All American Pipeline, L.P. (NYSE: PAA)
GP Holdings (NYSE: PAGP)
today announced their quarterly distributions with respect to the third
quarter of 2017.
Consistent with the action plan communicated on its August 25, 2017
conference call, PAA
announced a quarterly cash distribution of $0.30 per common unit ($1.20
per unit on an annualized basis). PAGP
announced a corresponding quarterly cash distribution of $0.30 per Class
A share ($1.20 per Class A share on an annualized basis). Such
distributions represent a 45% reduction relative to the quarterly
distributions paid in August 2017. Cash retained will be used to reduce
indebtedness. With respect to PAA's Series A Preferred Units, PAA
announced a payment-in-kind ("PIK") of the quarterly distribution, which
will result in the issuance of an additional 1,366,593 Series A
Preferred Units. The PIK amount equates to a quarterly distribution of
$0.525 per Series A Preferred Unit, or $2.10 annualized. These
distributions will be payable on November 14, 2017 to holders of record
of each security at the close of business on October 31, 2017.
For its Series B Preferred Units issued on October 10, 2017, PAA
announced an initial partial-period distribution of $5.9549 per Series B
Preferred Unit, which will be payable on November 15, 2017 to holders of
record at the close of business on November 1, 2017.
The PAGP cash distribution is expected to be a non-taxable return of
capital to the extent of a Class A Shareholder's tax basis in each PAGP
Class A Share and a reduction in the tax basis of that Class A Share. To
the extent any cash distribution exceeds a Class A Shareholder's tax
basis, it should be taxable as capital gains.
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 5 million barrels per day of crude oil and NGL in its
Transportation segment. PAA is headquartered in Houston, Texas. More
information is available at www.plainsallamerican.com.
PAGP is a publicly traded entity that owns an indirect, non-economic
controlling general partner interest in PAA and an indirect limited
partner interest in PAA, one of the largest energy infrastructure and
logistics companies in North America. PAGP is headquartered in Houston,
Texas. More information is available at www.plainsallamerican.com.
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Plains All American Pipeline, L.P. and Plains GP Holdings
Magill, (866) 809-1291
Manager, Investor Relations