Plains All American Pipeline Increases Distribution on Limited Partner Units; Plains GP Holdings Declares First Distribution
January 09 2014 - 7:00AM
Business Wire
Plains’ 2014 Growth Expectations
Plains All American Pipeline, L.P. (NYSE: PAA) and Plains GP
Holdings (NYSE: PAGP) today announced their quarterly cash
distributions. The distributions will be payable on February 14,
2014 to holders of record of each security at the close of business
on January 31, 2014.
PAA increased its quarterly cash distribution to $0.6150 per
unit ($2.46 per unit on an annualized basis) on all of its
outstanding limited partner units. This distribution represents an
increase of 9.3% over the quarterly distribution of $0.5625 per
unit ($2.25 per unit on an annualized basis) paid in February 2013
and an increase of approximately 2.5% over the quarterly
distribution of $0.6000 per unit ($2.40 per unit on an annualized
basis) paid in November 2013. As of this distribution, PAA will
have increased its quarterly distribution to limited partners in 37
out of the past 39 quarters and consecutively in each of the past
18 quarters. Based on a continuation of solid baseline financial
performance, strong distribution coverage and expected
contributions to cash flow from our organic capital program, PAA is
targeting to increase its quarterly distribution per unit payable
in November 2014 by 10% over the distribution per unit paid in
November 2013.
PAGP announced a quarterly cash distribution of $0.12505 per
Class A share, which is prorated for the partial quarter following
the closing of its initial public offering (“IPO”) on October 21,
2013. This distribution corresponds to a full-quarter, non-prorated
cash distribution of $0.15979 per Class A share ($0.63914 per Class
A share on an annualized basis), reflecting a 7.2% increase over
the initial quarterly distribution rate of $0.14904 per Class A
share included in PAGP’s IPO prospectus. Based on PAA’s 2014
distribution growth target and PAA’s current units outstanding,
PAGP estimates that its November 2014 quarterly distribution would
increase by approximately 25% relative to the initial distribution
rate included in PAGP’s IPO prospectus.
Plains All American Pipeline, L.P. is a publicly traded master
limited partnership that provides midstream energy infrastructure
and 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 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 midstream
energy infrastructure and logistics providers in North America.
PAGP is headquartered in Houston, Texas.
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); 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 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 effectiveness of our risk management
activities; environmental liabilities or events that are not
covered by an indemnity, insurance or existing reserves; 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; 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
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; 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 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 Partnership's filings with the
Securities and Exchange Commission.
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Plains All American Pipeline, L.P.Roy I. Lamoreaux,
866-809-1291Director, Investor Relations
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