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The Partnership's reported results include the impact of items that affect comparability between reporting periods. These items are excluded from adjusted results, as further described in the table below. Accordingly, the Partnership's third-quarter 2009 adjusted net income, adjusted net income per diluted limited partner unit and adjusted EBITDA were $114 million, $0.59 and $234 million, respectively, as compared to third-quarter 2008 adjusted net income, adjusted net income per diluted limited partner unit and adjusted EBITDA of $119 million, $0.71 and $223 million, respectively. (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.)
"Plains All American has been very active and productive in the four months since the end of the second quarter" said Greg L. Armstrong, Chairman & CEO of Plains All American. "We delivered operating and financial results at the high end of guidance, acquired the remaining 50% interest in PAA Natural Gas Storage (PNGS), raised over $1.2 billion in the capital markets at very attractive rates and increased our annualized distribution by 6 cents or 1.7% to $3.68 per unit. We also ended the third quarter with a solid balance sheet and over $1.6 billion of available committed liquidity, of which approximately $260 million was used in early October to prepay our 7.125% senior notes."
For the first nine months of 2009, the Partnership reported net income of $469 million, or $2.82 per diluted limited partner unit, as compared to net income for the first nine months of 2008 of $339 million, or $2.08 per diluted limited partner unit. The Partnership reported EBITDA of $808 million for the first nine months of 2009, compared with EBITDA of $639 million for the first nine months of 2008. Adjusted net income, adjusted net income per diluted limited partner unit and adjusted EBITDA for the first nine months of 2009 were $406 million, $2.33 and $745 million, respectively. Adjusted net income, adjusted net income per diluted limited partner unit and adjusted EBITDA for the first nine months of 2008 were $352 million, $2.19 and $652 million, respectively.
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 Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Selected items impacting comparability
Equity compensation charge (1) $ (12 ) $ (3 ) $ (36 ) $ (23 )
Inventory valuation adjustments net of gains and (losses) from - 4 24 4
related derivative activities (2)
Gains/(losses) from other derivative activities (2) (3) 11 94 54 3
Gains on acquisition-related foreign currency and linefill hedges - - - 11
Net gain on purchase of remaining 50% interest in PNGS 9 - 9 -
Net gain/(loss) on foreign currency revaluation - (8 ) 12 (8 )
Selected items impacting comparability 8 87 63 (13 )
Less: GP 2% portion of selected items impacting comparability - (2 ) (1 ) -
LP 98% portion of selected items impacting comparability $ 8 $ 85 $ 62 $ (13 )
Impact to basic net income per limited partner unit $ 0.06 $ 0.70 $ 0.49 $ (0.11 )
Impact to diluted net income per limited partner unit $ 0.06 $ 0.70 $ 0.49 $ (0.11 )
______________________________
(1) The equity compensation charge for the three and nine months
ended September 30, 2009 and 2008 excludes the portion of the equity
compensation expense represented by grants under the LTIP Plans
that, pursuant to the terms of the grant, will be settled in cash
only and have no impact on diluted units. The portion of the equity
compensation expense attributable to the cash portion of the LTIP
Plans is approximately $4 million and $1 million for the three
months ended September 30, 2009 and 2008, respectively, and
approximately $11 million and $3 million for the nine months ended
September 30, 2009 and 2008, respectively.
(2) Gains and losses from derivative activities related to revalued
inventory are included in the line item "Inventory valuation
adjustments net of gains and (losses) from related derivative
activities;" gains and losses from derivative activities not related
to revalued inventory are included in the line item "Gains/(losses)
from other derivative activities."
(3) Gains and losses from other derivative activities for the nine
months ended September 30, 2009 includes losses of approximately
$1 million related to interest rate derivatives, which are
included in other income/(expense), net, but do not impact segment
profit.
The following tables present certain selected financial information by segment for the third-quarter and first nine months reporting periods (amounts in millions):
Three Months Ended Three Months Ended
September 30, 2009 September 30, 2008
Transportation Facilities Marketing Transportation Facilities Marketing
Operations Operations Operations Operations Operations Operations
Revenues (1) $ 250 $ 97 $ 4,645 $ 242 $ 69 $ 8,676
Purchases and related costs (1) (15 ) (1 ) (4,534 ) (23 ) - (8,471 )
Field operating costs (excluding equity compensation benefit/charge) (1) (86 ) (32 ) (45 ) (86 ) (27 ) (50 )
Equity compensation benefit/(charge) - operations (2 ) - - 1 - -
Segment G&A expenses (excluding equity compensation charge) (2) (14 ) (7 ) (17 ) (14 ) (5 ) (16 )
Equity compensation charge - general and administrative (6 ) (3 ) (5 ) (2 ) (1 ) (1 )
Equity earnings in unconsolidated entities 2 3 - 1 3 -
Reported segment profit $ 129 $ 57 $ 44 $ 119 $ 39 $ 138
Selected items impacting comparability of segment profit:
Equity compensation charge (3) 6 2 4 1 1 1
Inventory valuation adjustments net of (gains)/losses from related - - - - - (4 )
derivative activities (4)
(Gains)/losses from other derivative activities (4) - - (11 ) - - (94 )
Net loss on foreign currency revaluation - - - - - 8
Subtotal 6 2 (7 ) 1 1 (89 )
Segment profit excluding selected items impacting comparability $ 135 $ 59 $ 37 $ 120 $ 40 $ 49
Maintenance capital $ 9 $ 2 $ 1 $ 13 $ 5 $ 1
______________________________
Nine Months Ended Nine Months Ended
September 30, 2009 September 30, 2008
Transportation Facilities Marketing Transportation Facilities Marketing
Operations Operations Operations Operations Operations Operations
Revenues (1) $ 714 $ 259 $ 11,877 $ 680 $ 194 $ 24,594
Purchases and related costs (1) (47 ) (1 ) (11,389 ) (68 ) - (24,211 )
Field operating costs (excluding equity compensation charge) (1) (249 ) (85 ) (139 ) (246 ) (76 ) (135 )
Equity compensation charge - operations (6 ) (1 ) (1 ) (1 ) - -
Segment G&A expenses (excluding equity compensation charge) (2) (45 ) (18 ) (51 ) (42 ) (13 ) (49 )
Equity compensation charge - general and administrative (17 ) (7 ) (15 ) (12 ) (5 ) (9 )
Equity earnings in unconsolidated entities 5 8 - 4 7 -
Reported segment profit $ 355 $ 155 $ 282 $ 315 $ 107 $ 190
Selected items impacting comparability of segment profit:
Equity compensation charge (3) 18 6 12 12 4 7
Inventory valuation adjustments net of (gains)/losses from related - - (24 ) - - (4 )
derivative activities (4)
(Gains)/losses from other derivative activities (4) (5) - - (55 ) - - (3 )
Net (gain)/loss on foreign currency revaluation - - (12 ) - - 8
Subtotal 18 6 (79 ) 12 4 8
Segment profit excluding selected items impacting comparability $ 373 $ 161 $ 203 $ 327 $ 111 $ 198
Maintenance capital $ 40 $ 11 $ 5 $ 38 $ 15 $ 3
______________________________
(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.
(3) The equity compensation charge for the three and nine months
ended September 30, 2009 and 2008 excludes the portion of the equity
compensation expense represented by grants under the LTIP Plans
that, pursuant to the terms of the grant, will be settled in cash
only and have no impact on diluted units. The portion of the equity
compensation expense attributable to the cash portion of the LTIP
Plans is approximately $4 million and $1 million for the three
months ended September 30, 2009 and 2008, respectively, and
approximately $11 million and $3 million for the nine months ended
September 30, 2009 and 2008, respectively.
(4) Gains and losses from derivative activities related to revalued
inventory are included in the line item "Inventory valuation
adjustments net of (gains)/losses from related derivative
activities;" gains and losses from derivative activities not related
to revalued inventory are included in the line item "Gains/(losses)
from other derivative activities."
(5) Gains and losses from other derivative activities for the nine
months ended September 30, 2009 includes losses of approximately
$1 million related to interest rate derivatives, which are
included in other income/(expense), net, but do not impact segment
profit.
Adjusted segment profit for the Transportation segment for the third quarter of 2009 increased 13% over corresponding 2008 results primarily due to higher average pipeline tariffs and increased pipeline loss allowance revenue.
Adjusted segment profit for the Facilities segment for the third quarter of 2009 increased 48% over comparable 2008 results principally due to capacity increases from recently completed capital projects, recent acquisitions, including the PNGS acquisition, and higher average lease rates at various facilities.
Adjusted segment profit for the Marketing segment for the third quarter of 2009 decreased 25% from comparable 2008 results. This decrease is due to a number of factors including declines in margins due to tighter crude oil quality differentials and lower LPG margins, partially offset by a favorable contango market and lower operating costs.
The Partnership's basic weighted average units outstanding for the third quarter of 2009 totaled 130 million (131 million diluted) as compared to 128 million (129 million diluted) in last year's third quarter. At September 30, 2009, the Partnership had approximately 136.1 million units outstanding, long-term debt of approximately $4.1 billion ($437 million of which supports hedged inventory) and an adjusted long-term debt-to-total capitalization ratio of 47%.
The Partnership has declared a quarterly distribution of $0.92 per unit ($3.68 per unit on an annualized basis) payable November 13, 2009 on its outstanding limited partner units. This distribution represents an increase of 3.1% over the quarterly distribution paid in November 2008 and an increase of 1.7% from the August 2009 distribution level.
Prior to its November 5th 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 fourth quarter 2009, and preliminary 2010 guidance. A copy of the Form 8-K will be available on the Partnership's website at www.paalp.com.
Non-GAAP Financial Measures
In this release, the Partnership's EBITDA disclosure is not presented in accordance with generally accepted accounting principles and is not intended to be used in lieu of GAAP presentations of net income or cash flows from operating activities. EBITDA is presented because we believe it provides additional information with respect to both the performance of our fundamental business activities as well as our ability to meet our future debt service, capital expenditures and working capital requirements. We also believe that debt holders commonly use EBITDA to analyze Partnership performance. In addition, we present selected items that impact the comparability of our operating results as additional information that may be helpful to your understanding of our financial results. We consider an understanding of these selected items impacting comparability to be material to our evaluation of our operating results and prospects. Although we present selected items that we consider in evaluating our performance, you should also be aware that the items presented do not represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices, exchange rates, mechanical interruptions, acquisitions and numerous other factors. These types of variations are not separately identified in this release, but will be discussed, as applicable, in management's discussion and analysis of operating results in our Quarterly Report on Form 10-Q.
A reconciliation of net income to EBITDA and EBITDA to cash flows from operating activities for the periods presented is included in the tables attached to this release. In addition, the Partnership maintains on its website (www.paalp.com) a reconciliation of all non-GAAP financial information, such as EBITDA, to the most comparable GAAP measures. To access the information, investors should click on the "Investor Relations" link on the Partnership's home page and then the "Non-GAAP Reconciliation" link on the Investor Relations page.
Conference Call
The Partnership will host a conference call at 11:00 AM (Eastern) on Thursday, November 5, 2009 to discuss the following items:
1. The Partnership's third-quarter 2009 performance;
2. The status of major expansion projects;
3. Capitalization and liquidity;
4. Financial and operating guidance for the fourth quarter 2009 and preliminary 2010 guidance; 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.
If you are unable to participate in the webcast, please dial 800-230-1059, or, for international callers, 612-234-9960, at approximately 10:55 AM (Eastern). 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 116801. The replay will be available beginning Thursday, November 5, 2009, at approximately 12:00 PM (Central) and continue until 11:59 PM (Central) Saturday, December 5, 2009.
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. The Partnership is also engaged in the development and operation of natural gas storage facilities. The Partnership 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 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 success of our risk management activities; 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 power 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; unanticipated changes in crude oil market structure, grade differentials and volatility (or lack thereof); the impact of current and future laws, rulings, governmental regulations, accounting standards and statements and related interpretations; the effects of competition; interruptions in service and fluctuations in tariffs or volumes 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; future developments and circumstances at the time distributions are declared; general economic, market or business conditions and the amplification of other risks caused by deteriorated 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. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except per unit data)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
REVENUES $ 4,857 $ 8,862 $ 12,442 $ 25,118
COSTS AND EXPENSES
Purchases and related costs 4,417 8,369 11,036 23,929
Field operating costs 163 162 474 458
General and administrative expenses 52 39 153 130
Depreciation and amortization 59 49 173 150
Total costs and expenses 4,691 8,619 11,836 24,667
OPERATING INCOME 166 243 606 451
OTHER INCOME/(EXPENSE)
Equity earnings in unconsolidated entities 5 4 13 11
Interest expense (59 ) (52 ) (165 ) (143 )
Other income/(expense), net 12 14 17 27
INCOME BEFORE TAX 124 209 471 346
Current income tax expense (2 ) (3 ) (5 ) (9 )
Deferred income tax benefit - - 4 2
NET INCOME 122 206 470 339
Less: Net income attributable to the noncontrolling interest - - (1 ) -
NET INCOME ATTRIBUTABLE TO PLAINS $ 122 $ 206 $ 469 $ 339
NET INCOME ATTRIBUTABLE TO PLAINS:
LIMITED PARTNERS $ 88 $ 173 $ 370 $ 256
GENERAL PARTNER $ 34 $ 33 $ 99 $ 83
BASIC NET INCOME PER LIMITED PARTNER UNIT $ 0.65 $ 1.42 $ 2.84 $ 2.10
DILUTED NET INCOME PER LIMITED PARTNER UNIT $ 0.65 $ 1.41 $ 2.82 $ 2.08
BASIC WEIGHTED AVERAGE UNITS OUTSTANDING 130 123 128 120
DILUTED WEIGHTED AVERAGE UNITS OUTSTANDING 131 124 129 121
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
OPERATING DATA (1)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Transportation activities (Average Daily Volumes, thousands of
barrels):
Tariff activities
All American 43 44 40 44
Basin 335 375 389 372
Capline 205 216 205 218
Line 63/Line 2000 141 131 136 151
Salt Lake City Area Systems (2) 152 90 132 94
West Texas/New Mexico Area Systems (2) 355 370 375 367
Manito 62 68 62 70
Rainbow 176 191 184 108
Rangeland 51 54 54 58
Refined products 100 108 96 110
Other 1,219 1,234 1,207 1,238
Tariff activities total 2,839 2,881 2,880 2,830
Trucking 80 101 84 96
Transportation activities total 2,919 2,982 2,964 2,926
Facilities activities (Average Monthly Volumes):
Crude oil, refined products and LPG storage 56 55 56 54
(average monthly capacity in millions of barrels)
Natural gas storage 27 14 21 13
(average monthly capacity in billions of cubic feet) (3)
LPG processing 17 17 16 16
(average throughput in thousands of barrels per day)
Facilities activities total 61 58 60 57
(average monthly capacity in millions of barrels) (4)
Marketing activities (Average Daily Volumes, thousands of
barrels):
Crude oil lease gathering purchases 602 638 619 663
Refined products sales 32 27 34 24
LPG sales 61 67 88 85
Waterborne foreign crude oil imported 46 77 54 84
Marketing activities total 741 809 795 856
______________________________
(1) Volumes associated with acquisitions represent total volumes for
the number of days we actually owned the assets divided by the
number of days in the period.
(2) The aggregate of multiple systems in the respective areas.
(3) In September 2009, we acquired the remaining 50% indirect
interest in PAA Natural Gas Storage, LLC ("PNGS") from Vulcan Gas
Storage LLC, which resulted in our 100% ownership of the natural
gas storage business and related operating entities. Therefore,
natural gas storage volumes for 2008 and January through August
2009 are netted to our 50% interest in PNGS. September 2009
volumes represent our 100% interest in PNGS.
(4) Facilities total is calculated as the sum of: (i) crude oil,
refined products and LPG storage capacity; (ii) natural gas storage
capacity divided by 6 to account for the 6:1 mcf of gas to crude oil
barrel ratio; 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)
September 30, December 31,
2009 2008
ASSETS
Current assets $ 3,024 $ 2,596
Property and equipment, net 6,197 5,059
Linefill and base gas 479 425
Long-term inventory 129 139
Investment in unconsolidated entities 68 257
Goodwill 1,270 1,210
Other long-term assets, net 326 346
Total assets $ 11,493 $ 10,032
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities $ 2,859 $ 2,960
Long-term debt under credit facilities and other 7 40
Senior notes, net of unamortized net discount 4,135 3,219
Other long-term liabilities and net deferred credits 265 261
Total liabilities 7,266 6,480
Partners' capital excluding noncontrolling interest 4,163 3,552
Noncontrolling interest 64 -
Total partners' capital 4,227 3,552
Total liabilities and partners' capital $ 11,493 $ 10,032
CREDIT RATIOS
(In millions) September 30,
September 30, 2009
2009 Adjustment (1) Adjusted
Short-term debt $ 692 $ 437 $ 1,129
Long-term debt 4,142 (437 ) 3,705
Total debt $ 4,834 $ - $ 4,834
Long-term debt 4,142 (437 ) 3,705
Partners' Capital 4,227 - 4,227
Total book capitalization $ 8,369 $ (437 ) $ 7,932
Total book capitalization including short-term debt $ 9,061 $ - $ 9,061
Long-term debt to total book capitalization 49 % 47 %
Total debt to total book capitalization including short-term debt 53 % 53 %
______________________________
(1) The adjustment represents the portion of the 4.25% senior notes
due September 2012 that has been used to fund hedged inventory and
would be classified as short-term debt if funded on our credit
facilities. These notes were issued in July 2009 and the proceeds
are being used to supplement capital available from our hedged
inventory facility.
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 Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Numerator for basic and diluted earnings per limited partner unit:
Net Income Attributable to Plains $ 122 $ 206 $ 469 $ 339
Less: General partner's incentive distribution paid (1) (32 ) (30 ) (92 ) (78 )
Subtotal 90 176 377 261
Less: General partner 2% ownership (1) (2 ) (3 ) (7 ) (5 )
Net income available to limited partners 88 173 370 256
Adjustment in accordance with application of the two-class method (3 ) 2 (8 ) (5 )
for MLPs (1)
Net income available to limited partners in accordance with $ 85 $ 175 $ 362 $ 251
application of the two-class method for MLPs
Denominator:
Basic weighted average number of limited partner units outstanding 130 123 128 120
Effect of dilutive securities:
Weighted average LTIP units 1 1 1 1
Diluted weighted average number of limited partner units outstanding 131 124 129 121
Basic net income per limited partner unit $ 0.65 $ 1.42 $ 2.84 $ 2.10
Diluted net income per limited partner unit $ 0.65 $ 1.41 $ 2.82 $ 2.08
(1) We allocate net income to our general partner based on the
distribution paid during the current quarter (including the
incentive distribution interest in excess of the 2% general
partner interest). Guidance issued by the FASB requires that the
distribution pertaining to the current period's net income, which
is to be paid in the subsequent quarter, be utilized in the
earnings per unit calculation. We reflect the impact of this
difference as the "Adjustment in accordance with application of
the two-class method for MLPs."
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
FINANCIAL DATA RECONCILIATIONS
(In millions) Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net income attributable to Plains to earnings before interest,
taxes, depreciation and amortization ("EBITDA") reconciliation
Net Income Attributable to Plains $ 122 $ 206 $ 469 $ 339
Add: Interest expense 59 52 165 143
Add: Income tax expense 2 3 1 7
Earnings before interest and taxes ("EBIT") 183 261 635 489
Add: Depreciation and amortization 59 49 173 150
EBITDA $ 242 $ 310 $ 808 $ 639
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Cash flow from operating activities reconciliation
EBITDA $ 242 $ 310 $ 808 $ 639
Current income tax expense (2 ) (3 ) (5 ) (9 )
Interest expense (59 ) (52 ) (165 ) (143 )
Net change in assets and liabilities, net of acquisitions (137 ) (587 ) (338 ) (275 )
Other items to reconcile to cash flows from operating activities:
Equity compensation charge 16 3 47 27
Net cash provided by operating activities $ 60 $ (329 ) $ 347 $ 239
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Funds flow from operations ("FFO")
Net Income Attributable to Plains $ 122 $ 206 $ 469 $ 339
Equity earnings in unconsolidated entities, net of distributions (3 ) (3 ) (6 ) (4 )
Depreciation and amortization 59 49 173 150
Deferred income tax benefit - - (4 ) (2 )
FFO 178 252 632 483
Maintenance capital (12 ) (19 ) (56 ) (56 )
FFO after maintenance capital $ 166 $ 233 $ 576 $ 427
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
FINANCIAL DATA RECONCILIATIONS
(continued)
(In millions, except per unit data)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net income attributable to Plains and earnings per limited
partner unit excluding selected items
impacting comparability
Net Income Attributable to Plains $ 122 $ 206 $ 469 $ 339
Selected items impacting comparability (8 ) (87 ) (63 ) 13
Adjusted net income $ 114 $ 119 $ 406 $ 352
Net income available to limited partners in accordance with $ 85 $ 175 $ 362 $ 251
application of the two-class method for MLPs
Limited partners' 98% of selected items impacting comparability (8 ) (85 ) (62 ) 13
Adjusted limited partners' net income $ 77 $ 90 $ 300 $ 264
Adjusted basic net income per limited partner unit $ 0.59 $ 0.72 $ 2.35 $ 2.21
Adjusted diluted net income per limited partner unit $ 0.59 $ 0.71 $ 2.33 $ 2.19
Basic weighted average units outstanding 130 123 128 120
Diluted weighted average units outstanding 131 124 129 121
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
EBITDA excluding selected items impacting comparability
EBITDA $ 242 $ 310 $ 808 $ 639
Selected items impacting comparability (8 ) (87 ) (63 ) 13
Adjusted EBITDA $ 234 $ 223 $ 745 $ 652
SOURCE: Plains All American Pipeline, L.P.
Plains All American Pipeline, L.P. Manager, Investor Relations Roy I. Lamoreaux, 713-646-4222 or 800-564-3036 or Senior Vice President, CFO Al Swanson, 713-646-4455 or 800-564-3036
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