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8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - PLAINS ALL AMERICAN PIPELINE LPa14-4801_18k.htm

Exhibit 99.1

 

GRAPHIC

GRAPHIC

GRAPHIC

 

FOR IMMEDIATE RELEASE

 

Plains All American Pipeline, L.P. and Plains GP Holdings Report
Fourth-Quarter and Full-Year 2013 Results

 

(Houston — February 5, 2014) Plains All American Pipeline, L.P. (NYSE: PAA) and Plains GP Holdings (NYSE: PAGP) today reported fourth-quarter and full-year 2013 results.

 

Plains All American Pipeline

 

Summary Financial Information (1)

(in millions, except per unit data)

 

 

 

Three Months Ended
December 31,

 

%

 

Twelve Months Ended
December 31,

 

%

 

 

 

2013

 

2012

 

Change

 

2013

 

2012

 

Change

 

Net income attributable to PAA

 

$

309

 

$

320

 

-3

%

$

1,361

 

$

1,094

 

24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per limited partner unit

 

$

0.58

 

$

0.69

 

-16

%

$

2.80

 

$

2.40

 

17

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

526

 

$

541

 

-3

%

$

2,168

 

$

1,951

 

11

%

 

 

 

Three Months Ended
December 31,

 

%

 

Twelve Months Ended
December 31,

 

%

 

 

 

2013

 

2012

 

Change

 

2013

 

2012

 

Change

 

Adjusted net income attributable to PAA

 

$

371

 

$

429

 

-14

%

$

1,466

 

$

1,414

 

4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted adjusted net income per limited partner unit

 

$

0.76

 

$

1.01

 

-25

%

$

3.10

 

$

3.35

 

-7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

595

 

$

609

 

-2

%

$

2,292

 

$

2,107

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution per unit declared for the period

 

$

0.6150

 

$

0.5625

 

9.3

%

 

 

 

 

 

 

 


(1) The Partnership’s reported results include the impact of items that affect comparability between reporting periods. The impact of certain of these items is excluded from adjusted results. See the section of this release entitled “Non-GAAP Financial Measures and Selected Items Impacting Comparability” and the tables attached hereto for information regarding certain selected items that the Partnership believes impact comparability of financial results between reporting periods, as well as for information regarding non-GAAP financial measures (such as adjusted EBITDA) and their reconciliation to the most directly comparable GAAP measures.

 

– more –

333 Clay Street, Suite 1600          Houston, Texas 77002          713-646-4100 / 800-564-3036

 



 

Page 2

 

“PAA ended the year on another strong note, delivering adjusted EBITDA that exceeded the midpoint of our fourth-quarter guidance by $50 million and the mid-point of our 2013 beginning-of-the-year guidance by over $265 million,” stated Greg L. Armstrong, Chairman and CEO of Plains All American Pipeline.  “These results were underpinned by solid performance in our fee-based Facilities segment and above baseline performance in our Supply and Logistics segment.”

 

“PAA’s 2013 results and our 2014 guidance for our fee-based Transportation and Facilities segments continue to reflect the benefits of our ongoing expansion capital program.  Aggregate adjusted segment profit from our Transportation and Facilities segments increased 12% in 2013 over 2012 results, and the midpoint of our guidance range anticipates a year-to-year increase of approximately 15% in 2014,” said Armstrong. “Guidance for our Supply and Logistics segment incorporates a return to baseline-type performance; however, as in prior years, the partnership remains well positioned to outperform guidance if market conditions remain favorable.”

 

“We have targeted to grow PAA’s distributions per unit by approximately 10% in 2014, while continuing to maintain solid distribution coverage.” Armstrong stated that the partnership’s 2014 expansion capital program increased to $1.7 billion, which reflects a $300 million increase from PAA’s preliminary targeted range. Armstrong also noted that PAA is well positioned financially to both execute its expansion capital program as well as capitalize on potential acquisition opportunities.

 

The following table summarizes selected PAA financial information by segment for the fourth quarter and full year of 2013:

 

Summary of Selected Financial Data by Segment (1)

(in millions)

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

December 31, 2013

 

 

December 31, 2012

 

 

 

Transportation

 

Facilities

 

Supply and
Logistics

 

 

Transportation

 

Facilities

 

Supply and
Logistics

 

Reported segment profit

 

$

207

 

$

170

 

$

149

 

 

$

193

 

$

138

 

$

209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected items impacting the comparability of segment profit (2)

 

7

 

(1

)

60

 

 

5

 

3

 

58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted segment profit

 

$

214

 

$

169

 

$

209

 

 

$

198

 

$

141

 

$

267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage change in adjusted segment profit versus 2012 period

 

8

%

20

%

-22

%

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

Twelve Months Ended

 

 

 

December 31, 2013

 

 

December 31, 2012

 

 

 

Transportation

 

Facilities

 

Supply and
Logistics

 

 

Transportation

 

Facilities

 

Supply and
Logistics

 

Reported segment profit

 

$

729

 

$

616

 

$

822

 

 

$

710

 

$

482

 

$

753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected items impacting the comparability of segment profit (2)

 

31

 

13

 

71

 

 

32

 

20

 

102

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted segment profit

 

$

760

 

$

629

 

$

893

 

 

$

742

 

$

502

 

$

855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage change in adjusted segment profit versus 2012 period

 

2

%

25

%

4

%

 

 

 

 

 

 

 

 


(1) The Partnership’s reported results include the impact of items that affect comparability between reporting periods. The impact of certain of these items is excluded from adjusted results. See the section of this release entitled “Non-GAAP Financial Measures and Selected Items Impacting Comparability” and the tables attached hereto for information regarding certain selected items that the Partnership believes impact comparability of financial results between reporting periods.

(2) Certain of our non-GAAP financial measures may not be impacted by each of the selected items impacting comparability.

 

– more –

333 Clay Street, Suite 1600          Houston, Texas 77002          713-646-4100 / 800-564-3036

 



 

Page 3

 

Fourth-quarter 2013 Transportation adjusted segment profit increased 8% versus comparable 2012 results. This increase was primarily driven by the benefit of higher crude oil pipeline volumes   associated with recently completed organic growth projects, partially offset by the sale of our refined products pipelines and lower volumes on our Canadian crude oil pipelines due to the impact of rail and proration on downstream pipelines.

 

Fourth-quarter 2013 Facilities adjusted segment profit increased 20% over comparable 2012 results, primarily due to increased crude oil rail activities.

 

Fourth-quarter 2013 Supply and Logistics adjusted segment profit exceeded our guidance, but decreased by approximately 22% relative to comparable 2012 results. This decrease was primarily related to less favorable crude oil market conditions during the fourth quarter of 2013, particularly narrower crude oil differentials in the Permian Basin and Gulf Coast regions, partially offset by stronger net margins in the NGL business.

 

Plains GP Holdings

 

PAGP’s sole assets are its ownership interest in PAA’s general partner and incentive distribution rights.  As the control entity of PAA, PAGP consolidates PAA’s results into its financial statements, which are reflected more fully in the condensed consolidating balance sheet and income statement included at the end of this release.  Information regarding PAGP’s distributions is reflected below:

 

 

 

Q4 2013

 

 

 

 

 

Distribution per share declared for the period (prorated) (1)

 

$

0.12505

 

 

 

 

Q4 2013
(non-prorated) 
(2)

 

Distribution
Provided in IPO
Prospectus

 

%
Change

 

 

 

 

 

 

 

 

 

Distribution per share assuming full-quarter ownership

 

$

0.15979

 

$

0.14904

 

7.2

%

 


(1) Distribution per share declared based on prorated distribution received by PAGP from PAA’s general partner, Plains AAP, L.P. (“AAP”), for the partial quarter of ownership following the closing of PAGP’s initial public offering (“IPO”).

(2) Reflects a full fourth quarter 2013 distribution per Class A share (before proration), assuming PAGP’s current ownership interest in AAP for the full fourth quarter of 2013.

 

– more –

333 Clay Street, Suite 1600          Houston, Texas 77002          713-646-4100 / 800-564-3036

 



 

Page 4

 

Conference Call

 

PAA and PAGP will hold a conference call on February 6, 2014 (see details below).  Prior to this conference call, PAA will furnish a current report on Form 8-K, which will include material in this news release as well as PAA’s financial and operational guidance for the first quarter and full year of 2014.  A copy of the Form 8-K will be available at www.plainsallamerican.com, where PAA and PAGP routinely post important information.

 

The PAA and PAGP conference call will be held at 11:00 a.m. EST on Thursday, February 6, 2014 to discuss the following items:

 

1.              PAA’s fourth-quarter and full-year 2013 performance;

 

2.              The status of major expansion projects;

 

3.              Capitalization and liquidity;

 

4.              The PAGP IPO and PAA’s acquisition of publicly held PNG units;

 

5.              PAA’s financial and operating guidance for the first quarter and full year of 2014; and

 

6.              PAA’s and PAGP’s outlook for the future.

 

Conference Call Access Instructions

 

To access the Internet webcast of the conference call, please go to www.plainsallamerican.com, choose “Investor Relations,” and then choose “Events and Presentations.”  Following the live webcast, the call will be archived for a period of sixty (60) days on the website.

 

Alternatively, access to the live conference call is available by dialing toll free (800) 230-1085. International callers should dial (612) 288-0337.  No password is required.  The slide presentation accompanying the conference call will be available a few minutes prior to the call under the “Events and Presentations” portion of the “Investor Relations” section of the website at www.plainsallamerican.com.

 

Telephonic Replay Instructions

 

To listen to a telephonic replay of the conference call, please dial (800) 475-6701, or (320) 365-3844 for international callers, and enter replay access code 313564.  The replay will be available beginning Thursday, February 6, 2014, at approximately 1:00 p.m. EST and will continue until 11:59 p.m. EST on March 6, 2014.

 

– more –

333 Clay Street, Suite 1600          Houston, Texas 77002          713-646-4100 / 800-564-3036

 



 

Page 5

 

Non-GAAP Financial Measures and Selected Items Impacting Comparability

 

To supplement our financial information presented in accordance with GAAP, management uses additional measures that are known as “non-GAAP financial measures” (such as adjusted EBITDA and implied distributable cash flow) in its evaluation of past performance and prospects for the future. Management believes that the presentation of such additional financial measures provides useful information to investors regarding our performance and results of operations because these measures, when used in conjunction with related GAAP financial measures, (i) provide additional information about our core operating performance and ability to generate and distribute cash flow, (ii) provide investors with the financial analytical framework upon which management bases financial, operational, compensation and planning decisions and (iii) present measurements that investors, rating agencies and debt holders have indicated are useful in assessing us and our results of operations. These measures may exclude, for example, (i) charges for obligations that are expected to be settled with the issuance of equity instruments, (ii) the mark-to-market of derivative instruments that are related to underlying activities in another period (or the reversal of such adjustments from a prior period), (iii) items that are not indicative of our core operating results and business outlook and/or (iv) other items that we believe should be excluded in understanding our core operating performance. We have defined all such items as “selected items impacting comparability.”  We consider an understanding of these selected items impacting comparability to be material to the evaluation of our operating results and prospects.

 

Although we present selected items that we consider in evaluating our performance, you should also be aware that the items presented do not represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices, exchange rates, mechanical interruptions, acquisitions and numerous other factors. These types of variations are not separately identified in this release, but will be discussed, as applicable, in management’s discussion and analysis of operating results in our Annual Report on Form 10-K.

 

Adjusted EBITDA and other non-GAAP financial measures are reconciled to the most comparable GAAP measures for the periods presented in the tables attached to this release, and should be viewed in addition to, and not in lieu of, our consolidated financial statements and notes thereto. In addition, PAA maintains on its website (www.plainsallamerican.com) a reconciliation of adjusted EBITDA and certain commonly used non-GAAP financial information to the most comparable GAAP measures. To access the information, investors should click on “Plains All American Pipeline, L.P.” under the “Investor Relations” link on the home page, select the “Guidance & Non-GAAP Reconciliations” link and navigate to the “Non-GAAP Reconciliations” tab.

 

– 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, or delays in implementing or capitalizing, on planned internal growth projects; unanticipated changes in crude oil market structure, grade differentials and volatility (or lack thereof); environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; fluctuations in refinery capacity in areas supplied by our mainlines and other factors affecting demand for various grades of crude oil, refined products and natural gas and resulting changes in pricing conditions or transportation throughput requirements; the occurrence of a natural disaster, catastrophe, terrorist attack or other event, including attacks on our electronic and computer systems; tightened capital markets or other factors that increase our cost of capital or limit our access to capital;  maintenance of our credit rating and ability to receive open credit from our suppliers and trade counterparties; continued creditworthiness of, and performance by, our counterparties, including financial institutions and trading companies with which we do business; the currency exchange rate of the Canadian dollar; the availability of, and our ability to consummate, acquisition or combination opportunities; the successful integration and future performance of acquired assets or businesses and the risks associated with operating in lines of business that are distinct and separate from our historical operations; the effectiveness of our risk management activities; declines in the volumes of crude oil, refined product and NGL shipped, processed, purchased, stored, fractionated and/or gathered at or through the use of our facilities, whether due to declines in production from existing oil and gas reserves, failure to develop or slowdown in the development of additional oil and gas reserves or other factors; shortages or cost increases of supplies, materials or labor; our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness; the impact of current and future laws, rulings, governmental regulations, accounting standards and statements and related interpretations; non-utilization of our assets and facilities; the effects of competition; increased costs or lack of availability of insurance; fluctuations in the debt and equity markets, including the price of our units at the time of vesting under our long-term incentive plans; weather interference with business operations or project construction; risks related to the development and operation of our facilities; factors affecting demand for natural gas and natural gas storage services and rates; general economic, market or business conditions and the amplification of other risks caused by volatile financial markets, capital constraints and pervasive liquidity concerns; and other factors and uncertainties inherent in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as in the storage of natural gas and the processing, transportation, fractionation, storage and marketing of natural gas liquids discussed in the Partnerships’ filings with the Securities and Exchange Commission.

 

Plains All American Pipeline, L.P. (NYSE: PAA) is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, natural gas liquids (“NGL”), natural gas and refined products. PAA owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, PAA handles over 3.5 million barrels per day of crude oil and NGL on its pipelines. PAA is headquartered in Houston, Texas.

 

Plains GP Holdings (NYSE: PAGP) is a publicly traded entity that owns an interest in the general partner and incentive distribution rights of Plains All American Pipeline, L.P., one of the largest energy infrastructure and logistics companies in North America.  PAGP is headquartered in Houston, Texas.

 

– 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)

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per unit data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

$

10,631

 

$

9,439

 

$

42,249

 

$

37,797

 

 

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

Purchases and related costs

 

9,731

 

8,513

 

38,465

 

34,368

 

Field operating costs

 

312

 

320

 

1,322

 

1,180

 

General and administrative expenses

 

84

 

78

 

359

 

342

 

Depreciation and amortization

 

110

 

126

 

375

 

482

 

Total costs and expenses

 

10,237

 

9,037

 

40,521

 

36,372

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

394

 

402

 

1,728

 

1,425

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME/(EXPENSE)

 

 

 

 

 

 

 

 

 

Equity earnings in unconsolidated entities

 

22

 

12

 

64

 

38

 

Interest expense, net

 

(79

)

(74

)

(303

)

(288

)

Other income, net

 

 

1

 

1

 

6

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE TAX

 

337

 

341

 

1,490

 

1,181

 

Current income tax expense

 

(31

)

(21

)

(100

)

(53

)

Deferred income tax benefit/(expense)

 

12

 

10

 

1

 

(1

)

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

318

 

330

 

1,391

 

1,127

 

Net income attributable to noncontrolling interests

 

(9

)

(10

)

(30

)

(33

)

NET INCOME ATTRIBUTABLE TO PAA

 

$

309

 

$

320

 

$

1,361

 

$

1,094

 

 

 

 

 

 

 

 

 

 

 

NET INCOME ATTRIBUTABLE TO PAA:

 

 

 

 

 

 

 

 

 

LIMITED PARTNERS

 

$

203

 

$

234

 

$

967

 

$

789

 

GENERAL PARTNER

 

$

106

 

$

86

 

$

394

 

$

305

 

 

 

 

 

 

 

 

 

 

 

BASIC NET INCOME PER LIMITED PARTNER UNIT

 

$

0.59

 

$

0.70

 

$

2.82

 

$

2.41

 

 

 

 

 

 

 

 

 

 

 

DILUTED NET INCOME PER LIMITED PARTNER UNIT

 

$

0.58

 

$

0.69

 

$

2.80

 

$

2.40

 

 

 

 

 

 

 

 

 

 

 

BASIC WEIGHTED AVERAGE UNITS OUTSTANDING

 

344

 

334

 

341

 

325

 

 

 

 

 

 

 

 

 

 

 

DILUTED WEIGHTED AVERAGE UNITS OUTSTANDING

 

346

 

337

 

343

 

328

 

 

ADJUSTED RESULTS:

(in millions, except per unit data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED NET INCOME ATTRIBUTABLE TO PAA

 

$

371

 

$

429

 

$

1,466

 

$

1,414

 

 

 

 

 

 

 

 

 

 

 

DILUTED ADJUSTED NET INCOME PER LIMITED PARTNER UNIT

 

$

0.76

 

$

1.01

 

$

3.10

 

$

3.35

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDA

 

$

595

 

$

609

 

$

2,292

 

$

2,107

 

 

– 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)

 

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(in millions)

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

ASSETS

 

 

 

 

 

Current assets

 

$

4,964

 

$

5,147

 

Property and equipment, net

 

10,819

 

9,643

 

Goodwill

 

2,503

 

2,535

 

Linefill and base gas

 

798

 

707

 

Long-term inventory

 

251

 

274

 

Investments in unconsolidated entities

 

485

 

343

 

Other, net

 

540

 

586

 

Total assets

 

$

20,360

 

$

19,235

 

 

 

 

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

 

 

 

 

 

Current liabilities

 

$

5,411

 

$

5,183

 

Senior notes, net of unamortized discount

 

6,710

 

6,010

 

Long-term debt under credit facilities and other

 

5

 

310

 

Other long-term liabilities and deferred credits

 

531

 

586

 

Total liabilities

 

12,657

 

12,089

 

 

 

 

 

 

 

Partners’ capital excluding noncontrolling interests

 

7,644

 

6,637

 

Noncontrolling interests

 

59

 

509

 

Total partners’ capital

 

7,703

 

7,146

 

Total liabilities and partners’ capital

 

$

20,360

 

$

19,235

 

 

DEBT CAPITALIZATION RATIOS

(in millions)

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

Short-term debt

 

$

1,113

 

$

1,086

 

Long-term debt

 

6,715

 

6,320

 

Total debt

 

$

7,828

 

$

7,406

 

 

 

 

 

 

 

Long-term debt

 

$

6,715

 

$

6,320

 

Partners’ capital

 

7,703

 

7,146

 

Total book capitalization

 

$

14,418

 

$

13,466

 

Total book capitalization, including short-term debt

 

$

15,531

 

$

14,552

 

 

 

 

 

 

 

Long-term debt-to-total book capitalization

 

47

%

47

%

Total debt-to-total book capitalization, including short-term debt

 

50

%

51

%

 

– 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)

 

SELECTED FINANCIAL DATA BY SEGMENT

(in millions)

 

 

 

Three Months Ended

 

 

Three Months Ended

 

 

 

December 31, 2013

 

 

December 31, 2012

 

 

 

 

 

 

 

Supply and

 

 

 

 

 

 

Supply and

 

 

 

Transportation

 

Facilities

 

Logistics

 

 

Transportation

 

Facilities

 

Logistics

 

Revenues (1)

 

$

387

 

$

394

 

$

10,151

 

 

$

373

 

$

313

 

$

9,072

 

Purchases and related costs (1)

 

(38

)

(116

)

(9,875

)

 

(34

)

(70

)

(8,724

)

Field operating costs (excluding equity-indexed compensation expense) (1)

 

(125

)

(89

)

(97

)

 

(126

)

(85

)

(110

)

Equity-indexed compensation expense - operations

 

(3

)

(1

)

 

 

(3

)

 

 

Segment G&A expenses (excluding equity-indexed compensation expense) (2)

 

(29

)

(16

)

(23

)

 

(22

)

(16

)

(24

)

Equity-indexed compensation expense - general and administrative

 

(7

)

(2

)

(7

)

 

(7

)

(4

)

(5

)

Equity earnings in unconsolidated entities

 

22

 

 

 

 

12

 

 

 

Reported segment profit

 

$

207

 

$

170

 

$

149

 

 

$

193

 

$

138

 

$

209

 

Selected items impacting comparability of segment profit (3)

 

7

 

(1

)

60

 

 

5

 

3

 

58

 

Segment profit excluding selected items impacting comparability

 

$

214

 

$

169

 

$

209

 

 

$

198

 

$

141

 

$

267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maintenance capital

 

$

36

 

$

13

 

$

3

 

 

$

30

 

$

16

 

$

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months Ended

 

 

Twelve Months Ended

 

 

 

December 31, 2013

 

 

December 31, 2012

 

 

 

 

 

 

 

Supply and

 

 

 

 

 

 

Supply and

 

 

 

Transportation

 

Facilities

 

Logistics

 

 

Transportation

 

Facilities

 

Logistics

 

Revenues (1)

 

$

1,498

 

$

1,377

 

$

40,696

 

 

$

1,416

 

$

1,098

 

$

36,440

 

Purchases and related costs (1)

 

(147

)

(312

)

(39,315

)

 

(134

)

(238

)

(35,139

)

Field operating costs (excluding equity-indexed compensation expense) (1)

 

(528

)

(362

)

(422

)

 

(468

)

(289

)

(417

)

Equity-indexed compensation expense - operations

 

(18

)

(2

)

(3

)

 

(16

)

(2

)

(2

)

Segment G&A expenses (excluding equity-indexed compensation expense) (2)

 

(101

)

(63

)

(102

)

 

(96

)

(64

)

(101

)

Equity-indexed compensation expense - general and administrative

 

(39

)

(22

)

(32

)

 

(30

)

(23

)

(28

)

Equity earnings in unconsolidated entities

 

64

 

 

 

 

38

 

 

 

Reported segment profit

 

$

729

 

$

616

 

$

822

 

 

$

710

 

$

482

 

$

753

 

Selected items impacting comparability of segment profit (3)

 

31

 

13

 

71

 

 

32

 

20

 

102

 

Segment profit excluding selected items impacting comparability

 

$

760

 

$

629

 

$

893

 

 

$

742

 

$

502

 

$

855

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maintenance capital

 

$

123

 

$

38

 

$

15

 

 

$

108

 

$

49

 

$

13

 

 


(1)             Includes intersegment amounts.

(2)             Segment general and administrative expenses (G&A) reflect direct costs attributable to each segment and an allocation of other expenses to the segments. The proportional allocations by segment require judgment by management and are based on the business activities that exist during each period. Includes acquisition-related expenses for the 2012 period.

(3)             Certain non-GAAP financial measures may not be impacted by each of the selected items impacting comparability.

 

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Page 10

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 

OPERATING DATA (1)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Transportation activities (average daily volumes in thousands of barrels):

 

 

 

 

 

 

 

 

 

Tariff activities

 

 

 

 

 

 

 

 

 

Crude Oil Pipelines

 

 

 

 

 

 

 

 

 

All American

 

40

 

37

 

40

 

33

 

Bakken Area Systems

 

135

 

120

 

131

 

130

 

Basin / Mesa

 

737

 

756

 

718

 

696

 

Capline

 

144

 

154

 

151

 

146

 

Eagle Ford Area Systems

 

166

 

40

 

102

 

23

 

Line 63 / Line 2000

 

113

 

134

 

113

 

128

 

Manito

 

44

 

52

 

46

 

57

 

Mid-Continent Area Systems

 

293

 

281

 

281

 

271

 

Permian Basin Area Systems

 

703

 

489

 

581

 

461

 

Rainbow

 

120

 

141

 

124

 

145

 

Rangeland

 

64

 

65

 

60

 

62

 

Salt Lake City Area Systems

 

128

 

144

 

131

 

149

 

South Saskatchewan

 

57

 

60

 

51

 

60

 

White Cliffs

 

25

 

21

 

23

 

18

 

Other

 

688

 

717

 

725

 

703

 

NGL Pipelines

 

 

 

 

 

 

 

 

 

Co-Ed

 

58

 

52

 

56

 

44

 

Other

 

206

 

159

 

194

 

131

 

Refined Products Pipelines

 

9

 

122

 

68

 

116

 

Tariff activities total

 

3,730

 

3,544

 

3,595

 

3,373

 

Trucking

 

129

 

112

 

117

 

106

 

Transportation activities total

 

3,859

 

3,656

 

3,712

 

3,479

 

 

 

 

 

 

 

 

 

 

 

Facilities activities (average monthly volumes):

 

 

 

 

 

 

 

 

 

Crude oil, refined products and NGL terminalling and storage (average monthly capacity in millions of barrels)

 

94

 

94

 

94

 

90

 

Rail load / unload volumes (average throughput in thousands of barrels per day)

 

221

 

 

221

 

 

Natural gas storage (average monthly capacity in billions of cubic feet)

 

97

 

93

 

96

 

84

 

NGL fractionation (average throughput in thousands of barrels per day)

 

89

 

97

 

96

 

79

 

Facilities activities total (average monthly capacity in millions of barrels) (2)

 

120

 

113

 

120

 

106

 

 

 

 

 

 

 

 

 

 

 

Supply and Logistics activities (average daily volumes in thousands of barrels):

 

 

 

 

 

 

 

 

 

Crude oil lease gathering purchases

 

870

 

850

 

859

 

818

 

NGL sales

 

272

 

259

 

215

 

182

 

Waterborne cargos

 

 

4

 

4

 

3

 

Supply and Logistics activities total

 

1,142

 

1,113

 

1,078

 

1,003

 

 


(1) Volumes associated with acquisitions represent total volumes (attributable to our interest) for the number of days or months we actually owned the assets divided by the number of days or months in the period.

(2) Facilities total is calculated as the sum of: (i) crude oil, refined products and NGL terminalling and storage capacity; (ii) rail load and unload volumes multiplied by the number of days in the period and divided by the number of months in the period; (iii) natural gas storage capacity divided by 6 to account for the 6:1 mcf of gas to crude Btu equivalent ratio and further divided by 1,000 to convert to monthly volumes in millions; and (iv) NGL fractionation volumes multiplied by the number of days in the period and divided by the number of months in the period.

 

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Page 11

 

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

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

Basic Net Income per Limited Partner Unit:

 

 

 

 

 

 

 

 

 

Net income attributable to PAA

 

$

309

 

$

320

 

$

1,361

 

$

1,094

 

Less: General partner’s incentive distribution (1)

 

(102

)

(81

)

(375

)

(289

)

Less: General partner 2% ownership (1)

 

(4

)

(5

)

(19

)

(16

)

Net income available to limited partners

 

203

 

234

 

967

 

789

 

Less: Undistributed earnings allocated and distributions to participating securities (1)

 

(2

)

(1

)

(7

)

(5

)

Net income available to limited partners in accordance with application of the two-class method for MLPs

 

$

201

 

$

233

 

$

960

 

$

784

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average number of limited partner units outstanding

 

344

 

334

 

341

 

325

 

 

 

 

 

 

 

 

 

 

 

Basic net income per limited partner unit

 

$

0.59

 

$

0.70

 

$

2.82

 

$

2.41

 

 

 

 

 

 

 

 

 

 

 

Diluted Net Income per Limited Partner Unit:

 

 

 

 

 

 

 

 

 

Net income attributable to PAA

 

$

309

 

$

320

 

$

1,361

 

$

1,094

 

Less: General partner’s incentive distribution (1)

 

(102

)

(81

)

(375

)

(289

)

Less: General partner 2% ownership (1)

 

(4

)

(5

)

(19

)

(16

)

Net income available to limited partners

 

203

 

234

 

967

 

789

 

Less: Undistributed earnings allocated and distributions to participating securities (1)

 

(2

)

(1

)

(6

)

(4

)

Net income available to limited partners in accordance with application of the two-class method for MLPs

 

$

201

 

$

233

 

$

961

 

$

785

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average number of limited partner units outstanding

 

344

 

334

 

341

 

325

 

Effect of dilutive securities: Weighted average LTIP units (2)

 

2

 

3

 

2

 

3

 

Diluted weighted average number of limited partner units outstanding

 

346

 

337

 

343

 

328

 

 

 

 

 

 

 

 

 

 

 

Diluted net income per limited partner unit

 

$

0.58

 

$

0.69

 

$

2.80

 

$

2.40

 

 


(1) We calculate net income available to limited partners based on the distributions pertaining to the current period’s net income.  After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the general partner, limited partners and participating securities in accordance with the contractual terms of the partnership agreement and as further prescribed under the two-class method.

(2) Our Long-term Incentive Plan (“LTIP”) awards that contemplate the issuance of common units are considered dilutive unless (i) vesting occurs only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. LTIP awards that are deemed to be dilutive are reduced by a hypothetical unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.

 

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Page 12

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 

SELECTED ITEMS IMPACTING COMPARABILITY

(in millions, except per unit data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

Selected Items Impacting Comparability - Income/(Loss) (1):

 

 

 

 

 

 

 

 

 

Gains/(losses) from derivative activities net of inventory valuation adjustments (2)

 

$

(51

)

$

(56

)

$

(59

)

$

(74

)

Asset impairments (3)

 

 

(41

)

 

(166

)

Equity-indexed compensation expense (4)

 

(12

)

(10

)

(63

)

(59

)

Net gain/(loss) on foreign currency revaluation

 

(7

)

(1

)

(1

)

(7

)

Tax effect on selected items impacting comparability

 

8

 

 

16

 

 

Significant acquisition-related expenses

 

 

(1

)

 

(14

)

Other (5)

 

 

 

2

 

 

Selected items impacting comparability of net income attributable to PAA

 

$

(62

)

$

(109

)

$

(105

)

$

(320

)

 

 

 

 

 

 

 

 

 

 

Impact to basic net income per limited partner unit

 

$

(0.17

)

$

(0.31

)

$

(0.30

)

$

(0.96

)

Impact to diluted net income per limited partner unit

 

$

(0.18

)

$

(0.32

)

$

(0.30

)

$

(0.95

)

 


(1) Certain of our non-GAAP financial measures may not be impacted by each of the selected items impacting comparability.

(2) Includes mark-to-market gains and losses resulting from derivative instruments that are related to underlying activities in future periods or the reversal of mark-to-market gains and losses from the prior period, net of inventory valuation adjustments.

(3) Asset impairments are reflected in “Depreciation and amortization” on our Condensed Consolidated Statements of Operations and do not impact the comparability of EBITDA.

(4) Equity-indexed compensation expense above excludes the portion of equity-indexed compensation expense represented by grants under LTIP that, pursuant to the terms of the grant, will be settled in cash only and have no impact on diluted units.

(5) Includes other immaterial selected items impacting comparability, as well as the noncontrolling interests’ portion of selected items.

 

– more –

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Page 13

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 

COMPUTATION OF ADJUSTED BASIC AND DILUTED EARNINGS PER LIMITED PARTNER UNIT

(in millions, except per unit data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

Basic Adjusted Net Income per Limited Partner Unit

 

 

 

 

 

 

 

 

 

Net income attributable to PAA

 

$

309

 

$

320

 

$

1,361

 

$

1,094

 

Selected items impacting comparability of net income attributable to PAA (1)

 

62

 

109

 

105

 

320

 

Adjusted net income attributable to PAA

 

371

 

429

 

1,466

 

1,414

 

Less: General partner’s incentive distribution (2)

 

(102

)

(81

)

(375

)

(289

)

Less: General partner 2% ownership (2)

 

(5

)

(7

)

(22

)

(23

)

Adjusted net income available to limited partners

 

264

 

341

 

1,069

 

1,102

 

Less: Undistributed earnings allocated and distributions to participating securities (2)

 

(2

)

(3

)

(7

)

(8

)

Adjusted limited partners’ net income

 

$

262

 

$

338

 

$

1,062

 

$

1,094

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average number of limited partner units outstanding

 

344

 

334

 

341

 

325

 

 

 

 

 

 

 

 

 

 

 

Basic adjusted net income per limited partner unit

 

$

0.76

 

$

1.01

 

$

3.12

 

$

3.37

 

 

 

 

 

 

 

 

 

 

 

Diluted Adjusted Net Income per Limited Partner Unit

 

 

 

 

 

 

 

 

 

Net income attributable to PAA

 

$

309

 

$

320

 

$

1,361

 

$

1,094

 

Selected items impacting comparability of net income attributable to PAA (1)

 

62

 

109

 

105

 

320

 

Adjusted net income attributable to PAA

 

371

 

429

 

1,466

 

1,414

 

Less: General partner’s incentive distribution (2)

 

(102

)

(81

)

(375

)

(289

)

Less: General partner 2% ownership (2)

 

(5

)

(7

)

(22

)

(23

)

Adjusted net income available to limited partners

 

264

 

341

 

1,069

 

1,102

 

Less: Undistributed earnings allocated and distributions to participating securities (2)

 

(2

)

(1

)

(5

)

(4

)

Adjusted limited partners’ net income

 

$

262

 

$

340

 

$

1,064

 

$

1,098

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average number of limited partner units outstanding

 

346

 

337

 

343

 

328

 

 

 

 

 

 

 

 

 

 

 

Diluted adjusted net income per limited partner unit

 

$

0.76

 

$

1.01

 

$

3.10

 

$

3.35

 

 


(1) Certain of our non-GAAP financial measures may not be impacted by each of the selected items impacting comparability.

(2) We calculate adjusted net income available to limited partners based on the distributions pertaining to the current period’s net income.  After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the general partner, limited partners and participating securities in accordance with the contractual terms of the partnership agreement and as further prescribed under the two-class method.

 

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333 Clay Street, Suite 1600          Houston, Texas 77002          713-646-4100 / 800-564-3036

 



 

Page 14

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 

FINANCIAL DATA RECONCILIATIONS

(in millions)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Excluding Selected Items Impacting Comparability (“Adjusted EBITDA”) Reconciliations

 

 

 

 

 

 

 

 

 

Net Income

 

$

318

 

$

330

 

$

1,391

 

$

1,127

 

Add: Interest expense

 

79

 

74

 

303

 

288

 

Add: Income tax expense

 

19

 

11

 

99

 

54

 

Add: Depreciation and amortization

 

110

 

126

 

375

 

482

 

EBITDA

 

$

526

 

$

541

 

$

2,168

 

$

1,951

 

Selected items impacting comparability of EBITDA (1)

 

69

 

68

 

124

 

156

 

Adjusted EBITDA

 

$

595

 

$

609

 

$

2,292

 

$

2,107

 

 


(1) Certain of our non-GAAP financial measures may not be impacted by each of the selected items impacting comparability.

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

Adjusted EBITDA to Implied Distributable Cash Flow (“DCF”)

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

595

 

$

609

 

$

2,292

 

$

2,107

 

Interest expense

 

(79

)

(74

)

(303

)

(288

)

Maintenance capital

 

(52

)

(48

)

(176

)

(170

)

Current income tax expense

 

(31

)

(21

)

(100

)

(53

)

Equity earnings in unconsolidated entities, net of distributions

 

(3

)

1

 

(10

)

2

 

Distributions to noncontrolling interests (1)

 

(1

)

(12

)

(38

)

(48

)

Implied DCF

 

$

429

 

$

455

 

$

1,665

 

$

1,550

 

 


(1)  Includes distributions that pertain to the current period’s net income, which are paid in the subsequent period.

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31,

 

December 31,

 

 

 

2013

 

2012

 

2013

 

2012

 

Cash Flow from Operating Activities Reconciliation

 

 

 

 

 

 

 

 

 

EBITDA

 

$

526

 

$

541

 

$

2,168

 

$

1,951

 

Current income tax expense

 

(31

)

(21

)

(100

)

(53

)

Interest expense

 

(79

)

(74

)

(303

)

(288

)

Net change in assets and liabilities, net of acquisitions

 

(76

)

(104

)

73

 

(471

)

Other items to reconcile to cash flows from operating activities:

 

 

 

 

 

 

 

 

 

Equity-indexed compensation expense

 

20

 

19

 

116

 

101

 

Net cash provided by operating activities

 

$

360

 

$

361

 

$

1,954

 

$

1,240

 

 

– more –

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Page 15

 

PLAINS GP HOLDINGS AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in millions, except per share data)

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31, 2013

 

December 31, 2013

 

 

 

PAA

 

Consolidating
Adjustments 
(1)

 

PAGP (2)

 

PAA

 

Consolidating
Adjustments 
(1)

 

PAGP (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

 

$

10,631

 

$

 

$

10,631

 

$

42,249

 

$

 

$

42,249

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases and related costs

 

9,731

 

 

9,731

 

38,465

 

 

38,465

 

Field operating costs

 

312

 

 

312

 

1,322

 

 

1,322

 

General and administrative expenses

 

84

 

1

 

85

 

359

 

1

 

360

 

Depreciation and amortization

 

110

 

2

 

112

 

375

 

3

 

378

 

Total costs and expenses

 

10,237

 

3

 

10,240

 

40,521

 

4

 

40,525

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

 

394

 

(3

)

391

 

1,728

 

(4

)

1,724

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME/(EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity earnings in unconsolidated entities

 

22

 

 

22

 

64

 

 

64

 

Interest expense, net

 

(79

)

(2

)

(81

)

(303

)

(6

)

(309

)

Other income, net

 

 

 

 

1

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE TAX

 

337

 

(5

)

332

 

1,490

 

(10

)

1,480

 

Current income tax expense

 

(31

)

 

(31

)

(100

)

 

(100

)

Deferred income tax benefit/(expense)

 

12

 

(8

)

4

 

1

 

(7

)

(6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

318

 

(13

)

305

 

1,391

 

(17

)

1,374

 

Net income attributable to noncontrolling interests

 

(9

)

(284

)

(293

)

(30

)

(1,329

)

(1,359

)

NET INCOME ATTRIBUTABLE TO PAGP

 

$

309

 

$

(297

)

$

12

 

$

1,361

 

$

(1,346

)

$

15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC NET INCOME PER CLASS A SHARE (3)

 

 

 

 

 

$

0.10

 

 

 

 

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DILUTED NET INCOME PER CLASS A SHARE (3)

 

 

 

 

 

$

0.10

 

 

 

 

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING (3)

 

 

 

 

 

132

 

 

 

 

 

132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING (3)

 

 

 

 

 

132

 

 

 

 

 

132

 

 


(1)             Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.

(2)             Includes results attributable to PAGP from October 21, 2013 (the date of closing PAGP’s IPO) through December 31, 2013, plus results for Plains All American GP LLC, the predecessor entity to PAGP, prior to October 21, 2013.

(3)             Attributable to post-IPO period, October 21, 2013 through December 31, 2013.

 

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Page 16

 

PLAINS GP HOLDINGS AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 

CONDENSED CONSOLIDATING BALANCE SHEET DATA

(in millions)

 

 

 

December 31, 2013

 

 

 

PAA

 

Consolidating
Adjustments 
(1)

 

PAGP

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

$

4,964

 

$

1

 

$

4,965

 

Property and equipment, net

 

10,819

 

22

 

10,841

 

Goodwill

 

2,503

 

 

2,503

 

Linefill and base gas

 

798

 

 

798

 

Long-term inventory

 

251

 

 

251

 

Investments in unconsolidated entities

 

485

 

 

485

 

Other, net

 

540

 

1,070

 

1,610

 

Total assets

 

$

20,360

 

$

1,093

 

$

21,453

 

 

 

 

 

 

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

 

 

 

 

 

 

 

Current liabilities

 

$

5,411

 

$

2

 

$

5,413

 

Senior notes, net of unamortized discount

 

6,710

 

 

6,710

 

Long-term debt under credit facilities and other

 

5

 

515

 

520

 

Other long-term liabilities and deferred credits

 

531

 

 

531

 

Total liabilities

 

12,657

 

517

 

13,174

 

 

 

 

 

 

 

 

 

Partners’ capital excluding noncontrolling interests

 

7,644

 

(6,609

)

1,035

 

Noncontrolling interests

 

59

 

7,185

 

7,244

 

Total partners’ capital

 

7,703

 

576

 

8,279

 

Total liabilities and partners’ capital

 

$

20,360

 

$

1,093

 

$

21,453

 

 


(1) Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.

 

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Page 17

 

PLAINS GP HOLDINGS AND SUBSIDIARIES

DISTRIBUTION SUMMARY (unaudited)

 

Q4 2013 PAGP DISTRIBUTION SUMMARY

(in millions, except per unit and per share data)

 

 

 

Q4 2013 (1)

 

PAA Distribution/LP Unit

 

$

0.61500

 

GP Distribution/LP Unit

 

$

0.29730

 

Total Distribution/LP Unit

 

$

0.91230

 

 

 

 

 

PAA LP Units Outstanding at 1/31/14

 

360

 

 

 

 

 

Gross GP Distribution

 

$

114

 

Less: IDR Reduction (2)

 

(7

)

Net Distribution from PAA to AAP

 

$

107

 

Less: Debt Service

 

(3

)

Less: G&A Expense

 

(1

)

Plus: Cash Balance

 

0

 

Cash Available for Distribution by AAP

 

$

104

 

 

 

 

 

Distributions to AAP Partners

 

 

 

For period from 10/01/13 to 10/20/13:

 

 

 

Direct AAP Owners & AAP Management (100% economic interest)

 

$

23

 

For period from 10/21/13 to 12/31/13:

 

 

 

Direct AAP Owners & AAP Management (79.4% economic interest)

 

64

 

PAGP (20.6% economic interest)

 

17

 

Total distributions to AAP Partners

 

$

104

 

 

 

 

 

Distribution to PAGP Investors

 

$

17

 

PAGP Class A Shares Outstanding at 1/31/14

 

 

134

 

PAGP Distribution/Class A Share (3)

 

$

0.12505

 

PAGP Distribution/Class A Share (non-prorated) (4)

 

$

0.15979

 

 


(1)      Amounts may not recalculate due to rounding.

(2)      Includes reductions associated with the BP NGL Acquisition and PNG Merger. The reduction associated with the BP NGL Acquisition will reduce to $2.5 million per quarter from $3.75 million per quarter beginning with the May 2014 distribution.

(3)      Distribution prorated for the portion of the period following the closing of PAGP’s IPO on October 21, 2013.

(4)      Reflects a full fourth quarter distribution per Class A share (before proration), assuming PAGP’s current ownership interest in AAP for the full fourth quarter of 2013.

 

– more –

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Page 18

 

PLAINS GP HOLDINGS AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 

COMPUTATION OF BASIC AND DILUTED NET INCOME PER CLASS A SHARE

(in millions, except per share data)

 

 

 

October 21, 2013

 

 

 

to December 31, 2013

 

Basic and Diluted Net Income per Class A Share

 

 

 

Net income attributable to PAGP

 

$

15

 

Less net income attributable to PAGP for the period from January 1, 2013 to October 20, 2013

 

(3

)

Net income attributable to PAGP for the period from October 21, 2013 to December 31, 2013

 

$

12

 

Basic and diluted weighted average number of Class A shares outstanding (1)

 

132

 

 

 

 

 

Basic and diluted net income per Class A share

 

$

0.10

 

 


(1)      Basic weighted average number of Class A shares outstanding is weighted for the period following the closing of our IPO. Approximately 128 million Class A shares were issued upon closing of our IPO with approximately 4 million additional Class A shares issued through the exercise in October 2013 of an over-allotment option. Subsequent conversions of AAP units were immaterial.

 

Contacts:

 

Roy I. Lamoreaux

 

Al Swanson

 

 

 

Director, Investor Relations

 

Executive Vice President, CFO

 

 

 

(866) 809-1291

 

(800) 564-3036

 

###

333 Clay Street, Suite 1600          Houston, Texas 77002          713-646-4100 / 800-564-3036