Attached files
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8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - PLAINS ALL AMERICAN PIPELINE LP | a09-32619_18k.htm |
Exhibit 99.1
|
Contacts: |
Roy I. Lamoreaux |
Al Swanson |
|
Manager, Investor Relations |
Senior Vice President, CFO |
|
713/646-4222 800/564-3036 |
713/646-4455 800/564-3036 |
FOR IMMEDIATE RELEASE
Plains All American Pipeline, L.P. Reports
Solid Third-Quarter 2009 Results
(Houston November 5, 2009) Plains All American Pipeline, L.P. (NYSE: PAA) today reported net income of $122 million, or $0.65 per diluted limited partner unit, for the third quarter of 2009 as compared to net income for the third quarter of 2008 of $206 million, or $1.41 per diluted limited partner unit. The Partnership reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $242 million for the third quarter of 2009, compared with EBITDA of $310 million for the third quarter of 2008.
The Partnerships reported results include the impact of items that affect comparability between reporting periods. These items are excluded from adjusted results, as further described in the table below. Accordingly, the Partnerships third-quarter 2009 adjusted net income, adjusted net income per diluted limited partner unit and adjusted EBITDA were $114 million, $0.59 and $234 million, respectively, as compared to third-quarter 2008 adjusted net income, adjusted net income per diluted limited partner unit and adjusted EBITDA of $119 million, $0.71 and $223 million, respectively. (See the section of this release entitled Non-GAAP Financial Measures and the attached tables for discussion of EBITDA and other non-GAAP financial measures, and reconciliations of such measures to the comparable GAAP measures.)
Plains All American has been very active and productive in the four months since the end of the second quarter said Greg L. Armstrong, Chairman & CEO of Plains All American. We delivered operating and financial results at the high end of guidance, acquired the remaining 50% interest in PAA Natural Gas Storage (PNGS), raised over $1.2 billion in the capital markets at very attractive rates and increased our annualized distribution by 6 cents or 1.7% to $3.68 per unit. We also ended the third quarter with a solid balance sheet and over $1.6 billion of available committed liquidity, of which approximately $260 million was used in early October to prepay our 7.125% senior notes.
For the first nine months of 2009, the Partnership reported net income of $469 million, or $2.82 per diluted limited partner unit, as compared to net income for the first nine months of 2008 of $339 million, or $2.08 per diluted limited partner unit. The Partnership reported EBITDA of $808 million for the first nine months of 2009, compared with EBITDA of $639 million for the first nine months of 2008. Adjusted net income, adjusted net income per diluted limited partner unit and adjusted
-MORE-
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |
Page 2
EBITDA for the first nine months of 2009 were $406 million, $2.33 and $745 million, respectively. Adjusted net income, adjusted net income per diluted limited partner unit and adjusted EBITDA for the first nine months of 2008 were $352 million, $2.19 and $652 million, respectively.
The following table summarizes selected items that the Partnership believes impact comparability of financial results between reporting periods (amounts in millions, except per unit amounts):
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
Selected items impacting comparability |
|
|
|
|
|
|
|
|
|
||||
Equity compensation charge (1) |
|
$ |
(12 |
) |
$ |
(3 |
) |
$ |
(36 |
) |
$ |
(23 |
) |
Inventory valuation adjustments net of gains and (losses) from related derivative activities (2) |
|
|
|
4 |
|
24 |
|
4 |
|
||||
Gains/(losses) from other derivative activities (2) (3) |
|
11 |
|
94 |
|
54 |
|
3 |
|
||||
Gains on acquisition-related foreign currency and linefill hedges |
|
|
|
|
|
|
|
11 |
|
||||
Net gain on purchase of remaining 50% interest in PNGS |
|
9 |
|
|
|
9 |
|
|
|
||||
Net gain/(loss) on foreign currency revaluation |
|
|
|
(8 |
) |
12 |
|
(8 |
) |
||||
Selected items impacting comparability |
|
8 |
|
87 |
|
63 |
|
(13 |
) |
||||
Less: GP 2% portion of selected items impacting comparability |
|
|
|
(2 |
) |
(1 |
) |
|
|
||||
LP 98% portion of selected items impacting comparability |
|
$ |
8 |
|
$ |
85 |
|
$ |
62 |
|
$ |
(13 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Impact to basic net income per limited partner unit |
|
$ |
0.06 |
|
$ |
0.70 |
|
$ |
0.49 |
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
||||
Impact to diluted net income per limited partner unit |
|
$ |
0.06 |
|
$ |
0.70 |
|
$ |
0.49 |
|
$ |
(0.11 |
) |
(1) The equity compensation charge for the three and nine months ended September 30, 2009 and 2008 excludes the portion of the equity compensation expense represented by grants under the LTIP Plans that, pursuant to the terms of the grant, will be settled in cash only and have no impact on diluted units. The portion of the equity compensation expense attributable to the cash portion of the LTIP Plans is approximately $4 million and $1 million for the three months ended September 30, 2009 and 2008, respectively, and approximately $11 million and $3 million for the nine months ended September 30, 2009 and 2008, respectively.
(2) Gains and losses from derivative activities related to revalued inventory are included in the line item Inventory valuation adjustments net of gains and (losses) from related derivative activities; gains and losses from derivative activities not related to revalued inventory are included in the line item Gains/(losses) from other derivative activities.
(3) Gains and losses from other derivative activities for the nine months ended September 30, 2009 includes losses of approximately $1 million related to interest rate derivatives, which are included in other income/(expense), net, but do not impact segment profit.
-MORE-
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |
Page 3
The following tables present certain selected financial information by segment for the third-quarter and first nine months reporting periods (amounts in millions):
|
|
Three Months Ended |
|
Three Months Ended |
|
||||||||||||||
|
|
September 30, 2009 |
|
September 30, 2008 |
|
||||||||||||||
|
|
Transportation |
|
Facilities |
|
Marketing |
|
Transportation |
|
Facilities |
|
Marketing |
|
||||||
|
|
Operations |
|
Operations |
|
Operations |
|
Operations |
|
Operations |
|
Operations |
|
||||||
Revenues (1) |
|
$ |
250 |
|
$ |
97 |
|
$ |
4,645 |
|
$ |
242 |
|
$ |
69 |
|
$ |
8,676 |
|
Purchases and related costs (1) |
|
(15 |
) |
(1 |
) |
(4,534 |
) |
(23 |
) |
|
|
(8,471 |
) |
||||||
Field operating costs (excluding equity compensation benefit/charge) (1) |
|
(86 |
) |
(32 |
) |
(45 |
) |
(86 |
) |
(27 |
) |
(50 |
) |
||||||
Equity compensation benefit/(charge) - operations |
|
(2 |
) |
|
|
|
|
1 |
|
|
|
|
|
||||||
Segment G&A expenses (excluding equity compensation charge) (2) |
|
(14 |
) |
(7 |
) |
(17 |
) |
(14 |
) |
(5 |
) |
(16 |
) |
||||||
Equity compensation charge - general and administrative |
|
(6 |
) |
(3 |
) |
(5 |
) |
(2 |
) |
(1 |
) |
(1 |
) |
||||||
Equity earnings in unconsolidated entities |
|
2 |
|
3 |
|
|
|
1 |
|
3 |
|
|
|
||||||
Reported segment profit |
|
$ |
129 |
|
$ |
57 |
|
$ |
44 |
|
$ |
119 |
|
$ |
39 |
|
$ |
138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selected items impacting comparability of segment profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity compensation charge (3) |
|
6 |
|
2 |
|
4 |
|
1 |
|
1 |
|
1 |
|
||||||
Inventory valuation adjustments net of (gains)/losses from related derivative activities (4) |
|
|
|
|
|
|
|
|
|
|
|
(4 |
) |
||||||
(Gains)/losses from other derivative activities (4) |
|
|
|
|
|
(11 |
) |
|
|
|
|
(94 |
) |
||||||
Net loss on foreign currency revaluation |
|
|
|
|
|
|
|
|
|
|
|
8 |
|
||||||
Subtotal |
|
6 |
|
2 |
|
(7 |
) |
1 |
|
1 |
|
(89 |
) |
||||||
Segment profit excluding selected items impacting comparability |
|
$ |
135 |
|
$ |
59 |
|
$ |
37 |
|
$ |
120 |
|
$ |
40 |
|
$ |
49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Maintenance capital |
|
$ |
9 |
|
$ |
2 |
|
$ |
1 |
|
$ |
13 |
|
$ |
5 |
|
$ |
1 |
|
|
|
Nine Months Ended |
|
Nine Months Ended |
|
||||||||||||||
|
|
September 30, 2009 |
|
September 30, 2008 |
|
||||||||||||||
|
|
Transportation |
|
Facilities |
|
Marketing |
|
Transportation |
|
Facilities |
|
Marketing |
|
||||||
|
|
Operations |
|
Operations |
|
Operations |
|
Operations |
|
Operations |
|
Operations |
|
||||||
Revenues (1) |
|
$ |
714 |
|
$ |
259 |
|
$ |
11,877 |
|
$ |
680 |
|
$ |
194 |
|
$ |
24,594 |
|
Purchases and related costs (1) |
|
(47 |
) |
(1 |
) |
(11,389 |
) |
(68 |
) |
|
|
(24,211 |
) |
||||||
Field operating costs (excluding equity compensation charge) (1) |
|
(249 |
) |
(85 |
) |
(139 |
) |
(246 |
) |
(76 |
) |
(135 |
) |
||||||
Equity compensation charge - operations |
|
(6 |
) |
(1 |
) |
(1 |
) |
(1 |
) |
|
|
|
|
||||||
Segment G&A expenses (excluding equity compensation charge) (2) |
|
(45 |
) |
(18 |
) |
(51 |
) |
(42 |
) |
(13 |
) |
(49 |
) |
||||||
Equity compensation charge - general and administrative |
|
(17 |
) |
(7 |
) |
(15 |
) |
(12 |
) |
(5 |
) |
(9 |
) |
||||||
Equity earnings in unconsolidated entities |
|
5 |
|
8 |
|
|
|
4 |
|
7 |
|
|
|
||||||
Reported segment profit |
|
$ |
355 |
|
$ |
155 |
|
$ |
282 |
|
$ |
315 |
|
$ |
107 |
|
$ |
190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Selected items impacting comparability of segment profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity compensation charge (3) |
|
18 |
|
6 |
|
12 |
|
12 |
|
4 |
|
7 |
|
||||||
Inventory valuation adjustments net of (gains)/losses from related derivative activities (4) |
|
|
|
|
|
(24 |
) |
|
|
|
|
(4 |
) |
||||||
(Gains)/losses from other derivative activities (4) (5) |
|
|
|
|
|
(55 |
) |
|
|
|
|
(3 |
) |
||||||
Net (gain)/loss on foreign currency revaluation |
|
|
|
|
|
(12 |
) |
|
|
|
|
8 |
|
||||||
Subtotal |
|
18 |
|
6 |
|
(79 |
) |
12 |
|
4 |
|
8 |
|
||||||
Segment profit excluding selected items impacting comparability |
|
$ |
373 |
|
$ |
161 |
|
$ |
203 |
|
$ |
327 |
|
$ |
111 |
|
$ |
198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Maintenance capital |
|
$ |
40 |
|
$ |
11 |
|
$ |
5 |
|
$ |
38 |
|
$ |
15 |
|
$ |
3 |
|
(1) |
Includes intersegment amounts. |
(2) |
Segment general and administrative expenses (G&A) reflect direct costs attributable to each segment and an allocation of other expenses to the segments based on the business activities that existed at that time. The proportional allocations by segment require judgment by management and will continue to be based on the business activities that exist during each period. |
(3) |
The equity compensation charge for the three and nine months ended September 30, 2009 and 2008 excludes the portion of the equity compensation expense represented by grants under the LTIP Plans that, pursuant to the terms of the grant, will be settled in cash only and have no impact on diluted units. The portion of the equity compensation expense attributable to the cash portion of the LTIP Plans is approximately $4 million and $1 million for the three months ended September 30, 2009 and 2008, respectively, and approximately $11 million and $3 million for the nine months ended September 30, 2009 and 2008, respectively. |
(4) |
Gains and losses from derivative activities related to revalued inventory are included in the line item Inventory valuation adjustments net of (gains)/losses from related derivative activities; gains and losses from derivative activities not related to revalued inventory are included in the line item Gains/(losses) from other derivative activities. |
(5) |
Gains and losses from other derivative activities for the nine months ended September 30, 2009 includes losses of approximately $1 million related to interest rate derivatives, which are included in other income/(expense), net, but do not impact segment profit. |
-MORE-
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |
Page 4
Adjusted segment profit for the Transportation segment for the third quarter of 2009 increased 13% over corresponding 2008 results primarily due to higher average pipeline tariffs and increased pipeline loss allowance revenue.
Adjusted segment profit for the Facilities segment for the third quarter of 2009 increased 48% over comparable 2008 results principally due to capacity increases from recently completed capital projects, recent acquisitions, including the PNGS acquisition, and higher average lease rates at various facilities.
Adjusted segment profit for the Marketing segment for the third quarter of 2009 decreased 25% from comparable 2008 results. This decrease is due to a number of factors including declines in margins due to tighter crude oil quality differentials and lower LPG margins, partially offset by a favorable contango market and lower operating costs.
The Partnerships basic weighted average units outstanding for the third quarter of 2009 totaled 130 million (131 million diluted) as compared to 128 million (129 million diluted) in last years third quarter. At September 30, 2009, the Partnership had approximately 136.1 million units outstanding, long-term debt of approximately $4.1 billion ($437 million of which supports hedged inventory) and an adjusted long-term debt-to-total capitalization ratio of 47%.
The Partnership has declared a quarterly distribution of $0.92 per unit ($3.68 per unit on an annualized basis) payable November 13, 2009 on its outstanding limited partner units. This distribution represents an increase of 3.1% over the quarterly distribution paid in November 2008 and an increase of 1.7% from the August 2009 distribution level.
Prior to its November 5th conference call, the Partnership will furnish a current report on Form 8-K, which will include material in this press release and financial and operational guidance for the fourth quarter 2009, and preliminary 2010 guidance. A copy of the Form 8-K will be available on the Partnerships website at www.paalp.com.
Non-GAAP Financial Measures
In this release, the Partnerships EBITDA disclosure is not presented in accordance with generally accepted accounting principles and is not intended to be used in lieu of GAAP presentations of net income or cash flows from operating activities. EBITDA is presented because we believe it provides additional information with respect to both the performance of our fundamental business activities as well as our ability to meet our future debt service, capital expenditures and working capital requirements. We also believe that debt holders commonly use EBITDA to analyze Partnership performance. In addition, we present selected items that impact the comparability of our operating results as additional information that may be helpful to your understanding of our financial results. We consider an understanding of these selected items impacting comparability to be material to our 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
-MORE-
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |
Page 5
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 managements discussion and analysis of operating results in our Quarterly Report on Form 10-Q.
A reconciliation of net income to EBITDA and EBITDA to cash flows from operating activities for the periods presented is included in the tables attached to this release. In addition, the Partnership maintains on its website (www.paalp.com) a reconciliation of all non-GAAP financial information, such as EBITDA, to the most comparable GAAP measures. To access the information, investors should click on the Investor Relations link on the Partnerships home page and then the Non-GAAP Reconciliation link on the Investor Relations page.
Conference Call
The Partnership will host a conference call at 11:00 AM (Eastern) on Thursday, November 5, 2009 to discuss the following items:
1. The Partnerships third-quarter 2009 performance;
2. The status of major expansion projects;
3. Capitalization and liquidity;
4. Financial and operating guidance for the fourth quarter 2009 and preliminary 2010 guidance; and
5. The Partnerships outlook for the future.
Webcast Instructions
To access the Internet webcast, please go to the Partnerships website at www.paalp.com, choose Investor Relations, and then choose Conference Calls. Following the live webcast, the call will be archived for a period of sixty (60) days on the Partnerships website.
If you are unable to participate in the webcast, please dial 800-230-1059, or, for international callers, 612-234-9960, at approximately 10:55 AM (Eastern). No password is required. You may access the slide presentation accompanying the conference call a few minutes prior to the call under the Conference Call Summaries portion of the Conference Calls tab of the Investor Relations section of PAAs website at www.paalp.com.
Telephonic Replay Instructions
To listen to a telephonic replay of the conference call, please dial 800-475-6701, or, for international callers, 320-365-3844, and replay access code 116801. The replay will be available beginning Thursday, November 5, 2009, at approximately 12:00 PM (Central) and continue until 11:59 PM (Central) Saturday,December 5, 2009 .
Plains All American Pipeline, L.P. is a publicly traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products. The Partnership is also engaged in the development and operation of natural gas storage facilities. The Partnership is headquartered in Houston, Texas.
-MORE-
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |
Page 6
Forward Looking Statements
Except for the historical information contained herein, the matters discussed in this release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from results anticipated in the forward-looking statements. These risks and uncertainties include, among other things, failure to implement or capitalize on planned internal growth projects; maintenance of our credit rating and ability to receive open credit from our suppliers and trade counterparties; continued creditworthiness of, and performance by, our counterparties, including financial institutions and trading companies with which we do business; the success of our risk management activities; environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; abrupt or severe declines or interruptions in outer continental shelf production located offshore California and transported on our pipeline systems; shortages or cost increases of power supplies, materials or labor; the availability of adequate third-party production volumes for transportation and marketing in the areas in which we operate and other factors that could cause declines in volumes shipped on our pipelines by us and third-party shippers, such as declines in production from existing oil and gas reserves or failure to develop additional oil and gas 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 availability of, and our ability to consummate, acquisition or combination opportunities; 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; unanticipated changes in crude oil market structure, grade differentials and volatility (or lack thereof); the impact of current and future laws, rulings, governmental regulations, accounting standards and statements and related interpretations; the effects of competition; interruptions in service and fluctuations in tariffs or volumes on third-party pipelines; increased costs or lack of availability of insurance; fluctuations in the debt and equity markets, including the price of our units at the time of vesting under our long-term incentive plans; the currency exchange rate of the Canadian dollar; weather interference with business operations or project construction; risks related to the development and operation of natural gas storage facilities; future developments and circumstances at the time distributions are declared; general economic, market or business conditions and the amplification of other risks caused by deteriorated financial markets, capital constraints and pervasive liquidity concerns; and other factors and uncertainties inherent in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products discussed in the Partnerships filings with the Securities and Exchange Commission.
-MORE-
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |
Page 7
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per unit data)
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
REVENUES |
|
$ |
4,857 |
|
$ |
8,862 |
|
$ |
12,442 |
|
$ |
25,118 |
|
|
|
|
|
|
|
|
|
|
|
||||
COSTS AND EXPENSES |
|
|
|
|
|
|
|
|
|
||||
Purchases and related costs |
|
4,417 |
|
8,369 |
|
11,036 |
|
23,929 |
|
||||
Field operating costs |
|
163 |
|
162 |
|
474 |
|
458 |
|
||||
General and administrative expenses |
|
52 |
|
39 |
|
153 |
|
130 |
|
||||
Depreciation and amortization |
|
59 |
|
49 |
|
173 |
|
150 |
|
||||
Total costs and expenses |
|
4,691 |
|
8,619 |
|
11,836 |
|
24,667 |
|
||||
OPERATING INCOME |
|
166 |
|
243 |
|
606 |
|
451 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
OTHER INCOME/(EXPENSE) |
|
|
|
|
|
|
|
|
|
||||
Equity earnings in unconsolidated entities |
|
5 |
|
4 |
|
13 |
|
11 |
|
||||
Interest expense |
|
(59 |
) |
(52 |
) |
(165 |
) |
(143 |
) |
||||
Other income/(expense), net |
|
12 |
|
14 |
|
17 |
|
27 |
|
||||
INCOME BEFORE TAX |
|
124 |
|
209 |
|
471 |
|
346 |
|
||||
Current income tax expense |
|
(2 |
) |
(3 |
) |
(5 |
) |
(9 |
) |
||||
Deferred income tax benefit |
|
|
|
|
|
4 |
|
2 |
|
||||
NET INCOME |
|
122 |
|
206 |
|
470 |
|
339 |
|
||||
Less: Net income attributable to the noncontrolling interest |
|
|
|
|
|
(1 |
) |
|
|
||||
NET INCOME ATTRIBUTABLE TO PLAINS |
|
$ |
122 |
|
$ |
206 |
|
$ |
469 |
|
$ |
339 |
|
|
|
|
|
|
|
|
|
|
|
||||
NET INCOME ATTRIBUTABLE TO PLAINS: |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
LIMITED PARTNERS |
|
$ |
88 |
|
$ |
173 |
|
$ |
370 |
|
$ |
256 |
|
|
|
|
|
|
|
|
|
|
|
||||
GENERAL PARTNER |
|
$ |
34 |
|
$ |
33 |
|
$ |
99 |
|
$ |
83 |
|
|
|
|
|
|
|
|
|
|
|
||||
BASIC NET INCOME PER LIMITED PARTNER UNIT |
|
$ |
0.65 |
|
$ |
1.42 |
|
$ |
2.84 |
|
$ |
2.10 |
|
|
|
|
|
|
|
|
|
|
|
||||
DILUTED NET INCOME PER LIMITED PARTNER UNIT |
|
$ |
0.65 |
|
$ |
1.41 |
|
$ |
2.82 |
|
$ |
2.08 |
|
|
|
|
|
|
|
|
|
|
|
||||
BASIC WEIGHTED AVERAGE UNITS OUTSTANDING |
|
130 |
|
123 |
|
128 |
|
120 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
DILUTED WEIGHTED AVERAGE UNITS OUTSTANDING |
|
131 |
|
124 |
|
129 |
|
121 |
|
-MORE-
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |
Page 8
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
OPERATING DATA (1)
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||
|
|
September 30, |
|
September 30, |
|
||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
|
|
|
|
|
|
|
|
|
|
Transportation activities (Average Daily Volumes, thousands of barrels): |
|
|
|
|
|
|
|
|
|
Tariff activities |
|
|
|
|
|
|
|
|
|
All American |
|
43 |
|
44 |
|
40 |
|
44 |
|
Basin |
|
335 |
|
375 |
|
389 |
|
372 |
|
Capline |
|
205 |
|
216 |
|
205 |
|
218 |
|
Line 63/Line 2000 |
|
141 |
|
131 |
|
136 |
|
151 |
|
Salt Lake City Area Systems (2) |
|
152 |
|
90 |
|
132 |
|
94 |
|
West Texas/New Mexico Area Systems (2) |
|
355 |
|
370 |
|
375 |
|
367 |
|
Manito |
|
62 |
|
68 |
|
62 |
|
70 |
|
Rainbow |
|
176 |
|
191 |
|
184 |
|
108 |
|
Rangeland |
|
51 |
|
54 |
|
54 |
|
58 |
|
Refined products |
|
100 |
|
108 |
|
96 |
|
110 |
|
Other |
|
1,219 |
|
1,234 |
|
1,207 |
|
1,238 |
|
Tariff activities total |
|
2,839 |
|
2,881 |
|
2,880 |
|
2,830 |
|
Trucking |
|
80 |
|
101 |
|
84 |
|
96 |
|
Transportation activities total |
|
2,919 |
|
2,982 |
|
2,964 |
|
2,926 |
|
|
|
|
|
|
|
|
|
|
|
Facilities activities (Average Monthly Volumes): |
|
|
|
|
|
|
|
|
|
Crude
oil, refined products and LPG storage |
|
56 |
|
55 |
|
56 |
|
54 |
|
Natural
gas storage |
|
27 |
|
14 |
|
21 |
|
13 |
|
LPG
processing |
|
17 |
|
17 |
|
16 |
|
16 |
|
Facilities
activities total |
|
61 |
|
58 |
|
60 |
|
57 |
|
|
|
|
|
|
|
|
|
|
|
Marketing activities (Average Daily Volumes, thousands of barrels): |
|
|
|
|
|
|
|
|
|
Crude oil lease gathering purchases |
|
602 |
|
638 |
|
619 |
|
663 |
|
Refined products sales |
|
32 |
|
27 |
|
34 |
|
24 |
|
LPG sales |
|
61 |
|
67 |
|
88 |
|
85 |
|
Waterborne foreign crude oil imported |
|
46 |
|
77 |
|
54 |
|
84 |
|
Marketing activities total |
|
741 |
|
809 |
|
795 |
|
856 |
|
(1) Volumes associated with acquisitions represent total volumes for the number of days we actually owned the assets divided by the number of days in the period.
(2) The aggregate of multiple systems in the respective areas.
(3) In September 2009, we acquired the remaining 50% indirect interest in PAA Natural Gas Storage, LLC (PNGS) from Vulcan Gas Storage LLC, which resulted in our 100% ownership of the natural gas storage business and related operating entities. Therefore, natural gas storage volumes for 2008 and January through August 2009 are netted to our 50% interest in PNGS. September 2009 volumes represent our 100% interest in PNGS.
(4) Facilities total is calculated as the sum of: (i) crude oil, refined products and LPG storage capacity; (ii) natural gas storage capacity divided by 6 to account for the 6:1 mcf of gas to crude oil barrel ratio; and (iii) LPG processing volumes multiplied by the number of days in the period and divided by the number of months in the period.
-MORE-
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |
Page 9
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(In millions)
|
|
September 30, |
|
December 31, |
|
|
|
||
|
|
2009 |
|
2008 |
|
|
|
||
ASSETS |
|
|
|
|
|
|
|
||
Current assets |
|
$ |
3,024 |
|
$ |
2,596 |
|
|
|
Property and equipment, net |
|
6,197 |
|
5,059 |
|
|
|
||
Linefill and base gas |
|
479 |
|
425 |
|
|
|
||
Long-term inventory |
|
129 |
|
139 |
|
|
|
||
Investment in unconsolidated entities |
|
68 |
|
257 |
|
|
|
||
Goodwill |
|
1,270 |
|
1,210 |
|
|
|
||
Other long-term assets, net |
|
326 |
|
346 |
|
|
|
||
Total assets |
|
$ |
11,493 |
|
$ |
10,032 |
|
|
|
|
|
|
|
|
|
|
|
||
LIABILITIES AND PARTNERS CAPITAL |
|
|
|
|
|
|
|
||
Current liabilities |
|
$ |
2,859 |
|
$ |
2,960 |
|
|
|
Long-term debt under credit facilities and other |
|
7 |
|
40 |
|
|
|
||
Senior notes, net of unamortized net discount |
|
4,135 |
|
3,219 |
|
|
|
||
Other long-term liabilities and net deferred credits |
|
265 |
|
261 |
|
|
|
||
Total liabilities |
|
7,266 |
|
6,480 |
|
|
|
||
|
|
|
|
|
|
|
|
||
Partners capital excluding noncontrolling interest |
|
4,163 |
|
3,552 |
|
|
|
||
Noncontrolling interest |
|
64 |
|
|
|
|
|
||
Total partners capital |
|
4,227 |
|
3,552 |
|
|
|
||
Total liabilities and partners capital |
|
$ |
11,493 |
|
$ |
10,032 |
|
|
|
CREDIT RATIOS
(In millions)
|
|
|
|
|
|
September 30, |
|
|||
|
|
September 30, |
|
|
|
2009 |
|
|||
|
|
2009 |
|
Adjustment (1) |
|
Adjusted |
|
|||
Short-term debt |
|
$ |
692 |
|
$ |
437 |
|
$ |
1,129 |
|
Long-term debt |
|
4,142 |
|
(437 |
) |
3,705 |
|
|||
Total debt |
|
$ |
4,834 |
|
$ |
|
|
$ |
4,834 |
|
|
|
|
|
|
|
|
|
|||
Long-term debt |
|
4,142 |
|
(437 |
) |
3,705 |
|
|||
Partners Capital |
|
4,227 |
|
|
|
4,227 |
|
|||
Total book capitalization |
|
$ |
8,369 |
|
$ |
(437 |
) |
$ |
7,932 |
|
|
|
|
|
|
|
|
|
|||
Total book capitalization including short-term debt |
|
$ |
9,061 |
|
$ |
|
|
$ |
9,061 |
|
|
|
|
|
|
|
|
|
|||
Long-term debt to total book capitalization |
|
49 |
% |
|
|
47 |
% |
|||
|
|
|
|
|
|
|
|
|||
Total debt to total book capitalization including short-term debt |
|
53 |
% |
|
|
53 |
% |
(1) The adjustment represents the portion of the 4.25% senior notes due September 2012 that has been used to fund hedged inventory and would be classified as short-term debt if funded on our credit facilities. These notes were issued in July 2009 and the proceeds are being used to supplement capital available from our hedged inventory facility.
-MORE-
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |
Page 10
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
COMPUTATION OF BASIC AND DILUTED EARNINGS PER LIMITED PARTNER UNIT
(In millions, except per unit data)
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
Numerator for basic and diluted earnings per limited partner unit: |
|
|
|
|
|
|
|
|
|
||||
Net Income Attributable to Plains |
|
$ |
122 |
|
$ |
206 |
|
$ |
469 |
|
$ |
339 |
|
Less: General partners incentive distribution paid (1) |
|
(32 |
) |
(30 |
) |
(92 |
) |
(78 |
) |
||||
Subtotal |
|
90 |
|
176 |
|
377 |
|
261 |
|
||||
Less: General partner 2% ownership (1) |
|
(2 |
) |
(3 |
) |
(7 |
) |
(5 |
) |
||||
Net income available to limited partners |
|
88 |
|
173 |
|
370 |
|
256 |
|
||||
Adjustment in accordance with application of the two-class method for MLPs (1) |
|
(3 |
) |
2 |
|
(8 |
) |
(5 |
) |
||||
Net income available to limited partners in accordance with application of the two-class method for MLPs |
|
$ |
85 |
|
$ |
175 |
|
$ |
362 |
|
$ |
251 |
|
|
|
|
|
|
|
|
|
|
|
||||
Denominator: |
|
|
|
|
|
|
|
|
|
||||
Basic weighted average number of limited partner units outstanding |
|
130 |
|
123 |
|
128 |
|
120 |
|
||||
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
||||
Weighted average LTIP units |
|
1 |
|
1 |
|
1 |
|
1 |
|
||||
Diluted weighted average number of limited partner units outstanding |
|
131 |
|
124 |
|
129 |
|
121 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Basic net income per limited partner unit |
|
$ |
0.65 |
|
$ |
1.42 |
|
$ |
2.84 |
|
$ |
2.10 |
|
|
|
|
|
|
|
|
|
|
|
||||
Diluted net income per limited partner unit |
|
$ |
0.65 |
|
$ |
1.41 |
|
$ |
2.82 |
|
$ |
2.08 |
|
(1) We allocate net income to our general partner based on the distribution paid during the current quarter (including the incentive distribution interest in excess of the 2% general partner interest). Guidance issued by the FASB requires that the distribution pertaining to the current periods net income, which is to be paid in the subsequent quarter, be utilized in the earnings per unit calculation. We reflect the impact of this difference as the Adjustment in accordance with application of the two-class method for MLPs.
-MORE-
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |
Page 11
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, |
|
||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
Net income attributable to Plains to earnings before interest, taxes, depreciation and amortization (EBITDA) reconciliation |
|
|
|
|
|
|
|
|
|
||||
Net Income Attributable to Plains |
|
$ |
122 |
|
$ |
206 |
|
$ |
469 |
|
$ |
339 |
|
Add: Interest expense |
|
59 |
|
52 |
|
165 |
|
143 |
|
||||
Add: Income tax expense |
|
2 |
|
3 |
|
1 |
|
7 |
|
||||
Earnings before interest and taxes (EBIT) |
|
183 |
|
261 |
|
635 |
|
489 |
|
||||
Add: Depreciation and amortization |
|
59 |
|
49 |
|
173 |
|
150 |
|
||||
EBITDA |
|
$ |
242 |
|
$ |
310 |
|
$ |
808 |
|
$ |
639 |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
Cash flow from operating activities reconciliation |
|
|
|
|
|
|
|
|
|
||||
EBITDA |
|
$ |
242 |
|
$ |
310 |
|
$ |
808 |
|
$ |
639 |
|
Current income tax expense |
|
(2 |
) |
(3 |
) |
(5 |
) |
(9 |
) |
||||
Interest expense |
|
(59 |
) |
(52 |
) |
(165 |
) |
(143 |
) |
||||
Net change in assets and liabilities, net of acquisitions |
|
(137 |
) |
(587 |
) |
(338 |
) |
(275 |
) |
||||
Other items to reconcile to cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
||||
Equity compensation charge |
|
16 |
|
3 |
|
47 |
|
27 |
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
60 |
|
$ |
(329 |
) |
$ |
347 |
|
$ |
239 |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
Funds flow from operations (FFO) |
|
|
|
|
|
|
|
|
|
||||
Net Income Attributable to Plains |
|
$ |
122 |
|
$ |
206 |
|
$ |
469 |
|
$ |
339 |
|
Equity earnings in unconsolidated entities, net of distributions |
|
(3 |
) |
(3 |
) |
(6 |
) |
(4 |
) |
||||
Depreciation and amortization |
|
59 |
|
49 |
|
173 |
|
150 |
|
||||
Deferred income tax benefit |
|
|
|
|
|
(4 |
) |
(2 |
) |
||||
FFO |
|
178 |
|
252 |
|
632 |
|
483 |
|
||||
Maintenance capital |
|
(12 |
) |
(19 |
) |
(56 |
) |
(56 |
) |
||||
|
|
|
|
|
|
|
|
|
|
||||
FFO after maintenance capital |
|
$ |
166 |
|
$ |
233 |
|
$ |
576 |
|
$ |
427 |
|
-MORE-
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |
Page 12
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
FINANCIAL DATA RECONCILIATIONS (continued)
(In millions, except per unit data)
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
Net income attributable to Plains and earnings per limited partner unit excluding selected items impacting comparability |
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Net Income Attributable to Plains |
|
$ |
122 |
|
$ |
206 |
|
$ |
469 |
|
$ |
339 |
|
Selected items impacting comparability |
|
(8 |
) |
(87 |
) |
(63 |
) |
13 |
|
||||
Adjusted net income |
|
$ |
114 |
|
$ |
119 |
|
$ |
406 |
|
$ |
352 |
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to limited partners in accordance with application of the two-class method for MLPs |
|
$ |
85 |
|
$ |
175 |
|
$ |
362 |
|
$ |
251 |
|
Limited partners 98% of selected items impacting comparability |
|
(8 |
) |
(85 |
) |
(62 |
) |
13 |
|
||||
Adjusted limited partners net income |
|
$ |
77 |
|
$ |
90 |
|
$ |
300 |
|
$ |
264 |
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted basic net income per limited partner unit |
|
$ |
0.59 |
|
$ |
0.72 |
|
$ |
2.35 |
|
$ |
2.21 |
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted diluted net income per limited partner unit |
|
$ |
0.59 |
|
$ |
0.71 |
|
$ |
2.33 |
|
$ |
2.19 |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic weighted average units outstanding |
|
130 |
|
123 |
|
128 |
|
120 |
|
||||
Diluted weighted average units outstanding |
|
131 |
|
124 |
|
129 |
|
121 |
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
||||||||
|
|
September 30, |
|
September 30, |
|
||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
||||
EBITDA excluding selected items impacting comparability |
|
|
|
|
|
|
|
|
|
||||
EBITDA |
|
$ |
242 |
|
$ |
310 |
|
$ |
808 |
|
$ |
639 |
|
Selected items impacting comparability |
|
(8 |
) |
(87 |
) |
(63 |
) |
13 |
|
||||
Adjusted EBITDA |
|
$ |
234 |
|
$ |
223 |
|
$ |
745 |
|
$ |
652 |
|
# # #
333 Clay Street, Suite 1600 Houston, Texas 77002 713-646-4100 / 800-564-3036 |