total liabilities
| | |
14,193
| | | |
14,349
| | | | | |
|
Partners' capital excluding noncontrolling interests
| | |
8,912
| | | |
7,881
| |
Noncontrolling interests
| |
|
58
|
| |
|
58
|
|
Total partners' capital
| |
|
8,970
|
| |
|
7,939
|
|
Total liabilities and partners' capital
| |
$
|
23,163
|
| |
$
|
22,288
|
| | | | |
| DEBT CAPITALIZATION RATIOS | | | | |
(in millions)
| | | | | | | June 30, | | December 31, | | |
| 2016 |
| |
| 2015 |
|
Short-term debt
| |
$
|
1,302
| | |
$
|
999
| |
Long-term debt
| |
|
9,486
|
| |
|
10,375
|
|
Total debt
| |
$
|
10,788
|
| |
$
|
11,374
|
| | | | |
|
Long-term debt
| |
$
|
9,486
| | |
$
|
10,375
| |
Partners' capital
| |
|
8,970
|
| |
|
7,939
|
|
Total book capitalization
| |
$
|
18,456
|
| |
$
|
18,314
|
|
Total book capitalization, including short-term debt
| |
$
|
19,758
|
| |
$
|
19,313
|
| | | | |
|
Long-term debt-to-total book capitalization
| | |
51
|
%
| | |
57
|
%
|
Total debt-to-total book capitalization, including short-term debt
| | |
55
|
%
| | |
59
|
%
| | | | | | | | |
|
|
| |
| |
| |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES | | | | | | | | | FINANCIAL SUMMARY (unaudited)
|
|
|
|
|
|
|
|
| | | | | | | | |
| OPERATING DATA(1) | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2016 | | 2015 | | 2016 | | 2015 | | | | | | | | |
| Transportation segment (average daily volumes in thousands of
barrels per day): | | | | | | | | |
Volumes from tariff activities
| | | | | | | | |
Crude oil pipelines (by region):
| | | | | | | | |
Permian Basin (2) | |
2,178
| |
1,886
| |
2,112
| |
1,773
|
South Texas / Eagle Ford (2) | |
274
| |
308
| |
294
| |
286
|
Western
| |
211
| |
207
| |
193
| |
237
|
Rocky Mountain (2) | |
431
| |
426
| |
434
| |
439
|
Gulf Coast
| |
613
| |
575
| |
597
| |
508
|
Central
| |
398
| |
432
| |
388
| |
434
|
Canada
| |
379
| |
393
| |
386
| |
403
|
Crude oil pipelines
| |
4,484
| |
4,227
| |
4,404
| |
4,080
|
NGL pipelines
| |
182
| |
193
| |
180
| |
192
|
Total volumes from tariff activities
| |
4,666
| |
4,420
| |
4,584
| |
4,272
|
Trucking
| |
115
| |
109
| |
110
| |
115
|
Transportation segment total volumes
| |
4,781
| |
4,529
| |
4,694
| |
4,387
| | | | | | | | |
| Facilities segment (average monthly volumes): | | | | | | | | |
Crude oil, refined products and NGL terminalling and storage
| | | | | | | | |
(average monthly capacity in millions of barrels)
| |
105
| |
99
| |
105
| |
99
|
Rail load / unload volumes
| | | | | | | | |
(average volumes in thousands of barrels per day)
| |
127
| |
233
| |
109
| |
220
|
Natural gas storage
| | | | | | | | |
(average monthly working capacity in billions of cubic feet)
| |
97
| |
97
| |
97
| |
97
|
NGL fractionation
| | | | | | | | |
(average volumes in thousands of barrels per day)
| |
105
| |
103
| |
110
| |
103
|
Facilities segment total volumes
| | | | | | | | |
(average monthly volumes in millions of barrels) (3) | |
128
| |
126
| |
128
| |
125
| | | | | | | | |
| Supply and Logistics segment (average daily volumes in thousands
of barrels per day): | | | | | | | | |
Crude oil lease gathering purchases
| |
885
| |
967
| |
899
| |
974
|
NGL sales
| |
176
| |
158
| |
242
| |
222
|
Waterborne cargos
| |
5
| |
-
| |
6
| |
-
|
Supply and Logistics segment total volumes
| |
1,066
| |
1,125
| |
1,147
| |
1,196
|
|
| | (1) | |
Average volumes are calculated as total volumes for the period
(attributable to our interest) divided by the number of days or
months in the period.
| | |
| (2) | |
Region includes volumes (attributable to our interest) from
pipelines owned by unconsolidated entities.
| | |
| (3) | |
Facilities segment 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 working capacity divided by 6 to account for the
6:1 mcf of natural 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 NET
INCOME/(LOSS) PER COMMON UNIT | | | | | | | | |
(in millions, except per unit data)
| | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | |
| 2016 |
| |
| 2015 |
| |
| 2016 |
| |
| 2015 |
| Basic Net Income/(Loss) per Common Unit | | | | | | | | |
Net income attributable to PAA
| |
$
|
101
| | |
$
|
124
| | |
$
|
302
| | |
$
|
407
| |
Distributions to Series A preferred units (1) | | |
(33
|
)
| | |
-
| | | |
(55
|
)
| | |
-
| |
Distributions to general partner (1) | | |
(155
|
)
| | |
(152
|
)
| | |
(310
|
)
| | |
(300
|
)
|
Distributions to participating securities (1) | | |
(1
|
)
| | |
(1
|
)
| | |
(2
|
)
| | |
(3
|
)
|
Undistributed loss allocated to general partner (1) | |
|
7
|
| |
|
6
|
| |
|
12
|
| |
|
9
|
|
Net income/(loss) allocated to common unitholders in accordance with
application of the two-class method for MLPs
| |
$
|
(81
|
)
| |
$
|
(23
|
)
| |
$
|
(53
|
)
| |
$
|
113
|
| | | | | | | | |
|
Basic weighted average common units outstanding
| | |
398
| | | |
397
| | | |
398
| | | |
390
| | | | | | | | | |
|
Basic net income/(loss) per common unit
| |
$
|
(0.20
|
)
| |
$
|
(0.06
|
)
| |
$
|
(0.13
|
)
| |
$
|
0.29
|
| | | | | | | | |
| Diluted Net Income/(Loss) per Common Unit | | | | | | | | |
Net income attributable to PAA
| |
$
|
101
| | |
$
|
124
| | |
$
|
302
| | |
$
|
407
| |
Distributions to Series A preferred units (1) | | |
(33
|
)
| | |
-
| | | |
(55
|
)
| | |
-
| |
Distributions to general partner (1) | | |
(155
|
)
| | |
(152
|
)
| | |
(310
|
)
| | |
(300
|
)
|
Distributions to participating securities (1) | | |
(1
|
)
| | |
(1
|
)
| | |
(2
|
)
| | |
(3
|
)
|
Undistributed loss allocated to general partner (1) | |
|
7
|
| |
|
6
|
| |
|
12
|
| |
|
9
|
|
Net income/(loss) allocated to common unitholders in accordance with
application of the two-class method for MLPs
| |
$
|
(81
|
)
| |
$
|
(23
|
)
| |
$
|
(53
|
)
| |
$
|
113
|
| | | | | | | | |
|
Basic weighted average common units outstanding
| | |
398
| | | |
397
| | | |
398
| | | |
390
| |
Effect of dilutive securities: Weighted average LTIP units (2) | |
|
-
|
| |
|
-
|
| |
|
-
|
| |
|
3
|
|
Diluted weighted average common units outstanding
| |
|
398
|
| |
|
397
|
| |
|
398
|
| |
|
393
|
| | | | | | | | |
|
Diluted net income/(loss) per common unit (3) | |
$
|
(0.20
|
)
| |
$
|
(0.06
|
)
| |
$
|
(0.13
|
)
| |
$
|
0.29
|
|
|
| | (1) | |
Net income/(loss) allocated to common unitholders is calculated
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, common
unitholders and participating securities in accordance with the
contractual terms of our 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. Such LTIP awards were excluded from the calculation of diluted
net income/(loss) per common unit for the three and six months ended
June 30, 2016 and the three months ended June 30, 2015 as the effect
was antidilutive.
| | |
| (3) | |
The possible conversion of our Series A preferred units was excluded
from the calculation of diluted net income/(loss) per common unit
for the three and six months ended June 30, 2016 as the effect was
antidilutive.
|
|
| |
| |
| |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES | | | | | | | | | FINANCIAL SUMMARY (unaudited)
|
|
|
|
|
|
|
|
| | | | | | | | |
| SELECTED ITEMS IMPACTING COMPARABILITY | | | | | | | | |
(in millions, except per unit data)
| | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | |
| 2016 |
| |
| 2015 |
| |
| 2016 |
| |
| 2015 |
| Selected Items Impacting Comparability (1): | | | | | | | | |
Losses from derivative activities net of inventory valuation
adjustments (2) | |
$
|
(93
|
)
| |
$
|
(60
|
)
| |
$
|
(216
|
)
| |
$
|
(151
|
)
|
Long-term inventory costing adjustments (3) | | |
67
| | | |
23
| | | |
44
| | | |
(15
|
)
|
Deficiencies under minimum volume commitments, net (4) | | |
(8
|
)
| | |
-
| | | |
(34
|
)
| | |
-
| |
Equity-indexed compensation expense (5) | | |
(11
|
)
| | |
(11
|
)
| | |
(15
|
)
| | |
(22
|
)
|
Net gain/(loss) on foreign currency revaluation (6) | | |
(1
|
)
| | |
(1
|
)
| | |
2
| | | |
26
| |
Line 901 incident (7) | |
|
-
|
| |
|
(65
|
)
| |
|
-
|
| |
|
(65
|
)
|
Selected items impacting comparability of EBITDA
| |
$
|
(46
|
)
| |
$
|
(114
|
)
| |
$
|
(219
|
)
| |
$
|
(227
|
)
|
Deferred income tax expense (8) | | |
-
| | | |
(22
|
)
| | |
-
| | | |
(22
|
)
|
Tax effect on selected items impacting comparability
| |
|
11
|
| |
|
5
|
| |
|
30
|
| |
|
32
|
|
Selected items impacting comparability of net income attributable to
PAA
| |
$
|
(35
|
)
| |
$
|
(131
|
)
| |
$
|
(189
|
)
| |
$
|
(217
|
)
| | | | | | | | |
|
Impact to basic net income per common unit
| |
$
|
(0.08
|
)
| |
$
|
(0.33
|
)
| |
$
|
(0.46
|
)
| |
$
|
(0.55
|
)
|
Impact to diluted net income per common unit
| |
$
|
(0.08
|
)
| |
$
|
(0.33
|
)
| |
$
|
(0.46
|
)
| |
$
|
(0.54
|
)
|
|
| | (1) | |
Certain of our non-GAAP financial measures may not be impacted by
each of the selected items impacting comparability.
| | |
| (2) | |
We use derivative instruments for risk management purposes and our
related processes include specific identification of hedging
instruments to an underlying hedged transaction. Although we
identify an underlying transaction for each derivative instrument
we enter into, there may not be an accounting hedge relationship
between the instrument and the underlying transaction. In the
course of evaluating our results of operations, we identify the
earnings that were recognized during the period related to
derivative instruments for which the identified underlying
transaction does not occur in the current period and exclude the
related gains and losses in determining adjusted results. In
addition, we exclude gains and losses on derivatives that are
related to investing activities, such as the purchase of linefill.
We also exclude the impact of corresponding inventory valuation
adjustments, as applicable, as well as the mark-to-market
adjustment related to our Preferred Distribution Rate Reset Option.
| | |
| (3) | |
We carry approximately 5 million barrels of crude oil and NGL
inventory that is comprised of minimum working inventory
requirements in third-party assets and other working inventory
that is needed for our commercial operations. We consider this
inventory necessary to conduct our operations and we intend to
carry this inventory for the foreseeable future. Therefore, we
classify this inventory as long-term on our balance sheet and do
not hedge the inventory with derivative instruments (similar to
linefill in our own assets). We treat the impact of changes in the
average cost of the long-term inventory (that result from
fluctuations in market prices) and writedowns of such inventory
that result from price declines as a selected item impacting
comparability.
| | |
| (4) | |
We have certain agreements that require counterparties to deliver,
transport or throughput a minimum volume over an agreed upon
period. Substantially all of such agreements were entered into
with counterparties to economically support the return on our
capital expenditure necessary to construct the related asset. Some
of these agreements include make-up rights if the minimum volume
is not met. We record a receivable from the counterparty in the
period that services are provided or when the transaction occurs,
including amounts for deficiency obligations from counterparties
associated with minimum volume commitments. If a counterparty has
a make-up right associated with a deficiency, we defer the revenue
attributable to the counterparty's make-up right and subsequently
recognize the revenue at the earlier of when the deficiency volume
is delivered or shipped, when the make-up right expires or when it
is determined that the counterparty's ability to utilize the
make-up right is remote. We include the impact of amounts billed
to counterparties for their deficiency obligation, net of
applicable amounts subsequently recognized into revenue, as a
selected item impacting comparability. We believe the inclusion of
the contractually committed revenues associated with that period
is meaningful to investors as the related asset has been
constructed, is standing ready to provide the committed service
and the fixed operating costs are included in the current period
results.
| | |
| (5) | |
Our total equity-indexed compensation expense includes expense
associated with awards that will or may be settled in units and
awards that will or may be settled in cash. The awards that will
or may be settled in units are included in our diluted net income
per unit calculation when the applicable performance criteria have
been met. We consider the compensation expense associated with
these awards as a selected item impacting comparability as the
dilutive impact of the outstanding awards is included in our
diluted net income per unit calculation and the majority of the
awards are expected to be settled in units. The portion of
compensation expense associated with awards that are certain to be
settled in cash is not considered a selected item impacting
comparability.
| | |
| (6) | |
During the periods presented, there were fluctuations in the value
of CAD to USD, resulting in gains and losses that were not related
to our core operating results for the period and were thus
classified as a selected item impacting comparability.
| | |
| (7) | |
Includes costs related to the Line 901 incident that occurred in
May 2015, net of amounts we believe are probable of recovery from
insurance.
| | |
| (8) | |
Includes the initial cumulative effect of a change in Canadian tax
legislation impacting the period.
|
| | |
| |
|
|
| | |
| | |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES | | | | | | | | | | | | | | | FINANCIAL SUMMARY (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| | |
| | | | | | | | | | | | | | | SELECTED FINANCIAL DATA BY SEGMENT | | | | | | | | | | | | | | | | | |
(in millions)
| | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | | Three Months Ended | | | June 30, 2016 | | | | June 30, 2015 | | | | | | | | | Supply and | | | | | | | | Supply and | | | Transportation | | Facilities | | Logistics | | | | Transportation | | Facilities | | Logistics |
Revenues (1) | |
$
|
403
| | | |
$
|
270
| | | |
$
|
4,652
| | | | |
$
|
402
| | | |
$
|
269
| | | |
$
|
6,351
| |
Purchases and related costs (1) | | |
(24
|
)
| | | |
(6
|
)
| | | |
(4,566
|
)
| | | | |
(29
|
)
| | | |
(7
|
)
| | | |
(6,168
|
)
|
Field operating costs (1) (2) | | |
(136
|
)
| | | |
(88
|
)
| | | |
(74
|
)
| | | | |
(209
|
)
| | | |
(97
|
)
| | | |
(110
|
)
|
Equity-indexed compensation expense - operations
| | |
(5
|
)
| | | |
(2
|
)
| | | |
(1
|
)
| | | | |
(3
|
)
| | | |
(1
|
)
| | | |
-
| |
Segment general and administrative expenses (2) (3) | | |
(21
|
)
| | | |
(14
|
)
| | | |
(24
|
)
| | | | |
(22
|
)
| | | |
(17
|
)
| | | |
(27
|
)
|
Equity-indexed compensation expense - general and administrative
| | |
(5
|
)
| | | |
(4
|
)
| | | |
(5
|
)
| | | | |
(5
|
)
| | | |
(3
|
)
| | | |
(5
|
)
|
Equity earnings in unconsolidated entities
| |
|
40
|
| | |
|
-
|
| | |
|
-
|
| | | |
|
52
|
| | |
|
-
|
| | |
|
-
|
|
Reported segment profit/(loss)
| |
$
|
252
|
| | |
$
|
156
|
| | |
$
|
(18
|
)
| | | |
$
|
186
|
| | |
$
|
144
|
| | |
$
|
41
|
| | | | | | | | | | | | | | | | | | |
|
Selected items impacting comparability of segment profit:
| | | | | | | | | | | | | | |
(Gains)/losses from derivative activities net of inventory valuation
adjustments
| |
$
|
-
| | | |
$
|
(2
|
)
| | |
$
|
121
| | | | |
$
|
-
| | | |
$
|
-
| | | |
$
|
60
| |
Long-term inventory costing adjustments
| | |
-
| | | | |
-
| | | | |
(67
|
)
| | | | |
-
| | | | |
-
| | | | |
(23
|
)
|
Deficiencies under minimum volume commitments, net
| | |
4
| | | | |
4
| | | | |
-
| | | | | |
-
| | | | |
-
| | | | |
-
| |
Equity-indexed compensation expense
| | |
5
| | | | |
3
| | | | |
3
| | | | | |
5
| | | | |
2
| | | | |
4
| |
Net loss on foreign currency revaluation
| | |
-
| | | | |
-
| | | | |
-
| | | | | |
-
| | | | |
-
| | | | |
2
| |
Line 901 incident
| |
|
-
|
| | |
|
-
|
| | |
|
-
|
| | | |
|
65
|
| | |
|
-
|
| | |
|
-
|
|
Selected items impacting comparability of segment profit (4) | |
$
|
9
|
| | |
$
|
5
|
| | |
$
|
57
|
| | | |
$
|
70
|
| | |
$
|
2
|
| | |
$
|
43
|
|
Adjusted segment profit
| |
$
|
261
|
| | |
$
|
161
|
| | |
$
|
39
|
| | | |
$
|
256
|
| | |
$
|
146
|
| | |
$
|
84
|
| | | | | | | | | | | | | | | | | | |
|
Maintenance capital
| |
$
|
23
|
| | |
$
|
9
|
| | |
$
|
3
|
| | | |
$
|
33
|
| | |
$
|
17
|
| | |
$
|
2
|
| | | | | | | | | | | | | | | | | | |
| | | Six Months Ended | | | | Six Months Ended | | | June 30, 2016 | | | | June 30, 2015 | | | | | | | | | Supply and | | | | | | | | Supply and | | | Transportation | | Facilities | | Logistics | | | | Transportation | | Facilities | | Logistics |
Revenues (1) | |
$
|
787
| | | |
$
|
535
| | | |
$
|
8,473
| | | | |
$
|
803
| | | |
$
|
525
| | | |
$
|
11,984
| |
Purchases and related costs (1) | | |
(45
|
)
| | | |
(11
|
)
| | | |
(8,243
|
)
| | | | |
(59
|
)
| | | |
(11
|
)
| | | |
(11,521
|
)
|
Field operating costs (1) (2) | | |
(274
|
)
| | | |
(173
|
)
| | | |
(155
|
)
| | | | |
(346
|
)
| | | |
(187
|
)
| | | |
(227
|
)
|
Equity-indexed compensation expense - operations
| | |
(5
|
)
| | | |
(2
|
)
| | | |
(1
|
)
| | | | |
(6
|
)
| | | |
(2
|
)
| | | |
(1
|
)
|
Segment general and administrative expenses (2)(3) | | |
(44
|
)
| | | |
(30
|
)
| | | |
(48
|
)
| | | | |
(43
|
)
| | | |
(33
|
)
| | | |
(54
|
)
|
Equity-indexed compensation expense - general and administrative
| | |
(7
|
)
| | | |
(4
|
)
| | | |
(7
|
)
| | | | |
(10
|
)
| | | |
(7
|
)
| | | |
(10
|
)
|
Equity earnings in unconsolidated entities
| |
|
87
|
| | |
|
-
|
| | |
|
-
|
| | | |
|
89
|
| | |
|
-
|
| | |
|
-
|
|
Reported segment profit
| |
$
|
499
|
| | |
$
|
315
|
| | |
$
|
19
|
| | | |
$
|
428
|
| | |
$
|
285
|
| | |
$
|
171
|
| | | | | | | | | | | | | | | | | | |
|
Selected items impacting comparability of segment profit:
| | | | | | | | | | | | | | |
(Gains)/losses from derivative activities net of inventory valuation
adjustments
| |
$
|
-
| | | |
$
|
(1
|
)
| | |
$
|
243
| | | | |
$
|
-
| | | |
$
|
-
| | | |
$
|
151
| |
Long-term inventory costing adjustments
| | |
-
| | | | |
-
| | | | |
(44
|
)
| | | | |
-
| | | | |
-
| | | | |
15
| |
Deficiencies under minimum volume commitments, net
| | |
24
| | | | |
10
| | | | |
-
| | | | | |
-
| | | | |
-
| | | | |
-
| |
Equity-indexed compensation expense
| | |
7
| | | | |
3
| | | | |
5
| | | | | |
9
| | | | |
5
| | | | |
8
| |
Net (gain)/loss on foreign currency revaluation
| | |
-
| | | | |
-
| | | | |
1
| | | | | |
-
| | | | |
-
| | | | |
(30
|
)
|
Line 901 incident
| |
|
-
|
| | |
|
-
|
| | |
|
-
|
| | | |
|
65
|
| | |
|
-
|
| | |
|
-
|
|
Selected items impacting comparability of segment profit (4) | |
$
|
31
|
| | |
$
|
12
|
| | |
$
|
205
|
| | | |
$
|
74
|
| | |
$
|
5
|
| | |
$
|
144
|
|
Adjusted segment profit
| |
$
|
530
|
| | |
$
|
327
|
| | |
$
|
224
|
| | | |
$
|
502
|
| | |
$
|
290
|
| | |
$
|
315
|
| | | | | | | | | | | | | | | | | | |
| Maintenance capital | |
$
|
57
|
| | |
$
|
18
|
| | |
$
|
6
|
| | | |
$
|
66
|
| | |
$
|
32
|
| | |
$
|
4
|
| | | | | | | | | | | | | | | | | | |
|
(1) |
|
Includes intersegment amounts.
| | |
| (2) | |
Field operating costs and Segment general and administrative
expenses exclude equity-indexed compensation expense, which is
presented separately in the table above.
| | |
| (3) | |
Segment general and administrative expenses 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.
| | |
| (4) | |
Certain of our 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)
|
|
|
|
|
|
|
|
| | | | | | | | |
| FINANCIAL DATA RECONCILIATIONS | | | | | | | | |
(in millions)
| | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | |
| 2016 |
| |
| 2015 |
| |
| 2016 |
| |
| 2015 |
| Net Income to Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA"), Excluding Selected Items Impacting
Comparability ("Adjusted EBITDA") and Implied Distributable Cash
Flow ("DCF") Reconciliations | | |
Net Income
| |
$
|
102
| | |
$
|
124
| | |
$
|
304
| | |
$
|
408
| |
Interest expense, net
| | |
114
| | | |
107
| | | |
227
| | | |
212
| |
Income tax (benefit)/expense
| | |
(5
|
)
| | |
33
| | | |
13
| | | |
49
| |
Depreciation and amortization
| |
|
204
|
| |
|
108
|
| |
|
319
|
| |
|
212
|
|
EBITDA
| |
$
|
415
| | |
$
|
372
| | |
$
|
863
| | |
$
|
881
| |
Selected items impacting comparability of EBITDA (1) | |
|
46
|
| |
|
114
|
| |
|
219
|
| |
|
227
|
|
Adjusted EBITDA
| |
$
|
461
| | |
$
|
486
| | |
$
|
1,082
| | |
$
|
1,108
| |
Interest expense, net (2) | | |
(110
|
)
| | |
(104
|
)
| | |
(219
|
)
| | |
(204
|
)
|
Maintenance capital
| | |
(35
|
)
| | |
(52
|
)
| | |
(81
|
)
| | |
(102
|
)
|
Current income tax expense
| | |
(9
|
)
| | |
(19
|
)
| | |
(40
|
)
| | |
(61
|
)
|
Equity earnings in unconsolidated entities, net of distributions
| | |
8
| | | |
(3
|
)
| | |
14
| | | |
13
| |
Distributions to noncontrolling interests (3) | |
|
(1
|
)
| |
|
(1
|
)
| |
|
(2
|
)
| |
|
(2
|
)
|
Implied DCF (4) | |
$
|
314
|
| |
$
|
307
|
| |
$
|
754
|
| |
$
|
752
|
|
|
| | (1) | |
Certain of our non-GAAP financial measures may not be impacted by
each of the selected items impacting comparability.
| | |
| (2) | |
Excludes certain non-cash items impacting interest expense such as
amortization of debt issuance costs and terminated interest rate
swaps.
| | |
| (3) | |
Includes distributions that pertain to the current period's net
income, which are paid in the subsequent period.
| | |
| (4) | |
Including costs recognized during the period related to the Line
901 incident that occurred during May 2015, Implied DCF would have
been $242 million and $687 million for the three and six months
ended June 30, 2015, respectively.
|
|
| |
| |
| |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES | | | | | | | | | FINANCIAL SUMMARY (unaudited)
|
|
|
|
|
|
|
|
| | | | | | | | |
| COMPUTATION OF ADJUSTED BASIC AND DILUTED
NET INCOME/(LOSS) PER COMMON UNIT | | | | | | |
(in millions, except per unit data)
| | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | |
| 2016 |
| |
| 2015 |
| |
| 2016 |
| |
| 2015 |
| Basic Adjusted Net Income/(Loss) per Common Unit | | | | | | | | |
Net income attributable to PAA
| |
$
|
101
| | |
$
|
124
| | |
$
|
302
| | |
$
|
407
| |
Selected items impacting comparability of net income attributable to
PAA (1) | |
|
35
|
| |
|
131
|
| |
|
189
|
| |
|
217
|
|
Adjusted net income attributable to PAA
| | |
136
| | | |
255
| | | |
491
| | | |
624
| |
Distributions to Series A preferred units (2) | | |
(33
|
)
| | |
-
| | | |
(55
|
)
| | |
-
| |
Distributions to general partner (2) | | |
(155
|
)
| | |
(152
|
)
| | |
(310
|
)
| | |
(300
|
)
|
Distributions to participating securities (2) | | |
(1
|
)
| | |
(1
|
)
| | |
(2
|
)
| | |
(3
|
)
|
Undistributed loss allocated to general partner (2) | |
|
6
|
| |
|
4
|
| |
|
8
|
| |
|
5
|
|
Adjusted net income/(loss) allocated to common unitholders in
accordance with application of the two-class method for MLPs
| |
$
|
(47
|
)
| |
$
|
106
|
| |
$
|
132
|
| |
$
|
326
|
| | | | | | | | |
|
Basic weighted average common units outstanding
| | |
398
| | | |
397
| | | |
398
| | | |
390
| | | | | | | | | |
|
Basic adjusted net income/(loss) per common unit
| |
$
|
(0.12
|
)
| |
$
|
0.27
|
| |
$
|
0.33
|
| |
$
|
0.84
|
| | | | | | | | |
| Diluted Adjusted Net Income/(Loss) per Common Unit | | | | | | | | |
Net income attributable to PAA
| |
$
|
101
| | |
$
|
124
| | |
$
|
302
| | |
$
|
407
| |
Selected items impacting comparability of net income attributable to
PAA (1) | |
|
35
|
| |
|
131
|
| |
|
189
|
| |
|
217
|
|
Adjusted net income attributable to PAA
| | |
136
| | | |
255
| | | |
491
| | | |
624
| |
Distributions to Series A preferred units (2) | | |
(33
|
)
| | |
-
| | | |
(55
|
)
| | |
-
| |
Distributions to general partner (2) | | |
(155
|
)
| | |
(152
|
)
| | |
(310
|
)
| | |
(300
|
)
|
Distributions to participating securities (2) | | |
(1
|
)
| | |
(1
|
)
| | |
(2
|
)
| | |
(3
|
)
|
Undistributed loss allocated to general partner (2) | |
|
6
|
| |
|
4
|
| |
|
8
|
| |
|
5
|
|
Adjusted net income/(loss) allocated to common unitholders in
accordance with application of the two-class method for MLPs
| |
$
|
(47
|
)
| |
$
|
106
|
| |
$
|
132
|
| |
$
|
326
|
| | | | | | | | |
|
Basic weighted average common units outstanding
| | |
398
| | | |
397
| | | |
398
| | | |
390
| |
Effect of dilutive securities: Weighted average LTIP units (3) | |
|
-
|
| |
|
3
|
| |
|
1
|
| |
|
3
|
|
Diluted weighted average common units outstanding
| |
|
398
|
| |
|
400
|
| |
|
399
|
| |
|
393
|
| | | | | | | | |
|
Diluted adjusted net income/(loss) per common unit (4) | |
$
|
(0.12
|
)
| |
$
|
0.27
|
| |
$
|
0.33
|
| |
$
|
0.83
|
|
|
| | (1) | |
Certain of our non-GAAP financial measures may not be impacted by
each of the selected items impacting comparability.
| | |
| (2) | |
Adjusted net income allocated to common unitholders is calculated
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, common
unitholders and participating securities in accordance with the
contractual terms of our partnership agreement and as further
prescribed under the two-class method.
| | |
| (3) | |
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. Such LTIP awards were excluded from the calculation of diluted
net income/(loss) per common unit for the three months ended June
30, 2016 as the effect was antidilutive.
| | |
| (4) | |
The possible conversion of our Series A preferred units was excluded
from the calculation of diluted adjusted net income/(loss) per
common unit for the three and six months ended June 30, 2016 as the
effect was antidilutive.
|
|
| | | | |
| |
|
| |
| | |
| | PLAINS GP HOLDINGS AND SUBSIDIARIES | | | | | | | | | | | | | | | | FINANCIAL SUMMARY (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | | |
| CONDENSED CONSOLIDATING STATEMENTS OF
OPERATIONS (1) | | | | | | | | | | | |
(in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Three Months Ended | | | June 30, 2016 | | | June 30, 2015 | | | PAA | | Consolidating Adjustments (2) | | PAGP | | | PAA | | Consolidating Adjustments (2) | | PAGP | | | | | | | | | | | | | | | |
| REVENUES | |
$
|
4,950
| | |
$
|
-
| | | |
$
|
4,950
| | | |
$
|
6,663
| | |
$
|
-
| | | |
$
|
6,663
| | | | | | | | | | | | | | | | |
| COSTS AND EXPENSES | | | | | | | | | | | | | | | |
Purchases and related costs
| | |
4,224
| | | |
-
| | | | |
4,224
| | | | |
5,848
| | | |
-
| | | | |
5,848
| |
Field operating costs
| | |
303
| | | |
-
| | | | |
303
| | | | |
417
| | | |
-
| | | | |
417
| |
General and administrative expenses
| | |
73
| | | |
-
| | | | |
73
| | | | |
79
| | | |
1
| | | | |
80
| |
Depreciation and amortization
| |
|
204
|
| |
|
1
|
| | |
|
205
|
| | |
|
108
|
| |
|
-
|
| | |
|
108
|
|
Total costs and expenses
| | |
4,804
| | | |
1
| | | | |
4,805
| | | | |
6,452
| | | |
1
| | | | |
6,453
| | | | | | | | | | | | | | | | |
| OPERATING INCOME | | |
146
| | | |
(1
|
)
| | | |
145
| | | | |
211
| | | |
(1
|
)
| | | |
210
| | | | | | | | | | | | | | | | |
| OTHER INCOME/(EXPENSE) | | | | | | | | | | | | | | | |
Equity earnings in unconsolidated entities
| | |
40
| | | |
-
| | | | |
40
| | | | |
52
| | | |
-
| | | | |
52
| |
Interest expense, net
| | |
(114
|
)
| | |
(4
|
)
| | | |
(118
|
)
| | | |
(107
|
)
| | |
(2
|
)
| | | |
(109
|
)
|
Other income/(expense), net
| |
|
25
|
| |
|
-
|
| | |
|
25
|
| | |
|
1
|
| |
|
-
|
| | |
|
1
|
| | | | | | | | | | | | | | | |
| INCOME BEFORE TAX | | |
97
| | | |
(5
|
)
| | | |
92
| | | | |
157
| | | |
(3
|
)
| | | |
154
| |
Current income tax expense
| | |
(9
|
)
| | |
-
| | | | |
(9
|
)
| | | |
(19
|
)
| | |
-
| | | | |
(19
|
)
|
Deferred income tax benefit/(expense)
| |
|
14
|
| |
|
(15
|
)
| | |
|
(1
|
)
| | |
|
(14
|
)
| |
|
(18
|
)
| | |
|
(32
|
)
| | | | | | | | | | | | | | | |
| NET INCOME | | |
102
| | | |
(20
|
)
| | | |
82
| | | | |
124
| | | |
(21
|
)
| | | |
103
| |
Net income attributable to noncontrolling interests
| |
|
(1
|
)
| |
|
(39
|
)
| | |
|
(40
|
)
| | |
|
-
|
| |
|
(73
|
)
| | |
|
(73
|
)
| NET INCOME ATTRIBUTABLE TO PAGP | |
$
|
101
|
| |
$
|
(59
|
)
| | |
$
|
42
|
| | |
$
|
124
|
| |
$
|
(94
|
)
| | |
$
|
30
|
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| BASIC NET INCOME PER CLASS A SHARE | | | | | | |
$
|
0.16
|
| | | | | | | |
$
|
0.14
|
| | | | | | | | | | | | | | | |
| DILUTED NET INCOME PER CLASS A SHARE | | | | | | |
$
|
0.15
|
| | | | | | | |
$
|
0.14
|
| | | | | | | | | | | | | | | |
| BASIC WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING | | | |
|
267
|
| | | | | | | |
|
224
|
| | | | | | | | | | | | | | | |
| DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING | | |
|
624
|
| | | | | | | |
|
224
|
| | | | | | | | | | | | | | | |
|
(1) |
|
The 2015 period has been retroactively adjusted to reflect the
reclassification of the amortization of debt issuance costs from
"Depreciation and amortization" to "Interest expense, net" as a
result of our adoption of revised debt issuance costs guidance
issued by the FASB.
| | |
| (2) | |
Represents the aggregate consolidating adjustments necessary to
produce consolidated financial statements for PAGP.
|
|
| |
| | |
| |
|
| |
| | |
| | PLAINS GP HOLDINGS AND SUBSIDIARIES | | | | | | | | | | | | | | | | FINANCIAL SUMMARY (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| | | | | | | | | | | | | | | |
| CONDENSED CONSOLIDATING STATEMENTS OF
OPERATIONS (1) | | | | | | | | | | | |
(in millions, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended | | | Six Months Ended | | | June 30, 2016 | | | June 30, 2015 | | | PAA | | Consolidating Adjustments (2) | | PAGP | | | PAA | | Consolidating Adjustments (2) | | PAGP | | | | | | | | | | | | | | | |
| REVENUES | |
$
|
9,060
| | |
$
|
-
| | | |
$
|
9,060
| | | |
$
|
12,605
| | |
$
|
-
| | | |
$
|
12,605
| | | | | | | | | | | | | | | | |
| COSTS AND EXPENSES | | | | | | | | | | | | | | | |
Purchases and related costs
| | |
7,571
| | | |
-
| | | | |
7,571
| | | | |
10,890
| | | |
-
| | | | |
10,890
| |
Field operating costs
| | |
603
| | | |
-
| | | | |
603
| | | | |
763
| | | |
-
| | | | |
763
| |
General and administrative expenses
| | |
140
| | | |
1
| | | | |
141
| | | | |
157
| | | |
2
| | | | |
159
| |
Depreciation and amortization
| |
|
319
|
| |
|
1
|
| | |
|
320
|
| | |
|
212
|
| |
|
1
|
| | |
|
213
|
|
Total costs and expenses
| | |
8,633
| | | |
2
| | | | |
8,635
| | | | |
12,022
| | | |
3
| | | | |
12,025
| | | | | | | | | | | | | | | | |
| OPERATING INCOME | | |
427
| | | |
(2
|
)
| | | |
425
| | | | |
583
| | | |
(3
|
)
| | | |
580
| | | | | | | | | | | | | | | | |
| OTHER INCOME/(EXPENSE) | | | | | | | | | | | | | | | |
Equity earnings in unconsolidated entities
| | |
87
| | | |
-
| | | | |
87
| | | | |
89
| | | |
-
| | | | |
89
| |
Interest expense, net
| | |
(227
|
)
| | |
(6
|
)
| | | |
(233
|
)
| | | |
(212
|
)
| | |
(4
|
)
| | | |
(216
|
)
|
Other income/(expense), net
| |
|
30
|
| |
|
-
|
| | |
|
30
|
| | |
|
(3
|
)
| |
|
-
|
| | |
|
(3
|
)
| | | | | | | | | | | | | | | |
| INCOME BEFORE TAX | | |
317
| | | |
(8
|
)
| | | |
309
| | | | |
457
| | | |
(7
|
)
| | | |
450
| |
Current income tax expense
| | |
(40
|
)
| | |
-
| | | | |
(40
|
)
| | | |
(61
|
)
| | |
-
| | | | |
(61
|
)
|
Deferred income tax benefit/(expense)
| |
|
27
|
| |
|
(37
|
)
| | |
|
(10
|
)
| | |
|
12
|
| |
|
(36
|
)
| | |
|
(24
|
)
| | | | | | | | | | | | | | | |
| NET INCOME | | |
304
| | | |
(45
|
)
| | | |
259
| | | | |
408
| | | |
(43
|
)
| | | |
365
| |
Net income attributable to noncontrolling interests
| |
|
(2
|
)
| |
|
(179
|
)
| | |
|
(181
|
)
| | |
|
(1
|
)
| |
|
(303
|
)
| | |
|
(304
|
)
| NET INCOME ATTRIBUTABLE TO PAGP | |
$
|
302
|
| |
$
|
(224
|
)
| | |
$
|
78
|
| | |
$
|
407
|
| |
$
|
(346
|
)
| | |
$
|
61
|
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| BASIC NET INCOME PER CLASS A SHARE | | | | | | |
$
|
0.30
|
| | | | | | | |
$
|
0.28
|
| | | | | | | | | | | | | | | |
| DILUTED NET INCOME PER CLASS A SHARE | | | | | | |
$
|
0.29
|
| | | | | | | |
$
|
0.27
|
| | | | | | | | | | | | | | | |
| BASIC WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING | | | | |
|
260
|
| | | | | | | |
|
218
|
| | | | | | | | | | | | | | | |
| DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING | | |
|
652
|
| | | | | | | |
|
606
|
| | | | | | | | | | | | | | | |
|
(1) |
|
The 2015 period has been retroactively adjusted to reflect the
reclassification of the amortization of debt issuance costs from
"Depreciation and amortization" to "Interest expense, net" as a
result of our adoption of revised debt issuance costs guidance
issued by the FASB.
| | |
| (2) | |
Represents the aggregate consolidating adjustments necessary to
produce consolidated financial statements for PAGP.
|
|
| |
| |
|
|
| |
|
| |
| | |
| | PLAINS GP HOLDINGS AND SUBSIDIARIES | | | | | | | | | | | | | | | | | FINANCIAL SUMMARY (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| CONDENSED CONSOLIDATING BALANCE SHEET DATA | | | | | | | | | | | | | | |
(in millions)
| | | | | | | | | | | | | | | | | | | June 30, 2016 | | | December 31, 2015 | | | PAA | | Consolidating Adjustments (1) | | | | PAGP | | | PAA | | Consolidating Adjustments (1) | | PAGP | ASSETS | | | | | | | | | | | | | | | | |
Current assets
| |
$
|
3,603
| |
$
|
2
| | | | |
$
|
3,605
| | |
$
|
2,969
| |
$
|
3
| | | |
$
|
2,972
|
Property and equipment, net
| | |
13,598
| | |
19
| | | | | |
13,617
| | | |
13,474
| | |
19
| | | | |
13,493
|
Goodwill
| | |
2,396
| | |
-
| | | | | |
2,396
| | | |
2,405
| | |
-
| | | | |
2,405
|
Investments in unconsolidated entities
| | |
2,161
| | |
-
| | | | | |
2,161
| | | |
2,027
| | |
-
| | | | |
2,027
|
Deferred tax asset
| | |
-
| | |
1,893
| | | | | |
1,893
| | | |
-
| | |
1,835
| | | | |
1,835
|
Linefill and base gas
| | |
902
| | |
-
| | | | | |
902
| | | |
898
| | |
-
| | | | |
898
|
Long-term inventory
| | |
184
| | |
-
| | | | | |
184
| | | |
129
| | |
-
| | | | |
129
|
Other long-term assets, net
| |
|
319
| |
|
(2
|
)
| | | |
|
317
| | |
|
386
| |
|
(3
|
)
| | |
|
383
|
Total assets
| |
$
|
23,163
| |
$
|
1,912
|
| | | |
$
|
25,075
| | |
$
|
22,288
| |
$
|
1,854
|
| | |
$
|
24,142
| | | | | | | | | | | | | | | | |
| LIABILITIES AND PARTNERS' CAPITAL | | | | | | | | | | | | | | | | |
Current liabilities
| |
$
|
4,029
| |
$
|
2
| | | | |
$
|
4,031
| | |
$
|
3,407
| |
$
|
2
| | | |
$
|
3,409
|
Senior notes, net of unamortized discounts and debt issuance costs
| | |
9,128
| | |
-
| | | | | |
9,128
| | | |
9,698
| | |
-
| | | | |
9,698
|
Other long-term debt, net of unamortized debt issuance costs
| | |
358
| | |
591
| | | | | |
949
| | | |
677
| | |
557
| | | | |
1,234
|
Other long-term liabilities and deferred credits
| |
|
678
| |
|
-
|
| | | |
|
678
| | |
|
567
| |
|
-
|
| | |
|
567
|
Total liabilities
| | |
14,193
| | |
593
| | | | | |
14,786
| | | |
14,349
| | |
559
| | | | |
14,908
| | | | | | | | | | | | | | | | |
|
Partners' capital excluding noncontrolling interests
| | |
8,912
| | |
(7,110
|
)
| | | | |
1,802
| | | |
7,881
| | |
(6,119
|
)
| | | |
1,762
|
Noncontrolling interests
| |
|
58
| |
|
8,429
|
| | | |
|
8,487
| | |
|
58
| |
|
7,414
|
| | |
|
7,472
|
Total partners' capital
| |
|
8,970
| |
|
1,319
|
| | | |
|
10,289
| | |
|
7,939
| |
|
1,295
|
| | |
|
9,234
|
Total liabilities and partners' capital
| |
$
|
23,163
| |
$
|
1,912
|
| | | |
$
|
25,075
| | |
$
|
22,288
| |
$
|
1,854
|
| | |
$
|
24,142
| | | | | | | | | | | | | | | | |
| (1) Represents the aggregate consolidating adjustments
necessary to produce consolidated financial statements for PAGP.
|
|
|
| | PLAINS GP HOLDINGS AND SUBSIDIARIES | | | DISTRIBUTION SUMMARY (unaudited)
|
|
|
| | | | Q2 2016 PAGP DISTRIBUTION SUMMARY | | |
(in millions, except per unit and per share data)
| | | | | |
| | | | Q2 2016 (1) |
PAA Distribution/Common Unit
| |
$
|
0.7000
| |
GP Distribution/Common Unit
| |
$
|
0.3885
|
|
Total Distribution/Common Unit
| |
$
|
1.0885
|
| | | |
|
PAA Common Units Outstanding at 7/29/16
| | |
398
| | | | |
|
Gross GP Distribution
| |
$
|
160
| |
Less: IDR Reduction
| |
|
(5
|
)
|
Net Distribution from PAA to AAP (2) | |
$
|
155
| |
Less: Debt Service
| | |
(3
|
)
|
Less: G&A Expense
| |
|
(1
|
)
|
Cash Available for Distribution by AAP
| |
$
|
151
|
| | | |
| Distributions to AAP Partners | | |
Direct AAP Owners & AAP Management (59% economic interest)
| |
$
|
89
| |
PAGP (41% economic interest)
| |
|
62
|
|
Total distributions to AAP Partners
| |
$
|
151
|
| | | |
|
Distribution to PAGP Investors
| |
$
|
62
|
|
PAGP Class A Shares Outstanding at 7/29/16
| |
|
267
|
|
PAGP Distribution/Class A Share
| |
$
|
0.231
|
| | | |
| (1) Amounts may not recalculate due to rounding.
| (2) Plains AAP, L.P. ("AAP") is the general partner of
PAA.
|
|
|
| |
| |
|
| |
| | PLAINS GP HOLDINGS AND SUBSIDIARIES | | | | | | | | | | FINANCIAL SUMMARY (unaudited)
|
|
|
|
|
|
|
|
|
| | | | | | | | | |
| COMPUTATION OF BASIC AND DILUTED NET
INCOME PER CLASS A SHARE | | | | | | | | |
(in millions, except per share data)
| | | | | | | | | | | | Three Months Ended | | | Six Months Ended | | | June 30, | | | June 30, | | |
| 2016 | |
| 2015 | | |
| 2016 | |
| 2015 | Basic Net Income per Class A Share | | | | | | | | | |
Net income attributable to PAGP
| |
$
|
42
| |
$
|
30
| | |
$
|
78
| |
$
|
61
|
Basic weighted average Class A shares outstanding
| | |
267
| | |
224
| | | |
260
| | |
218
| | | | | | | | | |
|
Basic net income per Class A share
| |
$
|
0.16
| |
$
|
0.14
| | |
$
|
0.30
| |
$
|
0.28
| | | | | | | | | |
| Diluted Net Income per Class A Share | | | | | | | | | |
Net income attributable to PAGP
| |
$
|
42
| |
$
|
30
| | |
$
|
78
| |
$
|
61
|
Incremental net income allocated to PAGP resulting from assumed
exchange of AAP units and AAP Management Units
| |
|
52
| |
|
-
| | |
|
111
| |
|
105
|
Net income allocated to PAGP including incremental net income from
assumed exchange of AAP units and AAP Management Units
| |
$
|
94
| |
$
|
30
| | |
$
|
189
| |
$
|
166
| | | | | | | | | |
|
Basic weighted average Class A shares outstanding
| | |
267
| | |
224
| | | |
260
| | |
218
|
Dilutive shares resulting from assumed exchange of AAP units and AAP
Management Units
| |
|
357
| |
|
-
| | |
|
392
| |
|
388
|
Diluted weighted average Class A shares outstanding
| |
|
624
| |
|
224
| | |
|
652
| |
|
606
| | | | | | | | | |
|
Diluted net income per Class A share
| |
$
|
0.15
| |
$
|
0.14
| | |
$
|
0.29
| |
$
|
0.27
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160802006906/en/
Plains All American Pipeline, L.P. and Plains GP Holdings Ryan
Smith, 866-809-1291 Director, Investor Relations or Al
Swanson, 800-564-3036 Executive Vice President, CFO
|
|