Plains All American Pipeline, L.P. Comments on Second-Quarter Results
June 04 2014 - 5:23PM
Business Wire
Plains All American Pipeline, L.P. (NYSE: PAA) today announced
that it expects adjusted earnings before interest, taxes,
depreciation and amortization ("EBITDA") for the second quarter of
2014 to exceed the mid-point of its quarterly guidance by
approximately 8 to 10%. This expected level of performance is
driven by continued strong fundamentals and favorable market
conditions.
On May 7, 2014, PAA furnished a Form 8-K providing midpoint
adjusted EBITDA guidance of $455 million for the second quarter of
2014 based on a guidance range of $430 million to $480 million. The
Partnership's updated outlook does not incorporate potential
adjustments associated with equity compensation expense due to
variations in PAA's unit price or the Partnership’s outlook for
future distribution levels.
Plains All American Pipeline, L.P. is a publicly traded master
limited partnership that owns and operates midstream energy
infrastructure and provides logistics services for crude oil,
natural gas liquids ("NGL"), 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.
Non-GAAP Financial Measures and Selected Items Impacting
Comparability
EBITDA and adjusted EBITDA are non-GAAP financial measures that
are most directly comparable to GAAP measures of net income and
cash flow from operating activities. We do not, however, reconcile
cash flows from operating activities to EBITDA or adjusted EBITDA
because such reconciliations are impractical for a forecasted
period. Adjusted EBITDA excludes selected items impacting
comparability, which are items that management believes should be
excluded in understanding the partnership’s core operating
performance. The Partnership's Form 8-K furnished on May 7, 2014
presents a calculation of EBITDA and adjusted EBITDA, a
reconciliation of these non-GAAP measures to the most directly
comparable GAAP measures and further discussion regarding why
management believes that the presentation of such financial
measures provides useful information to investors regarding
performance. A copy of the May 7th Form 8-K is available on the
Partnership's website (www.plainsallamerican.com) under "Investor
Relations – Guidance & Non-GAAP Reconciliations," or "Investor
Relations – SEC Filings." In addition, the Partnership maintains a
reconciliation of all non-GAAP financial information, such as
EBITDA and adjusted EBITDA, to the most comparable GAAP measures
under "Investor Relations – Guidance & Non-GAAP
Reconciliations" section of its website.
Forward Looking Statements
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; 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; 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; weather interference with business
operations or project construction, including the impact of extreme
weather events or conditions; the effectiveness of our risk
management activities; 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; risks related to the
development and operation of our facilities, including our ability
to satisfy our contractual obligations to our customers at 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 PAA’s filings with
the Securities and Exchange Commission.
Plains All American Pipeline, L.P.Ryan Smith, (866)
809-1291Director, Investor Relations
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