Plains All American Pipeline, L.P. (NYSE: PAA) and Plains GP
Holdings (NYSE: PAGP) today reported third-quarter 2017
results.
Plains All American Pipeline,
L.P.
Summary Financial
Information (unaudited)
(in millions, except per unit data)
Three Months Ended Nine Months Ended
September 30, % September 30, % GAAP
Results 2017 2016 Change
2017 2016 Change Net income
attributable to PAA $ 33 $ 297 (89 )% $ 665 $ 599 11 % Diluted net
income/(loss) per common unit $ (0.01 ) $ 0.40 (103 )% $ 0.76 $
0.27 181 % Diluted weighted average common units outstanding 725
402 80 % 715 400 79
%
Distribution per common unit declared for the period $ 0.30
$ 0.55 (45 )%
Three Months Ended Nine
Months Ended September 30, % September 30,
% Non-GAAP Results (1) 2017 2016
Change 2017 2016 Change Adjusted net
income attributable to PAA $ 195 $ 293 (33 )% $ 609 $ 783 (22
)%
Diluted adjusted net income per common unit $ 0.21 $ 0.39 (46 )% $
0.69 $ 0.72 (4 )% Adjusted EBITDA (2) $ 489 $ 463 6
%
$ 1,452 $ 1,569 (7 )% (1)
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 PAA 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 measures as reported in accordance with GAAP.
(2)
Prior period amounts have been recast to
conform to certain changes made in the fourth quarter of 2016.
“PAA reported third-quarter results that were slightly above
guidance,” stated Greg L. Armstrong, Chairman and CEO of Plains All
American Pipeline. “We are on track to execute our leverage
reduction plan, on-time and on-budget with our capital program and
making progress on a number of additional commercial initiatives.
Additionally, due to significant preparation, coordination and
execution by our employees, the recent hurricanes had minimal
impact on our operations and financial results and we were able to
service our customers without interruption. I want to publicly
thank our employees and vendors for their commitment and hard work
in that regard and also for the actions they took to help one
another and our communities in the recovery efforts.”
Segment adjusted EBITDA for the third quarter and first nine
months of 2017 and 2016 is presented below:
Summary of
Selected Financial Data by Segment (1)
(unaudited)
(in millions)
Three Months EndedSeptember 30,
2017
Three Months EndedSeptember 30, 2016
Transportation Facilities
Supply andLogistics
Transportation Facilities
Supply andLogistics
Segment adjusted EBITDA $ 363 $ 182 $
(56
)
$ 308 $ 171 $ (17 )
Percentage change in segment adjusted
EBITDA versus 2016 period
18 % 6 %
**
Nine Months EndedSeptember 30, 2017 Nine
Months EndedSeptember 30, 2016 Transportation
Facilities
Supply andLogistics
Transportation Facilities
Supply andLogistics
Segment adjusted EBITDA $ 933 $ 550 $
(32
)
$ 863 $ 497 $ 208
Percentage change in
segment adjusted EBITDA versus 2016 period 8 %
11 %
**
**
Indicates that variance as a percentage is
not meaningful.
(1) During the fourth quarter of 2016, we modified our primary
segment performance measure to segment adjusted EBITDA from segment
profit and also modified our definition of adjusted EBITDA to
exclude our proportionate share of depreciation and amortization
expense associated with equity method investments. Prior-period
segment amounts have been recast to reflect these changes.
Third-quarter 2017 Transportation segment adjusted EBITDA
increased by 18% over comparable 2016 results. This increase was
primarily driven by increased volumes on our Permian Basin systems,
in addition to contributions from our Eagle Ford JV system, which
receives Permian volumes from our Cactus pipeline.
Third-quarter 2017 Facilities segment adjusted EBITDA increased
by 6% versus comparable 2016 results. This increase was primarily
driven by higher fee-based revenues at certain of our NGL
facilities, partially offset by lower rail activity and the impact
of an asset sale completed in June 2017.
Overall negative Supply & Logistics results for both
third-quarter periods primarily relate to the seasonality of our
NGL supply business. Third-quarter 2017 Supply and Logistics
segment adjusted EBITDA decreased by $39 million relative to
comparable 2016 results due to continued competitive pressures,
margin compression, and reduced arbitrage opportunities.
The Partnership estimates an approximate $6 million
third-quarter 2017 adjusted EBITDA aggregate impact due to lower
volumes resulting from operational downtime associated with
Hurricane Harvey.
2017 Full-Year Guidance
The table below presents our full-year 2017 financial and
operating guidance:
Financial and
Operating Guidance (unaudited)
(in millions, except per barrel data)
Twelve Months Ended December 31, 2015
2016 2017 (G) + / -
Segment
Adjusted EBITDA Transportation $ 1,056 $ 1,141 $ 1,275
Facilities 588 667 725
Fee-Based
$ 1,644 $ 1,808 $ 2,000
Supply and Logistics 568 359 75 Other income/(expense), net 1
2 —
Adjusted EBITDA (1) $
2,213 $ 2,169 $
2,075 Interest expense, net (2) (417 ) (451 ) (485 )
Maintenance capital (220 ) (186 ) (240 ) Current income tax expense
(84 ) (85 ) (25 ) Other (18 ) (33 ) 5
Implied DCF
(1) $ 1,474 $ 1,414
$ 1,330 Operating Data
Transportation Average daily volumes (MBbls/d) 4,453 4,637
5,160 Segment Adjusted EBITDA per barrel $ 0.65 $ 0.67 $ 0.68
Facilities Average capacity (MMBbls/Mo) 126 129 131
Segment Adjusted EBITDA per barrel $ 0.39 $ 0.43 $ 0.46
Supply and Logistics Average daily volumes (MBbls/d) 1,168
1,160 1,205 Segment Adjusted EBITDA per barrel $ 1.33 $ 0.85 $ 0.17
Expansion Capital $ 2,170 $
1,405 $ 1,050 Fourth-Quarter
Adjusted EBITDA as Percentage of Full Year 26%
28% 30% (G) 2017 Guidance
forecasts are intended to be + / - amounts.
(1)
See the section of this release entitled “Non-GAAP Financial
Measures and Selected Items Impacting Comparability” and the
Financial Data Reconciliations table attached hereto for
information regarding non-GAAP financial measures and, for the
historical 2015 and 2016 periods, their reconciliation to the most
directly comparable measures as reported in accordance with GAAP.
We do not provide a reconciliation of non-GAAP financial measures
to the equivalent GAAP financial measures on a forward-looking
basis as it is impractical to forecast certain items that we have
defined as “Selected Items Impacting Comparability” without
unreasonable effort, due to the uncertainty and inherent difficulty
of predicting the occurrence and financial impact of and the
periods in which such items may be recognized. Thus, a
reconciliation of non-GAAP financial measures to the equivalent
GAAP financial measures could result in disclosure that could be
imprecise or potentially misleading.
(2)
Excludes certain non-cash items impacting interest expense such as
amortization of debt issuance costs and terminated interest rate
swaps.
Plains GP Holdings
PAGP owns an indirect non-economic controlling interest in PAA’s
general partner and an indirect limited partner interest in PAA. As
the control entity of PAA, PAGP consolidates PAA’s results into its
financial statements, which is reflected in the condensed
consolidating balance sheet and income statement tables included at
the end of this release. Information regarding PAGP’s distributions
is reflected below:
Q3 2017
Q2 2017 Q3 2016 Distribution per Class A share
declared for the period (1) $ 0.30 $ 0.55 $ 0.55
Q3 2017 distribution percentage change from prior
periods (45 )% (45 )% (1) A reverse
split of PAGP’s Class A shares was completed on November 15, 2016.
The effect of the reverse split has been retroactively applied to
all per-share amounts presented.
Conference Call
PAA and PAGP will hold a conference call at 9:00 a.m. CT on
Tuesday, November 7, 2017 to discuss the following items:
- PAA’s third-quarter 2017
performance;
- Financial and operating guidance for
the full year of 2017;
- Capitalization and liquidity; and
- PAA and PAGP’s outlook for the
future.
Conference Call Webcast Instructions
To access the internet webcast please go to https://event.webcasts.com/starthere.jsp?ei=1165323&tp_key=ec99532516
Alternatively, the webcast can be accessed at
www.plainsallamerican.com, under the Investor Relations section of
the website (Navigate to: Investor Relations / either PAA or PAGP /
News & Events / Quarterly Earnings). Following the live
webcast, an audio replay in MP3 format will be available on the
website within two hours after the end of the call and will be
accessible for a period of 365 days.
Non-GAAP Financial Measures and Selected Items Impacting
Comparability
To supplement our financial information presented in accordance
with GAAP, management uses additional measures known as “non-GAAP
financial measures” in its evaluation of past performance and
prospects for the future. The primary additional measures used by
management are earnings before interest, taxes, depreciation and
amortization (including our proportionate share of depreciation and
amortization and gains or losses on significant asset sales of
unconsolidated entities) and adjusted for certain selected items
impacting comparability (“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 to supplement related GAAP financial measures,
(i) provide additional information about our core operating
performance and ability to fund distributions to our unitholders
through cash generated by our operations and (ii) provide investors
with the same financial analytical framework upon which management
bases financial, operational, compensation and planning/budgeting
decisions. We also present these and additional non-GAAP financial
measures, including adjusted net income attributable to PAA and
basic and diluted adjusted net income per common unit, as they are
measurements that investors, rating agencies and debt holders have
indicated are useful in assessing us and our results of operations.
These non-GAAP measures may exclude, for example, (i) charges for
obligations that are expected to be settled with the issuance of
equity instruments, (ii) gains or losses on derivative instruments
that are related to underlying activities in another period (or the
reversal of such adjustments from a prior period), the
mark-to-market related to our Preferred Distribution Rate Reset
Option, gains and losses on derivatives that are related to
investing activities (such as the purchase of linefill) and
inventory valuation adjustments, as applicable, (iii) long-term
inventory costing adjustments, (iv) items that are not indicative
of our core operating results and business outlook and/or (v) other
items that we believe should be excluded in understanding our core
operating performance. These measures may further be adjusted to
include amounts related to deficiencies associated with minimum
volume commitments whereby we have billed the counterparties for
their deficiency obligation and such amounts are recognized as
deferred revenue in “Accounts payable and accrued liabilities” on
our Condensed Consolidated Financial Statements. Such amounts are
presented net of applicable amounts subsequently recognized into
revenue. Furthermore, the calculation of these measures
contemplates tax effects as a separate reconciling item, where
applicable. We have defined all such items as “selected items
impacting comparability.” Due to the nature of the selected items,
certain selected items impacting comparability may impact certain
non-GAAP financial measures, referred to as adjusted results, but
not impact other non-GAAP financial measures. We do not necessarily
consider all of our selected items impacting comparability to be
non-recurring, infrequent or unusual, but we believe that an
understanding of these selected items impacting comparability is
material to the evaluation of our operating results and
prospects.
Although we present selected items impacting comparability that
management considers 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,
expansion projects 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 Quarterly Report on
Form 10-Q.
Our definition and calculation of certain non-GAAP financial
measures may not be comparable to similarly-titled measures of
other companies. Adjusted EBITDA, Implied DCF and other
non-GAAP financial performance measures are reconciled to Net
Income (the most directly comparable measure as reported in
accordance with GAAP) for the historical periods presented in the
tables attached to this release, and should be viewed in addition
to, and not in lieu of, our Condensed Consolidated Financial
Statements and notes thereto. In addition, we encourage you to
visit our website at www.plainsallamerican.com (in particular the
section under “Financial Information” entitled “Non-GAAP
Reconciliations” within the Investor Relations tab), which presents
a reconciliation of our commonly used non-GAAP and supplemental
financial measures.
Forward-Looking Statements
Except for the historical information contained herein, the
matters discussed in this release consist of forward-looking
statements that involve certain risks and uncertainties that could
cause actual results or outcomes to differ materially from results
or outcomes anticipated in the forward-looking statements. These
risks and uncertainties include, among other things, declines in
the actual or expected volume of crude oil and NGL shipped,
processed, purchased, stored, fractionated and/or gathered at or
through the use of our assets, whether due to declines in
production from existing oil and gas reserves, reduced demand,
failure to develop or slowdown in the development of additional oil
and gas reserves, whether from reduced cash flow to fund drilling
or the inability to access capital, or other factors; the effects
of competition; market distortions caused by producer
over-commitments to infrastructure projects, which impacts volumes,
margins, returns and overall earnings; unanticipated changes in
crude oil and NGL market structure, grade differentials and
volatility (or lack thereof); maintenance of our credit rating and
ability to receive open credit from our suppliers and trade
counterparties; 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
(including eco-terrorist attacks) or other event, including attacks
on our electronic and computer systems; failure to implement or
capitalize, or delays in implementing or capitalizing, on expansion
projects, whether due to permitting delays, permitting withdrawals
or other factors; tightened capital markets or other factors that
increase our cost of capital or limit 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
failure to consummate, or significant delay in consummating, sales
of assets or interests as a part of our strategic divestiture
program; the currency exchange rate of the Canadian dollar;
continued creditworthiness of, and performance by, our
counterparties, including financial institutions and trading
companies with which we do business; inability to recognize current
revenue attributable to deficiency payments received from customers
who fail to ship or move more than minimum contracted volumes until
the related credits expire or are used; non-utilization of our
assets and facilities; increased costs, or lack of availability, of
insurance; weather interference with business operations or project
construction, including the impact of extreme weather events or
conditions; the availability of, and our ability to consummate,
acquisition or combination opportunities; the effectiveness of our
risk management activities; shortages or cost increases of
supplies, materials or labor; the impact of current and future
laws, rulings, governmental regulations, accounting standards and
statements, and related interpretations; 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 assets, including our ability to
satisfy our contractual obligations to our customers; 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 as discussed in the Partnerships’ filings with the
Securities and Exchange Commission.
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, NGLs,
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 5 million barrels per day of crude oil
and NGL in its Transportation segment. PAA is headquartered in
Houston, Texas. More information is available at
www.plainsallamerican.com.
Plains GP Holdings is a publicly traded entity that owns an
indirect, non-economic controlling general partner interest in PAA
and an indirect limited partner interest in PAA, one of the largest
energy infrastructure and logistics companies in North America.
PAGP is headquartered in Houston, Texas. More information is
available at www.plainsallamerican.com.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per unit data)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2017 2016
2017 2016 REVENUES $ 5,873 $ 5,170 $
18,618 $ 14,231
COSTS AND EXPENSES Purchases and
related costs 5,327 4,429 16,239 12,000 Field operating costs 283
289 876 893 General and administrative expenses 68 70 210 210
Depreciation and amortization 151 33 401 351
Total costs and expenses 5,829 4,821 17,726 13,454
OPERATING INCOME 44 349 892 777
OTHER
INCOME/(EXPENSE) Equity earnings in unconsolidated entities 80
46 201 133 Interest expense, net (134 ) (113 ) (390 ) (339 ) Other
income/(expense), net (1 ) 17 (6 ) 46
INCOME/(LOSS) BEFORE TAX (11 ) 299 697 617 Current income
tax benefit/(expense) 1 (4 ) (9 ) (45 ) Deferred income tax
benefit/(expense) 44 3 (21 ) 30
NET
INCOME 34 298 667 602 Net income attributable to noncontrolling
interests (1 ) (1 ) (2 ) (3 )
NET INCOME ATTRIBUTABLE TO PAA
$ 33 $ 297 $ 665 $ 599
NET
INCOME/(LOSS) PER COMMON UNIT: Net income/(loss) allocated to
common unitholders — Basic $ (8 ) $ 162 $ 547 $ 110 Basic weighted
average common units outstanding 725 401 714 399 Basic net
income/(loss) per common unit $ (0.01 ) $ 0.40 $ 0.77
$ 0.27 Net income/(loss) allocated to common
unitholders — Diluted $ (8 ) $ 162 $ 547 $ 110 Diluted weighted
average common units outstanding 725 402 715 400 Diluted net
income/(loss) per common unit $ (0.01 ) $ 0.40 $ 0.76
$ 0.27
NON-GAAP ADJUSTED
RESULTS
(in millions, except per unit data)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2017 2016 2017
2016 Adjusted net income attributable to PAA $ 195 $
293 $ 609 $ 783 Diluted adjusted net
income per common unit $ 0.21 $ 0.39 $ 0.69 $
0.72 Adjusted EBITDA $ 489 $ 463 $
1,452 $ 1,569
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED
CONSOLIDATED BALANCE SHEET DATA
(in millions)
September 30,2017
December 31,2016 ASSETS Current assets $ 4,015
$ 4,272 Property and equipment, net 14,269 13,872 Goodwill 2,598
2,344 Investments in unconsolidated entities 2,671 2,343 Linefill
and base gas 884 896 Long-term inventory 135 193 Other long-term
assets, net 911 290 Total assets $ 25,483 $ 24,210
LIABILITIES AND PARTNERS' CAPITAL Current liabilities
$ 4,016 $ 4,664 Senior notes, net of unamortized discounts and debt
issuance costs 9,881 9,874 Other long-term debt 608 250 Other
long-term liabilities and deferred credits 698 606 Total
liabilities $ 15,203 $ 15,394 Partners' capital excluding
noncontrolling interests 10,223 8,759 Noncontrolling interests 57
57 Total partners' capital 10,280 8,816 Total
liabilities and partners' capital $ 25,483 $ 24,210
DEBT
CAPITALIZATION RATIOS
(in millions)
September 30,2017 December
31,2016 Short-term debt (1) $ 918 $ 1,715 Long-term debt
10,489 10,124 Total debt $ 11,407 $ 11,839
Long-term debt $ 10,489 $ 10,124 Partners' capital
10,280 8,816 Total book capitalization $ 20,769
$ 18,940 Total book capitalization, including
short-term debt $ 21,687 $ 20,655 Long-term
debt-to-total book capitalization 51 % 53 % Total debt-to-total
book capitalization, including short-term debt 53 % 57 % (1)
As of September 30, 2017 and December 31,
2016, short-term debt includes borrowings of approximately $724
million and $1,303 million, respectively, for short-term hedged
inventory purchases and borrowings of approximately $194 million
and $410 million, respectively, for cash margin deposits with our
clearing brokers, which are associated with financial derivatives
used for hedging purposes.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
OPERATING
DATA (1)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2017 2016
2017 2016 Transportation segment
(average daily volumes in thousands of barrels per day): Tariff
activities volumes Crude oil pipelines (by region): Permian Basin
(2) 2,963 2,162 2,732 2,129 South Texas / Eagle Ford (2) 362 263
341 283 Western 190 194 186 193 Rocky Mountain (2) 426 475 418 448
Gulf Coast 359 423 362 538 Central (2) 424 403 419 393 Canada 351
379 359 384 Crude oil pipelines 5,075 4,299
4,817 4,368 NGL pipelines 172 185 169 182
Tariff activities total volumes 5,247 4,484 4,986 4,550 Trucking
volumes 94 118 102 113 Transportation segment
total volumes 5,341 4,602 5,088 4,663
Facilities segment (average monthly volumes): Crude oil,
refined products and NGL terminalling and storage (average monthly
capacity in millions of barrels) 112 109 112
106 Rail load / unload volumes (average volumes in thousands of
barrels per day) 30 73 38 97 Natural gas
storage (average monthly working capacity in billions of cubic
feet) 67 97 87 97 NGL fractionation (average
volumes in thousands of barrels per day) 131 119 125
113 Facilities segment total volumes (average monthly
volumes in millions of barrels) (3) 128 131 131
129
Supply and Logistics segment (average daily
volumes in thousands of barrels per day): Crude oil lease
gathering purchases 929 883 929 894 NGL sales 202 207 254 230
Waterborne cargos — 8 2 7 Supply and Logistics
segment total volumes 1,131 1,098 1,185 1,131
(1) Average volumes are calculated as
total volumes for the period (attributable to our interest) divided
by the number of days or months in the period. (2) Region includes
volumes (attributable to our interest) from pipelines owned by
unconsolidated entities. (3) Facilities segment total volumes 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
working capacity divided by 6 to account for the 6:1 mcf of natural
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.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
COMPUTATION OF
BASIC AND DILUTED NET INCOME/(LOSS) PER COMMON UNIT
(1)
(in millions, except per unit data)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2017 2016
2017 2016 Basic Net Income/(Loss)
per Common Unit Net income attributable to PAA $ 33 $ 297 $ 665
$ 599 Distributions to Series A preferred unitholders (36 ) (33 )
(105 ) (88 ) Distributions to general partner — (102 ) — (412 )
Other (5 ) — (13 ) 11 Net income/(loss) allocated to
common unitholders $ (8 ) $ 162 $ 547 $ 110
Basic weighted average common units outstanding 725 401 714
399 Basic net income/(loss) per common unit $ (0.01 ) $ 0.40
$ 0.77 $ 0.27
Diluted Net
Income/(Loss) per Common Unit Net income attributable to PAA $
33 $ 297 $ 665 $ 599 Distributions to Series A preferred
unitholders (36 ) (33 ) (105 ) (88 ) Distributions to general
partner — (102 ) — (412 ) Other (5 ) — (13 ) 11 Net
income/(loss) allocated to common unitholders $ (8 ) $ 162 $
547 $ 110 Basic weighted average common units
outstanding 725 401 714 399 Effect of dilutive securities: LTIP
units (2) — 1 1 1 Diluted weighted
average common units outstanding 725 402 715
400 Diluted net income/(loss) per common unit (3) $
(0.01 ) $ 0.40 $ 0.76 $ 0.27
(1)
We calculate net income/(loss) allocated to
common unitholders 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 (“undistributed loss”), if any,
are allocated to the general partner, common unitholders and
participating securities in accordance with the contractual terms
of our partnership agreement in effect for the period and as
further prescribed under the two-class method. The Simplification
Transactions, which closed on November 15, 2016, simplified our
governance structure and permanently eliminated our IDRs and the
economic rights associated with our 2% general partner interest. As
such, beginning with the distribution pertaining to the fourth
quarter of 2016, our general partner is no longer entitled to
receive distributions on these interests.
(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. Such LTIP awards were excluded from the calculation of
diluted net loss per common unit for the three months ended
September 30, 2017 as the effect was antidilutive.
(3)
The possible conversion of our Series A preferred units was
excluded from the calculation of diluted net income/(loss) per
common unit for the three and nine months ended September 30, 2017
and 2016 as the effect was antidilutive.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
SELECTED
FINANCIAL DATA BY SEGMENT (1)
(in millions)
Three Months EndedSeptember 30, 2017 Three
Months EndedSeptember 30, 2016 Transportation
Facilities
Supply andLogistics
Transportation Facilities
Supply andLogistics
Revenues (2) $ 446 $ 291 $ 5,574 $ 401 $ 282 $ 4,879 Purchases and
related costs (2) (29 ) (3 ) (5,729 ) (24 ) (6 ) (4,788 ) Field
operating costs (2) (3) (134 ) (88 ) (62 ) (133 ) (85 ) (70 )
Equity-indexed compensation expense - field operating costs (2 ) (1
) — (3 ) (1 ) — Segment general and administrative expenses (3) (4)
(22 ) (16 ) (23 ) (22 ) (15 ) (23 ) Equity-indexed compensation
expense - general and administrative (3 ) (2 ) (2 ) (4 ) (2 ) (4 )
Equity earnings in unconsolidated entities 80 — — 46 — —
Adjustments: (5) Depreciation and amortization of unconsolidated
entities 13 — — 13 — —
(Gains)/losses from derivative activities
net of inventory valuation adjustments
— 2 214 — 1 (53 ) Long-term inventory costing adjustments — — (16 )
— — 38 Deficiencies under minimum volume commitments, net 11 (3 ) —
30 (5 ) — Equity-indexed compensation expense 3 2 2 4 2 2 Net
(gain)/loss on foreign currency revaluation — — (14 )
— — 2 Segment adjusted EBITDA $ 363 $
182 $ (56 ) $ 308 $ 171 $ (17 )
Maintenance capital $ 32 $ 28 $ 3 $ 29
$ 15 $ 3 (1) During the
fourth quarter of 2016, we modified our primary segment performance
measure to segment adjusted EBITDA from segment profit. Segment
adjusted EBITDA forms the basis of our internal financial reporting
and is the primary measure used by our Chief Operating Decision
Maker (“CODM”) in assessing performance and allocating resources
among our operating segments. Prior period segment amounts have
been recast to reflect this change. (2) Includes intersegment
amounts. (3) Field operating costs and Segment general and
administrative expenses exclude equity-indexed compensation
expense, which is presented separately in the table above. (4)
Segment general and administrative expenses 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. (5) Represents adjustments utilized
by our CODM in the evaluation of segment results. Many of these
adjustments are also considered selected items impacting
comparability when calculating consolidated non-GAAP financial
measures such as Adjusted EBITDA. See the “Selected Items Impacting
Comparability” table for additional discussion.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
SELECTED
FINANCIAL DATA BY SEGMENT (1)
(in millions)
Nine Months EndedSeptember 30, 2017 Nine
Months EndedSeptember 30, 2016 Transportation
Facilities
Supply andLogistics
Transportation Facilities
Supply andLogistics
Revenues (2) $ 1,260 $ 873 $ 17,757 $ 1,188 $ 817 $ 13,353
Purchases and related costs (2) (74 ) (19 ) (17,407 ) (69 ) (17 )
(13,031 ) Field operating costs (2) (3) (427 ) (256 ) (193 ) (406 )
(258 ) (226 ) Equity-indexed compensation expense - field operating
costs (9 ) (2 ) — (9 ) (3 ) (1 ) Segment general and administrative
expenses (3) (4) (70 ) (50 ) (68 ) (67 ) (44 ) (72 ) Equity-indexed
compensation expense - general and administrative (8 ) (5 ) (9 )
(10 ) (7 ) (10 ) Equity earnings in unconsolidated entities 201 — —
133 — — Adjustments: (5) Depreciation and amortization of
unconsolidated entities 31 — — 38 — — (Gains)/losses from
derivative activities net of inventory valuation adjustments — 3
(89 ) — — 189 Long-term inventory costing adjustments — — (2 ) — —
(6 ) Deficiencies under minimum volume commitments, net 2 3 — 54 5
— Equity-indexed compensation expense 9 3 6 11 5 7 Net (gain)/loss
on foreign currency revaluation — — (27 ) — (1 ) 5 Line 901
incident 12 — — — — — Significant acquisition-related expenses 6
— — — — — Segment
adjusted EBITDA $ 933 $ 550 $ (32 ) $ 863 $
497 $ 208 Maintenance capital $ 89 $ 94
$ 11 $ 86 $ 32 $ 10 (1)
During the fourth quarter of 2016, we modified
our primary segment performance measure to segment adjusted EBITDA
from segment profit. Segment adjusted EBITDA forms the basis of our
internal financial reporting and is the primary measure used by our
CODM in assessing performance and allocating resources among our
operating segments. Prior period segment amounts have been recast
to reflect this change. (2) Includes intersegment amounts. (3)
Field operating costs and Segment general and administrative
expenses exclude equity-indexed compensation expense, which is
presented separately in the table above. (4) Segment general and
administrative expenses 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. (5) Represents adjustments utilized by our CODM in the
evaluation of segment results. Many of these adjustments are also
considered selected items impacting comparability when calculating
consolidated non-GAAP financial measures such as Adjusted EBITDA.
See the “Selected Items Impacting Comparability” table for
additional discussion.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
SELECTED ITEMS
IMPACTING COMPARABILITY
(in millions, except per unit data)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2017 2016
2017 2016 Selected Items Impacting
Comparability: (1) Gains/(losses) from derivative
activities net of inventory valuation adjustments (2) $ (214 ) $ 69
$ 86 $ (147 ) Long-term inventory costing adjustments (3) 16 (38 )
2 6 Deficiencies under minimum volume commitments, net (4) (8 ) (25
) (5 ) (59 ) Equity-indexed compensation expense (5) (7 ) (8 ) (18
) (23 ) Net gain/(loss) on foreign currency revaluation (6) 11 (3 )
20 (1 ) Line 901 incident (7) — — (12 ) — Significant
acquisition-related expenses (8) — — (6 ) —
Selected items impacting comparability - Adjusted EBITDA $ (202 ) $
(5 ) $ 67 $ (224 ) Losses from derivative activities (2) (8 ) — (10
) — Tax effect on selected items impacting comparability 48
9 (1 ) 40 Selected items impacting comparability -
Adjusted net income attributable to PAA $ (162 ) $ 4 $ 56
$ (184 )
(1)
Certain of our non-GAAP financial measures may
not be impacted by each of the selected items impacting
comparability.
(2)
We use derivative instruments for risk management purposes and our
related processes include specific identification of hedging
instruments to an underlying hedged transaction. Although we
identify an underlying transaction for each derivative instrument
we enter into, there may not be an accounting hedge relationship
between the instrument and the underlying transaction. In the
course of evaluating our results of operations, we identify the
earnings that were recognized during the period related to
derivative instruments for which the identified underlying
transaction does not occur in the current period and exclude the
related gains and losses in determining adjusted results. In
addition, we exclude gains and losses on derivatives that are
related to investing activities, such as the purchase of linefill.
We also exclude the impact of corresponding inventory valuation
adjustments, as applicable, as well as the mark-to-market
adjustment related to our Preferred Distribution Rate Reset Option.
(3)
We carry crude oil and NGL inventory comprised of minimum working
inventory requirements in third-party assets and other working
inventory that is needed for our commercial operations. We consider
this inventory necessary to conduct our operations and we intend to
carry this inventory for the foreseeable future. Therefore, we
classify this inventory as long-term on our balance sheet and do
not hedge the inventory with derivative instruments (similar to
linefill in our own assets). We treat the impact of changes in the
average cost of the long-term inventory (that result from
fluctuations in market prices) and writedowns of such inventory
that result from price declines as a selected item impacting
comparability.
(4)
We have certain agreements that require counterparties to deliver,
transport or throughput a minimum volume over an agreed upon
period. Substantially all of such agreements were entered into with
counterparties to economically support the return on our capital
expenditure necessary to construct the related asset. Some of these
agreements include make-up rights if the minimum volume is not met.
We record a receivable from the counterparty in the period that
services are provided or when the transaction occurs, including
amounts for deficiency obligations from counterparties associated
with minimum volume commitments. If a counterparty has a make-up
right associated with a deficiency, we defer the revenue
attributable to the counterparty’s make-up right and subsequently
recognize the revenue at the earlier of when the deficiency volume
is delivered or shipped, when the make-up right expires or when it
is determined that the counterparty’s ability to utilize the
make-up right is remote. We include the impact of amounts billed to
counterparties for their deficiency obligation, net of applicable
amounts subsequently recognized into revenue, as a selected item
impacting comparability. We believe the inclusion of the
contractually committed revenues associated with that period is
meaningful to investors as the related asset has been constructed,
is standing ready to provide the committed service and the fixed
operating costs are included in the current period results.
(5)
Our total equity-indexed compensation expense includes expense
associated with awards that will or may be settled in units and
awards that will or may be settled in cash. The awards that will or
may be settled in units are included in our diluted net income per
unit calculation when the applicable performance criteria have been
met. We consider the compensation expense associated with these
awards as a selected item impacting comparability as the dilutive
impact of the outstanding awards is included in our diluted net
income per unit calculation and the majority of the awards are
expected to be settled in units. The portion of compensation
expense associated with awards that are certain to be settled in
cash is not considered a selected item impacting comparability.
(6)
During the periods presented, there were fluctuations in the value
of the Canadian dollar to the U.S. dollar, resulting in gains and
losses that were not related to our core operating results for the
period and were thus classified as a selected item impacting
comparability.
(7)
Includes costs recognized during the period related to the Line 901
incident that occurred in May 2015, net of amounts we believe are
probable of recovery from insurance.
(8)
Includes acquisition-related expenses associated with the Alpha
Crude Connector acquisition.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
NON-GAAP
RECONCILIATIONS
(in millions, except per unit data)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2017 2016
2017 2016 Net Income to Adjusted
EBITDA and Implied DCF Reconciliation Net Income $ 34 $ 298 $
667 $ 602 Interest expense, net 134 113 390 339 Income tax
(benefit)/expense (45 ) 1 30 15 Depreciation and amortization 151
33 401 351 Depreciation and amortization of unconsolidated entities
(1) 13 13 31 38 Selected items impacting comparability - Adjusted
EBITDA (2) 202 5 (67 ) 224 Adjusted EBITDA $
489 $ 463 $ 1,452 $ 1,569 Interest expense, net (3) (121 ) (109 )
(367 ) (327 ) Maintenance capital (63 ) (47 ) (194 ) (128 ) Current
income tax benefit/(expense) 1 (4 ) (9 ) (45 ) Adjusted equity
earnings in unconsolidated entities, net of distributions (4) (7 )
(9 ) 11 (20 ) Distributions to noncontrolling interests (5) —
(1 ) (1 ) (3 ) Implied DCF (6) $ 299 $ 293 $
892 $ 1,046
(1)
Adjustment to add back our proportionate share
of depreciation and amortization expense and gains or losses on
significant asset sales of unconsolidated entities.
(2)
Certain of our non-GAAP financial measures may not be impacted by
each of the selected items impacting comparability.
(3)
Excludes certain non-cash items impacting interest expense such as
amortization of debt issuance costs and terminated interest rate
swaps.
(4)
Represents the difference between non-cash equity earnings in
unconsolidated entities (adjusted for our proportionate share of
depreciation and amortization and gains or losses on significant
asset sales) and cash distributions received from such entities.
(5)
Includes cash distributions that pertain to the current period’s
net income, which are paid in the subsequent period.
(6)
Including net costs recognized during the periods related to the
Line 901 incident that occurred in May 2015, Implied DCF would have
been $880 million for the nine months ended September 30, 2017,
respectively.
PLAINS
ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
NON-GAAP
RECONCILIATIONS (continued)
(in millions, except per unit data)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2017 2016
2017 2016 Net Income/(Loss) Per
Common Unit to Adjusted Net Income Per Common Unit
Reconciliation Basic net income/(loss) per common unit $ (0.01
) $ 0.40 $ 0.77 $ 0.27 Selected items impacting comparability (1)
0.22 (0.01 ) (0.08 ) 0.46 Basic adjusted net income per
common unit $ 0.21 $ 0.39 $ 0.69 $ 0.73 Diluted net
income/(loss) per common unit $ (0.01 ) $ 0.40 $ 0.76 $ 0.27
Selected items impacting comparability (1) 0.22 (0.01 )
(0.07 ) 0.45 Diluted adjusted net income per common unit $ 0.21 $
0.39 $ 0.69 $ 0.72
(1)
See the “Selected Items Impacting
Comparability” and the “Computation of Basic and Diluted Adjusted
Net Income Per Common Unit” tables for additional information.
Twelve Months EndedDecember
31, 2016 2015 Net Income to
Adjusted EBITDA and Implied DCF Reconciliation Net Income $ 730
$ 906 Interest expense, net 467 432 Income tax expense 25 100
Depreciation and amortization 494 432 Depreciation and amortization
of unconsolidated entities (1) 50 45 Selected items impacting
comparability - Adjusted EBITDA 403 298 Adjusted
EBITDA $ 2,169 $ 2,213 Interest expense, net (2) (451 ) (417 )
Maintenance capital (186 ) (220 ) Current income tax expense (85 )
(84 ) Adjusted equity earnings in unconsolidated entities, net of
distributions (3) (29 ) (14 ) Distributions to noncontrolling
interests (4) (4 ) (4 ) Implied DCF $ 1,414 $ 1,474
(1)
Adjustment to add back our proportionate share
of depreciation and amortization expense and gains or losses on
significant asset sales of unconsolidated entities.
(2)
Excludes certain non-cash items impacting interest expense such as
amortization of debt issuance costs and terminated interest rate
swaps.
(3)
Represents the difference between non-cash equity earnings in
unconsolidated entities (adjusted for our proportionate share of
depreciation and amortization and gains or losses on significant
asset sales) and cash distributions received from such entities.
(4)
Includes cash distributions that pertain to the current period’s
net income, which are paid in the subsequent period.
PLAINS ALL AMERICAN PIPELINE, L.P.
AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
COMPUTATION OF
BASIC AND DILUTED ADJUSTED NET INCOME PER COMMON UNIT
(1)
(in millions, except per unit data)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2017 2016
2017 2016 Basic Adjusted Net Income
per Common Unit Net income attributable to PAA $ 33 $ 297 $ 665
$ 599 Selected items impacting comparability - Adjusted net income
attributable to PAA (2) 162 (4 ) (56 ) 184 Adjusted
net income attributable to PAA 195 293 609 783 Distributions to
Series A preferred unitholders (36 ) (33 ) (105 ) (88 )
Distributions to general partner — (102 ) — (412 ) Other (5 ) —
(13 ) 7 Adjusted net income allocated to common
unitholders $ 154 $ 158 $ 491 $ 290
Basic weighted average common units outstanding 725 401 714
399 Basic adjusted net income per common unit $ 0.21
$ 0.39 $ 0.69 $ 0.73
Diluted
Adjusted Net Income per Common Unit Net income attributable to
PAA $ 33 $ 297 $ 665 $ 599 Selected items impacting comparability -
Adjusted net income attributable to PAA (2) 162 (4 ) (56 )
184 Adjusted net income attributable to PAA 195 293 609 783
Distributions to Series A preferred unitholders (36 ) (33 ) (105 )
(88 ) Distributions to general partner — (102 ) — (412 ) Other (5 )
— (13 ) 7 Adjusted net income allocated to common
unitholders $ 154 $ 158 $ 491 $ 290
Basic weighted average common units outstanding 725 401 714
399 Effect of dilutive securities: LTIP units (3) 1 1
1 1 Diluted weighted average common units outstanding
726 402 715 400 Diluted adjusted
net income per common unit (4) $ 0.21 $ 0.39 $ 0.69
$ 0.72
(1)
We calculate adjusted net income allocated to
common unitholders 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 (“undistributed loss”), if any,
are allocated to the general partner, common unitholders and
participating securities in accordance with the contractual terms
of our partnership agreement in effect for the period and as
further prescribed under the two-class method. The Simplification
Transactions, which closed on November 15, 2016, simplified our
governance structure and permanently eliminated our IDRs and the
economic rights associated with our 2% general partner interest. As
such, beginning with the distribution pertaining to the fourth
quarter of 2016, our general partner is no longer entitled to
receive distributions from these interests.
(2)
Certain of our non-GAAP financial measures may not be impacted by
each of the selected items impacting comparability.
(3)
Our 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.
(4)
The possible conversion of our Series A preferred units was
excluded from the calculation of diluted adjusted net income per
common unit for the three and nine months ended September 30, 2017
and 2016 as the effect was antidilutive.
PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED
CONSOLIDATING STATEMENTS OF OPERATIONS (1)
(in millions, except per share data)
Three Months EndedSeptember 30, 2017 Three
Months EndedSeptember 30, 2016
Consolidating
Consolidating PAA Adjustments
(2) PAGP PAA Adjustments (2)
PAGP REVENUES $ 5,873 $ — $ 5,873 $ 5,170 $ — $ 5,170
COSTS AND EXPENSES Purchases and related costs 5,327
— 5,327 4,429 — 4,429 Field operating costs 283 — 283 289 — 289
General and administrative expenses 68 — 68 70 1 71 Depreciation
and amortization 151 1 152 33 —
33 Total costs and expenses 5,829 1 5,830 4,821 1 4,822
OPERATING INCOME 44 (1 ) 43 349 (1 ) 348
OTHER INCOME/(EXPENSE) Equity earnings in unconsolidated
entities 80 — 80 46 — 46 Interest expense, net (134 ) — (134 ) (113
) (3 ) (116 ) Other income/(expense), net (1 ) — (1 ) 17
— 17
INCOME/(LOSS) BEFORE TAX
(11 ) (1 ) (12 ) 299 (4 ) 295 Current income tax benefit/(expense)
1 — 1 (4 ) — (4 ) Deferred income tax benefit/(expense) 44
(2 ) 42 3 (15 ) (12 )
NET INCOME 34 (3
) 31 298 (19 ) 279 Net income attributable to noncontrolling
interests (1 ) (26 ) (27 ) (1 ) (254 ) (255 )
NET INCOME
ATTRIBUTABLE TO PAGP $ 33 $ (29 ) $ 4 $ 297
$ (273 ) $ 24
BASIC NET INCOME PER CLASS A
SHARE $ 0.03 $ 0.24
DILUTED NET INCOME
PER CLASS A SHARE $ 0.03 $ 0.24
BASIC
WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING 154 101
DILUTED WEIGHTED AVERAGE CLASS A SHARES
OUTSTANDING 154 101
(1)
A reverse split of PAGP’s Class A shares was
completed on November 15, 2016. The effect of the reverse split has
been retroactively applied to all share and per-share amounts
presented.
(2)
Represents the aggregate consolidating adjustments necessary to
produce consolidated financial statements for PAGP.
PLAINS GP HOLDINGS AND
SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED
CONSOLIDATING STATEMENTS OF OPERATIONS (1)
(in millions, except per share data)
Nine Months EndedSeptember 30, 2017 Nine
Months EndedSeptember 30, 2016
Consolidating
Consolidating PAA Adjustments
(2) PAGP PAA Adjustments (2)
PAGP REVENUES $ 18,618 $ — $ 18,618 $ 14,231 $ — $
14,231
COSTS AND EXPENSES Purchases and related costs
16,239 — 16,239 12,000 — 12,000 Field operating costs 876 — 876 893
— 893 General and administrative expenses 210 3 213 210 2 212
Depreciation and amortization 401 2 403 351
1 352 Total costs and expenses 17,726 5 17,731
13,454 3 13,457
OPERATING INCOME 892 (5 ) 887 777 (3
) 774
OTHER INCOME/(EXPENSE) Equity earnings in
unconsolidated entities 201 — 201 133 — 133 Interest expense, net
(390 ) — (390 ) (339 ) (10 ) (349 ) Other income/(expense), net (6
) — (6 ) 46 — 46
INCOME
BEFORE TAX 697 (5 ) 692 617 (13 ) 604 Current income tax
expense (9 ) — (9 ) (45 ) — (45 ) Deferred income tax
benefit/(expense) (21 ) (55 ) (76 ) 30 (51 ) (21 )
NET INCOME 667 (60 ) 607 602 (64 ) 538 Net income
attributable to noncontrolling interests (2 ) (536 ) (538 ) (3 )
(433 ) (436 )
NET INCOME ATTRIBUTABLE TO PAGP $ 665 $
(596 ) $ 69 $ 599 $ (497 ) $ 102
BASIC NET INCOME PER CLASS A SHARE $ 0.49 $ 1.03
DILUTED NET INCOME PER CLASS A SHARE $ 0.49
$ 1.02
BASIC WEIGHTED AVERAGE CLASS A
SHARES OUTSTANDING 142 99
DILUTED
WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING 142 236
(1)
A reverse split of PAGP’s Class A shares was
completed on November 15, 2016. The effect of the reverse split has
been retroactively applied to all share and per-share amounts
presented.
(2)
Represents the aggregate consolidating adjustments necessary to
produce consolidated financial statements for PAGP.
PLAINS GP HOLDINGS AND
SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED
CONSOLIDATING BALANCE SHEET DATA
(in millions)
September 30, 2017 December 31, 2016
Consolidating
Consolidating PAA Adjustments
(1) PAGP PAA Adjustments (1)
PAGP ASSETS Current assets $ 4,015 $ 3 $ 4,018 $
4,272 $ 3 $ 4,275 Property and equipment, net 14,269 16 14,285
13,872 18 13,890 Goodwill 2,598 — 2,598 2,344 — 2,344 Investments
in unconsolidated entities 2,671 — 2,671 2,343 — 2,343 Deferred tax
asset — 2,210 2,210 — 1,876 1,876 Linefill and base gas 884 — 884
896 — 896 Long-term inventory 135 — 135 193 — 193 Other long-term
assets, net 911 (2 ) 909 290 (4 ) 286 Total
assets $ 25,483 $ 2,227 $ 27,710 $ 24,210
$ 1,893 $ 26,103
LIABILITIES AND PARTNERS'
CAPITAL Current liabilities $ 4,016 $ 2 $ 4,018 $ 4,664 $ 2 $
4,666 Senior notes, net of unamortized discounts and debt issuance
costs 9,881 — 9,881 9,874 — 9,874 Other long-term debt 608 — 608
250 — 250 Other long-term liabilities and deferred credits 698
— 698 606 — 606 Total
liabilities $ 15,203 $ 2 $ 15,205 $ 15,394 $ 2 $ 15,396
Partners' capital excluding noncontrolling interests 10,223 (7,695
) 2,528 8,759 (7,022 ) 1,737 Noncontrolling interests 57
9,920 9,977 57 8,913 8,970 Total
partners' capital 10,280 2,225 12,505 8,816
1,891 10,707 Total liabilities and partners' capital
$ 25,483 $ 2,227 $ 27,710 $ 24,210 $
1,893 $ 26,103
(1)
Represents the aggregate consolidating
adjustments necessary to produce consolidated financial statements
for PAGP.
PLAINS GP
HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
COMPUTATION OF
BASIC AND DILUTED NET INCOME PER CLASS A SHARE
(1)
(in millions, except per share data)
Three Months EndedSeptember 30, Nine Months
EndedSeptember 30, 2017 2016
2017 2016 Basic Net Income per Class
A Share Net income attributable to PAGP $ 4 $ 24 $ 69 $ 102
Basic weighted average Class A shares outstanding 154 101 142 99
Basic net income per Class A share $ 0.03 $ 0.24
$ 0.49 $ 1.03
Diluted Net Income per Class
A Share Net income attributable to PAGP $ 4 $ 24 $ 69 $ 102
Incremental net income attributable to PAGP resulting from assumed
exchange of AAP units and AAP Management Units — — —
138 Net income attributable to PAGP including incremental
net income from assumed exchange of AAP units and AAP Management
Units $ 4 $ 24 $ 69 $ 240 Basic
weighted average Class A shares outstanding 154 101 142 99 Dilutive
shares resulting from assumed exchange of AAP units and AAP
Management Units — — — 137 Diluted weighted
average Class A shares outstanding 154 101 142
236 Diluted net income per Class A share (2) $ 0.03 $
0.24 $ 0.49 $ 1.02
(1)
A reverse split of PAGP’s Class A shares was
completed on November 15, 2016. The effect of the reverse split has
been retroactively applied to all share and per-share amounts
presented.
(2)
For the three and nine months ended September 30, 2017, and the
three months ended September 30, 2016, the possible exchange of any
AAP units and certain AAP Management Units would not have had a
dilutive effect on basic net income per Class A share. For the nine
months ended September 30, 2016, the possible exchange of any AAP
units would have had a dilutive effect on basic net income per
Class A share and the possible exchange of certain AAP Management
Units would not have had a dilutive effect on basic net income per
Class A share.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171106006364/en/
Plains All American Pipeline, L.P. and Plains GP HoldingsRoy
Lamoreaux, 866-809-1291Vice President, Investor Relations &
CommunicationsorBrett Magill, 866-809-1291Manager, Investor
Relations
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