Plains All American Pipeline, L.P. and Plains GP Holdings Report Fourth-Quarter and Full-Year 2017 Results |
PAA Also Furnishes 2018 Full-Year Guidance
Plains All American Pipeline, L.P. (NYSE: PAA)
and Plains GP Holdings (NYSE: PAGP)
today reported fourth-quarter and full-year 2017 results.
Fourth-Quarter and Full-Year 2017 Highlights -
Delivered operating and financial performance in line with to slightly
ahead of 4Q17 expectations;
-
Reduced total debt by $1.5 billion during 4Q17; exited 2017 with $3.0
billion of liquidity
-
Retired $950 million of senior notes
-
Reduced short-term/inventory debt by ~$200 million compared to
September 30, 2017 (~$375 million relative to the June 30, 2017
balance);
-
Completed ~$1.1 billion in targeted asset sales (~$700 million since
August 2017); advancing efforts on additional 2018 sales;
-
Completed construction and placed the new Diamond and STACK JV
pipelines into service and completed capacity expansions for the
Cactus I and BridgeTex pipelines, adding over 275,000 barrels per day
to PAA's net transportation capacity; and
-
Obtained long-term minimum volume commitments ("MVCs") to sanction
construction of the Cactus II pipeline and the extension/looping of
the Sunrise pipeline system.
"We are pleased to report that PAA finished the year on a strong note,
having made significant progress on the plans we outlined in August of
2017," stated Willie Chiang, Executive Vice President and Chief
Operating Officer of Plains All American Pipeline.
"We remain on track to achieve our deleveraging objectives and targeted
credit metrics by early 2019 while maintaining substantial distribution
coverage underpinned by predominantly fee-based cash flow. Additionally,
execution of our capital program, which includes several recently
announced Permian projects, and robust Permian fundamentals will drive
momentum for PAA's continued growth in 2018 and beyond."
| Plains All American Pipeline, L.P. |
| Summary Financial Information(unaudited)
|
(in millions, except per unit data)
|
| |
|
|
|
|
| Three Months Ended December 31, |
|
| % |
|
| Twelve Months Ended December 31, |
|
| % | GAAP Results |
|
|
|
| | 2017 |
|
| 2016 | | | Change | | | 2017 |
|
| 2016 | | | Change |
Net income attributable to PAA
| | | | | |
$
|
191
| | | |
$
|
126
| | | |
52
|
%
| | |
$
|
856
| | | |
$
|
726
| | | |
18
|
%
|
Diluted net income per common unit
| | | | | |
$
|
0.19
| | | |
$
|
0.14
| | | |
36
|
%
| | |
$
|
0.95
| | | |
$
|
0.43
| | | |
121
|
%
|
Diluted weighted average common units outstanding
| | | | | |
726
|
| | |
662
|
| | |
10
|
%
| | |
718
|
| | |
466
|
| | |
54
|
%
|
Distribution per common unit declared for the period
| | | | | |
$
|
0.30
|
| | |
$
|
0.55
|
| | |
(45
|
)%
| | |
$
|
1.70
|
| | |
$
|
2.50
|
| | |
(32
|
)%
|
|
| | | | | | | Three Months Ended December 31, | | | % | | | Twelve Months Ended December 31, | | | % | Non-GAAP Results (1) |
|
|
|
| | 2017 | | | 2016 | | | Change | | | 2017 | | | 2016 | | | Change |
Adjusted net income attributable to PAA
| | | | | |
$
|
241
| | | |
$
|
278
| | | |
(13
|
)%
| | |
$
|
849
| | | |
$
|
1,062
| | | |
(20
|
)%
|
Diluted adjusted net income per common unit
| | | | | |
$
|
0.26
| | | |
$
|
0.37
| | | |
(30
|
)%
| | |
$
|
0.94
| | | |
$
|
1.14
| | | |
(18
|
)%
|
Adjusted EBITDA
| | | | | |
$
|
631
| | | |
$
|
600
| | | |
5
|
%
| | |
$
|
2,082
| | | |
$
|
2,169
| | | |
(4
|
)%
|
|
_____________________________
|
(1)
|
|
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.
|
|
Segment adjusted EBITDA for the fourth quarter and full year of 2017 and
2016 is presented below:
| Summary of Selected Financial Data by
Segment (unaudited)
(in millions)
|
| |
|
|
|
| Three Months Ended December 31, 2017 |
|
| Three Months Ended December 31, 2016 | | | | | | Transportation |
|
| Facilities |
|
| Supply and Logistics | | | Transportation |
|
| Facilities |
|
| Supply and Logistics |
Segment adjusted EBITDA
| | | | |
$
|
354
|
| | |
$
|
184
|
| | |
$
|
92
|
| | |
$
|
278
|
| | |
$
|
171
|
| | |
$
|
151
| Percentage change in segment adjusted EBITDA versus 2016 period | | | | | 27 | % | | | 8 | % | | | (39 | )% | | | | | | | | | |
|
| | | | | | Twelve Months Ended December 31, 2017 | | | Twelve Months Ended December 31, 2016 | | | | | | Transportation | | | Facilities | | | Supply and Logistics | | | Transportation | | | Facilities | | | Supply and Logistics |
Segment adjusted EBITDA
| | | | |
$
|
1,287
|
| | |
$
|
734
|
| | |
$
|
60
|
| | |
$
|
1,141
|
| | |
$
|
667
|
| | |
$
|
359
| Percentage change in segment adjusted EBITDA versus 2016 period | | | | | 13 | % | | | 10 | % | | | (83 | )% | | | | | | | | | |
|
Fourth-quarter 2017 Transportation segment adjusted EBITDA increased by
27% versus comparable 2016 results. This increase was primarily driven
by increased volume on our Permian Basin systems, in addition to
contributions from our Eagle Ford JV system, which receives Permian
volumes from our Cactus pipeline. This increase was partially offset by
a one-time contract settlement in the fourth quarter and the sale of
non-core assets in our Rocky Mountain region.
Fourth-quarter 2017 Facilities segment adjusted EBITDA increased by 8%
versus comparable 2016 results. This increase was primarily driven by
increased NGL storage and fractionation services and higher throughput
fees and additional storage capacity at Cushing and Patoka. These
increases were partially offset by decreased rail terminal revenue and
the impact of a natural gas storage asset sale completed in June 2017.
Fourth-quarter 2017 Supply and Logistics segment adjusted EBITDA
decreased by 39% versus comparable 2016 results due to crude oil and NGL
margin compression and reduced arbitrage opportunities.
| 2018 Full-Year Guidance |
|
The table below presents our full-year 2018 financial and
operating guidance:
|
| Financial and Operating Guidance
(unaudited)
(in millions, except per unit and per barrel data)
|
| |
|
|
|
| Twelve Months Ended December 31, | | | | | | 2016 |
|
| 2017 |
|
| 2018 (G) | | | | | | | | | | | | | |
+ / -
| | Segment Adjusted EBITDA | | | | | | | | | | | | | | |
Transportation
| | | | |
$
|
1,141
| | | |
$
|
1,287
| | | |
$
|
1,535
| |
Facilities
| | | | |
667
|
| | |
734
|
| | |
665
|
| Fee-based | | | | | $ | 1,808 | | | | $ | 2,021 | | | | $ | 2,200 | |
Supply and Logistics
| | | | |
359
| | | |
60
| | | |
100
| |
Other income/(expense), net
| | | | |
2
|
| | |
1
|
| | |
-
|
| Adjusted EBITDA (1) | | | | | $ | 2,169 |
| | | $ | 2,082 |
| | | $ | 2,300 |
|
Interest expense, net (2) | | | | |
(451
|
)
| | | |
(483
|
)
| | | |
(425
|
)
| |
Maintenance capital
| | | | |
(186
|
)
| | | |
(247
|
)
| | | |
(215
|
)
| |
Current income tax expense
| | | | |
(85
|
)
| | | |
(28
|
)
| | | |
(30
|
)
| |
Other
| | | | |
(33
|
)
|
| | |
(12
|
)
|
| | |
5
|
| Implied DCF (1) | | | | | $ | 1,414 | | | | $ | 1,312 | | | | $ | 1,635 | |
Preferred unit cash distributions paid (3) | | | | |
-
| | | |
(5
|
)
| | | |
(160
|
)
| |
General partner cash distributions
| | | | |
(565
|
)
|
| | |
-
|
| | |
-
|
| Implied DCF Available to Common Unitholders | | | | | $ | 849 |
| | | $ | 1,307 |
| | | $ | 1,475 |
| | | | | | | | | | | | | | |
| Implied DCF per Common Unit (1) | | | | |
$
|
1.83
| | | |
$
|
1.82
| | | |
$
|
2.03
| | Implied DCF per Common Unit and Common Equivalent Unit (1) | | | | |
$
|
1.63
| | | |
$
|
1.67
| | | |
$
|
1.99
| | | | | | | | | | | | | | | |
| Distributions per Common Unit (4) | | | | |
$
|
2.65
| | | |
$
|
1.95
| | | |
$
|
1.20
| | Common Unit Distribution Coverage Ratio | | | | |
0.87x
| | | |
0.94x
| | | |
1.70x
| | | | | | | | | | | | | | | |
| Operating Data | | | | | | | | | | | | | | | Transportation | | | | | | | | | | | | | | |
Average daily volumes (MBbls/d)
| | | | |
4,637
| | | |
5,186
| | | |
5,925
| |
Segment Adjusted EBITDA per barrel
| | | | |
$
|
0.67
| | | |
$
|
0.68
| | | |
$
|
0.71
| | | | | | | | | | | | | | | |
| Facilities | | | | | | | | | | | | | | |
Average capacity (MMBbls/Mo)
| | | | |
127
| | | |
130
| | | |
125
| |
Segment Adjusted EBITDA per barrel
| | | | |
$
|
0.44
| | | |
$
|
0.47
| | | |
$
|
0.44
| | | | | | | | | | | | | | | |
| Supply and Logistics | | | | | | | | | | | | | | |
Average daily volumes (MBbls/d)
| | | | |
1,153
| | | |
1,219
| | | |
1,275
| |
Segment Adjusted EBITDA per barrel
| | | | |
$
|
0.85
| | | |
$
|
0.13
| | | |
$
|
0.21
| | | | | | | | | | | | | | | |
| Expansion Capital | | | | | $ | 1,405 | | | | $ | 1,135 | | | | $ | 1,400 | | | | | | | | | | | | | | | |
| First-Quarter Adjusted EBITDA as Percentage of Full Year | | | | | 29 | % | | | 25 | % | | | 25 | % |
|
_____________________________
|
(G)
|
|
2018 Guidance forecasts are intended to be + / - amounts.
| | |
|
(1)
| |
See the section of this release entitled "Non-GAAP Financial
Measures and Selected Items Impacting Comparability" and the
Non-GAAP Reconciliation tables attached hereto for information
regarding non-GAAP financial measures and, for the historical 2016
and 2017 periods, their reconciliation to the most directly
comparable measures as reported in accordance with GAAP. We do not
provide a reconciliation of non-GAAP financial measures to the
equivalent GAAP financial measures on a forward-looking basis as it
is impractical to forecast certain items that we have defined as
"Selected Items Impacting Comparability" without unreasonable
effort, due to the uncertainty and inherent difficulty of predicting
the occurrence and financial impact of and the periods in which such
items may be recognized. Thus, a reconciliation of non-GAAP
financial measures to the equivalent GAAP financial measures could
result in disclosure that could be imprecise or potentially
misleading.
| | |
|
(2)
| |
Excludes certain non-cash items impacting interest expense such as
amortization of debt issuance costs and terminated interest rate
swaps.
| | |
|
(3)
| |
Cash distributions paid to our preferred unitholders during the year
presented. The distribution requirement of our Series A preferred
units was paid-in-kind for all 2016 and 2017 quarterly
distributions. Distributions on our Series A preferred units must be
paid in cash beginning with the May 2018 quarterly distribution. The
distribution requirement of our Series B preferred units, which were
issued in October 2017, is payable semi-annually in arrears on May
15 and November 15. A pro-rated initial distribution on the Series B
preferred units was paid on November 15, 2017.
| | |
|
(4)
| |
Cash distributions per common unit paid during 2016 and 2017.
2018(G) reflects the current distribution rate held constant.
|
|
Plains GP Holdings
PAGP owns an indirect non-economic controlling interest in PAA's general
partner and an indirect limited partner interest in PAA. 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:
| |
|
|
|
| Q4 2017 |
|
| Q3 2017 |
|
| Q4 2016 | Distribution per Class A share declared for the period | | | | |
$
|
0.30
| | | |
$
|
0.30
|
| | |
$
|
0.55
|
| Q4 2017 distribution percentage change from prior periods | | | | | | | |
-
|
%
| | |
(45
|
)%
|
|
Additionally, following the enactment of the Tax Cuts and Jobs Act of
2017 and the resulting decrease in the federal income tax rate from 35%
to 21%, in the fourth quarter of 2017 PAGP re-measured its deferred tax
asset and recorded deferred income tax expense of $823 million. This
re-measurement is non-cash and does not affect the timing of when PAGP
is expected to pay taxes, which we do not currently expect to occur
within the next 10 years.
Conference Call
PAA and PAGP will hold a conference call at 10:00 a.m. CT on Wednesday,
February 7, 2018 to discuss the following items:
1. PAA's fourth-quarter 2017 and full-year 2017 performance;
2. Financial and operating guidance for the full year of 2018;
3. Capitalization and liquidity; and
4. PAA's and PAGP's outlook for the future.
Conference Call Webcast Instructions
To access the internet webcast please go to https://event.webcasts.com/starthere.jsp?ei=1176062&tp.
Alternatively, the webcast can be accessed at www.plainsallamerican.com,
under the Investor Relations section of the website (Navigate to:
Investor Relations / either PAA or PAGP / News & Events / Quarterly
Earnings). Following the live webcast, an audio replay in MP3 format
will be available on the website within two hours after the end of the
call and will be accessible for a period of 365 days.
Non-GAAP Financial Measures and Selected Items Impacting
Comparability
To supplement our financial information presented in accordance with
GAAP, management uses additional measures known as "non-GAAP financial
measures" in its evaluation of past performance and prospects for the
future. The primary additional measures used by management are earnings
before interest, taxes, depreciation and amortization (including our
proportionate share of depreciation and amortization and gains or losses
on significant asset sales of unconsolidated entities) and adjusted for
certain selected items impacting comparability ("Adjusted EBITDA") and
implied distributable cash flow ("DCF").
Management believes that the presentation of such additional financial
measures provides useful information to investors regarding our
performance and results of operations because these measures, when used
to supplement related GAAP financial measures, (i) provide additional
information about our core operating performance and ability to fund
distributions to our unitholders through cash generated by our
operations and (ii) provide investors with the same financial analytical
framework upon which management bases financial, operational,
compensation and planning/budgeting decisions. We also present these and
additional non-GAAP financial measures, including adjusted net income
attributable to PAA; basic and diluted adjusted net income per common
unit; implied DCF available to common unitholders; implied DCF per
common unit; and implied DCF per common unit and common equivalent unit,
as they are measurements that investors, rating agencies and debt
holders have indicated are useful in assessing us and our results of
operations. These non-GAAP measures may exclude, for example, (i)
charges for obligations that are expected to be settled with the
issuance of equity instruments, (ii) gains or losses on derivative
instruments that are related to underlying activities in another period
(or the reversal of such adjustments from a prior period), the
mark-to-market related to our Preferred Distribution Rate Reset Option,
gains and losses on derivatives that are related to investing activities
(such as the purchase of linefill) and inventory valuation adjustments,
as applicable, (iii) long-term inventory costing adjustments, (iv) items
that are not indicative of our core operating results and business
outlook and/or (v) other items that we believe should be excluded in
understanding our core operating performance. These measures may further
be adjusted to include amounts related to deficiencies associated with
minimum volume commitments whereby we have billed the counterparties for
their deficiency obligation and such amounts are recognized as deferred
revenue in "Accounts payable and accrued liabilities" on our
Consolidated Financial Statements. Such amounts are presented net of
applicable amounts subsequently recognized into revenue. Furthermore,
the calculation of these measures contemplates tax effects as a separate
reconciling item, where applicable. We have defined all such items as
"selected items impacting comparability." Due to the nature of the
selected items, certain selected items impacting comparability may
impact certain non-GAAP financial measures, referred to as adjusted
results, but not impact other non-GAAP financial measures. We do not
necessarily consider all of our selected items impacting comparability
to be non-recurring, infrequent or unusual, but we believe that an
understanding of these selected items impacting comparability is
material to the evaluation of our operating results and prospects.
Although we present selected items impacting comparability that
management considers 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, expansion projects 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.
Our definition and calculation of certain non-GAAP financial measures
may not be comparable to similarly-titled measures of other companies.
Adjusted EBITDA, Implied DCF and other non-GAAP financial performance
measures are reconciled to Net Income (the most directly comparable
measure as reported in accordance with GAAP) for the historical 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, we encourage you to visit our
website at www.plainsallamerican.com
(in particular the section under "Financial Information" entitled
"Non-GAAP Reconciliations" within the Investor Relations tab), which
presents a reconciliation of our commonly used non-GAAP and supplemental
financial measures.
Forward-Looking Statements
Except for the historical information contained herein, the matters
discussed in this release consist of forward-looking statements that
involve certain risks and uncertainties that could cause actual results
or outcomes to differ materially from results or outcomes anticipated in
the forward-looking statements. These risks and uncertainties include,
among other things, declines in the actual or expected volume of crude
oil 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, reduced demand, 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; market distortions caused by producer over-commitments to
infrastructure projects, which impacts volumes, margins, returns and
overall earnings; unanticipated changes in crude oil and NGL market
structure, grade differentials and volatility (or lack thereof);
maintenance of our credit rating and ability to receive open credit from
our suppliers and trade counterparties; 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 and natural gas and resulting changes in pricing conditions or
transportation throughput requirements; the occurrence of a natural
disaster, catastrophe, terrorist attack (including eco-terrorist
attacks) or other event, including attacks on our electronic and
computer systems; failure to implement or capitalize, or delays in
implementing or capitalizing, on expansion projects, whether due to
permitting delays, permitting withdrawals or other factors; 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 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
failure to consummate, or significant delay in consummating, sales of
assets or interests as a part of our strategic divestiture program; the
impact of current and future laws, rulings, governmental regulations,
accounting standards and statements, and related interpretations; the
currency exchange rate of the Canadian dollar; continued
creditworthiness of, and performance by, our counterparties, including
financial institutions and trading companies with which we do business;
inability to recognize current revenue attributable to deficiency
payments received from customers who fail to ship or move more than
minimum contracted volumes until the related credits expire or are used;
non-utilization of our assets and facilities; increased costs, or lack
of availability, of insurance; weather interference with business
operations or project construction, including the impact of extreme
weather events or conditions; the availability of, and our ability to
consummate, acquisition or combination opportunities; the effectiveness
of our risk management activities; shortages or cost increases of
supplies, materials or labor; fluctuations in the debt and equity
markets, including the price of our units at the time of vesting under
our long-term incentive plans; risks related to the development and
operation of our assets, including our ability to satisfy our
contractual obligations to our customers; factors affecting demand for
natural gas and natural gas storage services and rates; general
economic, market or business conditions and the amplification of other
risks caused by volatile financial markets, capital constraints and
pervasive liquidity concerns; and other factors and uncertainties
inherent in the transportation, storage, terminalling and marketing of
crude oil, 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")
and natural gas. 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.
Plains GP Holdings 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.
| 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 December 31, |
|
|
| Twelve Months Ended December 31, | | | | | | 2017 |
|
|
| 2016 | | | | 2017 |
|
|
| 2016 | REVENUES | | | | |
$
|
7,605
| | | | |
$
|
5,952
| | | | |
$
|
26,223
| | | | |
$
|
20,182
| | | | | | | | | | | | | | | | | | |
| COSTS AND EXPENSES | | | | | | | | | | | | | | | | | |
Purchases and related costs
| | | | |
6,746
| | | | |
5,234
| | | | |
22,985
| | | | |
17,233
| |
Field operating costs
| | | | |
307
| | | | |
289
| | | | |
1,183
| | | | |
1,182
| |
General and administrative expenses
| | | | |
66
| | | | |
68
| | | | |
276
| | | | |
279
| |
Depreciation and amortization
| | | | |
225
|
| | | |
143
|
| | | |
626
|
| | | |
494
|
|
Total costs and expenses
| | | | |
7,344
| | | | |
5,734
| | | | |
25,070
| | | | |
19,188
| | | | | | | | | | | | | | | | | | |
| OPERATING INCOME | | | | |
261
| | | | |
218
| | | | |
1,153
| | | | |
994
| | | | | | | | | | | | | | | | | | |
| OTHER INCOME/(EXPENSE) | | | | | | | | | | | | | | | | | |
Equity earnings in unconsolidated entities
| | | | |
90
| | | | |
61
| | | | |
290
| | | | |
195
| |
Interest expense, net
| | | | |
(120
|
)
| | | |
(127
|
)
| | | |
(510
|
)
| | | |
(467
|
)
|
Other income/(expense), net
| | | | |
(26
|
)
| | | |
(14
|
)
| | | |
(31
|
)
| | | |
33
|
| | | | | | | | | | | | | | | | | |
| INCOME BEFORE TAX | | | | |
205
| | | | |
138
| | | | |
902
| | | | |
755
| |
Current income tax expense
| | | | |
(19
|
)
| | | |
(41
|
)
| | | |
(28
|
)
| | | |
(85
|
)
|
Deferred income tax benefit/(expense)
| | | | |
5
|
| | | |
30
|
| | | |
(16
|
)
| | | |
60
|
| | | | | | | | | | | | | | | | | |
| NET INCOME | | | | |
191
| | | | |
127
| | | | |
858
| | | | |
730
| |
Net income attributable to noncontrolling interests
| | | | |
-
|
| | | |
(1
|
)
| | | |
(2
|
)
| | | |
(4
|
)
| NET INCOME ATTRIBUTABLE TO PAA | | | | |
$
|
191
|
| | | |
$
|
126
|
| | | |
$
|
856
|
| | | |
$
|
726
|
| | | | | | | | | | | | | | | | | |
| NET INCOME PER COMMON UNIT: | | | | | | | | | | | | | | | | | |
Net income allocated to common unitholders - Basic
| | | | |
$
|
138
| | | | |
$
|
91
| | | | |
$
|
685
| | | | |
$
|
200
| |
Basic weighted average common units outstanding
| | | | |
725
| | | | |
660
| | | | |
717
| | | | |
464
| |
Basic net income per common unit
| | | | |
$
|
0.19
|
| | | |
$
|
0.14
|
| | | |
$
|
0.96
|
| | | |
$
|
0.43
|
| | | | | | | | | | | | | | | | | |
|
Net income allocated to common unitholders - Diluted
| | | | |
$
|
138
| | | | |
$
|
91
| | | | |
$
|
685
| | | | |
$
|
200
| |
Diluted weighted average common units outstanding
| | | | |
726
| | | | |
662
| | | | |
718
| | | | |
466
| |
Diluted net income per common unit
| | | | |
$
|
0.19
|
| | | |
$
|
0.14
|
| | | |
$
|
0.95
|
| | | |
$
|
0.43
|
|
|
| NON-GAAP ADJUSTED RESULTS
(in millions, except per unit data)
|
| | | | | | Three Months Ended December 31, | | | | Twelve Months Ended December 31, | | | | | | 2017 | | | | 2016 | | | | 2017 | | | | 2016 |
Adjusted net income attributable to PAA
| | | | |
$
|
241
|
| | | |
$
|
278
|
| | | |
$
|
849
|
| | | |
$
|
1,062
|
| | | | | | | | | | | | | | | | | |
|
Diluted adjusted net income per common unit
| | | | |
$
|
0.26
|
| | | |
$
|
0.37
|
| | | |
$
|
0.94
|
| | | |
$
|
1.14
|
| | | | | | | | | | | | | | | | | |
|
Adjusted EBITDA
| | | | |
$
|
631
|
| | | |
$
|
600
|
| | | |
$
|
2,082
|
| | | |
$
|
2,169
|
|
|
| PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
|
|
| CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in millions)
|
| |
|
|
|
| December 31, 2017 |
|
|
| December 31, 2016 | ASSETS | | | | | | | | | |
Current assets
| | | | |
$
|
4,000
| | | | |
$
|
4,272
|
Property and equipment, net
| | | | |
14,089
| | | | |
13,872
|
Goodwill
| | | | |
2,566
| | | | |
2,344
|
Investments in unconsolidated entities
| | | | |
2,756
| | | | |
2,343
|
Linefill and base gas
| | | | |
872
| | | | |
896
|
Long-term inventory
| | | | |
164
| | | | |
193
|
Other long-term assets, net
| | | | |
904
|
| | | |
290
|
Total assets
| | | | |
$
|
25,351
|
| | | |
$
|
24,210
| | | | | | | | | |
| LIABILITIES AND PARTNERS' CAPITAL | | | | | | | | | |
Current liabilities
| | | | |
$
|
4,531
| | | | |
$
|
4,664
|
Senior notes, net of unamortized discounts and debt issuance costs
| | | | |
8,933
| | | | |
9,874
|
Other long-term debt
| | | | |
250
| | | | |
250
|
Other long-term liabilities and deferred credits
| | | | |
679
|
| | | |
606
|
Total liabilities
| | | | |
$
|
14,393
| | | | |
$
|
15,394
| | | | | | | | | |
|
Partners' capital excluding noncontrolling interests
| | | | |
10,958
| | | | |
8,759
|
Noncontrolling interests
| | | | |
-
|
| | | |
57
|
Total partners' capital
| | | | |
10,958
|
| | | |
8,816
|
Total liabilities and partners' capital
| | | | |
$
|
25,351
|
| | | |
$
|
24,210
| | | | | | | | | | | | |
| DEBT CAPITALIZATION RATIOS
(in millions)
|
| | | | | | December 31, 2017 | | | | December 31, 2016 |
Short-term debt (1) | | | | |
$
|
737
| | | | |
$
|
1,715
| |
Long-term debt
| | | | |
9,183
|
| | | |
10,124
|
|
Total debt
| | | | |
$
|
9,920
|
| | | |
$
|
11,839
|
| | | | | | | | | |
|
Long-term debt
| | | | |
$
|
9,183
| | | | |
$
|
10,124
| |
Partners' capital
| | | | |
10,958
|
| | | |
8,816
|
|
Total book capitalization
| | | | |
$
|
20,141
|
| | | |
$
|
18,940
|
|
Total book capitalization, including short-term debt
| | | | |
$
|
20,878
|
| | | |
$
|
20,655
|
| | | | | | | | | |
|
Long-term debt-to-total book capitalization
| | | | |
46
|
%
| | | |
53
|
%
|
Total debt-to-total book capitalization, including short-term debt
| | | | |
48
|
%
| | | |
57
|
%
|
|
_____________________________
|
(1)
|
|
As of December 31, 2017 and 2016, short-term debt includes
borrowings of approximately $523 million and $1,303 million,
respectively, for short-term hedged inventory purchases and
borrowings of approximately $212 million and $410 million,
respectively, for cash margin deposits with our clearing brokers,
which are associated with financial derivatives used for hedging
purposes.
|
|
| PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
|
|
| OPERATING DATA(1) | |
|
|
|
| Three Months Ended December 31, |
|
| Twelve Months Ended December 31, | | | | | | 2017 |
|
| 2016 | | | 2017 |
|
| 2016 | Transportation segment (average daily volumes in thousands of
barrels per day): | | | | | | | | | | | | | | |
Tariff activities volumes
| | | | | | | | | | | | | | |
Crude oil pipelines (by region):
| | | | | | | | | | | | | | |
Permian Basin (2) | | | | |
3,219
| | | |
2,197
| | | |
2,855
| | | |
2,146
|
South Texas / Eagle Ford (2) | | | | |
418
| | | |
284
| | | |
360
| | | |
284
|
Central (2) | | | | |
424
| | | |
397
| | | |
420
| | | |
394
|
Gulf Coast
| | | | |
312
| | | |
373
| | | |
349
| | | |
497
|
Rocky Mountain (2) | | | | |
317
| | | |
454
| | | |
393
| | | |
449
|
Western
| | | | |
179
| | | |
171
| | | |
184
| | | |
188
|
Canada
| | | | |
330
|
| | |
374
|
| | |
352
|
| | |
381
|
Crude oil pipelines
| | | | |
5,199
| | | |
4,250
| | | |
4,913
| | | |
4,339
|
NGL pipelines
| | | | |
172
|
| | |
190
|
| | |
170
|
| | |
184
|
Tariff activities total volumes
| | | | |
5,371
| | | |
4,440
| | | |
5,083
| | | |
4,523
|
Trucking volumes
| | | | |
106
|
| | |
118
|
| | |
103
|
| | |
114
|
Transportation segment total volumes
| | | | |
5,477
|
| | |
4,558
|
| | |
5,186
|
| | |
4,637
| | | | | | | | | | | | | | |
| Facilities segment (average monthly volumes): | | | | | | | | | | | | | | |
Liquids storage (average monthly capacity in millions of barrels)
| | | | |
114
|
| | |
110
|
| | |
112
|
| | |
107
|
Natural gas storage (average monthly working capacity in billions of
cubic feet)
| | | | |
67
|
| | |
97
|
| | |
82
|
| | |
97
|
NGL fractionation (average volumes in thousands of barrels per day)
| | | | |
127
|
| | |
122
|
| | |
126
|
| | |
115
|
Facilities segment total volumes (average monthly volumes in
millions of barrels) (3) | | | | |
129
|
| | |
129
|
| | |
130
|
| | |
127
| | | | | | | | | | | | | | |
| Supply and Logistics segment (average daily volumes in thousands
of barrels per day): | | | | | | | | | | | | | | |
Crude oil lease gathering purchases
| | | | |
994
| | | |
895
| | | |
945
| | | |
894
|
NGL sales
| | | | |
335
|
| | |
346
|
| | |
274
|
| | |
259
|
Supply and Logistics segment total volumes
| | | | |
1,329
|
| | |
1,241
|
| | |
1,219
|
| | |
1,153
|
|
_____________________________
|
(1)
|
|
Average volumes are calculated as total volumes for the period
(attributable to our interest) divided by the number of days or
months in the period.
| | |
|
(2)
| |
Region includes volumes (attributable to our interest) from
pipelines owned by unconsolidated entities.
| | |
|
(3)
| |
Facilities segment total volumes is calculated as the sum of: (i)
liquids storage capacity; (ii) 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 (iii) 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 COMMON UNIT (1)
(in millions, except per unit data)
|
| |
|
|
|
| Three Months Ended December 31, |
|
| Twelve Months Ended December 31, | | | | | | 2017 |
|
| 2016 | | | 2017 |
|
| 2016 | Basic Net Income per Common Unit | | | | | | | | | | | | | | |
Net income attributable to PAA
| | | | |
$
|
191
| | | |
$
|
126
| | | |
$
|
856
| | | |
$
|
726
| |
Distributions to Series A preferred unitholders
| | | | |
(37
|
)
| | |
(34
|
)
| | |
(142
|
)
| | |
(122
|
)
|
Distributions to Series B preferred unitholders
| | | | |
(11
|
)
| | |
-
| | | |
(11
|
)
| | |
-
| |
Distributions to general partner
| | | | |
-
| | | |
-
| | | |
-
| | | |
(412
|
)
|
Other
| | | | |
(5
|
)
| | |
(1
|
)
| | |
(18
|
)
| | |
8
|
|
Net income allocated to common unitholders
| | | | |
$
|
138
|
| | |
$
|
91
|
| | |
$
|
685
|
| | |
$
|
200
|
| | | | | | | | | | | | | | |
|
Basic weighted average common units outstanding
| | | | |
725
| | | |
660
| | | |
717
| | | |
464
| | | | | | | | | | | | | | | |
|
Basic net income per common unit
| | | | |
$
|
0.19
|
| | |
$
|
0.14
|
| | |
$
|
0.96
|
| | |
$
|
0.43
|
| | | | | | | | | | | | | | |
| Diluted Net Income per Common Unit | | | | | | | | | | | | | | |
Net income attributable to PAA
| | | | |
$
|
191
| | | |
$
|
126
| | | |
$
|
856
| | | |
$
|
726
| |
Distributions to Series A preferred unitholders
| | | | |
(37
|
)
| | |
(34
|
)
| | |
(142
|
)
| | |
(122
|
)
|
Distributions to Series B preferred unitholders
| | | | |
(11
|
)
| | |
-
| | | |
(11
|
)
| | |
-
| |
Distributions to general partner
| | | | |
-
| | | |
-
| | | |
-
| | | |
(412
|
)
|
Other
| | | | |
(5
|
)
| | |
(1
|
)
| | |
(18
|
)
| | |
8
|
|
Net income allocated to common unitholders
| | | | |
$
|
138
|
| | |
$
|
91
|
| | |
$
|
685
|
| | |
$
|
200
|
| | | | | | | | | | | | | | |
|
Basic weighted average common units outstanding
| | | | |
725
| | | |
660
| | | |
717
| | | |
464
| |
Effect of dilutive securities:
| | | | | | | | | | | | | | |
LTIP units (2) | | | | |
1
|
| | |
2
|
| | |
1
|
| | |
2
|
|
Diluted weighted average common units outstanding
| | | | |
726
|
| | |
662
|
| | |
718
|
| | |
466
|
| | | | | | | | | | | | | | |
|
Diluted net income per common unit (3) | | | | |
$
|
0.19
|
| | |
$
|
0.14
|
| | |
$
|
0.95
|
| | |
$
|
0.43
|
|
|
_____________________________
|
(1)
|
|
We calculate net income allocated to common unitholders based on the
distributions pertaining to the current period's net income (whether
paid in cash or in-kind). After adjusting for the appropriate
period's distributions, the remaining undistributed earnings or
excess distributions over earnings ("undistributed loss"), if any,
are allocated to the general partner (for periods prior to the
Simplification Transactions), common unitholders and participating
securities in accordance with the contractual terms of our
partnership agreement in effect for the period and as further
prescribed under the two-class method. The Simplification
Transactions, which closed on November 15, 2016, simplified our
governance structure and permanently eliminated our IDRs and the
economic rights associated with our 2% general partner interest. As
such, beginning with the distribution pertaining to the fourth
quarter of 2016, our general partner is no longer entitled to
receive distributions on these interests.
| | |
|
(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.
| | |
|
(3)
| |
The possible conversion of our Series A preferred units was excluded
from the calculation of diluted net income per common unit for the
three and twelve months ended December 31, 2017 and 2016 as the
effect was antidilutive.
|
|
| PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
|
|
| SELECTED FINANCIAL DATA BY SEGMENT
(in millions)
|
| |
|
|
|
| Three Months Ended December 31, 2017 |
|
| Three Months Ended December 31, 2016 | | | | | | Transportation |
|
| Facilities |
|
| Supply and Logistics | | | Transportation |
|
| Facilities |
|
| Supply and Logistics |
Revenues (1) | | | | |
$
|
458
| | | |
$
|
299
| | | |
$
|
7,308
| | | |
$
|
396
| | | |
$
|
290
| | | |
$
|
5,665
| |
Purchases and related costs (1) | | | | |
(48
|
)
| | |
(4
|
)
| | |
(7,151
|
)
| | |
(25
|
)
| | |
(9
|
)
| | |
(5,596
|
)
|
Field operating costs (1) (2) | | | | |
(158
|
)
| | |
(91
|
)
| | |
(61
|
)
| | |
(136
|
)
| | |
(91
|
)
| | |
(65
|
)
|
Segment general and administrative expenses (2) (3) | | | | |
(24
|
)
| | |
(18
|
)
| | |
(24
|
)
| | |
(25
|
)
| | |
(16
|
)
| | |
(27
|
)
|
Equity earnings in unconsolidated entities
| | | | |
90
| | | |
-
| | | |
-
| | | |
61
| | | |
-
| | | |
-
| | | | | | | | | | | | | | | | | | | | | |
|
Adjustments: (4) | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization of unconsolidated entities
| | | | |
13
| | | |
-
| | | |
-
| | | |
13
| | | |
-
| | | |
-
| |
(Gains)/losses from derivative activities net of inventory
valuation adjustments
| | | | |
-
| | | |
-
| | | |
40
| | | |
-
| | | |
(2
|
)
| | |
217
| |
Long-term inventory costing adjustments
| | | | |
-
| | | |
-
| | | |
(22
|
)
| | |
-
| | | |
-
| | | |
(51
|
)
|
Deficiencies under minimum volume commitments, net
| | | | |
-
| | | |
(3
|
)
| | |
-
| | | |
(11
|
)
| | |
(3
|
)
| | |
-
| |
Equity-indexed compensation expense
| | | | |
3
| | | |
1
| | | |
1
| | | |
5
| | | |
2
| | | |
3
| |
Net loss on foreign currency revaluation
| | | | |
-
| | | |
-
| | | |
1
| | | |
-
| | | |
-
| | | |
5
| |
Line 901 incident
| | | | |
20
|
| | |
-
|
| | |
-
|
| | |
-
|
| | |
-
|
| | |
-
|
|
Segment adjusted EBITDA
| | | | |
$
|
354
|
| | |
$
|
184
|
| | |
$
|
92
|
| | |
$
|
278
|
| | |
$
|
171
|
| | |
$
|
151
|
| | | | | | | | | | | | | | | | | | | | |
|
Maintenance capital
| | | | |
$
|
31
|
| | |
$
|
20
|
| | |
$
|
2
|
| | |
$
|
35
|
| | |
$
|
23
|
| | |
$
|
-
|
|
|
_____________________________
|
(1)
|
|
Includes intersegment amounts.
| | |
|
(2)
| |
Field operating costs and Segment general and administrative
expenses include equity-indexed compensation expense.
| | |
|
(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)
| |
Represents adjustments utilized by our Chief Operating Decision
Maker ("CODM") in the evaluation of segment results. Many of these
adjustments are also considered selected items impacting
comparability when calculating consolidated non-GAAP financial
measures such as Adjusted EBITDA. See the "Selected Items Impacting
Comparability" table for additional discussion.
|
|
| PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
|
|
| SELECTED FINANCIAL DATA BY SEGMENT
(in millions)
|
| |
|
|
|
| Twelve Months Ended December 31, 2017 |
|
| Twelve Months Ended December 31, 2016 | | | | | | Transportation |
|
| Facilities |
|
| Supply and Logistics | | | Transportation |
|
| Facilities |
|
| Supply and Logistics |
Revenues (1) | | | | |
$
|
1,718
| | | |
$
|
1,173
| | | |
$
|
25,065
| | | |
$
|
1,584
| | | |
$
|
1,107
| | | |
$
|
19,018
| |
Purchases and related costs (1) | | | | |
(123
|
)
| | |
(24
|
)
| | |
(24,557
|
)
| | |
(94
|
)
| | |
(26
|
)
| | |
(18,627
|
)
|
Field operating costs (1) (2) | | | | |
(593
|
)
| | |
(350
|
)
| | |
(254
|
)
| | |
(551
|
)
| | |
(352
|
)
| | |
(292
|
)
|
Segment general and administrative expenses (2) (3) | | | | |
(101
|
)
| | |
(73
|
)
| | |
(102
|
)
| | |
(103
|
)
| | |
(68
|
)
| | |
(108
|
)
|
Equity earnings in unconsolidated entities
| | | | |
290
| | | |
-
| | | |
-
| | | |
195
| | | |
-
| | | |
-
| | | | | | | | | | | | | | | | | | | | | |
|
Adjustments: (4) | | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization of unconsolidated entities
| | | | |
45
| | | |
-
| | | |
-
| | | |
50
| | | |
-
| | | |
-
| |
(Gains)/losses from derivative activities net of inventory valuation
adjustments
| | | | |
-
| | | |
4
| | | |
(50
|
)
| | |
-
| | | |
(2
|
)
| | |
406
| |
Long-term inventory costing adjustments
| | | | |
-
| | | |
-
| | | |
(24
|
)
| | |
-
| | | |
-
| | | |
(58
|
)
|
Deficiencies under minimum volume commitments, net
| | | | |
2
| | | |
-
| | | |
-
| | | |
44
| | | |
2
| | | |
-
| |
Equity-indexed compensation expense
| | | | |
11
| | | |
4
| | | |
8
| | | |
16
| | | |
7
| | | |
10
| |
Net (gain)/loss on foreign currency revaluation
| | | | |
-
| | | |
-
| | | |
(26
|
)
| | |
-
| | | |
(1
|
)
| | |
10
| |
Line 901 incident
| | | | |
32
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| | | |
-
| |
Significant acquisition-related expenses
| | | | |
6
|
| | |
-
|
| | |
-
|
| | |
-
|
| | |
-
|
| | |
-
|
|
Segment adjusted EBITDA
| | | | |
$
|
1,287
|
| | |
$
|
734
|
| | |
$
|
60
|
| | |
$
|
1,141
|
| | |
$
|
667
|
| | |
$
|
359
|
| | | | | | | | | | | | | | | | | | | | |
|
Maintenance capital
| | | | |
$
|
120
|
| | |
$
|
114
|
| | |
$
|
13
|
| | |
$
|
121
|
| | |
$
|
55
|
| | |
$
|
10
|
|
|
_____________________________
|
(1)
|
|
Includes intersegment amounts.
| | |
|
(2)
| |
Field operating costs and Segment general and administrative
expenses include equity-indexed compensation expense.
| | |
|
(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)
| |
Represents adjustments utilized by our CODM in the evaluation of
segment results. Many of these adjustments are also considered
selected items impacting comparability when calculating consolidated
non-GAAP financial measures such as Adjusted EBITDA. See the
"Selected Items Impacting Comparability" table for additional
discussion.
|
|
| PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
|
|
| SELECTED ITEMS IMPACTING COMPARABILITY
(in millions)
| |
|
|
|
| Three Months Ended December 31, |
|
| Twelve Months Ended December 31, | | | | | | 2017 |
|
| 2016 | | | 2017 |
|
| 2016 | Selected Items Impacting Comparability: (1) | | | | | | | | | | | | | | |
Gains/(losses) from derivative activities net of inventory valuation
adjustments (2) | | | | |
$
|
(28
|
)
| | |
$
|
(227
|
)
| | |
$
|
59
| | | |
$
|
(374
|
)
|
Long-term inventory costing adjustments (3) | | | | |
22
| | | |
51
| | | |
24
| | | |
58
| |
Deficiencies under minimum volume commitments, net (4) | | | | |
3
| | | |
14
| | | |
(2
|
)
| | |
(46
|
)
|
Equity-indexed compensation expense (5) | | | | |
(5
|
)
| | |
(10
|
)
| | |
(23
|
)
| | |
(33
|
)
|
Net gain/(loss) on foreign currency revaluation (6) | | | | |
-
| | | |
(7
|
)
| | |
21
| | | |
(8
|
)
|
Line 901 incident (7) | | | | |
(20
|
)
| | |
-
| | | |
(32
|
)
| | |
-
| |
Significant acquisition-related expenses (8) | | | | |
-
| | | |
-
| | | |
(6
|
)
| | |
-
| |
Net loss on early repayment of senior notes (9) | | | | |
(40
|
)
| | |
-
|
| | |
(40
|
)
| | |
-
|
|
Selected items impacting comparability - Adjusted EBITDA
| | | | |
$
|
(68
|
)
| | |
$
|
(179
|
)
| | |
$
|
1
| | | |
$
|
(403
|
)
|
Losses from derivative activities (2) | | | | |
-
| | | |
-
| | | |
(10
|
)
| | |
-
| |
Tax effect on selected items impacting comparability
| | | | |
18
|
| | |
27
|
| | |
16
|
| | |
67
|
|
Selected items impacting comparability - Adjusted net income
attributable to PAA
| | | | |
$
|
(50
|
)
| | |
$
|
(152
|
)
| | |
$
|
7
|
| | |
$
|
(336
|
)
|
|
_____________________________
|
(1)
|
|
Certain of our non-GAAP financial measures may not be impacted by
each of the selected items impacting comparability.
| | |
|
(2)
| |
We use derivative instruments for risk management purposes and our
related processes include specific identification of hedging
instruments to an underlying hedged transaction. Although we
identify an underlying transaction for each derivative instrument we
enter into, there may not be an accounting hedge relationship
between the instrument and the underlying transaction. In the course
of evaluating our results of operations, we identify the earnings
that were recognized during the period related to derivative
instruments for which the identified underlying transaction does not
occur in the current period and exclude the related gains and losses
in determining adjusted results. In addition, we exclude gains and
losses on derivatives that are related to investing activities, such
as the purchase of linefill. We also exclude the impact of
corresponding inventory valuation adjustments, as applicable, as
well as the mark-to-market adjustment related to our Preferred
Distribution Rate Reset Option.
| | |
|
(3)
| |
We carry crude oil and NGL inventory comprised of minimum working
inventory requirements in third-party assets and other working
inventory that is needed for our commercial operations. We consider
this inventory necessary to conduct our operations and we intend to
carry this inventory for the foreseeable future. Therefore, we
classify this inventory as long-term on our balance sheet and do not
hedge the inventory with derivative instruments (similar to linefill
in our own assets). We treat the impact of changes in the average
cost of the long-term inventory (that result from fluctuations in
market prices) and writedowns of such inventory that result from
price declines as a selected item impacting comparability.
| | |
|
(4)
| |
We have certain agreements that require counterparties to deliver,
transport or throughput a minimum volume over an agreed upon period.
Substantially all of such agreements were entered into with
counterparties to economically support the return on our capital
expenditure necessary to construct the related asset. Some of these
agreements include make-up rights if the minimum volume is not met.
We record a receivable from the counterparty in the period that
services are provided or when the transaction occurs, including
amounts for deficiency obligations from counterparties associated
with minimum volume commitments. If a counterparty has a make-up
right associated with a deficiency, we defer the revenue
attributable to the counterparty's make-up right and subsequently
recognize the revenue at the earlier of when the deficiency volume
is delivered or shipped, when the make-up right expires or when it
is determined that the counterparty's ability to utilize the make-up
right is remote. We include the impact of amounts billed to
counterparties for their deficiency obligation, net of applicable
amounts subsequently recognized into revenue, as a selected item
impacting comparability. We believe the inclusion of the
contractually committed revenues associated with that period is
meaningful to investors as the related asset has been constructed,
is standing ready to provide the committed service and the fixed
operating costs are included in the current period results.
| | |
|
(5)
| |
Our total equity-indexed compensation expense includes expense
associated with awards that will or may be settled in units and
awards that will or may be settled in cash. The awards that will or
may be settled in units are included in our diluted net income per
unit calculation when the applicable performance criteria have been
met. We consider the compensation expense associated with these
awards as a selected item impacting comparability as the dilutive
impact of the outstanding awards is included in our diluted net
income per unit calculation and the majority of the awards are
expected to be settled in units. The portion of compensation expense
associated with awards that are certain to be settled in cash is not
considered a selected item impacting comparability.
| | |
|
(6)
| |
During the periods presented, there were fluctuations in the value
of the Canadian dollar to the U.S. dollar, resulting in gains and
losses that were not related to our core operating results for the
period and were thus classified as a selected item impacting
comparability.
| | |
|
(7)
| |
Includes costs recognized during the period related to the Line 901
incident that occurred in May 2015, net of amounts we believe are
probable of recovery from insurance.
| | |
|
(8)
| |
Includes acquisition-related expenses associated with the Alpha
Crude Connector acquisition.
| | |
|
(9)
| |
Includes net losses incurred in connection with the early redemption
of our (i) $600 million, 6.50% senior notes due May 2018 and (ii)
$350 million, 8.75% senior notes due May 2019.
|
|
| PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
|
|
| NON-GAAP RECONCILIATIONS
(in millions, except per unit data)
|
| |
|
|
|
| Three Months Ended December 31, |
|
| Twelve Months Ended December 31, | | | | | | 2017 |
|
| 2016 | | | 2017 |
|
| 2016 | Net Income to Adjusted EBITDA and Implied DCF Reconciliation | | | | | | | | | | | | | | | | | | |
Net Income
| | | | |
$
|
191
| | | |
$
|
127
| | | |
$
|
858
| | | |
$
|
730
| |
Interest expense, net
| | | | |
120
| | | |
127
| | | |
510
| | | |
467
| |
Income tax expense
| | | | |
14
| | | |
11
| | | |
44
| | | |
25
| |
Depreciation and amortization
| | | | |
225
| | | |
143
| | | |
626
| | | |
494
| |
Depreciation and amortization of unconsolidated entities (1) | | | | |
13
| | | |
13
| | | |
45
| | | |
50
| |
Selected items impacting comparability - Adjusted EBITDA (2) | | | | |
68
|
| | |
179
|
| | |
(1
|
)
| | |
403
|
|
Adjusted EBITDA
| | | | |
$
|
631
|
| | |
$
|
600
|
| | |
$
|
2,082
|
| | |
$
|
2,169
|
|
Interest expense, net (3) | | | | |
(116
|
)
| | |
(123
|
)
| | |
(483
|
)
| | |
(451
|
)
|
Maintenance capital
| | | | |
(53
|
)
| | |
(58
|
)
| | |
(247
|
)
| | |
(186
|
)
|
Current income tax expense
| | | | |
(19
|
)
| | |
(41
|
)
| | |
(28
|
)
| | |
(85
|
)
|
Adjusted equity earnings in unconsolidated entities, net of
distributions (4) | | | | |
(19
|
)
| | |
(9
|
)
| | |
(10
|
)
| | |
(29
|
)
|
Distributions to noncontrolling interests
| | | | |
-
|
| | |
(1
|
)
| | |
(2
|
)
| | |
(4
|
)
|
Implied DCF (5) | | | | |
$
|
424
| | | |
$
|
368
| | | |
$
|
1,312
| | | |
$
|
1,414
| |
Preferred unit cash distributions (6) | | | | |
(5
|
)
| | |
-
| | | |
(5
|
)
| | |
-
| |
General partner cash distributions (7) | | | | |
-
|
| | |
(101
|
)
| | |
-
|
| | |
(565
|
)
|
Implied DCF Available to Common Unitholders
| | | | |
$
|
419
|
| | |
$
|
267
|
| | |
$
|
1,307
|
| | |
$
|
849
|
| | | | | | | | | | | | | | | | | | |
|
Implied DCF per Common Unit (8) | | | | |
$
|
0.58
| | | |
$
|
0.40
| | | |
$
|
1.82
| | | |
$
|
1.83
| |
Implied DCF per Common Unit and Common Equivalent Unit (9) | | | | |
$
|
0.53
| | | |
$
|
0.37
| | | |
$
|
1.67
| | | |
$
|
1.63
| | | | | | | | | | | | | | | | | | | |
|
Cash Distribution Paid per Common Unit
| | | | |
$
|
0.30
| | | |
$
|
0.55
| | | |
$
|
1.95
| | | |
$
|
2.65
| |
Common Unit Cash Distributions (10) | | | | |
$
|
218
| | | |
$
|
328
| | | |
$
|
1,386
| | | |
$
|
1,627
| |
Common Unit Distribution Coverage Ratio
| | | | |
1.92x
| | | |
1.12x
| | | |
0.94x
| | | |
0.87x
| | | | | | | | | | | | | | | | | | | |
|
Implied DCF Excess / (Shortage)
| | | | |
$
|
201
| | | |
$
|
40
| | | |
$
|
(79
|
)
| | |
$
|
(213
|
)
|
|
_____________________________
|
(1)
|
|
Adjustment to add back our proportionate share of depreciation and
amortization expense and gains or losses on significant asset sales
of unconsolidated entities.
| | |
|
(2)
| |
Certain of our non-GAAP financial measures may not be impacted by
each of the selected items impacting comparability.
| | |
|
(3)
| |
Excludes certain non-cash items impacting interest expense such as
amortization of debt issuance costs and terminated interest rate
swaps.
| | |
|
(4)
| |
Represents the difference between non-cash equity earnings in
unconsolidated entities (adjusted for our proportionate share of
depreciation and amortization and gains or losses on significant
asset sales) and cash distributions received from such entities.
| | |
|
(5)
| |
Including net costs recognized during the periods related to the
Line 901 incident that occurred in May 2015, Implied DCF would have
been $404 million and $1,280 million for the three and twelve months
ended December 31, 2017, respectively.
| | |
|
(6)
| |
Cash distributions paid to our preferred unitholders during the
period presented. The $0.5250 quarterly ($2.10 annualized) per unit
distribution requirement of our Series A preferred units has been
paid-in-kind for each quarterly distribution since their issuance;
as such, no Series A preferred unit distributions are included for
any periods presented. Distributions on our Series A preferred units
must be paid in cash beginning with the May 2018 quarterly
distribution. The $61.25 per unit annual distribution requirement of
our Series B preferred units, which were issued in October 2017, is
payable semi-annually in arrears on May 15 and November 15. A
pro-rated initial distribution on the Series B preferred units was
paid on November 15, 2017.
| | |
|
(7)
| |
The Simplification Transactions, which closed on November 15, 2016,
simplified our governance structure and permanently eliminated our
incentive distribution rights (IDRs) and the economic rights
associated with our 2% general partner interest.
| | |
|
(8)
| |
Implied DCF Available to Common Unitholders for the period divided
by the weighted average common units outstanding for the periods of
725 million, 660 million, 717 million and 464 million, respectively.
| | |
|
(9)
| |
Implied DCF Available to Common Unitholders for the period, adjusted
for Series A preferred unit cash distributions paid (if any),
divided by the weighted average common units and common equivalent
units outstanding for the periods of 794 million, 724 million, 784
million and 522 million, respectively. Our Series A preferred units
are convertible into common units, generally on a one-for-one basis
and subject to customary anti-dilution adjustments, at any time
after January 28, 2018, in whole or in part, subject to certain
minimum conversion amounts.
| | |
|
(10)
| |
Cash distributions paid during the period presented. For the three
and twelve months ended December 31, 2016, includes $101 million and
$565 million, respectively, of cash distributions paid to the
general partner during the period.
|
|
| PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
|
|
| NON-GAAP RECONCILIATIONS (continued) | |
|
|
|
| Three Months Ended December 31, |
|
| Twelve Months Ended December 31, | | | | | | 2017 |
|
| 2016 | | | 2017 |
|
| 2016 | Net Income Per Common Unit to Implied DCF Per Common Unit and Common Equivalent Unit Reconciliation | | | | | | | | | | | | | | |
Basic net income per common unit
| | | | |
$
|
0.19
| | | |
$
|
0.14
| | | |
$
|
0.96
| | | |
$
|
0.43
|
Reconciling items per common unit (1) (2) | | | | |
0.39
|
| | |
0.26
|
| | |
0.86
|
| | |
1.40
|
Implied DCF per common unit
| | | | |
$
|
0.58
|
| | |
$
|
0.40
|
| | |
$
|
1.82
|
| | |
$
|
1.83
| | | | | | | | | | | | | | |
|
Basic net income per common unit
| | | | |
$
|
0.19
| | | |
$
|
0.14
| | | |
$
|
0.96
| | | |
$
|
0.43
|
Reconciling items per common unit and common equivalent unit (1)
(3) | | | | |
0.34
|
| | |
0.23
|
| | |
0.71
|
| | |
1.20
|
Implied DCF per common unit and common equivalent unit
| | | | |
$
|
0.53
|
| | |
$
|
0.37
|
| | |
$
|
1.67
|
| | |
$
|
1.63
|
|
_____________________________
|
(1)
|
|
Represents adjustments to Net Income to calculate Implied DCF
Available to Common Unitholders. See the "Net Income to Adjusted
EBITDA and Implied DCF Reconciliation" table for additional
information.
| | |
|
(2)
| |
Based on weighted average common units outstanding for the period of
725 million, 660 million, 717 million and 464 million, respectively.
| | |
|
(3)
| |
Based on weighted average common units outstanding for the period,
as well as weighted average Series A preferred units outstanding for
the period of 69 million, 64 million, 67 million and 58 million,
respectively.
|
|
| |
|
|
|
| Three Months Ended December 31, |
|
| Twelve Months Ended December 31, | | | | | | 2017 |
|
| 2016 | | | 2017 |
|
| 2016 | Net Income Per Common Unit to Adjusted Net Income Per Common Unit Reconciliation | | | | | | | | | | | | | | |
Basic net income per common unit
| | | | |
$
|
0.19
| | | |
$
|
0.14
| | | |
$
|
0.96
| | | |
$
|
0.43
|
Selected items impacting comparability per common unit (1) | | | | |
0.07
|
| | |
0.23
|
| | |
(0.01
|
)
| | |
0.72
|
Basic adjusted net income per common unit
| | | | |
$
|
0.26
|
| | |
$
|
0.37
|
| | |
$
|
0.95
|
| | |
$
|
1.15
| | | | | | | | | | | | | | |
|
Diluted net income per common unit
| | | | |
$
|
0.19
| | | |
$
|
0.14
| | | |
$
|
0.95
| | | |
$
|
0.43
|
Selected items impacting comparability per common unit (1) | | | | |
0.07
|
| | |
0.23
|
| | |
(0.01
|
)
| | |
0.71
|
Diluted adjusted net income per common unit
| | | | |
$
|
0.26
|
| | |
$
|
0.37
|
| | |
$
|
0.94
|
| | |
$
|
1.14
|
|
_____________________________
|
(1)
|
|
See the "Selected Items Impacting Comparability" and the
"Computation of Basic and Diluted Adjusted Net Income Per Common
Unit" tables for additional information.
|
|
| PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
|
|
| COMPUTATION OF BASIC AND DILUTED ADJUSTED
NET INCOME PER COMMON UNIT(1)
(in millions, except per unit data)
| |
|
|
|
| Three Months Ended December 31, |
|
| Twelve Months Ended December 31, | | | | | | 2017 |
|
| 2016 | | | 2017 |
|
| 2016 | Basic Adjusted Net Income per Common Unit | | | | | | | | | | | | | | |
Net income attributable to PAA
| | | | |
$
|
191
| | | |
$
|
126
| | | |
$
|
856
| | | |
$
|
726
| |
Selected items impacting comparability - Adjusted net income
attributable to PAA (2) | | | | |
50
|
| | |
152
|
| | |
(7
|
)
| | |
336
|
|
Adjusted net income attributable to PAA
| | | | |
$
|
241
| | | |
$
|
278
| | | |
$
|
849
| | | |
$
|
1,062
| |
Distributions to Series A preferred unitholders
| | | | |
(37
|
)
| | |
(34
|
)
| | |
(142
|
)
| | |
(122
|
)
|
Distributions to Series B preferred unitholders
| | | | |
(11
|
)
| | |
-
| | | |
(11
|
)
| | |
-
| |
Distributions to general partner
| | | | |
-
| | | |
-
| | | |
-
| | | |
(412
|
)
|
Other
| | | | |
(5
|
)
| | |
(1
|
)
| | |
(17
|
)
| | |
5
|
|
Adjusted net income allocated to common unitholders
| | | | |
$
|
188
|
| | |
$
|
243
|
| | |
$
|
679
|
| | |
$
|
533
|
| | | | | | | | | | | | | | |
|
Basic weighted average common units outstanding
| | | | |
725
| | | |
660
| | | |
717
| | | |
464
| | | | | | | | | | | | | | | |
|
Basic adjusted net income per common unit
| | | | |
$
|
0.26
|
| | |
$
|
0.37
|
| | |
$
|
0.95
|
| | |
$
|
1.15
|
| | | | | | | | | | | | | | |
| Diluted Adjusted Net Income per Common Unit | | | | | | | | | | | | | | |
Net income attributable to PAA
| | | | |
$
|
191
| | | |
$
|
126
| | | |
$
|
856
| | | |
$
|
726
| |
Selected items impacting comparability - Adjusted net income
attributable to PAA (2) | | | | |
50
|
| | |
152
|
| | |
(7
|
)
| | |
336
|
|
Adjusted net income attributable to PAA
| | | | |
$
|
241
| | | |
$
|
278
| | | |
$
|
849
| | | |
$
|
1,062
| |
Distributions to Series A preferred unitholders
| | | | |
(37
|
)
| | |
(34
|
)
| | |
(142
|
)
| | |
(122
|
)
|
Distributions to Series B preferred unitholders
| | | | |
(11
|
)
| | |
-
| | | |
(11
|
)
| | |
-
| |
Distributions to general partner
| | | | |
-
| | | |
-
| | | |
-
| | | |
(412
|
)
|
Other
| | | | |
(5
|
)
| | |
(1
|
)
| | |
(17
|
)
| | |
5
|
|
Adjusted net income allocated to common unitholders
| | | | |
$
|
188
|
| | |
$
|
243
|
| | |
$
|
679
|
| | |
$
|
533
|
| | | | | | | | | | | | | | |
|
Basic weighted average common units outstanding
| | | | |
725
| | | |
660
| | | |
717
| | | |
464
| |
Effect of dilutive securities:
| | | | | | | | | | | | | | |
LTIP units (3) | | | | |
1
|
| | |
2
|
| | |
1
|
| | |
2
|
|
Diluted weighted average common units outstanding
| | | | |
726
|
| | |
662
|
| | |
718
|
| | |
466
|
| | | | | | | | | | | | | | |
|
Diluted adjusted net income per common unit (4) | | | | |
$
|
0.26
|
| | |
$
|
0.37
|
| | |
$
|
0.94
|
| | |
$
|
1.14
|
|
|
_____________________________
|
(1)
|
|
We calculate adjusted net income allocated to common unitholders
based on the distributions pertaining to the current period's net
income (whether paid in cash or in-kind). After adjusting for the
appropriate period's distributions, the remaining undistributed
earnings or excess distributions over earnings ("undistributed
loss"), if any, are allocated to the general partner (for periods
prior to the Simplification Transactions), common unitholders and
participating securities in accordance with the contractual terms of
our partnership agreement in effect for the period and as further
prescribed under the two-class method. The Simplification
Transactions, which closed on November 15, 2016, simplified our
governance structure and permanently eliminated our IDRs and the
economic rights associated with our 2% general partner interest. As
such, beginning with the distribution pertaining to the fourth
quarter of 2016, our general partner is no longer entitled to
receive distributions from these interests.
| | |
|
(2)
| |
Certain of our non-GAAP financial measures may not be impacted by
each of the selected items impacting comparability.
| | |
|
(3)
| |
Our 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.
| | |
|
(4)
| |
The possible conversion of our Series A preferred units was excluded
from the calculation of diluted adjusted net income per common unit
for the three and twelve months ended December 31, 2017 and 2016 as
the effect was antidilutive.
|
|
|
|
| |
|
| | PLAINS GP HOLDINGS AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
|
|
|
|
|
|
|
|
| CONDENSED CONSOLIDATING STATEMENTS OF
OPERATIONS
(in millions, except per share data)
| | | | | | |
| | | | Three Months Ended December 31, 2017 | | | Three Months Ended December 31, 2016 | | | | |
| Consolidating |
| | | | |
| Consolidating |
| | | | | PAA | | Adjustments (1) | | PAGP | | | PAA | | Adjustments (1) | | PAGP | REVENUES | | |
$
|
7,605
| | |
$
|
-
| | |
$
|
7,605
| | | |
$
|
5,952
| | |
$
|
-
| | |
$
|
5,952
| | | | | | | | | | | | | | | |
| COSTS AND EXPENSES | | | | | | | | | | | | | | |
Purchases and related costs
| | |
6,746
| | |
-
| | |
6,746
| | | |
5,234
| | |
-
| | |
5,234
| |
Field operating costs
| | |
307
| | |
-
| | |
307
| | | |
289
| | |
-
| | |
289
| |
General and administrative expenses
| | |
66
| | |
1
| | |
67
| | | |
68
| | |
1
| | |
69
| |
Depreciation and amortization
| | |
225
|
| |
-
|
| |
225
|
| | |
143
|
| |
-
|
| |
143
|
|
Total costs and expenses
| | |
7,344
| | |
1
| | |
7,345
| | | |
5,734
| | |
1
| | |
5,735
| | | | | | | | | | | | | | | |
| OPERATING INCOME | | |
261
| | |
(1
|
)
| |
260
| | | |
218
| | |
(1
|
)
| |
217
| | | | | | | | | | | | | | | |
| OTHER INCOME/(EXPENSE) | | | | | | | | | | | | | | |
Equity earnings in unconsolidated entities
| | |
90
| | |
-
| | |
90
| | | |
61
| | |
-
| | |
61
| |
Interest expense, net
| | |
(120
|
)
| |
-
| | |
(120
|
)
| | |
(127
|
)
| |
(3
|
)
| |
(130
|
)
|
Other expense, net
| | |
(26
|
)
| |
-
|
| |
(26
|
)
| | |
(14
|
)
| |
-
|
| |
(14
|
)
| | | | | | | | | | | | | | |
| INCOME BEFORE TAX | | |
205
| | |
(1
|
)
| |
204
| | | |
138
| | |
(4
|
)
| |
134
| |
Current income tax expense
| | |
(19
|
)
| |
-
| | |
(19
|
)
| | |
(41
|
)
| |
-
| | |
(41
|
)
|
Deferred income tax benefit/(expense)
| | |
5
|
| |
(837
|
)
| |
(832
|
)
| | |
30
|
| |
(1
|
)
| |
29
|
| | | | | | | | | | | | | | |
| NET INCOME/(LOSS) | | |
191
| | |
(838
|
)
| |
(647
|
)
| | |
127
| | |
(5
|
)
| |
122
| |
Net income attributable to noncontrolling interests
| | |
-
|
| |
(153
|
)
| |
(153
|
)
| | |
(1
|
)
| |
(129
|
)
| |
(130
|
)
| NET INCOME/(LOSS) ATTRIBUTABLE TO PAGP | | |
$
|
191
|
| |
$
|
(991
|
)
| |
$
|
(800
|
)
| | |
$
|
126
|
| |
$
|
(134
|
)
| |
$
|
(8
|
)
| | | | | | | | | | | | | | |
| BASIC AND DILUTED NET INCOME/(LOSS) PER CLASS A SHARE | |
$
|
(5.16
|
)
| | | | | | |
$
|
(0.08
|
)
| | | | | | | | | | | | | | |
| BASIC AND DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING | |
155
|
| | | | | | |
101
|
|
_____________________________
|
(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)
| | | | | | |
| | | | Twelve Months Ended December 31, 2017 | | | Twelve Months Ended December 31, 2016 | | | | |
| Consolidating |
| | | | |
| Consolidating |
| | | | | PAA | | Adjustments (1) | | PAGP | | | PAA | | Adjustments (1) | | PAGP | REVENUES | | |
$
|
26,223
| | |
$
|
-
| | |
$
|
26,223
| | | |
$
|
20,182
| | |
$
|
-
| | |
$
|
20,182
| | | | | | | | | | | | | | | |
| COSTS AND EXPENSES | | | | | | | | | | | | | | |
Purchases and related costs
| | |
22,985
| | |
-
| | |
22,985
| | | |
17,233
| | |
-
| | |
17,233
| |
Field operating costs
| | |
1,183
| | |
-
| | |
1,183
| | | |
1,182
| | |
-
| | |
1,182
| |
General and administrative expenses
| | |
276
| | |
4
| | |
280
| | | |
279
| | |
3
| | |
282
| |
Depreciation and amortization
| | |
626
|
| |
2
|
| |
628
|
| | |
494
|
| |
1
|
| |
495
|
|
Total costs and expenses
| | |
25,070
| | |
6
| | |
25,076
| | | |
19,188
| | |
4
| | |
19,192
| | | | | | | | | | | | | | | |
| OPERATING INCOME | | |
1,153
| | |
(6
|
)
| |
1,147
| | | |
994
| | |
(4
|
)
| |
990
| | | | | | | | | | | | | | | |
| OTHER INCOME/(EXPENSE) | | | | | | | | | | | | | | |
Equity earnings in unconsolidated entities
| | |
290
| | |
-
| | |
290
| | | |
195
| | |
-
| | |
195
| |
Interest expense, net
| | |
(510
|
)
| |
-
| | |
(510
|
)
| | |
(467
|
)
| |
(13
|
)
| |
(480
|
)
|
Other income/(expense), net
| | |
(31
|
)
| |
-
|
| |
(31
|
)
| | |
33
|
| |
-
|
| |
33
|
| | | | | | | | | | | | | | |
| INCOME BEFORE TAX | | |
902
| | |
(6
|
)
| |
896
| | | |
755
| | |
(17
|
)
| |
738
| |
Current income tax expense
| | |
(28
|
)
| |
-
| | |
(28
|
)
| | |
(85
|
)
| |
-
| | |
(85
|
)
|
Deferred income tax benefit/(expense)
| | |
(16
|
)
| |
(893
|
)
| |
(909
|
)
| | |
60
|
| |
(53
|
)
| |
7
|
| | | | | | | | | | | | | | |
| NET INCOME/(LOSS) | | |
858
| | |
(899
|
)
| |
(41
|
)
| | |
730
| | |
(70
|
)
| |
660
| |
Net income attributable to noncontrolling interests
| | |
(2
|
)
| |
(688
|
)
| |
(690
|
)
| | |
(4
|
)
| |
(562
|
)
| |
(566
|
)
| NET INCOME/(LOSS) ATTRIBUTABLE TO PAGP | | |
$
|
856
|
| |
$
|
(1,587
|
)
| |
$
|
(731
|
)
| | |
$
|
726
|
| |
$
|
(632
|
)
| |
$
|
94
|
| | | | | | | | | | | | | | |
| BASIC AND DILUTED NET INCOME/(LOSS) PER CLASS A SHARE | |
$
|
(5.03
|
)
| | | | | | |
$
|
0.94
|
| | | | | | | | | | | | | | |
| BASIC AND DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING | |
145
|
| | | | | | |
99
|
|
_____________________________
|
(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)
| | | | | | |
| | | | December 31, 2017 | | | December 31, 2016 | | | | |
| Consolidating |
| | | | |
| Consolidating |
| | | | | PAA | | Adjustments (1) | | PAGP | | | PAA | | Adjustments (1) | | PAGP | ASSETS | | | | | | | | | | | | | | |
Current assets
| | |
$
|
4,000
| | |
$
|
3
| | |
$
|
4,003
| | | |
$
|
4,272
| | |
$
|
3
| | |
$
|
4,275
|
Property and equipment, net
| | |
14,089
| | |
16
| | |
14,105
| | | |
13,872
| | |
18
| | |
13,890
|
Goodwill
| | |
2,566
| | |
-
| | |
2,566
| | | |
2,344
| | |
-
| | |
2,344
|
Investments in unconsolidated entities
| | |
2,756
| | |
-
| | |
2,756
| | | |
2,343
| | |
-
| | |
2,343
|
Deferred tax asset
| | |
-
| | |
1,386
| | |
1,386
| | | |
-
| | |
1,876
| | |
1,876
|
Linefill and base gas
| | |
872
| | |
-
| | |
872
| | | |
896
| | |
-
| | |
896
|
Long-term inventory
| | |
164
| | |
-
| | |
164
| | | |
193
| | |
-
| | |
193
|
Other long-term assets, net
| | |
904
|
| |
(3
|
)
| |
901
|
| | |
290
|
| |
(4
|
)
| |
286
|
Total assets
| | |
$
|
25,351
|
| |
$
|
1,402
|
| |
$
|
26,753
|
| | |
$
|
24,210
|
| |
$
|
1,893
|
| |
$
|
26,103
| | | | | | | | | | | | | | |
| LIABILITIES AND PARTNERS' CAPITAL | | | | | | | | | | | | | | |
Current liabilities
| | |
$
|
4,531
| | |
$
|
2
| | |
$
|
4,533
| | | |
$
|
4,664
| | |
$
|
2
| | |
$
|
4,666
|
Senior notes, net of unamortized discounts and debt issuance costs
| | |
8,933
| | |
-
| | |
8,933
| | | |
9,874
| | |
-
| | |
9,874
|
Other long-term debt
| | |
250
| | |
-
| | |
250
| | | |
250
| | |
-
| | |
250
|
Other long-term liabilities and deferred credits
| | |
679
|
| |
-
|
| |
679
|
| | |
606
|
| |
-
|
| |
606
|
Total liabilities
| | |
$
|
14,393
| | |
$
|
2
| | |
$
|
14,395
| | | |
$
|
15,394
| | |
$
|
2
| | |
$
|
15,396
| | | | | | | | | | | | | | |
|
Partners' capital excluding noncontrolling interests
| | |
10,958
| | |
(9,263
|
)
| |
1,695
| | | |
8,759
| | |
(7,022
|
)
| |
1,737
|
Noncontrolling interests
| | |
-
|
| |
10,663
|
| |
10,663
|
| | |
57
|
| |
8,913
|
| |
8,970
|
Total partners' capital
| | |
10,958
|
| |
1,400
|
| |
12,358
|
| | |
8,816
|
| |
1,891
|
| |
10,707
|
Total liabilities and partners' capital
| | |
$
|
25,351
|
| |
$
|
1,402
|
| |
$
|
26,753
|
| | |
$
|
24,210
|
| |
$
|
1,893
|
| |
$
|
26,103
|
_____________________________
|
(1)
|
|
Represents the aggregate consolidating adjustments necessary to
produce consolidated financial statements for PAGP.
| | |
|
|
|
| |
| | PLAINS GP HOLDINGS AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
|
|
| COMPUTATION OF BASIC AND DILUTED NET
INCOME/(LOSS) PER CLASS A SHARE
(in millions, except per share data)
| | | | | |
| | | | Three Months Ended December 31, | | Twelve Months Ended December 31, | | | | 2017 |
| 2016 | | 2017 |
| 2016 | Basic and Diluted Net Income/(Loss) per Class A Share | | | | | | | | | |
Net income/(loss) attributable to PAGP
| | |
$
|
(800
|
)
| |
$
|
(8
|
)
| |
$
|
(731
|
)
| |
$
|
94
|
Basic and diluted weighted average Class A shares outstanding
| | |
155
| | |
101
| | |
145
| | |
99
| | | | | | | | | |
|
Basic and diluted net income/(loss) per Class A share (1) | | |
$
|
(5.16
|
)
| |
$
|
(0.08
|
)
| |
$
|
(5.03
|
)
| |
$
|
0.94
|
_____________________________
|
(1)
|
|
For the three and twelve months ended December 31, 2017 and 2016,
the possible exchange of any AAP units and certain AAP Management
Units would not have had a dilutive effect on basic net
income/(loss) per Class A share.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20180206006444/en/
Plains All American Pipeline, L.P. and Plains GP Holdings Roy
Lamoreaux, 866-809-1291 Vice President, Investor Relations &
Communications or Brett Magill, 866-809-1291 Manager,
Investor Relations
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Feb 06, 2018 |
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