Plains All American Pipeline, L.P. and Plains GP Holdings Report Third-Quarter 2015 Results |
Plains All American Pipeline, L.P. (NYSE:PAA)
and Plains GP Holdings (NYSE:PAGP)
today reported third-quarter 2015 results.
Plains All American Pipeline, L.P. |
| |
| |
| |
| |
| |
| | Summary Financial Information
(1) (unaudited)
| | | | | | | | | | | | |
(in millions, except per unit data)
| | | | | | | | | | | | | | | Three Months Ended | | | | Nine Months Ended | | | | | September 30, | | | | September 30, | | |
| | 2015 | | 2014 | | % Change | | 2015 | | 2014 | | % Change | Net income attributable to PAA | |
$
|
249
| |
$
|
323
| |
(23
|
)%
| |
$
|
657
| |
$
|
994
| |
(34
|
)%
| | | | | | | | | | | | | | | | | | |
| Diluted net income per limited partner unit | |
$
|
0.24
| |
$
|
0.52
| |
(54
|
)%
| |
$
|
0.53
| |
$
|
1.70
| |
(69
|
)%
| | | | | | | | | | | | | | | | | | |
| Diluted weighted average limited partner units outstanding | | |
399
| | |
371
| |
8
|
%
| | |
395
| | |
367
| |
8
|
%
| | | | | | | | | | | | | | | | | | |
| EBITDA | |
$
|
483
| |
$
|
526
| |
(8
|
)%
| |
$
|
1,364
| |
$
|
1,625
| |
(16
|
)%
| | | | | | | | | | | | |
| | | | | | | | | | | | |
| | | Three Months Ended | | | | Nine Months Ended | | | | | September 30, | | | | September 30, | | |
| | 2015 | | 2014 | | % Change | | 2015 | | 2014 | | % Change | Adjusted net income attributable to PAA | |
$
|
262
| |
$
|
325
| |
(19
|
)%
| |
$
|
887
| |
$
|
985
| |
(10
|
)%
| | | | | | | | | | | | | | | | | | |
| Diluted adjusted net income per limited partner unit | |
$
|
0.28
| |
$
|
0.53
| |
(47
|
)%
| |
$
|
1.11
| |
$
|
1.68
| |
(34
|
)%
| | | | | | | | | | | | | | | | | | |
| Adjusted EBITDA | |
$
|
497
| |
$
|
527
| |
(6
|
)%
| |
$
|
1,605
| |
$
|
1,606
| |
-
|
%
| | | | | | | | | | | | | | | | | | |
| Distribution per limited partner unit declared for the period | |
$
|
0.700
| |
$
|
0.660
| |
6.1
|
%
| | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | (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 reported third quarter results with adjusted EBITDA of $497
million, which was $17 million above the mid-point of our quarterly
guidance range," said Greg Armstrong, Chairman and CEO of Plains All
American. "PAA will pay a quarterly distribution of $0.70 per limited
partner unit next week, which is the equivalent of $2.80 per unit on an
annualized basis, while PAGP will pay a quarterly distribution of $0.231
per Class A share, or $0.924 per share on an annualized basis. These
distributions represent a 6.1% and 21.1% increase over comparative
distributions paid in the same quarter of 2014, respectively.
"We remain constructive on the intermediate to long-term outlook for
crude oil prices, activity levels, and PAA's growth prospects. In the
near term we remain cautious due to the impacts of excess capacity and
related competitive pressures, and our fourth quarter guidance reflects
our most current view of the near term environment," said Armstrong.
"PAA has a solid financial position with over $3 billion of liquidity
and numerous capital projects scheduled to come on line or ramp up
activity levels over the next 18 months that will contribute
meaningfully to our cash flow. Accordingly, we believe PAA is well
positioned to manage through the near term challenges and prosper over
the intermediate to long term."
The following table summarizes selected PAA financial information by
segment for the third quarter and nine months ending September 30, 2015:
|
| |
| |
| | |
| |
| |
| | Summary of Selected Financial Data by
Segment(1) (unaudited)
| | | | | | | | | |
(in millions)
| | | | | | | | | | | | | | | | Three Months Ended | | | Three Months Ended | | | September 30, 2015 | | September 30, 2014 | | | Transportation | | Facilities | | Supply and Logistics | | Transportation | | Facilities | | Supply and Logistics |
Reported segment profit
| |
$
|
254
| | |
$
|
146
| | |
$
|
87
| | | |
$
|
231
| |
$
|
147
| |
$
|
152
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Selected items impacting comparability of segment profit (2) | |
|
(1
|
)
| |
|
2
|
| |
|
8
|
| | |
|
6
| |
|
2
| |
|
(11
|
)
| | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted segment profit | | $ | 253 |
| | $ | 148 |
| | $ | 95 |
| | | $ | 237 | | $ | 149 | | $ | 141 |
| | | | | | | | | | | | | | | | | | | | | | | |
| Percentage change in adjusted segment profit versus 2014 period | |
| 7 | % | |
| (1 | )% | |
| (33 | )% |
| | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended | | | Nine Months Ended | | | September 30, 2015 | | | September 30, 2014 | | | Transportation | | Facilities | | Supply and Logistics | | Transportation | | Facilities | | Supply and Logistics |
Reported segment profit
| |
$
|
681
| | |
$
|
432
| | |
$
|
258
| | | |
$
|
658
| |
$
|
435
| |
$
|
534
| | | | | | | | | | | | | | | | | | | | | | | | |
|
Selected items impacting comparability of segment profit (2) | |
|
74
|
| |
|
7
|
| |
|
152
|
| | |
|
22
| |
|
11
| |
|
(55
|
)
| | | | | | | | | | | | | | | | | | | | | | | |
| Adjusted segment profit | | $ | 755 |
| | $ | 439 |
| | $ | 410 |
| | | $ | 680 | | $ | 446 | | $ | 479 |
| | | | | | | | | | | | | | | | | | | | | | | |
| Percentage change in adjusted segment profit versus 2014 period | |
| 11 | % | |
| (2 | )% | |
| (14 | )% | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | (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.
|
|
Third-quarter 2015 Transportation adjusted segment profit increased by
7% over comparable 2014 results. This increase was driven by higher
crude oil pipeline volumes associated with our Cactus pipeline and other
recently completed organic growth projects primarily within the Permian
Basin and Eagle Ford producing regions, earnings from our 50% interest
in the BridgeTex pipeline and lower field operating costs. These
increases were partially offset by lost revenues associated with the
shutdown of our All American system in California, lower pipeline loss
allowance revenues and the impact of a weaker Canadian dollar.
Third-quarter 2015 Facilities adjusted segment profit decreased by 1%
versus comparable 2014 results. This decrease was primarily due to a
less favorable Canadian dollar and a less favorable environment for both
our rail and natural gas storage activities, which was partially offset
by lower field operating costs.
Third-quarter 2015 Supply and Logistics adjusted segment profit exceeded
the high end of our quarterly guidance range but decreased by 33%
compared to 2014 results. This decrease was primarily driven by lower
margins and volumes associated with our crude oil lease gathering
activities due to less favorable crude oil market conditions, partially
offset by higher margins in our NGL sales activities, which benefitted
from a stronger US dollar.
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:
|
| |
|
|
|
| |
|
|
|
| | | | Q3 2015 | | | | | Q2 2015 | | | | | Q3 2014 | Distribution per Class A share declared for the period | |
$
|
0.231
| | | | |
$
|
0.227
|
| | | | |
$
|
0.19075
|
| Q3 2015 distribution percentage growth from prior periods | | | | | | |
|
1.8
|
%
| | | | |
|
21.1
|
%
| | | | | | | | | | | | | | | | |
|
Conference Call
PAA and PAGP will hold a conference call on November 4, 2015 (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
fourth quarter and full year of 2015. 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
Wednesday, November 4, 2015 to discuss the following items:
1. PAA's third-quarter 2015 performance;
2. The status of major organic growth projects;
3. Capitalization and liquidity;
4. Financial and operating guidance for the fourth quarter and full year
of 2015; and
5. PAA 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,
navigate to "Investor Relations," select "PAA" or "PAGP," then "News &
Events," and then "Quarterly Earnings." 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) 230-1059. International callers should dial
(612) 234-9959. No password is required. The slide presentation
accompanying the conference call will be available a few minutes prior
to the call at the above referenced website.
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 365414. The replay will be available beginning
Wednesday, November 4, 2015, at approximately 1:00 p.m. EST and will
continue until 11:59 p.m. EST on December 4, 2015.
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 ("DCF")) 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), 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. 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 Quarterly Report on Form 10-Q.
Adjusted EBITDA 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 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 "PAA" under the "Investor
Relations" tab on the home page, select the "Financial Information" tab
and navigate to the "Non-GAAP Reconciliations" link.
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, failure to implement or capitalize, or delays in
implementing or capitalizing, on planned growth projects; 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; 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 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; maintenance of our credit rating and ability
to receive open credit from our suppliers and trade counterparties;
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; increased costs, or lack of availability, of
insurance; non-utilization of our assets and facilities; 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; 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; 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 4.4 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 |
(in millions, except per unit data)
| | | | | | | | |
| | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2015 | | 2014 | | 2015 | | 2014 | | | | | | | | |
| REVENUES | |
$
|
5,551
| | |
$
|
11,127
| | |
$
|
18,156
| | |
$
|
34,005
| | | | | | | | | |
| COSTS AND EXPENSES | | | | | | | | |
Purchases and related costs
| | |
4,701
| | | |
10,166
| | | |
15,591
| | | |
31,116
| |
Field operating costs
| | |
348
| | | |
382
| | | |
1,111
| | | |
1,078
| |
General and administrative expenses
| | |
60
| | | |
78
| | | |
217
| | | |
257
| |
Depreciation and amortization
| |
|
109
|
| |
|
97
|
| |
|
326
|
| |
|
293
|
|
Total costs and expenses
| | |
5,218
| | | |
10,723
| | | |
17,245
| | | |
32,744
| | | | | | | | | |
| OPERATING INCOME | | |
333
| | | |
404
| | | |
911
| | | |
1,261
| | | | | | | | | |
| OTHER INCOME/(EXPENSE) | | | | | | | | |
Equity earnings in unconsolidated entities
| | |
45
| | | |
29
| | | |
134
| | | |
73
| |
Interest expense, net
| | |
(107
|
)
| | |
(85
|
)
| | |
(313
|
)
| | |
(246
|
)
|
Other expense, net
| |
|
(4
|
)
| |
|
(4
|
)
| |
|
(7
|
)
| |
|
(2
|
)
| | | | | | | | |
| INCOME BEFORE TAX | | |
267
| | | |
344
| | | |
725
| | | |
1,086
| |
Current income tax expense
| | |
(11
|
)
| | |
(10
|
)
| | |
(72
|
)
| | |
(62
|
)
|
Deferred income tax (expense)/benefit
| |
|
(6
|
)
| |
|
(10
|
)
| |
|
6
|
| |
|
(28
|
)
| | | | | | | | |
| NET INCOME | | |
250
| | | |
324
| | | |
659
| | | |
996
| |
Net income attributable to noncontrolling interests
| |
|
(1
|
)
| |
|
(1
|
)
| |
|
(2
|
)
| |
|
(2
|
)
| NET INCOME ATTRIBUTABLE TO PAA | |
$
|
249
|
| |
$
|
323
|
| |
$
|
657
|
| |
$
|
994
|
| | | | | | | | |
| NET INCOME ATTRIBUTABLE TO PAA: | | | | | | | | | LIMITED PARTNERS | |
$
|
99
|
| |
$
|
195
|
| |
$
|
215
|
| |
$
|
630
|
| GENERAL PARTNER | |
$
|
150
|
| |
$
|
128
|
| |
$
|
442
|
| |
$
|
364
|
| | | | | | | | |
| BASIC NET INCOME PER LIMITED PARTNER UNIT | |
$
|
0.25
|
| |
$
|
0.52
|
| |
$
|
0.54
|
| |
$
|
1.71
|
| | | | | | | | |
| DILUTED NET INCOME PER LIMITED PARTNER UNIT | |
$
|
0.24
|
| |
$
|
0.52
|
| |
$
|
0.53
|
| |
$
|
1.70
|
| | | | | | | | |
| BASIC WEIGHTED AVERAGE LIMITED PARTNER UNITS OUTSTANDING | |
|
398
|
| |
|
370
|
| |
|
393
|
| |
|
365
|
| | | | | | | | |
| DILUTED WEIGHTED AVERAGE LIMITED PARTNER UNITS OUTSTANDING | |
|
399
|
| |
|
371
|
| |
|
395
|
| |
|
367
|
| | | | | | | | |
|
|
|
|
|
|
|
|
|
| ADJUSTED RESULTS |
(in millions, except per unit data)
| | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2015 | | 2014 | | 2015 | | 2014 | | | | | | | | |
| ADJUSTED NET INCOME ATTRIBUTABLE TO PAA | |
$
|
262
|
| |
$
|
325
|
| |
$
|
887
|
| |
$
|
985
|
| | | | | | | | |
| DILUTED ADJUSTED NET INCOME PER LIMITED PARTNER UNIT | |
$
|
0.28
|
| |
$
|
0.53
|
| |
$
|
1.11
|
| |
$
|
1.68
|
| | | | | | | | |
| ADJUSTED EBITDA | |
$
|
497
|
| |
$
|
527
|
| |
$
|
1,605
|
| |
$
|
1,606
|
| | | | | | | | |
|
|
| | |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES | FINANCIAL SUMMARY (unaudited)
| | | | | |
| CONDENSED CONSOLIDATED BALANCE SHEET DATA | | | | | |
(in millions)
| | | | | | | | September 30, | | December 31, | | | 2015 | | 2014 | ASSETS | | | | | |
Current assets
| |
$
|
2,958
| | | |
$
|
4,179
| |
Property and equipment, net
| | |
13,350
| | | | |
12,272
| |
Goodwill
| | |
2,417
| | | | |
2,465
| |
Investments in unconsolidated entities
| | |
1,954
| | | | |
1,735
| |
Linefill and base gas
| | |
910
| | | | |
930
| |
Long-term inventory
| | |
166
| | | | |
186
| |
Other long-term assets, net
| |
|
462
|
| | |
|
489
|
|
Total assets
| |
$
|
22,217
|
| | |
$
|
22,256
|
| | | | | |
| LIABILITIES AND PARTNERS' CAPITAL | | | | | |
Current liabilities
| |
$
|
3,478
| | | |
$
|
4,755
| |
Senior notes, net of unamortized discount
| | |
9,757
| | | | |
8,757
| |
Other long-term debt
| | |
213
| | | | |
5
| |
Other long-term liabilities and deferred credits
| |
|
553
|
| | |
|
548
|
|
Total liabilities
| | |
14,001
| | | | |
14,065
| | | | | | |
|
Partners' capital excluding noncontrolling interests
| | |
8,158
| | | | |
8,133
| |
Noncontrolling interests
| |
|
58
|
| | |
|
58
|
|
Total partners' capital
| |
|
8,216
|
| | |
|
8,191
|
|
Total liabilities and partners' capital
| |
$
|
22,217
|
| | |
$
|
22,256
|
| | | | | |
| DEBT CAPITALIZATION RATIOS | | | | | |
(in millions)
| | | | | | | | September 30, | | December 31, | | | 2015 | | 2014 |
Short-term debt
| |
$
|
681
| | | |
$
|
1,287
| |
Long-term debt
| |
|
9,970
|
| | |
|
8,762
|
|
Total debt
| |
$
|
10,651
|
| | |
$
|
10,049
|
| | | | | |
|
Long-term debt
| |
$
|
9,970
| | | |
$
|
8,762
| |
Partners' capital
| |
|
8,216
|
| | |
|
8,191
|
|
Total book capitalization
| |
$
|
18,186
|
| | |
$
|
16,953
|
|
Total book capitalization, including short-term debt
| |
$
|
18,867
|
| | |
$
|
18,240
|
| | | | | |
|
Long-term debt-to-total book capitalization
| | |
55
|
%
| | | |
52
|
%
|
Total debt-to-total book capitalization, including short-term debt
| | |
56
|
%
| | | |
55
|
%
| | | | | |
|
|
| | | |
| | |
| | | |
| | PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES | FINANCIAL SUMMARY (unaudited)
| | | | | | | | | | | | | |
| SELECTED FINANCIAL DATA BY SEGMENT | | | | | | | | | | | | | |
(in millions)
| | | | | | | | | | | | | | | | Three Months Ended | | Three Months Ended | | | September 30, 2015 | | September 30, 2014 | | | | | | | Supply and | | | | | | | Supply and | | | Transportation | Facilities | | Logistics | | | Transportation | Facilities | | Logistics |
Revenues (1) | |
$
|
401
| | |
$
|
263
| | |
$
|
5,254
| | | |
$
|
424
| | |
$
|
281
| | |
$
|
10,793
| |
Purchases and related costs (1) | | |
(26
|
)
| | |
(7
|
)
| | |
(5,032
|
)
| | | |
(38
|
)
| | |
(9
|
)
| | |
(10,488
|
)
|
Field operating costs (1) (2) | | |
(147
|
)
| | |
(96
|
)
| | |
(110
|
)
| | | |
(153
|
)
| | |
(104
|
)
| | |
(122
|
)
|
Equity-indexed compensation (expense)/benefit - operations
| | |
1
| | | |
1
| | | |
-
| | | | |
(4
|
)
| | |
(1
|
)
| | |
-
| |
Segment general and administrative expenses (2) (3) | | |
(23
|
)
| | |
(17
|
)
| | |
(26
|
)
| | | |
(20
|
)
| | |
(16
|
)
| | |
(25
|
)
|
Equity-indexed compensation (expense)/benefit - general and
administrative
| | |
3
| | | |
2
| | | |
1
| | | | |
(7
|
)
| | |
(4
|
)
| | |
(6
|
)
|
Equity earnings in unconsolidated entities
| |
|
45
|
| |
|
-
|
| |
|
-
|
| | |
|
29
|
| |
|
-
|
| |
|
-
|
|
Reported segment profit
| |
$
|
254
| | |
$
|
146
| | |
$
|
87
| | | | |
231
| | | |
147
| | | |
152
| |
Selected items impacting comparability of segment profit (4) | |
|
(1
|
)
| |
|
2
|
| |
|
8
|
| | |
|
6
|
| |
|
2
|
| |
|
(11
|
)
|
Adjusted segment profit
| |
$
|
253
|
| |
$
|
148
|
| |
$
|
95
|
| | |
$
|
237
|
| |
$
|
149
|
| |
$
|
141
|
| | | | | | | | | | | | | |
|
Maintenance capital
| |
$
|
34
|
| |
$
|
16
|
| |
$
|
2
|
| | |
$
|
35
|
| |
$
|
19
|
| |
$
|
2
|
| | | | | | | | | | | | | |
| | | Nine Months Ended | | Nine Months Ended | | | September 30, 2015 | | September 30, 2014 | | | | | | | Supply and | | | | | | | Supply and | | | Transportation | Facilities | | Logistics | | | Transportation | Facilities | | Logistics |
Revenues (1) | |
$
|
1,203
| | |
$
|
789
| | |
$
|
17,238
| | | |
$
|
1,222
| | |
$
|
858
| | |
$
|
33,021
| |
Purchases and related costs (1) | | |
(85
|
)
| | |
(17
|
)
| | |
(16,553
|
)
| | | |
(116
|
)
| | |
(47
|
)
| | |
(32,041
|
)
|
Field operating costs (1) (2) | | |
(493
|
)
| | |
(284
|
)
| | |
(338
|
)
| | | |
(419
|
)
| | |
(307
|
)
| | |
(340
|
)
|
Equity-indexed compensation (expense)/benefit - operations
| | |
(5
|
)
| | |
(1
|
)
| | |
-
| | | | |
(14
|
)
| | |
(4
|
)
| | |
(2
|
)
|
Segment general and administrative expenses (2)(3) | | |
(67
|
)
| | |
(50
|
)
| | |
(79
|
)
| | | |
(62
|
)
| | |
(46
|
)
| | |
(79
|
)
|
Equity-indexed compensation (expense)/benefit - general and
administrative
| | |
(6
|
)
| | |
(5
|
)
| | |
(10
|
)
| | | |
(26
|
)
| | |
(19
|
)
| | |
(25
|
)
|
Equity earnings in unconsolidated entities
| |
|
134
|
| |
|
-
|
| |
|
-
|
| | |
|
73
|
| |
|
-
|
| |
|
-
|
|
Reported segment profit
| |
$
|
681
| | |
$
|
432
| | |
$
|
258
| | | |
$
|
658
| | |
$
|
435
| | |
$
|
534
| |
Selected items impacting comparability of segment profit (4) | |
|
74
|
| |
|
7
|
| |
|
152
|
| | |
|
22
|
| |
|
11
|
| |
|
(55
|
)
|
Adjusted segment profit
| |
$
|
755
|
| |
$
|
439
|
| |
$
|
410
|
| | |
$
|
680
|
| |
$
|
446
|
| |
$
|
479
|
| | | | | | | | | | | | | |
|
Maintenance capital
| |
$
|
101
|
| |
$
|
48
|
| |
$
|
5
|
| | |
$
|
111
|
| |
$
|
34
|
| |
$
|
6
|
|
| | | | | | | | | | | | | | (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)
| |
| | | | | | | | OPERATING DATA(1) | | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2015 | | 2014 | | 2015 | | 2014 | | | | | | | | |
| Transportation segment (average daily volumes in thousands of
barrels per day): | | | | |
Tariff activities
| | | | | | | | |
Crude Oil Pipelines
| | | | | | | | |
All American
| |
-
| |
40
| |
18
| |
37
|
Bakken Area Systems (2) | |
141
| |
164
| |
146
| |
147
|
Basin / Mesa / Sunrise
| |
815
| |
743
| |
831
| |
734
|
BridgeTex
| |
100
| |
-
| |
105
| |
-
|
Cactus
| |
110
| |
-
| |
58
| |
-
|
Capline
| |
181
| |
178
| |
167
| |
142
|
Eagle Ford Area Systems (2) | |
321
| |
247
| |
298
| |
215
|
Line 63 / Line 2000
| |
121
| |
126
| |
121
| |
119
|
Manito
| |
43
| |
44
| |
48
| |
44
|
Mid-Continent Area Systems
| |
342
| |
354
| |
356
| |
350
|
Permian Basin Area Systems
| |
860
| |
776
| |
817
| |
765
|
Rainbow
| |
109
| |
104
| |
114
| |
111
|
Rangeland
| |
58
| |
61
| |
59
| |
65
|
Salt Lake City Area Systems (2) | |
155
| |
140
| |
136
| |
134
|
South Saskatchewan
| |
59
| |
62
| |
62
| |
61
|
White Cliffs
| |
41
| |
33
| |
43
| |
27
|
Other
| |
777
| |
823
| |
752
| |
737
|
NGL Pipelines
| | | | | | | | |
Co-Ed
| |
51
| |
57
| |
56
| |
56
|
Other
| |
149
| |
143
| |
139
| |
127
|
Tariff activities total
| |
4,433
| |
4,095
| |
4,326
| |
3,871
|
Trucking
| |
112
| |
131
| |
114
| |
129
|
Transportation segment total
| |
4,545
| |
4,226
| |
4,440
| |
4,000
| | | | | | | | |
| Facilities segment (average monthly volumes): | | | | | | | | |
Crude oil, refined products and NGL terminalling and storage
(average monthly capacity in millions of barrels)
| |
100
| |
95
| |
99
| |
95
|
Rail load / unload volumes
(average volumes in thousands of barrels per day)
| |
231
| |
241
| |
223
| |
232
|
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)
| |
98
| |
104
| |
101
| |
94
|
Facilities segment total
(average monthly volumes in millions of barrels) (3) | |
126
| |
121
| |
126
| |
121
| | | | | | | | |
| Supply and Logistics segment (average daily volumes in thousands
of barrels per day): | | | | |
Crude oil lease gathering purchases
| |
927
| |
971
| |
958
| |
932
|
NGL sales
| |
183
| |
153
| |
209
| |
188
|
Waterborne cargos
| |
4
| |
-
| |
1
| |
-
|
Supply and Logistics segment total
| |
1,114
| |
1,124
| |
1,168
| |
1,120
|
| | | | | | | | | (1) Volumes associated with assets employed through
acquisitions and capital expansion projects represent total
volumes (attributable to our interest) for the number of days or
months we employed the assets divided by the number of days or
months in the period.
| (2) Area systems include volumes (attributable to our
interest) from our investments in 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 PER LIMITED PARTNER UNIT | | | | | | | | |
(in millions, except per unit data)
| | | | | | | | | | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | |
| 2015 |
| |
| 2014 |
| |
| 2015 |
| |
| 2014 |
| Basic Net Income per Limited Partner Unit | | | | | | | | |
Net income attributable to PAA
| |
$
|
249
| | |
$
|
323
| | |
$
|
657
| | |
$
|
994
| |
Less: General partner's incentive distribution (1) | | |
(148
|
)
| | |
(124
|
)
| | |
(437
|
)
| | |
(351
|
)
|
Less: General partner 2% ownership (1) | |
|
(2
|
)
| |
|
(4
|
)
| |
|
(5
|
)
| |
|
(13
|
)
|
Net income attributable to limited partners
| | |
99
| | | |
195
| | | |
215
| | | |
630
| |
Less: Undistributed earnings allocated and distributions to
participating securities (1) | |
|
(1
|
)
| |
|
(1
|
)
| |
|
(4
|
)
| |
|
(5
|
)
|
Net income attributable to limited partners in accordance with
application of the two-class method for MLPs
| |
$
|
98
|
| |
$
|
194
|
| |
$
|
211
|
| |
$
|
625
|
| | | | | | | | |
|
Basic weighted average limited partner units outstanding
| | |
398
| | | |
370
| | | |
393
| | | |
365
| | | | | | | | | |
|
Basic net income per limited partner unit
| |
$
|
0.25
|
| |
$
|
0.52
|
| |
$
|
0.54
|
| |
$
|
1.71
|
| | | | | | | | |
| Diluted Net Income per Limited Partner Unit | | | | | | | | |
Net income attributable to PAA
| |
$
|
249
| | |
$
|
323
| | |
$
|
657
| | |
$
|
994
| |
Less: General partner's incentive distribution (1) | | |
(148
|
)
| | |
(124
|
)
| | |
(437
|
)
| | |
(351
|
)
|
Less: General partner 2% ownership (1) | |
|
(2
|
)
| |
|
(4
|
)
| |
|
(5
|
)
| |
|
(13
|
)
|
Net income attributable to limited partners
| | |
99
| | | |
195
| | | |
215
| | | |
630
| |
Less: Undistributed earnings allocated and distributions to
participating securities (1) | |
|
(1
|
)
| |
|
(1
|
)
| |
|
(4
|
)
| |
|
(5
|
)
|
Net income attributable to limited partners in accordance with
application of the two-class method for MLPs
| |
$
|
98
|
| |
$
|
194
|
| |
$
|
211
|
| |
$
|
625
|
| | | | | | | | |
|
Basic weighted average limited partner units outstanding
| | |
398
| | | |
370
| | | |
393
| | | |
365
| |
Effect of dilutive securities: Weighted average LTIP units (2) | |
|
1
|
| |
|
1
|
| |
|
2
|
| |
|
2
|
|
Diluted weighted average limited partner units outstanding
| |
|
399
|
| |
|
371
|
| |
|
395
|
| |
|
367
|
| | | | | | | | |
|
Diluted net income per limited partner unit
| |
$
|
0.24
|
| |
$
|
0.52
|
| |
$
|
0.53
|
| |
$
|
1.70
|
|
| | | | | | | | | (1) We calculate net income attributable 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 | | Nine Months Ended | | | September 30, | | September 30, | | | 2015 | | 2014 | | 2015 | | 2014 | Selected Items Impacting Comparability - Income/(Loss)
(1): | | | | | | | | |
Gains/(losses) from derivative activities net of inventory valuation
adjustments (2) | |
$
|
39
| | |
$
|
27
| | |
$
|
(112
|
)
| |
$
|
77
| |
Long-term inventory costing adjustments (3) | | |
(47
|
)
| | |
-
| | | |
(62
|
)
| | |
-
| |
Equity-indexed compensation expense (4) | | |
-
| | | |
(12
|
)
| | |
(22
|
)
| | |
(48
|
)
|
Net gain/(loss) on foreign currency revaluation
| | |
(6
|
)
| | |
(16
|
)
| | |
20
| | | |
(10
|
)
|
Line 901 incident
| | |
-
| | | |
-
| | | |
(65
|
)
| | |
-
| |
Deferred income tax expense (5) | | |
-
| | | |
-
| | | |
(22
|
)
| | |
-
| |
Tax effect on selected items impacting comparability
| |
|
1
|
| |
|
(1
|
)
| |
|
33
|
| |
|
(10
|
)
|
Selected items impacting comparability of net income attributable to
PAA
| |
$
|
(13
|
)
| |
$
|
(2
|
)
| |
$
|
(230
|
)
| |
$
|
9
|
| | | | | | | | |
|
Impact to basic net income per limited partner unit
| |
$
|
(0.03
|
)
| |
$
|
(0.01
|
)
| |
$
|
(0.57
|
)
| |
$
|
0.02
|
|
Impact to diluted net income per limited partner unit
| |
$
|
(0.04
|
)
| |
$
|
(0.01
|
)
| |
$
|
(0.58
|
)
| |
$
|
0.02
|
|
| | | | | | | | | (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 and other gains and losses
resulting from derivative instruments that are related to
underlying activities in another period (or the reversal of
mark-to-market gains and losses from a prior period), gains and
losses on derivatives that are related to investing activities
(such as the purchase of linefill) and inventory valuation
adjustments, as applicable.
| (3) Includes the impact of changes in the average cost
of long-term inventory that result from fluctuations in market
prices and writedowns of such inventory that result from price
declines. Long-term inventory consists of minimum working
inventory requirements in third-party assets and other working
inventory 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). See Note 5 to our Consolidated
Financial Statements included in Part IV of our 2014 Annual Report
on Form 10-K for a complete discussion of our long-term inventory.
| (4) Includes equity-indexed compensation expense
associated with LTIP awards that will or may be settled in units,
as the dilutive impact of these outstanding awards is included in
our diluted net income per unit calculation and the majority of
these awards are expected to be settled in units.
| (5) Includes the initial cumulative effect of the recent
change in Canadian tax legislation.
| | | | |
|
|
| |
| |
| |
| | 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 | | Nine Months Ended | | | September 30, | | September 30, | | | 2015 | | 2014 | | 2015 | | 2014 | Basic Adjusted Net Income per Limited Partner Unit | | | | | | | | |
Net income attributable to PAA
| |
$
|
249
| | |
$
|
323
| | |
$
|
657
| | |
$
|
994
| |
Selected items impacting comparability of net income attributable to
PAA (1) | |
|
13
|
| |
|
2
|
| |
|
230
|
| |
|
(9
|
)
|
Adjusted net income attributable to PAA
| | |
262
| | | |
325
| | | |
887
| | | |
985
| |
Less: General partner's incentive distribution (2) | | |
(148
|
)
| | |
(124
|
)
| | |
(437
|
)
| | |
(351
|
)
|
Less: General partner 2% ownership (2) | |
|
(3
|
)
| |
|
(4
|
)
| |
|
(9
|
)
| |
|
(12
|
)
|
Adjusted net income attributable to limited partners
| | |
111
| | | |
197
| | | |
441
| | | |
622
| |
Less: Undistributed earnings allocated and distributions to
participating securities (2) | |
|
(1
|
)
| |
|
(1
|
)
| |
|
(4
|
)
| |
|
(5
|
)
|
Adjusted limited partners' net income
| |
$
|
110
|
| |
$
|
196
|
| |
$
|
437
|
| |
$
|
617
|
| | | | | | | | |
|
Basic weighted average limited partner units outstanding
| | |
398
| | | |
370
| | | |
393
| | | |
365
| | | | | | | | | |
|
Basic adjusted net income per limited partner unit
| |
$
|
0.28
|
| |
$
|
0.53
|
| |
$
|
1.11
|
| |
$
|
1.69
|
| | | | | | | | |
| Diluted Adjusted Net Income per Limited Partner Unit | | | | | | | | |
Net income attributable to PAA
| |
$
|
249
| | |
$
|
323
| | |
$
|
657
| | |
$
|
994
| |
Selected items impacting comparability of net income attributable to
PAA (1) | |
|
13
|
| |
|
2
|
| |
|
230
|
| |
|
(9
|
)
|
Adjusted net income attributable to PAA
| | |
262
| | | |
325
| | | |
887
| | | |
985
| |
Less: General partner's incentive distribution (2) | | |
(148
|
)
| | |
(124
|
)
| | |
(437
|
)
| | |
(351
|
)
|
Less: General partner 2% ownership (2) | |
|
(3
|
)
| |
|
(4
|
)
| |
|
(9
|
)
| |
|
(12
|
)
|
Adjusted net income attributable to limited partners
| | |
111
| | | |
197
| | | |
441
| | | |
622
| |
Less: Undistributed earnings allocated and distributions to
participating securities (2) | |
|
(1
|
)
| |
|
(1
|
)
| |
|
(4
|
)
| |
|
(5
|
)
|
Adjusted limited partners' net income
| |
$
|
110
|
| |
$
|
196
|
| |
$
|
437
|
| |
$
|
617
|
| | | | | | | | |
|
Diluted weighted average limited partner units outstanding
| | |
399
| | | |
371
| | | |
395
| | | |
367
| | | | | | | | | |
|
Diluted adjusted net income per limited partner unit
| |
$
|
0.28
|
| |
$
|
0.53
|
| |
$
|
1.11
|
| |
$
|
1.68
|
|
| | | | | | | | | (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 attributable 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 | | Nine Months Ended | | | September 30, | | September 30, | | | 2015 | | 2014 | | 2015 | | 2014 | Net Income to Earnings Before Interest, Taxes, Depreciation and
Amortization ("EBITDA") and Excluding Selected Items Impacting Comparability ("Adjusted
EBITDA") Reconciliations |
Net Income
| |
$
|
250
| | |
$
|
324
| | |
$
|
659
| | |
$
|
996
| |
Add: Interest expense, net
| | |
107
| | | |
85
| | | |
313
| | | |
246
| |
Add: Income tax expense
| | |
17
| | | |
20
| | | |
66
| | | |
90
| |
Add: Depreciation and amortization
| |
|
109
|
| |
|
97
|
| |
|
326
|
| |
|
293
|
|
EBITDA
| |
$
|
483
| | |
$
|
526
| | |
$
|
1,364
| | |
$
|
1,625
| |
Selected items impacting comparability of EBITDA (1) | |
|
14
|
| |
|
1
|
| |
|
241
|
| |
|
(19
|
)
|
Adjusted EBITDA
| |
$
|
497
|
| |
$
|
527
|
| |
$
|
1,605
|
| |
$
|
1,606
|
|
| | | | | | | | | (1) Certain of our non-GAAP financial measures may not be
impacted by each of the selected items impacting comparability.
| | | | | | | | |
| | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2015 | | 2014 | | 2015 | | 2014 | Adjusted EBITDA to Implied Distributable Cash Flow ("DCF")
Reconciliation | | | | | | | | |
Adjusted EBITDA
| |
$
|
497
| | |
$
|
527
| | |
$
|
1,605
| | |
$
|
1,606
| |
Interest expense, net
| | |
(107
|
)
| | |
(85
|
)
| | |
(313
|
)
| | |
(246
|
)
|
Maintenance capital
| | |
(52
|
)
| | |
(56
|
)
| | |
(154
|
)
| | |
(151
|
)
|
Current income tax expense
| | |
(11
|
)
| | |
(10
|
)
| | |
(72
|
)
| | |
(62
|
)
|
Equity earnings in unconsolidated entities, net of distributions
| | |
12
| | | |
(6
|
)
| | |
25
| | | |
1
| |
Distributions to noncontrolling interests (1) | |
|
(1
|
)
| |
|
(1
|
)
| |
|
(3
|
)
| |
|
(3
|
)
|
Implied DCF (2) | |
$
|
338
|
| |
$
|
369
|
| |
$
|
1,088
|
| |
$
|
1,145
|
|
| | | | | | | | | (1) Includes distributions that pertain to the current
period's net income, which are paid in the subsequent period.
| (2) Including costs of $65 million related to our Line
901 incident that occurred during May 2015, Implied DCF would have
been $1,023 million for the nine months ended September 30, 2015.
| | | | | | | | |
| | | Three Months Ended | | Nine Months Ended | | | September 30, | | September 30, | | | 2015 | | 2014 | | 2015 | | 2014 | Net Cash Provided by Operating Activities Reconciliation | | | | | | | | |
EBITDA
| |
$
|
483
| | |
$
|
526
| | |
$
|
1,364
| | |
$
|
1,625
| |
Current income tax expense
| | |
(11
|
)
| | |
(10
|
)
| | |
(72
|
)
| | |
(62
|
)
|
Interest expense, net
| | |
(107
|
)
| | |
(85
|
)
| | |
(313
|
)
| | |
(246
|
)
|
Net change in assets and liabilities, net of acquisitions
| | |
205
| | | |
(138
|
)
| | |
216
| | | |
(129
|
)
|
Other items to reconcile to net cash provided by operating
activities:
| | | | | | | | |
Equity-indexed compensation expense/(benefit)
| |
|
(8
|
)
| |
|
22
|
| |
|
27
|
| |
|
90
|
|
Net cash provided by operating activities
| |
$
|
562
|
| |
$
|
315
|
| |
$
|
1,222
|
| |
$
|
1,278
|
| | | | | | | | |
|
|
| |
| | |
| | |
| |
| | |
| | PLAINS GP HOLDINGS AND SUBSIDIARIES | FINANCIAL SUMMARY (unaudited)
| | | | | | | | | | | | | | | |
| CONDENSED CONSOLIDATING STATEMENTS OF
OPERATIONS |
(in millions, except per share data)
| | | | | | | | | | | | | | | |
| | | Three Months Ended | | Three Months Ended | | | September 30, 2015 | | September 30, 2014 | | | PAA | | Consolidating Adjustments (1) | | PAGP |
| | PAA | | Consolidating Adjustments (1) | | PAGP | | | | | | | | | | | | | | | |
| REVENUES | |
$
|
5,551
| | |
$
|
-
| | | |
$
|
5,551
| | | |
$
|
11,127
| | |
$
|
-
| | | |
$
|
11,127
| | | | | | | | | | | | | | | | |
| COSTS AND EXPENSES | | | | | | | | | | | | | | | |
Purchases and related costs
| | |
4,701
| | | |
-
| | | | |
4,701
| | | | |
10,166
| | | |
-
| | | | |
10,166
| |
Field operating costs
| | |
348
| | | |
-
| | | | |
348
| | | | |
382
| | | |
-
| | | | |
382
| |
General and administrative expenses
| | |
60
| | | |
-
| | | | |
60
| | | | |
78
| | | |
1
| | | | |
79
| |
Depreciation and amortization
| |
|
109
|
| |
|
1
|
| | |
|
110
|
| | |
|
97
|
| |
|
-
|
| | |
|
97
|
|
Total costs and expenses
| | |
5,218
| | | |
1
| | | | |
5,219
| | | | |
10,723
| | | |
1
| | | | |
10,724
| | | | | | | | | | | | | | | | |
| OPERATING INCOME | | |
333
| | | |
(1
|
)
| | | |
332
| | | | |
404
| | | |
(1
|
)
| | | |
403
| | | | | | | | | | | | | | | | |
| OTHER INCOME/(EXPENSE) | | | | | | | | | | | | | | | |
Equity earnings in unconsolidated entities
| | |
45
| | | |
-
| | | | |
45
| | | | |
29
| | | |
-
| | | | |
29
| |
Interest expense, net
| | |
(107
|
)
| | |
(3
|
)
| | | |
(110
|
)
| | | |
(85
|
)
| | |
(3
|
)
| | | |
(88
|
)
|
Other expense, net
| |
|
(4
|
)
| |
|
-
|
| | |
|
(4
|
)
| | |
|
(4
|
)
| |
|
-
|
| | |
|
(4
|
)
| | | | | | | | | | | | | | | |
| INCOME BEFORE TAX | | |
267
| | | |
(4
|
)
| | | |
263
| | | | |
344
| | | |
(4
|
)
| | | |
340
| |
Current income tax expense
| | |
(11
|
)
| | |
-
| | | | |
(11
|
)
| | | |
(10
|
)
| | |
-
| | | | |
(10
|
)
|
Deferred income tax expense
| |
|
(6
|
)
| |
|
(18
|
)
| | |
|
(24
|
)
| | |
|
(10
|
)
| |
|
(9
|
)
| | |
|
(19
|
)
| | | | | | | | | | | | | | | |
| NET INCOME | | |
250
| | | |
(22
|
)
| | | |
228
| | | | |
324
| | | |
(13
|
)
| | | |
311
| |
Net income attributable to noncontrolling interests
| |
|
(1
|
)
| |
|
(195
|
)
| | |
|
(196
|
)
| | |
|
(1
|
)
| |
|
(294
|
)
| | |
|
(295
|
)
| NET INCOME ATTRIBUTABLE TO PAGP | |
$
|
249
|
| |
$
|
(217
|
)
| | |
$
|
32
|
| | |
$
|
323
|
| |
$
|
(307
|
)
| | |
$
|
16
|
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| BASIC AND DILUTED NET INCOME PER CLASS A SHARE | | | | | | |
$
|
0.14
|
| | | | | | | |
$
|
0.12
|
| | | | | | | | | | | | | | | |
| BASIC AND DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING | | | | |
|
225
|
| | | | | | | |
|
136
|
|
| | | | | | | | | | | | | | | | (1) 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 |
(in millions, except per share data)
| | | | | | | | | | | | | | |
| | Nine Months Ended | | | Nine Months Ended | | September 30, 2015 | | | September 30, 2014 | | PAA | | Consolidating Adjustments (1) | | PAGP | | | PAA | | Consolidating Adjustments (1) | | PAGP | | | | | | | | | | | | | | |
| REVENUES |
$
|
18,156
| | |
$
|
-
| | | |
$
|
18,156
| | | |
$
|
34,005
| | |
$
|
-
| | | |
$
|
34,005
| | | | | | | | | | | | | | | |
| COSTS AND EXPENSES | | | | | | | | | | | | | | |
Purchases and related costs
| |
15,591
| | | |
-
| | | | |
15,591
| | | | |
31,116
| | | |
-
| | | | |
31,116
| |
Field operating costs
| |
1,111
| | | |
-
| | | | |
1,111
| | | | |
1,078
| | | |
-
| | | | |
1,078
| |
General and administrative expenses
| |
217
| | | |
2
| | | | |
219
| | | | |
257
| | | |
3
| | | | |
260
| |
Depreciation and amortization
|
|
326
|
| |
|
1
|
| | |
|
327
|
| | |
|
293
|
| |
|
1
|
| | |
|
294
|
|
Total costs and expenses
| |
17,245
| | | |
3
| | | | |
17,248
| | | | |
32,744
| | | |
4
| | | | |
32,748
| | | | | | | | | | | | | | | |
| OPERATING INCOME | |
911
| | | |
(3
|
)
| | | |
908
| | | | |
1,261
| | | |
(4
|
)
| | | |
1,257
| | | | | | | | | | | | | | | |
| OTHER INCOME/(EXPENSE) | | | | | | | | | | | | | | |
Equity earnings in unconsolidated entities
| |
134
| | | |
-
| | | | |
134
| | | | |
73
| | | |
-
| | | | |
73
| |
Interest expense, net
| |
(313
|
)
| | |
(9
|
)
| | | |
(322
|
)
| | | |
(246
|
)
| | |
(8
|
)
| | | |
(254
|
)
|
Other expense, net
|
|
(7
|
)
| |
|
-
|
| | |
|
(7
|
)
| | |
|
(2
|
)
| |
|
-
|
| | |
|
(2
|
)
| | | | | | | | | | | | | | |
| INCOME BEFORE TAX | |
725
| | | |
(12
|
)
| | | |
713
| | | | |
1,086
| | | |
(12
|
)
| | | |
1,074
| |
Current income tax expense
| |
(72
|
)
| | |
-
| | | | |
(72
|
)
| | | |
(62
|
)
| | |
-
| | | | |
(62
|
)
|
Deferred income tax (expense)/benefit
|
|
6
|
| |
|
(54
|
)
| | |
|
(48
|
)
| | |
|
(28
|
)
| |
|
(26
|
)
| | |
|
(54
|
)
| | | | | | | | | | | | | | |
| NET INCOME | |
659
| | | |
(66
|
)
| | | |
593
| | | | |
996
| | | |
(38
|
)
| | | |
958
| |
Net income attributable to noncontrolling interests
|
|
(2
|
)
| |
|
(498
|
)
| | |
|
(500
|
)
| | |
|
(2
|
)
| |
|
(911
|
)
| | |
|
(913
|
)
| NET INCOME ATTRIBUTABLE TO PAGP |
$
|
657
|
| |
$
|
(564
|
)
| | |
$
|
93
|
| | |
$
|
994
|
| |
$
|
(949
|
)
| | |
$
|
45
|
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| BASIC AND DILUTED NET INCOME PER CLASS A SHARE | | | | | |
$
|
0.42
|
| | | | | | | |
$
|
0.33
|
| | | | | | | | | | | | | | |
| BASIC AND DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING | | | | |
|
220
|
| | | | | | | |
|
136
|
|
| | | | | | | | | | | | | | | (1) 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)
| | | | | | | | | | | | | | | | September 30, 2015 | | | December 31, 2014 | | PAA | | Consolidating Adjustments (1) | | PAGP | | | PAA | | Consolidating Adjustments (1) | | PAGP | ASSETS | | | | | | | | | | | | | | |
Current assets
|
$
|
2,958
| |
$
|
3
| | | |
$
|
2,961
| | |
$
|
4,179
| |
$
|
2
| | | |
$
|
4,181
|
Property and equipment, net
| |
13,350
| | |
19
| | | | |
13,369
| | | |
12,272
| | |
20
| | | | |
12,292
|
Goodwill
| |
2,417
| | |
-
| | | | |
2,417
| | | |
2,465
| | |
-
| | | | |
2,465
|
Investments in unconsolidated entities
| |
1,954
| | |
-
| | | | |
1,954
| | | |
1,735
| | |
-
| | | | |
1,735
|
Deferred tax asset
| |
-
| | |
1,849
| | | | |
1,849
| | | |
-
| | |
1,705
| | | | |
1,705
|
Linefill and base gas
| |
910
| | |
-
| | | | |
910
| | | |
930
| | |
-
| | | | |
930
|
Long-term inventory
| |
166
| | |
-
| | | | |
166
| | | |
186
| | |
-
| | | | |
186
|
Other long-term assets, net
|
|
462
| |
|
-
|
| | |
|
462
| | |
|
489
| |
|
-
|
| | |
|
489
|
Total assets
|
$
|
22,217
| |
$
|
1,871
|
| | |
$
|
24,088
| | |
$
|
22,256
| |
$
|
1,727
|
| | |
$
|
23,983
| | | | | | | | | | | | | | |
| LIABILITIES AND PARTNERS' CAPITAL | | | | | | | | | | | | | | |
Current liabilities
|
$
|
3,478
| |
$
|
2
| | | |
$
|
3,480
| | |
$
|
4,755
| |
$
|
1
| | | |
$
|
4,756
|
Senior notes, net of unamortized discount
| |
9,757
| | |
-
| | | | |
9,757
| | | |
8,757
| | |
-
| | | | |
8,757
|
Other long-term debt
| |
213
| | |
559
| | | | |
772
| | | |
5
| | |
536
| | | | |
541
|
Other long-term liabilities and deferred credits
|
|
553
| |
|
-
|
| | |
|
553
| | |
|
548
| |
|
-
|
| | |
|
548
|
Total liabilities
| |
14,001
| | |
561
| | | | |
14,562
| | | |
14,065
| | |
537
| | | | |
14,602
| | | | | | | | | | | | | | |
|
Partners' capital excluding noncontrolling interests
| |
8,158
| | |
(6,361
|
)
| | | |
1,797
| | | |
8,133
| | |
(6,476
|
)
| | | |
1,657
|
Noncontrolling interests
|
|
58
| |
|
7,671
|
| | |
|
7,729
| | |
|
58
| |
|
7,666
|
| | |
|
7,724
|
Total partners' capital
|
|
8,216
| |
|
1,310
|
| | |
|
9,526
| | |
|
8,191
| |
|
1,190
|
| | |
|
9,381
|
Total liabilities and partners' capital
|
$
|
22,217
| |
$
|
1,871
|
| | |
$
|
24,088
| | |
$
|
22,256
| |
$
|
1,727
|
| | |
$
|
23,983
| | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | (1) Represents the aggregate consolidating adjustments
necessary to produce consolidated financial statements for PAGP.
| | | | | |
|
|
| | PLAINS GP HOLDINGS AND SUBSIDIARIES | DISTRIBUTION SUMMARY (unaudited)
|
| | | | Q3 2015 PAGP DISTRIBUTION SUMMARY |
(in millions, except per unit and per share data)
| | | | Q3 2015 (1) |
PAA Distribution/LP Unit
| |
$
|
0.7000
| |
GP Distribution/LP Unit
| |
$
|
0.3872
|
|
Total Distribution/LP Unit
| |
$
|
1.0872
|
| | | |
|
PAA LP Units Outstanding at 10/30/15
| | |
398
| | | | |
|
Gross GP Distribution
| |
$
|
160
| |
Less: IDR Reduction
| |
|
(6
|
)
|
Net Distribution from PAA to AAP (2) | |
$
|
154
| |
Less: Debt Service
| | |
(3
|
)
|
Less: G&A Expense
| | |
(1
|
)
|
Plus: Projected Cash Available
| |
|
1
|
|
Cash Available for Distribution by AAP
| |
$
|
151
|
| | | |
| Distributions to AAP Partners | | |
Direct AAP Owners & AAP Management (65% economic interest)
| |
$
|
98
| |
PAGP (35% economic interest)
| |
|
53
|
|
Total distributions to AAP Partners
| |
$
|
151
|
| | | |
|
Distribution to PAGP Investors
| |
$
|
52
|
|
PAGP Class A Shares Outstanding at 10/30/15
| |
|
227
|
|
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 | | | Nine Months Ended | | | September 30, | | | September 30, | | | 2015 | | 2014 | | | 2015 | | 2014 | Basic and Diluted Net Income per Class A Share | | | | | | | | | |
Net income attributable to PAGP
| |
$
|
32
| |
$
|
16
| | |
$
|
93
| |
$
|
45
|
Basic and diluted weighted average Class A shares outstanding
| | |
225
| | |
136
| | | |
220
| | |
136
| | | | | | | | | |
|
Basic and diluted net income per Class A share
| |
$
|
0.14
| |
$
|
0.12
| | |
$
|
0.42
| |
$
|
0.33
| | | | | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20151103006914/en/
Plains All American Pipeline, L.P. and Plains GP Holdings Ryan
Smith, 866-809-1291 Director, Investor Relations Al Swanson,
800-564-3036 Executive Vice President, CFO
|
Nov 03, 2015 |
|