Plains All American Pipeline, L.P. (NYSE:PAA)
today reported net income attributable to Plains of $278 million, or
$1.37 per diluted limited partner unit, for the fourth quarter of 2011
and net income attributable to Plains of $966 million, or $4.88 per
diluted limited partner unit, for the full year 2011. Net income
attributable to Plains for the fourth quarter of 2010 was $142 million,
or $0.67 per diluted limited partner unit, and net income attributable
to Plains for the full year 2010 was $505 million, or $2.40 per diluted
limited partner unit. The Partnership reported earnings before interest,
taxes, depreciation and amortization ("EBITDA") of $426 million and
$1.54 billion for the respective fourth-quarter and full-year 2011
periods compared to reported EBITDA of $277 million and $1.02 billion,
for the comparable 2010 periods.
"PAA delivered record level performance for the fourth quarter and full
year of 2011 and meaningfully exceeded our public guidance ranges," said
Greg L. Armstrong, Chairman and CEO of Plains All American. "These
results are a testament to the strength of PAA's business model and
strategic asset base and the outstanding execution by PAA's employees
during a period of strong fundamentals and favorable market conditions."
"Looking forward, PAA is well positioned to continue to deliver
attractive results. During 2011, we invested $1.9 billion in expansion
capital and acquisitions and we plan to invest over $2.5 billion in 2012
through our $850 million expansion capital program and our pending $1.7
billion acquisition of BP's Canadian NGL business. PAA is also well
positioned to finance this growth while maintaining a solid capital
structure and a high level of liquidity. As a result of our proactive
financing activities and cash generated in excess of our distributions,
PAA ended the year with a strong balance sheet, over $3.5 billion of
committed liquidity and favorably positioned with respect to our
targeted credit profile."
"Based on this positioning and strong industry fundamentals, we are
targeting to increase our limited partner distributions by 8% to 9%
during 2012, while maintaining attractive distribution coverage levels."
The Partnership's reported results include the impact of items that
affect comparability between reporting periods. These items are excluded
from adjusted results, as detailed in the table below. Accordingly, the
Partnership's fourth-quarter 2011 adjusted net income attributable to
Plains, adjusted net income per diluted limited partner unit and
adjusted EBITDA were $322 million, $1.65 and $471 million, respectively,
as compared to fourth-quarter 2010 respective results of $187 million,
$0.99 and $322 million.
The Partnership's adjusted net income attributable to Plains, adjusted
net income per diluted limited partner unit and adjusted EBITDA for the
full year 2011 were $1.02 billion, $5.24 and $1.60 billion,
respectively, as compared to the full-year 2010 respective results of
$594 million, $3.03 and $1.11 billion. (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.)
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 |
| Twelve Months Ended |
| | December 31, | | December 31, |
| | 2011 |
| 2010 | | 2011 |
| 2010 |
Selected Items Impacting Comparability - Income / (Loss)
(1): | | | | | | | | |
Equity compensation expense (2) | |
$
|
(37
|
)
| |
$
|
(33
|
)
| |
$
|
(77
|
)
| |
$
|
(67
|
)
|
Gains/(losses) from other derivative activities
| | |
(11
|
)
| | |
(12
|
)
| | |
61
| | | |
(14
|
)
|
Net loss on early repayment of senior notes
| | |
-
| | | |
-
| | | |
(23
|
)
| | |
(6
|
)
|
Gain/(loss) on foreign currency revaluation
| | |
10
| | | |
-
| | | |
(7
|
)
| | |
-
| |
Significant acquisition-related expenses
| | |
(6
|
)
| | |
-
| | | |
(10
|
)
| | |
-
| |
Other (3) | |
|
-
|
| |
|
-
|
| |
|
1
|
| |
|
(2
|
)
|
Selected items impacting comparability of net income attributable to
Plains
| | |
(44
|
)
| | |
(45
|
)
| | |
(55
|
)
| | |
(89
|
)
|
Less: GP 2% portion of selected items impacting comparability
| |
|
1
|
| |
|
1
|
| |
|
1
|
| |
|
2
|
|
LP 98% portion of selected items impacting comparability
| |
$
|
(43
|
)
| |
$
|
(44
|
)
| |
$
|
(54
|
)
| |
$
|
(87
|
)
|
| | | | | | | |
|
Impact to basic net income per limited partner unit
| |
$
|
(0.28
|
)
| |
$
|
(0.31
|
)
| |
$
|
(0.37
|
)
| |
$
|
(0.64
|
)
|
Impact to diluted net income per limited partner unit
| |
$
|
(0.28
|
)
| |
$
|
(0.32
|
)
| |
$
|
(0.36
|
)
| |
$
|
(0.63
|
)
|
| | | | | | | |
|
(1) Certain of our non-GAAP financial measures may not be impacted
by each of the selected items impacting comparability.
|
(2) Equity compensation expense for both the three and twelve months
ended December 31, 2011 and 2010 excludes the portion of equity
compensation expense represented by grants under our Long-term
Incentive Plans ("LTIPs") that, pursuant to the terms of the grant,
will be settled in cash only and have no impact on diluted units.
|
(3) Includes other immaterial selected items impacting
comparability, as well as the noncontrolling interests' portion of
selected items.
|
The following tables present certain selected financial information by
segment for the fourth-quarter and full-year 2011 and 2010 reporting
periods (amounts in millions):
|
|
| Three Months Ended |
|
| Three Months Ended |
| | December 31, 2011 | | | December 31, 2010 |
| | |
| |
| Supply & | | | |
| |
| Supply & |
| | Transportation |
| Facilities | | Logistics | | | Transportation |
| Facilities | | Logistics |
Revenues (1) | |
$
|
301
| | |
$
|
280
| | |
$
|
8,501
| | | |
$
|
271
| | |
$
|
127
| | |
$
|
6,997
| |
Purchases and related costs (1) | | |
(27
|
)
| | |
(118
|
)
| | |
(8,190
|
)
| | | |
(21
|
)
| | |
(6
|
)
| | |
(6,823
|
)
|
Field operating costs (excluding equity compensation expense) (1) | | |
(93
|
)
| | |
(43
|
)
| | |
(89
|
)
| | | |
(87
|
)
| | |
(34
|
)
| | |
(52
|
)
|
Equity compensation expense - operations
| | |
(9
|
)
| | |
(1
|
)
| | |
(1
|
)
| | | |
(6
|
)
| | |
(1
|
)
| | |
(1
|
)
|
Segment G&A expenses (excluding equity compensation expense) (2) | | |
(20
|
)
| | |
(11
|
)
| | |
(20
|
)
| | | |
(17
|
)
| | |
(10
|
)
| | |
(20
|
)
|
Equity compensation expense - general and administrative
| | |
(17
|
)
| | |
(8
|
)
| | |
(18
|
)
| | | |
(18
|
)
| | |
(8
|
)
| | |
(14
|
)
|
Equity earnings in unconsolidated entities
| |
|
4
|
| |
|
-
|
| |
|
-
|
| | |
|
-
|
| |
|
-
|
| |
|
-
|
|
Reported segment profit
| | |
139
| | | |
99
| | | |
183
| | | | |
122
| | | |
68
| | | |
87
| |
Selected items impacting comparability of segment profit (3) | |
|
21
|
| |
|
8
|
| |
|
17
|
| | |
|
16
|
| |
|
7
|
| |
|
22
|
|
Segment profit excluding selected items impacting comparability
| |
$
|
160
|
| |
$
|
107
|
| |
$
|
200
|
| | |
$
|
138
|
| |
$
|
75
|
| |
$
|
109
|
|
| | | | | | | | | | | | |
|
Maintenance capital
| |
$
|
34
|
| |
$
|
6
|
| |
$
|
3
|
| | |
$
|
24
|
| |
$
|
4
|
| |
$
|
2
|
|
| | | | | | | | | | | | |
|
| | Twelve Months Ended | | | Twelve Months Ended |
| | December 31, 2011 | | | December 31, 2010 |
| | | | | | Supply & | | | | | | | Supply & |
| | Transportation |
| Facilities | | Logistics | | | Transportation |
| Facilities | | Logistics |
Revenues (1) | |
$
|
1,165
| | |
$
|
796
| | |
$
|
33,068
| | | |
$
|
1,045
| | |
$
|
490
| | |
$
|
24,990
| |
Purchases and related costs (1) | | |
(115
|
)
| | |
(205
|
)
| | |
(31,984
|
)
| | | |
(73
|
)
| | |
(23
|
)
| | |
(24,448
|
)
|
Field operating costs (excluding equity compensation expense) (1) | | |
(387
|
)
| | |
(165
|
)
| | |
(314
|
)
| | | |
(346
|
)
| | |
(140
|
)
| | |
(195
|
)
|
Equity compensation expense - operations
| | |
(14
|
)
| | |
(2
|
)
| | |
(2
|
)
| | | |
(12
|
)
| | |
(2
|
)
| | |
(3
|
)
|
Segment G&A expenses (excluding equity compensation expense) (2) | | |
(69
|
)
| | |
(47
|
)
| | |
(86
|
)
| | | |
(65
|
)
| | |
(39
|
)
| | |
(75
|
)
|
Equity compensation expense - general and administrative
| | |
(38
|
)
| | |
(19
|
)
| | |
(35
|
)
| | | |
(36
|
)
| | |
(16
|
)
| | |
(29
|
)
|
Equity earnings in unconsolidated entities
| |
|
13
|
| |
|
-
|
| |
|
-
|
| | |
|
3
|
| |
|
-
|
| |
|
-
|
|
Reported segment profit
| | |
555
| | | |
358
| | | |
647
| | | | |
516
| | | |
270
| | | |
240
| |
Selected items impacting comparability of segment profit (3) | |
|
40
|
| |
|
23
|
| |
|
(34
|
)
| | |
|
33
|
| |
|
14
|
| |
|
37
|
|
Segment profit excluding selected items impacting comparability
| |
$
|
595
|
| |
$
|
381
|
| |
$
|
613
|
| | |
$
|
549
|
| |
$
|
284
|
| |
$
|
277
|
|
| | | | | | | | | | | | |
|
Maintenance capital
| |
$
|
86
|
| |
$
|
22
|
| |
$
|
12
|
| | |
$
|
67
|
| |
$
|
17
|
| |
$
|
9
|
|
| | | | | | | | | | | | |
|
(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. Includes
acquisition-related expenses for the 2011 periods.
|
(3) Certain of our non-GAAP financial measures may not be impacted
by each of the selected items impacting comparability.
|
Adjusted segment profit for the Transportation segment for the fourth
quarter and full year 2011 increased by approximately 16% and 8%,
respectively, over comparable 2010 results. Increases for both periods
were primarily driven by higher pipeline tariffs and volumes, partially
offset by higher operating expenses. Full-year 2011 results include a
$31 million negative impact associated with the Rainbow pipeline
incident that occurred during the second quarter.
Adjusted segment profit for the Facilities segment for the fourth
quarter and full year 2011 increased by approximately 43% and 34%,
respectively, over comparable 2010 results primarily due to the Southern
Pines gas storage facility acquisition (closed in February 2011) and
capacity increases from organic growth capital projects.
Adjusted segment profit for the Supply and Logistics segment for the
fourth quarter and full year 2011 increased by approximately 83% and
121%, respectively, over comparable 2010 results primarily due to
increased crude oil lease gathering volumes and margins related to high
levels of drilling activity in areas that we service, the acquisition of
Nexen's Bakken crude oil business (closed in December 2010) and
favorable crude oil market conditions.
The Partnership's basic weighted average units outstanding for the
fourth quarter 2011 totaled 152 million (154 million diluted) as
compared to 138 million (139 million diluted) in last year's fourth
quarter. On December 31, 2011, the Partnership had approximately 155.4
million units outstanding, long-term debt of approximately $4.5 billion
and a long-term debt-to-total capitalization ratio of 43%.
The Partnership has declared a quarterly distribution of $1.025 per unit
($4.10 per unit on an annualized basis) payable February 14, 2012, on
its outstanding limited partner units. This distribution represents an
increase of approximately 7.0% over the quarterly distribution paid in
February 2011 and an increase of approximately 3.0% over the quarterly
distribution paid in November 2011.
The Partnership will hold a conference call at 11:00 AM (Eastern) on
February 9, 2012 (see details below). Prior to this 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 first quarter and full year 2012. A copy of the
Form 8-K will be available on the Partnership's website at www.paalp.com.
Non-GAAP Financial Measures
To supplement our financial information presented in accordance with
GAAP, management uses additional measures that are known as "non-GAAP
financial measures" in its evaluation of past performance and prospects
for the future. These measures include 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
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." These additional financial measures are reconciled from
the most directly comparable measures as reported in accordance with
GAAP, and should be viewed in addition to, and not in lieu of, our
consolidated financial statements and footnotes.
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. A full analysis of 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.
Conference Call
The Partnership will host a conference call at 11:00 AM (Eastern) on
Thursday, February 9, 2012 to discuss the following items:
1. The Partnership's fourth-quarter and full-year 2011 performance;
2. The status of major expansion projects;
3. Capitalization and liquidity;
4. Financial and operating guidance for the first quarter and full year
2012; and
5. The Partnership's outlook for the future.
Webcast Instructions
To access the Internet webcast, please go to the Partnership's 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 Partnership's website.
Alternatively, you may access the live conference call by dialing toll
free 800-230-1085. International callers should dial 612-288-0340. 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 PAA's 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 232108. The replay will be available beginning Thursday,
February 9, 2012, at approximately 1:00 PM (Eastern) and continue until
11:59 PM (Eastern) Thursday, March 9, 2012.
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 consummate and integrate the BP NGL acquisition; 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 effectiveness of our
risk management activities; 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; 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 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; the impact of current and future laws,
rulings, governmental regulations, accounting standards and statements
and related interpretations; the effects of competition; interruptions
in service 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; factors affecting demand for natural gas and
natural gas storage services and rates; future developments and
circumstances at the time distributions are declared; 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,
refined products and liquefied petroleum gas and other natural gas
related petroleum products discussed in the Partnership's filings with
the Securities and Exchange Commission.
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. Through its general
partner interest and majority equity ownership position in PAA Natural
Gas Storage, L.P. (NYSE:PNG), PAA also develops and operates natural gas
storage facilities. PAA is headquartered in Houston, Texas.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
|
| |
| |
| |
| |
CONSOLIDATED STATEMENTS OF OPERATIONS | | | | | | | | |
(in millions, except per unit data)
| | | | | | | | |
| | | | | | | |
|
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2011 | | 2010 | | 2011 | | 2010 |
| | | | | | | |
|
REVENUES | |
$
|
8,884
| | |
$
|
7,231
| | |
$
|
34,275
| | |
$
|
25,893
| |
| | | | | | | |
|
COSTS AND EXPENSES | | | | | | | | |
Purchases and related costs
| | |
8,141
| | | |
6,688
| | | |
31,564
| | | |
23,921
| |
Field operating costs
| | |
232
| | | |
179
| | | |
870
| | | |
689
| |
General and administrative expenses
| | |
94
| | | |
87
| | | |
294
| | | |
260
| |
Depreciation and amortization
| |
|
58
|
| |
|
64
|
| |
|
249
|
| |
|
256
|
|
Total costs and expenses
| |
|
8,525
|
| |
|
7,018
|
| |
|
32,977
|
| |
|
25,126
|
|
| | | | | | | |
|
OPERATING INCOME | | |
359
| | | |
213
| | | |
1,298
| | | |
767
| |
| | | | | | | |
|
OTHER INCOME/(EXPENSE) | | | | | | | | |
Equity earnings in unconsolidated entities
| | |
4
| | | |
-
| | | |
13
| | | |
3
| |
Interest expense
| | |
(63
|
)
| | |
(64
|
)
| | |
(253
|
)
| | |
(248
|
)
|
Other income/(expense), net
| |
|
5
|
| |
|
-
|
| |
|
(19
|
)
| |
|
(9
|
)
|
| | | | | | | |
|
INCOME BEFORE TAX | | |
305
| | | |
149
| | | |
1,039
| | | |
513
| |
Current income tax benefit/(expense)
| | |
(13
|
)
| | |
1
| | | |
(38
|
)
| | |
1
| |
Deferred income tax expense
| |
|
(4
|
)
| |
|
(4
|
)
| |
|
(7
|
)
| |
|
-
|
|
| | | | | | | |
|
NET INCOME | | |
288
| | | |
146
| | | |
994
| | | |
514
| |
Less: Net income attributable to noncontrolling interests
| |
|
(10
|
)
| |
|
(4
|
)
| |
|
(28
|
)
| |
|
(9
|
)
|
NET INCOME ATTRIBUTABLE TO PLAINS | |
$
|
278
|
| |
$
|
142
|
| |
$
|
966
|
| |
$
|
505
|
|
| | | | | | | |
|
NET INCOME ATTRIBUTABLE TO PLAINS: | | | | | | | | |
LIMITED PARTNERS | |
$
|
210
|
| |
$
|
94
|
| |
$
|
730
|
| |
$
|
330
|
|
GENERAL PARTNER | |
$
|
68
|
| |
$
|
48
|
| |
$
|
236
|
| |
$
|
175
|
|
| | | | | | | |
|
BASIC NET INCOME PER LIMITED PARTNER UNIT | |
$
|
1.38
|
| |
$
|
0.68
|
| |
$
|
4.91
|
| |
$
|
2.41
|
|
| | | | | | | |
|
DILUTED NET INCOME PER LIMITED PARTNER UNIT | |
$
|
1.37
|
| |
$
|
0.67
|
| |
$
|
4.88
|
| |
$
|
2.40
|
|
| | | | | | | |
|
BASIC WEIGHTED AVERAGE UNITS OUTSTANDING | |
|
152
|
| |
|
138
|
| |
|
149
|
| |
|
137
|
|
| | | | | | | |
|
DILUTED WEIGHTED AVERAGE UNITS OUTSTANDING | |
|
154
|
| |
|
139
|
| |
|
150
|
| |
|
138
|
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
|
| |
| |
| |
| |
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
OPERATING DATA(1) | | 2011 | | 2010 | | 2011 | | 2010 |
| | | | | | | |
|
Transportation activities (Average Daily Volumes in thousands of
barrels): | | | | | | | | |
Tariff activities
| | | | | | | | |
All American
| |
34
| |
38
| |
35
| |
39
|
Basin
| |
463
| |
386
| |
440
| |
378
|
Capline
| |
145
| |
227
| |
160
| |
223
|
Line 63/Line 2000
| |
113
| |
104
| |
114
| |
109
|
Salt Lake City Area Systems (2) | |
132
| |
132
| |
137
| |
135
|
Permian Basin Area Systems (2) | |
412
| |
348
| |
404
| |
371
|
Mid-Continent Area Systems (2) | |
201
| |
219
| |
213
| |
214
|
Manito
| |
67
| |
66
| |
66
| |
61
|
Rainbow
| |
144
| |
182
| |
135
| |
187
|
Rangeland
| |
63
| |
52
| |
59
| |
52
|
Refined products
| |
110
| |
115
| |
102
| |
116
|
Other
| |
1,118
| |
1,021
| |
1,077
| |
1,004
|
Tariff activities total
| |
3,002
| |
2,890
| |
2,942
| |
2,889
|
Trucking
| |
109
| |
105
| |
105
| |
97
|
Transportation activities total
| |
3,111
| |
2,995
| |
3,047
| |
2,986
|
| | | | | | | |
|
Facilities activities (Average Monthly Volumes): | | | | | | | | |
Crude oil, refined products and LPG storage (average monthly
capacity in millions of barrels)
| |
73
| |
63
| |
70
| |
61
|
Natural gas storage (average monthly capacity in billions of cubic
feet)
| |
76
| |
50
| |
71
| |
47
|
LPG processing (average throughput in thousands of barrels per day)
| |
14
| |
12
| |
14
| |
14
|
Facilities activities total (average monthly capacity in millions of
barrels) (3) | |
86
| |
72
| |
82
| |
70
|
| | | | | | | |
|
Supply & Logistics activities (Average Daily Volumes in thousands
of barrels): | | | | | | | | |
Crude oil lease gathering purchases
| |
776
| |
636
| |
742
| |
620
|
LPG sales
| |
118
| |
123
| |
103
| |
96
|
Waterborne cargos
| |
-
| |
37
| |
21
| |
68
|
Supply & Logistics activities total
| |
894
| |
796
| |
866
| |
784
|
| | | | | | | |
|
(1) Volumes associated with acquisitions represent total volumes for
the number of days or months (dependent on the calculation) we
actually owned the assets divided by the number of days or months in
the period.
|
(2) The aggregate of multiple systems in the respective areas.
|
(3) Facilities total is calculated as the sum of: (i) crude oil,
refined products and LPG storage capacity; (ii) natural gas 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 (iii) LPG processing 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)
|
| |
| |
CONDENSED CONSOLIDATED BALANCE SHEET DATA | | | |
(in millions)
| | | |
| December 31, | | December 31, |
| 2011 | | 2010 |
ASSETS | | | |
Current assets
|
$
|
4,351
| |
$
|
4,381
|
Property and equipment, net
| |
7,740
| | |
6,691
|
Goodwill
| |
1,854
| | |
1,376
|
Linefill and base gas
| |
564
| | |
519
|
Long-term inventory
| |
135
| | |
154
|
Investments in unconsolidated entities
| |
191
| | |
200
|
Other, net
|
|
546
| |
|
382
|
Total assets
|
$
|
15,381
| |
$
|
13,703
|
| | |
|
LIABILITIES AND PARTNERS' CAPITAL | | | |
Current liabilities
|
$
|
4,511
| |
$
|
4,215
|
Senior notes, net of unamortized discount
| |
4,262
| | |
4,363
|
Long-term debt under credit facilities and other
| |
258
| | |
268
|
Other long-term liabilities and deferred credits
|
|
376
| |
|
284
|
Total liabilities
| |
9,407
| | |
9,130
|
| | |
|
Partners' capital excluding noncontrolling interests
| |
5,446
| | |
4,342
|
Noncontrolling interests
|
|
528
| |
|
231
|
Total partners' capital
|
|
5,974
| |
|
4,573
|
Total liabilities and partners' capital
|
$
|
15,381
| |
$
|
13,703
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
|
| |
| |
| |
CREDIT RATIOS | | | | | | |
(in millions)
| | | | | | |
| | December 31, | | | | |
| | 2011(1) | | | | |
Short-term debt
| |
$
|
679
| | | | | |
Long-term debt
| |
|
4,520
|
| | | | |
Total debt
| |
$
|
5,199
|
| | | | |
| | | | | |
|
Long-term debt
| | |
4,520
| | | | | |
Partners' capital
| |
|
5,974
|
| | | | |
Total book capitalization
| |
$
|
10,494
|
| | | | |
Total book capitalization, including short-term debt
| |
$
|
11,173
|
| | | | |
| | | | | |
|
Long-term debt-to-total book capitalization
| | |
43
|
%
| | | | |
Total debt-to-total book capitalization, including short-term debt
| | |
47
|
%
| | | | |
| | | | | |
|
| | | | | |
|
| | | | | | December 31, |
| | December 31, | | | | 2010 |
| | 2010 | | Adjustment (1) |
| Adjusted |
Short-term debt
| |
$
|
1,326
| | |
$
|
466
| | |
$
|
1,792
| |
Long-term debt
| |
|
4,631
|
| |
|
(466
|
)
| |
|
4,165
|
|
Total debt
| |
$
|
5,957
|
| |
$
|
-
|
| |
$
|
5,957
|
|
| | | | | |
|
Long-term debt
| | |
4,631
| | | |
(466
|
)
| | |
4,165
| |
Partners' capital
| |
|
4,573
|
| |
|
-
|
| |
|
4,573
|
|
Total book capitalization
| |
$
|
9,204
|
| |
$
|
(466
|
)
| |
$
|
8,738
|
|
Total book capitalization, including short-term debt
| |
$
|
10,530
|
| |
$
|
-
|
| |
$
|
10,530
|
|
| | | | | |
|
Long-term debt-to-total book capitalization
| | |
50
|
%
| | | | |
48
|
%
|
Total debt-to-total book capitalization, including short-term debt
| | |
57
|
%
| | | | |
57
|
%
|
______________________________
| | | | | | |
(1) Our $500 million, 4.25% senior notes will mature in September
2012 and thus are classified as short-term debt at December 31,
2011. These notes were issued in July 2009 and the proceeds are
being used to supplement capital available from our hedged inventory
facility. The December 31, 2010 adjustment represents the portion of
these senior notes that had been used to fund hedged inventory and
would have been classified as short-term debt if funded on our
credit facilities.
|
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, |
| | 2011 | | 2010 | | 2011 | | 2010 |
Numerator for basic and diluted earnings per limited partner unit:
| | | | | | | | |
Net Income Attributable to Plains
| |
$
|
278
| | |
$
|
142
| | |
$
|
966
| | |
$
|
505
| |
Less: General partner's incentive distribution (1) | | |
(63
|
)
| | |
(46
|
)
| | |
(221
|
)
| | |
(168
|
)
|
Less: General partner 2% ownership
| |
|
(5
|
)
| |
|
(2
|
)
| |
|
(15
|
)
| |
|
(7
|
)
|
Net income available to limited partners in accordance with
application of the two-class method for MLPs
| |
$
|
210
|
| |
$
|
94
|
| |
$
|
730
|
| |
$
|
330
|
|
| | | | | | | |
|
Denominator:
| | | | | | | | |
Basic weighted average number of limited partner units outstanding
| | |
152
| | | |
138
| | | |
149
| | | |
137
| |
Effect of dilutive securities:
| | | | | | | | |
Weighted average LTIP units
| |
|
2
|
| |
|
1
|
| |
|
1
|
| |
|
1
|
|
Diluted weighted average number of limited partner units outstanding
| |
|
154
|
| |
|
139
|
| |
|
150
|
| |
|
138
|
|
| | | | | | | |
|
Basic net income per limited partner unit
| |
$
|
1.38
|
| |
$
|
0.68
|
| |
$
|
4.91
|
| |
$
|
2.41
|
|
| | | | | | | |
|
Diluted net income per limited partner unit
| |
$
|
1.37
|
| |
$
|
0.67
|
| |
$
|
4.88
|
| |
$
|
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 and limited
partners in accordance with the contractual terms of the
partnership agreement.
|
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, |
| | 2011 | | 2010 | | 2011 | | 2010 |
Net income to earnings before interest, taxes, depreciation and
amortization ("EBITDA") and excluding selected items impacting
comparability ("Adjusted EBITDA") reconciliations
| | |
Net Income
| |
$
|
288
| | |
$
|
146
| | |
$
| |
994
| | |
$
|
514
| |
Add: Interest expense
| | |
63
| | | |
64
| | | | |
253
| | | |
248
| |
Add: Income tax (benefit)/expense
| | |
17
| | | |
3
| | | | |
45
| | | |
(1
|
)
|
Add: Depreciation and amortization
| |
|
58
|
| |
|
64
|
| |
|
|
249
|
| |
|
256
|
|
EBITDA
| | |
426
| | | |
277
| | | | |
1,541
| | | |
1,017
| |
Selected items impacting comparability of EBITDA
| |
|
45
|
| |
|
45
|
| |
|
|
57
|
| |
|
89
|
|
Adjusted EBITDA
| |
$
|
471
|
| |
$
|
322
|
| |
$
|
|
1,598
|
| |
$
|
1,106
|
|
| | | | | | | |
|
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2011 | | 2010 | | 2011 | | 2010 |
Adjusted EBITDA to Implied Distributable Cash Flow ("DCF") | | | | | | | | |
Adjusted EBITDA
| |
$
|
471
| | |
$
|
322
| | |
$
| |
1,598
| | |
$
|
1,106
| |
Interest expense
| | |
(63
|
)
| | |
(64
|
)
| | | |
(253
|
)
| | |
(248
|
)
|
Maintenance capital
| | |
(43
|
)
| | |
(30
|
)
| | | |
(120
|
)
| | |
(93
|
)
|
Current income tax benefit/(expense)
| | |
(13
|
)
| | |
1
| | | | |
(38
|
)
| | |
1
| |
Equity earnings in unconsolidated entities, net of distributions
| | |
3
| | | |
5
| | | | |
10
| | | |
6
| |
Distributions to noncontrolling interests (1) | | |
(12
|
)
| | |
(5
|
)
| | | |
(47
|
)
| | |
(15
|
)
|
Other
| |
|
-
|
| |
|
-
|
| |
|
|
(1
|
)
| |
|
-
|
|
Implied DCF
| |
$
|
343
|
| |
$
|
229
|
| |
$
|
|
1,149
|
| |
$
|
757
|
|
| | | | | | | |
|
(1) Includes distributions that pertain to the current quarter's net
income and are to be paid in the subsequent quarter.
|
| | | | | | | |
|
| | Three Months Ended | | Twelve Months Ended |
| | December 31, | | December 31, |
| | 2011 | | 2010 | | 2011 | | 2010 |
Cash flow from operating activities reconciliation | | | | | | | | |
EBITDA
| |
$
|
426
| | |
$
|
277
| | |
$
| |
1,541
| | |
$
|
1,017
| |
Current income tax benefit/(expense)
| | |
(13
|
)
| | |
1
| | | | |
(38
|
)
| | |
1
| |
Interest expense
| | |
(63
|
)
| | |
(64
|
)
| | | |
(253
|
)
| | |
(248
|
)
|
Net change in assets and liabilities, net of acquisitions
| | |
201
| | | |
(467
|
)
| | | |
1,005
| | | |
(609
|
)
|
Other items to reconcile to cash flows from operating activities:
| | | | | | | | |
Equity compensation expense
| |
|
54
|
| |
|
48
|
| |
|
|
110
|
| |
|
98
|
|
Net cash provided by/(used in) operating activities
| |
$
|
605
|
| |
$
|
(205
|
)
| |
|
$
|
2,365
|
| |
$
|
259
|
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES |
FINANCIAL SUMMARY (unaudited)
|
| |
| |
| |
| |
FINANCIAL DATA RECONCILIATIONS | | | | | | | |
(in millions, except per unit data) (continued)
| | | | | | | |
| Three Months Ended | | Twelve Months Ended |
| December 31, | | December 31, |
| 2011 | | 2010 | | 2011 | | 2010 |
Net income and earnings per limited partner unit excluding
selected items impacting comparability | | | | | | | |
| | | | | | |
|
Net Income Attributable to Plains
|
$
|
278
| |
$
|
142
| |
$
|
966
| |
$
|
505
|
Selected items impacting comparability of net income attributable to
Plains
|
|
44
| |
|
45
| |
|
55
| |
|
89
|
Adjusted Net Income Attributable to Plains
|
$
|
322
| |
$
|
187
| |
$
|
1,021
| |
$
|
594
|
| | | | | | |
|
Net income available to limited partners in accordance with
application of the two-class method for MLPs
|
$
|
210
| |
$
|
94
| |
$
|
730
| |
$
|
330
|
Limited partners' 98% of selected items impacting comparability
|
|
43
| |
|
44
| |
|
54
| |
|
87
|
Adjusted limited partners' net income
|
$
|
253
| |
$
|
138
| |
$
|
784
| |
$
|
417
|
| | | | | | |
|
Adjusted basic net income per limited partner unit
|
$
|
1.66
| |
$
|
0.99
| |
$
|
5.28
| |
$
|
3.05
|
| | | | | | |
|
Adjusted diluted net income per limited partner unit
|
$
|
1.65
| |
$
|
0.99
| |
$
|
5.24
| |
$
|
3.03
|
| | | | | | |
|
Basic weighted average units outstanding
|
|
152
| |
|
138
| |
|
149
| |
|
137
|
| | | | | | |
|
Diluted weighted average units outstanding
|
|
154
| |
|
139
| |
|
150
| |
|
138
|
Plains All American Pipeline, L.P.
Roy I. Lamoreaux,
Director, Investor Relations, 713-646-4222 or 800-564-3036
or
Al
Swanson, Executive Vice President, CFO, 800-564-3036