Plains All American Pipeline, L.P. (NYSE: PAA) and Plains GP
Holdings (NYSE: PAGP) today reported fourth-quarter and full-year
2013 results.
Plains All American Pipeline
Summary Financial
Information (1)
(in millions, except per unit data)
Three Months
Ended
December 31,
Twelve Months Ended
December 31,
2013 2012 %
Change
2013 2012 %
Change
Net income attributable to PAA $ 309 $ 320 -3 % $
1,361 $ 1,094 24 %
Diluted net income per limited partner
unit $ 0.58 $ 0.69 -16 % $ 2.80 $ 2.40 17 %
EBITDA $ 526
$ 541 -3 % $ 2,168 $ 1,951 11 %
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2013 2012 %
Change
2013 2012 %
Change
Adjusted net income attributable to PAA $ 371 $ 429 -14 % $
1,466 $ 1,414 4 %
Diluted adjusted net income per limited
partner unit $ 0.76 $ 1.01 -25 % $ 3.10 $ 3.35 -7 %
Adjusted
EBITDA $ 595 $ 609 -2 % $ 2,292 $
2,107 9 %
Distribution per unit declared for the period
$ 0.6150 $ 0.5625 9.3 %
(1) The Partnership’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 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 ended the year on another strong note, delivering adjusted
EBITDA that exceeded the midpoint of our fourth-quarter guidance by
$50 million and the mid-point of our 2013 beginning-of-the-year
guidance by over $265 million,” stated Greg L. Armstrong, Chairman
and CEO of Plains All American Pipeline. “These results were
underpinned by solid performance in our fee-based Facilities
segment and above baseline performance in our Supply and Logistics
segment.”
“PAA’s 2013 results and our 2014 guidance for our fee-based
Transportation and Facilities segments continue to reflect the
benefits of our ongoing expansion capital program. Aggregate
adjusted segment profit from our Transportation and Facilities
segments increased 12% in 2013 over 2012 results, and the midpoint
of our guidance range anticipates a year-to-year increase of
approximately 15% in 2014,” said Armstrong. “Guidance for our
Supply and Logistics segment incorporates a return to baseline-type
performance; however, as in prior years, the partnership remains
well positioned to outperform guidance if market conditions remain
favorable.”
“We have targeted to grow PAA’s distributions per unit by
approximately 10% in 2014, while continuing to maintain solid
distribution coverage.” Armstrong stated that the partnership’s
2014 expansion capital program increased to $1.7 billion, which
reflects a $300 million increase from PAA’s preliminary targeted
range. Armstrong also noted that PAA is well positioned financially
to both execute its expansion capital program as well as capitalize
on potential acquisition opportunities.
The following table summarizes selected PAA financial
information by segment for the fourth quarter and full year of
2013:
Summary of
Selected Financial Data by Segment (1)
(in millions)
Three Months Ended Three Months Ended
December 31, 2013 December 31, 2012
Transportation Facilities Supply
and
Logistics
Transportation Facilities Supply
and
Logistics
Reported segment profit $ 207 $ 170 $ 149 $ 193 $ 138 $ 209
Selected items impacting the comparability of segment profit (2)
7 (1 ) 60 5 3
58
Adjusted segment profit $ 214
$ 169 $ 209 $
198 $ 141 $ 267 Percentage
change in adjusted segment profit versus 2012 period
8 % 20 % -22
% Twelve Months Ended Twelve Months
Ended December 31, 2013 December 31, 2012
Transportation Facilities Supply
and
Logistics
Transportation Facilities Supply
and
Logistics
Reported segment profit $ 729 $ 616 $ 822 $ 710 $ 482 $ 753
Selected items impacting the comparability of segment profit (2)
31 13 71 32
20 102
Adjusted segment profit $ 760
$ 629 $ 893
$ 742 $ 502 $ 855
Percentage change in adjusted segment profit versus 2012
period 2 % 25 %
4 %
(1) The Partnership’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 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.
Fourth-quarter 2013 Transportation adjusted segment profit
increased 8% versus comparable 2012 results. This increase was
primarily driven by the benefit of higher crude oil pipeline
volumes associated with recently completed organic growth projects,
partially offset by the sale of our refined products pipelines and
lower volumes on our Canadian crude oil pipelines due to the impact
of rail and proration on downstream pipelines.
Fourth-quarter 2013 Facilities adjusted segment profit increased
20% over comparable 2012 results, primarily due to increased crude
oil rail activities.
Fourth-quarter 2013 Supply and Logistics adjusted segment profit
exceeded our guidance, but decreased by approximately 22% relative
to comparable 2012 results. This decrease was primarily related to
less favorable crude oil market conditions during the fourth
quarter of 2013, particularly narrower crude oil differentials in
the Permian Basin and Gulf Coast regions, partially offset by
stronger net margins in the NGL business.
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 are reflected more fully in the condensed consolidating
balance sheet and income statement included at the end of this
release. Information regarding PAGP’s distributions is reflected
below:
Q4 2013 Distribution per
share declared for the period (prorated) (1) $ 0.12505
Q4 2013
(non-prorated) (2)
Distribution
Provided in IPO
Prospectus
%
Change
Distribution per share assuming full-quarter ownership $
0.15979 $ 0.14904 7.2 %
(1) Distribution per share declared based
on prorated distribution received by PAGP from PAA's general
partner, Plains AAP, L.P. ("AAP"), for the partial quarter of
ownership following the closing of PAGP's initial public offering
("IPO").
(2) Reflects a full fourth quarter 2013
distribution per Class A share (before proration), assuming PAGP's
current ownership interest in AAP for the full fourth quarter of
2013.
Conference Call
PAA and PAGP will hold a conference call on February 6, 2014
(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 first quarter and full year of 2014. 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. EST
on Thursday, February 6, 2014 to discuss the following items:
1. PAA's fourth-quarter and full-year 2013
performance;
2. The status of major expansion
projects;
3. Capitalization and liquidity;
4. The PAGP IPO and PAA’s acquisition of
publicly held PNG units;
5. PAA’s financial and operating guidance for
the first quarter and full year of 2014; and
6. PAA’s and PAGP's outlook for the
future.
Conference Call Access Instructions
To access the Internet webcast of the conference call, please go
to www.plainsallamerican.com, choose “Investor Relations,” and then
choose “Events and Presentations.” Following the live webcast, the
call will be archived for a period of sixty (60) days on the
website.
Alternatively, access to the live conference call is available
by dialing toll free (800) 230-1085. International callers should
dial (612) 288-0337. No password is required. The slide
presentation accompanying the conference call will be available a
few minutes prior to the call under the “Events and Presentations”
portion of the “Investor Relations” section of the website at
www.plainsallamerican.com.
Telephonic Replay Instructions
To listen to a telephonic replay of the conference call, please
dial (800) 475-6701, or (320) 365-3844 for international callers,
and enter replay access code 313564. The replay will be available
beginning Thursday, February 6, 2014, at approximately
1:00 p.m. EST and will continue until 11:59 p.m. EST on March
6, 2014.
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 the 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 Annual Report
on Form 10-K.
Adjusted EBITDA and other non-GAAP financial measures are
reconciled to the most 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 consolidated
financial statements and notes thereto. In addition, PAA maintains
on its website (www.plainsallamerican.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 “Plains All American
Pipeline, L.P.” under the "Investor Relations" link on the home
page, select the "Guidance & Non-GAAP Reconciliations" link and
navigate to the “Non-GAAP Reconciliations” tab.
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); 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; 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 currency exchange rate of
the Canadian dollar; 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;
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; 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; 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; weather interference
with business operations or project construction; risks related to
the development and operation of our 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 Partnerships’ filings with the Securities
and Exchange Commission.
Plains All American Pipeline, L.P. (NYSE: PAA) 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
3.5 million barrels per day of crude oil and NGL on its pipelines.
PAA is headquartered in Houston, Texas.
Plains GP Holdings (NYSE: PAGP) 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
SUBSIDIARIESFINANCIAL SUMMARY (unaudited)
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per unit data)
Three Months
Ended Twelve Months Ended December 31,
December 31, 2013 2012 2013 2012
REVENUES $ 10,631 $ 9,439 $ 42,249 $ 37,797
COSTS AND EXPENSES Purchases and related costs 9,731 8,513
38,465 34,368 Field operating costs 312 320 1,322 1,180 General and
administrative expenses 84 78 359 342 Depreciation and amortization
110 126 375 482
Total costs and expenses 10,237 9,037
40,521 36,372
OPERATING INCOME 394 402 1,728 1,425
OTHER
INCOME/(EXPENSE) Equity earnings in unconsolidated entities 22
12 64 38 Interest expense, net (79 ) (74 ) (303 ) (288 ) Other
income, net - 1 1
6
INCOME BEFORE TAX 337 341 1,490 1,181
Current income tax expense (31 ) (21 ) (100 ) (53 ) Deferred income
tax benefit/(expense) 12 10 1
(1 )
NET INCOME 318 330 1,391 1,127 Net
income attributable to noncontrolling interests (9 )
(10 ) (30 ) (33 )
NET INCOME ATTRIBUTABLE TO
PAA $ 309 $ 320 $ 1,361 $ 1,094
NET INCOME ATTRIBUTABLE TO PAA: LIMITED
PARTNERS $ 203 $ 234 $ 967 $ 789
GENERAL PARTNER $ 106 $ 86 $ 394 $ 305
BASIC NET INCOME PER LIMITED PARTNER UNIT $
0.59 $ 0.70 $ 2.82 $ 2.41
DILUTED NET INCOME PER LIMITED PARTNER UNIT $ 0.58 $
0.69 $ 2.80 $ 2.40
BASIC WEIGHTED
AVERAGE UNITS OUTSTANDING 344 334
341 325
DILUTED WEIGHTED
AVERAGE UNITS OUTSTANDING 346 337
343 328
ADJUSTED
RESULTS:
(in millions, except per unit data)
Three Months Ended
Twelve Months Ended December 31, December 31,
2013 2012 2013 2012 ADJUSTED
NET INCOME ATTRIBUTABLE TO PAA $ 371 $ 429 $
1,466 $ 1,414
DILUTED ADJUSTED NET INCOME
PER LIMITED PARTNER UNIT $ 0.76 $ 1.01 $ 3.10
$ 3.35
ADJUSTED EBITDA $ 595 $
609 $ 2,292 $ 2,107
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
(in millions)
December 31, December 31, 2013
2012 ASSETS Current assets $ 4,964 $ 5,147 Property
and equipment, net 10,819 9,643 Goodwill 2,503 2,535 Linefill and
base gas 798 707 Long-term inventory 251 274 Investments in
unconsolidated entities 485 343 Other, net 540 586 Total assets $
20,360 $ 19,235
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities $ 5,411 $ 5,183 Senior notes, net of
unamortized discount 6,710 6,010 Long-term debt under credit
facilities and other 5 310 Other long-term liabilities and deferred
credits 531 586 Total liabilities 12,657 12,089 Partners'
capital excluding noncontrolling interests 7,644 6,637
Noncontrolling interests 59 509 Total partners' capital 7,703 7,146
Total liabilities and partners' capital $ 20,360 $ 19,235
DEBT
CAPITALIZATION RATIOS
(in millions)
December 31, December 31, 2013
2012 Short-term debt $ 1,113 $ 1,086 Long-term debt 6,715
6,320 Total debt $ 7,828 $ 7,406 Long-term debt $ 6,715 $
6,320 Partners' capital 7,703 7,146 Total book capitalization $
14,418 $ 13,466 Total book capitalization, including short-term
debt $ 15,531 $ 14,552 Long-term debt-to-total book
capitalization 47% 47% Total debt-to-total book capitalization,
including short-term debt 50% 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
December 31, 2013 December 31, 2012 Supply and
Supply and Transportation Facilities
Logistics Transportation Facilities
Logistics Revenues (1) $ 387 $ 394 $ 10,151 $ 373 $ 313 $
9,072 Purchases and related costs (1) (38 ) (116 ) (9,875 ) (34 )
(70 ) (8,724 ) Field operating costs (excluding equity-indexed
compensation expense) (1) (125 ) (89 ) (97 ) (126 ) (85 ) (110 )
Equity-indexed compensation expense - operations (3 ) (1 ) - (3 ) -
- Segment G&A expenses (excluding equity-indexed compensation
expense) (2) (29 ) (16 ) (23 ) (22 ) (16 ) (24 ) Equity-indexed
compensation expense - general and administrative (7 ) (2 ) (7 ) (7
) (4 ) (5 ) Equity earnings in unconsolidated entities 22
- - 12 -
- Reported segment profit $ 207 $ 170 $ 149 $
193 $ 138 $ 209 Selected items impacting comparability of segment
profit (3) 7 (1 ) 60 5
3 58 Segment profit excluding
selected items impacting comparability $ 214 $ 169 $
209 $ 198 $ 141 $ 267
Maintenance capital $ 36 $ 13 $ 3 $ 30
$ 16 $ 2
Twelve Months Ended Twelve
Months Ended December 31, 2013 December 31, 2012
Supply and Supply and Transportation
Facilities Logistics Transportation
Facilities Logistics Revenues (1) $ 1,498 $ 1,377 $
40,696 $ 1,416 $ 1,098 $ 36,440 Purchases and related costs (1)
(147 ) (312 ) (39,315 ) (134 ) (238 ) (35,139 ) Field operating
costs (excluding equity-indexed compensation expense) (1) (528 )
(362 ) (422 ) (468 ) (289 ) (417 ) Equity-indexed compensation
expense - operations (18 ) (2 ) (3 ) (16 ) (2 ) (2 ) Segment
G&A expenses (excluding equity-indexed compensation expense)
(2) (101 ) (63 ) (102 ) (96 ) (64 ) (101 ) Equity-indexed
compensation expense - general and administrative (39 ) (22 ) (32 )
(30 ) (23 ) (28 ) Equity earnings in unconsolidated entities
64 - - 38 -
- Reported segment profit $ 729 $ 616 $ 822 $
710 $ 482 $ 753 Selected items impacting comparability of segment
profit (3) 31 13 71
32 20 102
Segment profit excluding selected items impacting comparability $
760 $ 629 $ 893 $ 742 $ 502 $
855 Maintenance capital $ 123 $ 38 $ 15
$ 108 $ 49 $ 13 (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 Twelve Months Ended December 31,
December 31,
OPERATING
DATA (1)
2013 2012 2013 2012
Transportation activities (average daily volumes in thousands of
barrels): Tariff activities Crude Oil Pipelines All American 40
37 40 33 Bakken Area Systems 135 120 131 130 Basin / Mesa 737 756
718 696 Capline 144 154 151 146 Eagle Ford Area Systems 166 40 102
23 Line 63 / Line 2000 113 134 113 128 Manito 44 52 46 57
Mid-Continent Area Systems 293 281 281 271 Permian Basin Area
Systems 703 489 581 461 Rainbow 120 141 124 145 Rangeland 64 65 60
62 Salt Lake City Area Systems 128 144 131 149 South Saskatchewan
57 60 51 60 White Cliffs 25 21 23 18 Other 688 717 725 703 NGL
Pipelines Co-Ed 58 52 56 44 Other 206 159 194 131 Refined Products
Pipelines 9 122 68 116 Tariff activities total 3,730 3,544 3,595
3,373 Trucking 129 112 117 106 Transportation activities total
3,859 3,656 3,712 3,479
Facilities activities (average
monthly volumes): Crude oil, refined products and NGL
terminalling and storage
(average monthly capacity in millions of
barrels)
94 94 94 90 Rail load / unload volumes (average throughput in
thousands of barrels per day) 221 - 221 - Natural gas storage
(average monthly capacity in billions of cubic feet) 97 93 96 84
NGL fractionation (average throughput in thousands of barrels per
day) 89 97 96 79 Facilities activities total
(average monthly capacity in millions of
barrels) (2)
120 113 120 106
Supply and Logistics activities (average
daily volumes in thousands of barrels): Crude oil lease
gathering purchases 870 850 859 818 NGL sales 272 259 215 182
Waterborne cargos - 4 4 3 Supply and Logistics activities total
1,142 1,113 1,078 1,003
(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 SUBSIDIARIESFINANCIAL SUMMARY (unaudited)
COMPUTATION OF
BASIC AND DILUTED EARNINGS PER LIMITED PARTNER UNIT
(in millions, except per unit data)
Three Months Ended
Twelve Months Ended December 31, December 31,
2013 2012 2013 2012 Basic Net Income
per Limited Partner Unit: Net income attributable to PAA $ 309
$ 320 $ 1,361 $ 1,094 Less: General partner's incentive
distribution (1) (102 ) (81 ) (375 ) (289 ) Less: General partner
2% ownership (1) (4 ) (5 )
(19
) (16 ) Net income available to limited partners 203 234
967
789 Less: Undistributed earnings allocated and distributions to
participating securities (1) (2 ) (1 )
(7
) (5 ) Net income available to limited partners in
accordance with application of the two-class method for MLPs $ 201
$ 233 $ 960 $ 784 Basic weighted
average number of limited partner units outstanding 344 334 341 325
Basic net income per limited partner unit $ 0.59 $
0.70 $ 2.82 $ 2.41
Diluted Net
Income per Limited Partner Unit: Net income attributable to PAA
$ 309 $ 320 $ 1,361 $ 1,094 Less: General partner's incentive
distribution (1) (102 ) (81 ) (375 ) (289 ) Less: General partner
2% ownership (1) (4 ) (5 )
(19
) (16 ) Net income available to limited partners 203 234
967
789 Less: Undistributed earnings allocated and distributions to
participating securities (1) (2 ) (1 )
(6
) (4 ) Net income available to limited partners in
accordance with application of the two-class method for MLPs $ 201
$ 233 $ 961 $ 785 Basic weighted
average number of limited partner units outstanding 344 334 341 325
Effect of dilutive securities: Weighted average LTIP units (2)
2 3 2 3
Diluted weighted average number of limited partner units
outstanding 346 337 343
328 Diluted net income per limited partner
unit $ 0.58 $ 0.69 $ 2.80 $ 2.40
(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
Twelve Months Ended December 31, December 31,
2013 2012 2013 2012
Selected Items Impacting Comparability
- Income/(Loss) (1):
Gains/(losses) from derivative activities
net of inventory valuation adjustments (2)
$ (51 ) $ (56 ) $ (59 ) $ (74 ) Asset impairments (3) - (41 ) -
(166 ) Equity-indexed compensation expense (4) (12 ) (10 ) (63 )
(59 ) Net gain/(loss) on foreign currency revaluation (7 ) (1 ) (1
) (7 ) Tax effect on selected items impacting comparability 8 - 16
- Significant acquisition-related expenses - (1 ) - (14 )
Other (5)
- - 2 -
Selected items impacting comparability of net income attributable
to PAA $ (62 ) $ (109 ) $ (105 ) $ (320 ) Impact to basic
net income per limited partner unit $ (0.17 ) $ (0.31 ) $ (0.30 ) $
(0.96 ) Impact to diluted net income per limited partner unit $
(0.18 ) $ (0.32 ) $ (0.30 ) $ (0.95 )
(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 or the reversal of
mark-to-market gains and losses from the prior period, net of
inventory valuation adjustments.
(3) Asset impairments are reflected in
"Depreciation and amortization" on our Condensed Consolidated
Statements of Operations and do not impact the comparability of
EBITDA.
(4) Equity-indexed compensation expense
above excludes the portion of equity-indexed 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.
(5) 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
Twelve Months Ended December 31, December 31,
2013 2012
2013 2012 Basic Adjusted Net
Income per Limited Partner Unit Net income attributable to PAA
$ 309 $ 320 $ 1,361 $ 1,094 Selected items impacting comparability
of net income attributable to PAA (1) 62 109
105 320 Adjusted net income
attributable to PAA 371 429 1,466 1,414 Less: General partner's
incentive distribution (2) (102 ) (81 ) (375 ) (289 ) Less: General
partner 2% ownership (2) (5 ) (7 ) (22 )
(23 ) Adjusted net income available to limited partners 264
341 1,069 1,102 Less: Undistributed earnings allocated and
distributions to participating securities (2) (2 ) (3
) (7 ) (8 ) Adjusted limited partners' net income $
262 $ 338 $ 1,062 $ 1,094 Basic
weighted average number of limited partner units outstanding 344
334 341 325 Basic adjusted net income per limited partner
unit $ 0.76 $ 1.01 $ 3.12 $ 3.37
Diluted Adjusted Net Income per Limited Partner Unit Net
income attributable to PAA $ 309 $ 320 $ 1,361 $ 1,094 Selected
items impacting comparability of net income attributable to PAA (1)
62 109 105 320
Adjusted net income attributable to PAA 371 429 1,466 1,414
Less: General partner's incentive distribution (2) (102 ) (81 )
(375 ) (289 ) Less: General partner 2% ownership (2) (5 )
(7 ) (22 ) (23 ) Adjusted net income available
to limited partners 264 341 1,069 1,102 Less: Undistributed
earnings allocated and distributions to participating securities
(2) (2 ) (1 ) (5 ) (4 ) Adjusted
limited partners' net income $ 262 $ 340 $ 1,064
$ 1,098 Diluted weighted average number of
limited partner units outstanding 346 337 343 328 Diluted
adjusted net income per limited partner unit $ 0.76 $ 1.01
$ 3.10 $ 3.35
(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 Twelve Months Ended
December 31, December 31, 2013 2012
2013 2012 Net Income to Earnings Before Interest,
Taxes, Depreciation and Amortization ("EBITDA") and
Excluding Selected Items Impacting Comparability ("Adjusted
EBITDA") Reconciliations Net Income $ 318 $ 330 $ 1,391 $ 1,127
Add: Interest expense 79 74 303 288 Add: Income tax expense 19 11
99 54 Add: Depreciation and amortization 110
126 375 482 EBITDA $ 526 $ 541 $
2,168 $ 1,951 Selected items impacting comparability of EBITDA (1)
69 68 124 156
Adjusted EBITDA $ 595 $ 609 $ 2,292 $
2,107 (1) Certain of our non-GAAP financial measures
may not be impacted by each of the selected items impacting
comparability.
Three Months Ended Twelve Months
Ended December 31, December 31, 2013
2012 2013 2012 Adjusted EBITDA to Implied
Distributable Cash Flow ("DCF") Adjusted EBITDA $ 595 $ 609 $
2,292 $ 2,107 Interest expense (79 ) (74 ) (303 ) (288 )
Maintenance capital (52 ) (48 ) (176 ) (170 ) Current income tax
expense (31 ) (21 ) (100 ) (53 ) Equity earnings in unconsolidated
entities, net of distributions (3 ) 1 (10 ) 2 Distributions to
noncontrolling interests (1) (1 ) (12 ) (38 )
(48 ) Implied DCF $ 429 $ 455 $ 1,665 $
1,550 (1) Includes distributions that pertain to the
current period's net income, which are paid in the subsequent
period.
Three Months Ended Twelve Months Ended
December 31, December 31, 2013 2012
2013 2012 Cash Flow from Operating Activities
Reconciliation EBITDA $ 526 $ 541 $ 2,168 $ 1,951 Current
income tax expense (31 ) (21 ) (100 ) (53 ) Interest expense (79 )
(74 ) (303 ) (288 ) Net change in assets and liabilities, net of
acquisitions (76 ) (104 ) 73 (471 ) Other items to reconcile to
cash flows from operating activities: Equity-indexed compensation
expense 20 19 116
101 Net cash provided by operating activities $ 360 $
361 $ 1,954 $ 1,240
PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED
CONSOLIDATING STATEMENTS OF OPERATIONS
(in millions, except per share data)
Three Months
Ended Twelve Months Ended December 31, 2013
December 31, 2013 PAA Consolidating
Adjustments (1)
PAGP (2) PAA Consolidating
Adjustments (1)
PAGP (2) REVENUES $ 10,631 $ - $ 10,631
$ 42,249 $ - $ 42,249
COSTS AND EXPENSES Purchases
and related costs 9,731 - 9,731 38,465 - 38,465 Field operating
costs 312 - 312 1,322 - 1,322 General and administrative expenses
84 1 85 359 1 360 Depreciation and amortization 110
2 112 375 3
378 Total costs and expenses 10,237
3 10,240 40,521 4
40,525
OPERATING INCOME 394 (3 )
391 1,728 (4 ) 1,724
OTHER INCOME/(EXPENSE) Equity
earnings in unconsolidated entities 22 - 22 64 - 64 Interest
expense, net (79 ) (2 ) (81 ) (303 ) (6 ) (309 ) Other income, net
- - - 1
- 1
INCOME BEFORE TAX 337
(5 ) 332 1,490 (10 ) 1,480 Current income tax expense (31 ) - (31 )
(100 ) - (100 ) Deferred income tax benefit/(expense) 12
(8 ) 4 1 (7 )
(6 )
NET INCOME 318 (13 ) 305 1,391 (17 )
1,374 Net income attributable to noncontrolling interests (9
) (284 ) (293 ) (30 ) (1,329 )
(1,359 )
NET INCOME ATTRIBUTABLE TO PAGP $ 309 $ (297
) $ 12 $ 1,361 $ (1,346 ) $ 15
BASIC NET INCOME PER CLASS A SHARE (3) $ 0.10
$ 0.10
DILUTED NET INCOME PER CLASS A SHARE
(3) $ 0.10 $ 0.10
BASIC WEIGHTED
AVERAGE CLASS A SHARES OUTSTANDING (3) 132
132
DILUTED WEIGHTED AVERAGE CLASS A SHARES
OUTSTANDING (3) 132 132
(1) Represents the aggregate consolidating adjustments necessary to
produce consolidated financial statements for PAGP.
(2) Includes results attributable to PAGP
from October 21, 2013 (the date of closing PAGP's IPO) through
December 31, 2013, plus results for Plains All American GP LLC, the
predecessor entity to PAGP, prior to October 21, 2013.
(3) Attributable to post-IPO period, October 21, 2013 through
December 31, 2013.
PLAINS GP HOLDINGS AND
SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
CONDENSED
CONSOLIDATING BALANCE SHEET DATA
(in millions)
December 31, 2013 PAA
Consolidating
Adjustments (1)
PAGP ASSETS Current assets $ 4,964 $ 1 $ 4,965
Property and equipment, net 10,819 22 10,841 Goodwill 2,503 - 2,503
Linefill and base gas 798 - 798 Long-term inventory 251 - 251
Investments in unconsolidated entities 485 - 485 Other, net
540 1,070 1,610 Total assets $ 20,360 $ 1,093
$ 21,453
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities $ 5,411 $ 2 $ 5,413 Senior notes, net of
unamortized discount 6,710 - 6,710 Long-term debt under credit
facilities and other 5 515 520 Other long-term liabilities and
deferred credits 531 - 531 Total
liabilities 12,657 517 13,174 Partners' capital excluding
noncontrolling interests 7,644 (6,609 ) 1,035 Noncontrolling
interests 59 7,185 7,244 Total
partners' capital 7,703 576 8,279 Total
liabilities and partners' capital $ 20,360 $ 1,093 $ 21,453
(1) Represents the aggregate consolidating adjustments
necessary to produce consolidated financial statements for PAGP.
PLAINS GP HOLDINGS AND SUBSIDIARIES DISTRIBUTION
SUMMARY (unaudited)
Q4 2013 PAGP
DISTRIBUTION SUMMARY
(in millions, except per unit and per share data)
Q4
2013 (1) PAA Distribution/LP Unit $ 0.61500 GP
Distribution/LP Unit $ 0.29730 Total Distribution/LP Unit $
0.91230 PAA LP Units Outstanding at 1/31/14 360
Gross GP Distribution $ 114 Less: IDR Reduction (2)
(7 ) Net Distribution from PAA to AAP $ 107 Less: Debt Service (3 )
Less: G&A Expense (1 ) Plus: Cash Balance 0 Cash
Available for Distribution by AAP $ 104
Distributions to AAP Partners For period from 10/01/13 to
10/20/13: Direct AAP Owners & AAP Management (100% economic
interest) $ 23 For period from 10/21/13 to 12/31/13: Direct AAP
Owners & AAP Management (79.4% economic interest) 64 PAGP
(20.6% economic interest) 17 Total distributions to
AAP Partners $ 104 Distribution to PAGP Investors $
17 PAGP Class A Shares Outstanding at 1/31/14 134
PAGP Distribution/Class A Share (3) $ 0.12505 PAGP
Distribution/Class A Share (non-prorated) (4) $ 0.15979
(1) Amounts may not recalculate due to
rounding.
(2) Includes reductions associated with
the BP NGL Acquisition and PNG Merger. The reduction associated
with the BP NGL Acquisition will reduce to $2.5 million per quarter
from $3.75 million per quarter beginning with the May 2014
distribution.
(3) Distribution prorated for the portion
of the period following the closing of PAGP's IPO on October 21,
2013.
(4) Reflects a full fourth quarter
distribution per Class A share (before proration), assuming PAGP's
current ownership interest in AAP for the full fourth quarter of
2013.
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)
October 21, 2013 to
December 31, 2013 Basic and Diluted Net Income per Class A
Share Net income attributable to PAGP $ 15 Less net income
attributable to PAGP for the period from January 1, 2013 to October
20, 2013 (3 ) Net income attributable to PAGP for the period
from October 21, 2013 to December 31, 2013 $ 12 Basic and diluted
weighted average number of Class A shares outstanding (1) 132
Basic and diluted net income per Class A share $ 0.10
(1) Basic weighted average number of Class
A shares outstanding is weighted for the period following the
closing of our IPO. Approximately 128 million Class A shares were
issued upon closing of our IPO with approximately 4 million
additional Class A shares issued through the exercise in October
2013 of an over-allotment option. Subsequent conversions of AAP
units were immaterial.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20140205006447/en/
Plains All American Pipeline, L.P. & Plains GP HoldingsRoy
I. Lamoreaux, (866) 809-1291Director, Investor RelationsorAl
Swanson, (800) 564-3036Executive Vice President, CFO
Plains All American Pipe... (NYSE:PAA)
Historical Stock Chart
From Apr 2024 to May 2024
Plains All American Pipe... (NYSE:PAA)
Historical Stock Chart
From May 2023 to May 2024