Plains All American Pipeline, L.P. and Plains GP Holdings Report Second-Quarter 2019 Results

HOUSTON--()--Plains All American Pipeline, L.P. (NYSE: PAA) and Plains GP Holdings (NYSE: PAGP) today reported second-quarter 2019 results.

Second-Quarter Highlights

  • Delivered 2Q19 financial and operating results ahead of expectations
  • Increased 2019 Adjusted EBITDA guidance and increased 2019 capital program
  • Executing capital program, sanctioning new capital-efficient growth projects, and advancing new commercial opportunities

“We reported solid second-quarter results and increased guidance for the full year,” stated Willie Chiang, Chief Executive Officer of Plains All American Pipeline. “We have materially advanced a number of key initiatives that optimize our systems in a capital-efficient manner and enhance our positioning through alignment with industry partners. Furthermore, we ended the quarter with improved leverage metrics, more than $2.9 billion of committed liquidity and substantial distribution coverage.”

Plains All American Pipeline, L.P.

Summary Financial Information (unaudited)

(in millions, except per unit data)

 

 

 

Three Months Ended
June 30,

 

%

 

 

Six Months Ended
June 30,

 

%

GAAP Results

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Net income attributable to PAA

 

$

446

 

 

$

100

 

 

346

%

 

 

$

1,416

 

 

$

388

 

 

265

%

Diluted net income per common unit

 

$

0.54

 

 

$

0.07

 

 

671

%

 

 

$

1.74

 

 

$

0.39

 

 

346

%

Diluted weighted average common units outstanding (1)

 

800

 

 

727

 

 

10

%

 

 

800

 

 

727

 

 

10

%

Distribution per common unit declared for the period

 

$

0.36

 

 

$

0.30

 

 

20

%

 

 

 

 

 

 

 

_________________________________

(1)

For the three and six months ended June 30, 2019, includes all potentially dilutive securities outstanding (our Series A preferred units and equity-indexed compensation awards) during the period. See the “Computation of Basic and Diluted Net Income Per Common Unit” table attached hereto for additional information.

 

 

Three Months Ended
June 30,

 

%

 

 

Six Months Ended
June 30,

 

%

Non-GAAP Results (1)

 

2019

 

2018

 

Change

 

 

2019

 

2018

 

Change

Adjusted net income attributable to PAA (2)

 

$

551

 

 

$

243

 

 

127

%

 

 

$

1,116

 

 

$

553

 

 

102

%

Diluted adjusted net income per common unit (2)

 

$

0.67

 

 

$

0.27

 

 

148

%

 

 

$

1.36

 

 

$

0.62

 

 

119

%

Adjusted EBITDA

 

$

784

 

 

$

506

 

 

55

%

 

 

$

1,646

 

 

$

1,098

 

 

50

%

Implied DCF per common unit

 

$

0.73

 

 

$

0.37

 

 

97

%

 

 

$

1.63

 

 

$

0.98

 

 

66

%

_________________________________

(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 Implied DCF) and their reconciliation to the most directly comparable measures as reported in accordance with GAAP.

(2)

During the fourth quarter of 2018, we began classifying net gains and losses on asset sales and asset impairments as a selected item impacting comparability in the calculation of adjusted net income. Prior period amounts have been recast to reflect this change. See the “Selected Items Impacting Comparability” table attached hereto for additional information.

Segment Adjusted EBITDA for the second quarter and first half of 2019 and 2018 is presented below:

Summary of Selected Financial Data by Segment (unaudited)

(in millions)

 

 

Segment Adjusted EBITDA

 

Transportation

 

Facilities

 

Supply and
Logistics

Three Months Ended June 30, 2019

$

410

 

 

$

172

 

 

$

200

 

Three Months Ended June 30, 2018

$

360

 

 

$

171

 

 

$

(26

)

Percentage change in Segment Adjusted EBITDA versus 2018 period

14

%

 

1

%

 

**

Percentage change in Segment Adjusted EBITDA versus 2018 period further adjusted for impact of divested assets

22

%

 

1

%

 

N/A

 

 

Segment Adjusted EBITDA

 

Transportation

 

Facilities

 

Supply and
Logistics

Six Months Ended June 30, 2019

$

809

 

 

$

356

 

 

$

478

 

Six Months Ended June 30, 2018

$

695

 

 

$

357

 

 

$

45

 

Percentage change in Segment Adjusted EBITDA versus 2018 period

16

%

 

%

 

**

Percentage change in Segment Adjusted EBITDA versus 2018 period further adjusted for impact of divested assets

24

%

 

%

 

N/A

_________________________________
**

Indicates that variance as a percentage is not meaningful.

Second-quarter 2019 Transportation Segment Adjusted EBITDA increased by 14% over comparable 2018 results. This increase was primarily driven by increased volume on our Permian Basin systems, including the start-up of our Sunrise II pipeline in the fourth quarter of 2018. Second-quarter 2019 results also benefited from increased volumes on certain of our pipelines in the Central region. These favorable results were partially offset by our sale of an interest in the BridgeTex pipeline in the third quarter of 2018.

Second-quarter 2019 Facilities Segment Adjusted EBITDA was in line with comparable 2018 results.

Second-quarter 2019 Supply and Logistics Segment Adjusted EBITDA increased versus comparable 2018 results due to favorable crude oil differentials in the Permian Basin and Canada and improved NGL margins.

2019 Full-Year Guidance

The table below presents our full-year 2019 financial and operating guidance:

Financial and Operating Guidance (unaudited)

(in millions, except volumes, per unit and per barrel data)

 

 

Twelve Months Ended December 31,

 

2017

 

2018

 

2019 (G)

 

 

 

 

 

+ / -

Segment Adjusted EBITDA

 

 

 

 

 

Transportation

$

1,287

 

 

$

1,508

 

 

$

1,710

 

Facilities

734

 

 

711

 

 

665

 

Fee-Based

$

2,021

 

 

$

2,219

 

 

$

2,375

 

Supply and Logistics

60

 

 

462

 

 

600

 

Adjusted other income/(expense), net

1

 

 

3

 

 

 

Adjusted EBITDA (1)

$

2,082

 

 

$

2,684

 

 

$

2,975

 

Interest expense, net of certain non-cash items (2)

(483

)

 

(419

)

 

(400

)

Maintenance capital

(247

)

 

(252

)

 

(250

)

Current income tax expense

(28

)

 

(66

)

 

(85

)

Other

(12

)

 

1

 

 

(5

)

Implied DCF (1)

$

1,312

 

 

$

1,948

 

 

$

2,235

 

Preferred unit distributions paid (3)

(5

)

 

(161

)

 

(200

)

Implied DCF Available to Common Unitholders

$

1,307

 

 

$

1,787

 

 

$

2,035

 

 

 

 

 

 

 

Implied DCF per Common Unit (1)

$

1.82

 

 

$

2.46

 

 

$

2.80

 

Implied DCF per Common Unit and Common Equivalent Unit (1)

$

1.67

 

 

$

2.38

 

 

$

2.74

 

 

 

 

 

 

 

Distributions per Common Unit (4)

$

1.95

 

 

$

1.20

 

 

$

1.38

 

Common Unit Distribution Coverage Ratio

0.94x

 

2.05x

 

2.03x

 

 

 

 

 

 

Diluted Adjusted Net Income per Common Unit (1)

$

1.10

 

 

$

1.88

 

 

$

2.25

 

 

 

 

 

 

 

Operating Data

 

 

 

 

 

Transportation

 

 

 

 

 

Average daily volumes (MBbls/d)

5,186

 

 

5,889

 

 

6,800

 

Segment Adjusted EBITDA per barrel

$

0.68

 

 

$

0.70

 

 

$

0.69

 

 

 

 

 

 

 

Facilities

 

 

 

 

 

Average capacity (MMBbls/Mo)

130

 

 

124

 

 

125

 

Segment Adjusted EBITDA per barrel

$

0.47

 

 

$

0.48

 

 

$

0.44

 

 

 

 

 

 

 

Supply and Logistics

 

 

 

 

 

Average daily volumes (MBbls/d)

1,219

 

 

1,309

 

 

1,300

 

Segment Adjusted EBITDA per barrel

$

0.13

 

 

$

0.97

 

 

$

1.26

 

 

 

 

 

 

 

Expansion Capital

$

1,135

 

 

$

1,888

 

 

$

1,500

 

 

 

 

 

 

 

Third-Quarter Adjusted EBITDA as Percentage of Full Year

23%

 

24%

 

20%

_________________________________
(G)

2019 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 Non-GAAP Reconciliation tables attached hereto for information regarding non-GAAP financial measures and, for the historical 2017 and 2018 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.

(3)

Cash distributions paid to our preferred unitholders during the year presented. Distributions on our Series A preferred units were paid-in-kind for all 2017 quarterly distributions and for the February 2018 quarterly distribution. Distributions on our Series A preferred units have been paid in cash since the May 2018 quarterly distribution. Distributions on our Series B preferred units are payable semi-annually in arrears on May 15 and November 15. A pro-rated initial distribution on the Series B preferred units was paid on November 15, 2017.

(4)

Cash distributions per common unit paid during 2017 and 2018. 2019 (G) reflects the cash distribution per common unit paid in February and the increased annualized distribution rate of $1.44 per common unit for the remainder of the year.

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:

 

Q2 2019

 

Q1 2019

 

Q2 2018

Distribution per Class A share declared for the period

$

0.36

 

 

$

0.36

 

 

$

0.30

 

Q2 2019 distribution percentage change from prior periods

 

 

%

 

20

%

Conference Call

PAA and PAGP will hold a joint conference call at 4:00 p.m. CT on Tuesday, August 6, 2019 to discuss the following items:

1. PAA’s second-quarter 2019 performance;

2. Financial and operating guidance for the full year of 2019;

3. Capitalization and liquidity; and

4. PAA’s 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=1251736&tp_key=2d06962a49.

Alternatively, the webcast can be accessed on our website (www.plainsallamerican.com) under Investor Relations (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 our website within two hours after the end of the call and will be accessible for a period of 365 days. A transcript will also be available after the call at the above referenced website.

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 of, and gains and losses on significant asset sales by, unconsolidated entities), gains and losses on asset sales and asset impairments and gains on investments in unconsolidated entities, 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 measures 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 “Other current 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, divestitures, expansion projects and numerous other factors. These types of variations may not be 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, including the effects of capacity overbuild in areas where we operate; market distortions caused by 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); 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, NGL and natural gas and resulting changes in pricing conditions or transportation throughput requirements; maintenance of our credit rating and ability to receive open credit from our suppliers and trade counterparties; the occurrence of a natural disaster, catastrophe, terrorist attack (including eco-terrorist attacks) or other event, including cyber or other 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; 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; 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 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; 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 effectiveness of our risk management activities; 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; 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, 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 and natural gas. 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 more than 6 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 Ended
June 30,

 

Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

REVENUES

$

8,253

 

 

$

8,080

 

 

$

16,628

 

 

$

16,478

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

Purchases and related costs

7,244

 

 

7,551

 

 

14,362

 

 

15,070

 

Field operating costs

340

 

 

312

 

 

667

 

 

605

 

General and administrative expenses

75

 

 

80

 

 

151

 

 

159

 

Depreciation and amortization (1)

147

 

 

130

 

 

283

 

 

256

 

(Gains)/losses on asset sales and asset impairments, net (1)

(4

)

 

(81

)

 

 

 

(81

)

Total costs and expenses

7,802

 

 

7,992

 

 

15,463

 

 

16,009

 

 

 

 

 

 

 

 

 

OPERATING INCOME

451

 

 

88

 

 

1,165

 

 

469

 

 

 

 

 

 

 

 

 

OTHER INCOME/(EXPENSE)

 

 

 

 

 

 

 

Equity earnings in unconsolidated entities

83

 

 

96

 

 

172

 

 

171

 

Gain on investment in unconsolidated entities

 

 

 

 

267

 

 

 

Interest expense, net

(103

)

 

(111

)

 

(203

)

 

(217

)

Other income/(expense), net

(6

)

 

11

 

 

18

 

 

10

 

 

 

 

 

 

 

 

 

INCOME BEFORE TAX

425

 

 

84

 

 

1,419

 

 

433

 

Current income tax expense

(24

)

 

(7

)

 

(53

)

 

(20

)

Deferred income tax (expense)/benefit

47

 

 

23

 

 

52

 

 

(25

)

 

 

 

 

 

 

 

 

NET INCOME

448

 

 

100

 

 

1,418

 

 

388

 

Net income attributable to noncontrolling interests

(2

)

 

 

 

(2

)

 

 

NET INCOME ATTRIBUTABLE TO PAA

$

446

 

 

$

100

 

 

$

1,416

 

 

$

388

 

 

 

 

 

 

 

 

 

NET INCOME PER COMMON UNIT:

 

 

 

 

 

 

 

Net income allocated to common unitholders — Basic

$

395

 

 

$

50

 

 

$

1,311

 

 

$

286

 

Basic weighted average common units outstanding

727

 

 

725

 

 

727

 

 

725

 

Basic net income per common unit

$

0.54

 

 

$

0.07

 

 

$

1.80

 

 

$

0.39

 

 

 

 

 

 

 

 

 

Net income allocated to common unitholders — Diluted

$

433

 

 

$

50

 

 

$

1,389

 

 

$

286

 

Diluted weighted average common units outstanding

800

 

 

727

 

 

800

 

 

727

 

Diluted net income per common unit

$

0.54

 

 

$

0.07

 

 

$

1.74

 

 

$

0.39

 

_________________________________

(1)

Effective for the fourth quarter of 2018, we reclassified amounts related to gains and losses on asset sales and asset impairments from “Depreciation and amortization” to “(Gains)/losses on asset sales and asset impairments, net” on our Condensed Consolidated Statements of Operations.

NON-GAAP ADJUSTED RESULTS

(in millions, except per unit data)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Adjusted net income attributable to PAA

$

551

 

 

$

243

 

 

$

1,116

 

 

$

553

 

 

 

 

 

 

 

 

 

Diluted adjusted net income per common unit

$

0.67

 

 

$

0.27

 

 

$

1.36

 

 

$

0.62

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

$

784

 

 

$

506

 

 

$

1,646

 

 

$

1,098

 

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 
 

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(in millions)

 

 

June 30,
2019

 

December 31,
2018

ASSETS

 

 

 

Current assets

$

4,282

 

 

$

3,533

 

Property and equipment, net

15,141

 

 

14,787

 

Goodwill

2,537

 

 

2,521

 

Investments in unconsolidated entities

3,377

 

 

2,702

 

Linefill and base gas

922

 

 

916

 

Long-term operating lease right-of-use assets, net

469

 

 

 

Long-term inventory

152

 

 

136

 

Other long-term assets, net

877

 

 

916

 

Total assets

$

27,757

 

 

$

25,511

 

 

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

 

 

 

Current liabilities

$

4,294

 

 

$

3,456

 

Senior notes, net

8,945

 

 

8,941

 

Other long-term debt, net

231

 

 

202

 

Long-term operating lease liabilities

370

 

 

 

Other long-term liabilities and deferred credits

844

 

 

910

 

Total liabilities

14,684

 

 

13,509

 

 

 

 

 

Partners’ capital excluding noncontrolling interests

12,941

 

 

12,002

 

Noncontrolling interests

132

 

 

 

Total partners’ capital

13,073

 

 

12,002

 

Total liabilities and partners’ capital

$

27,757

 

 

$

25,511

 

DEBT CAPITALIZATION RATIOS

(in millions)

 

 

June 30,
2019

 

December 31,
2018

Short-term debt

$

470

 

 

$

66

 

Long-term debt

9,176

 

 

9,143

 

Total debt

$

9,646

 

 

$

9,209

 

 

 

 

 

Long-term debt

$

9,176

 

 

$

9,143

 

Partners’ capital

13,073

 

 

12,002

 

Total book capitalization

$

22,249

 

 

$

21,145

 

Total book capitalization, including short-term debt

$

22,719

 

 

$

21,211

 

 

 

 

 

Long-term debt-to-total book capitalization

41

%

 

43

%

Total debt-to-total book capitalization, including short-term debt

42

%

 

43

%

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 
 

COMPUTATION OF BASIC AND DILUTED NET INCOME PER COMMON UNIT (1)

(in millions, except per unit data)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Basic Net Income per Common Unit

 

 

 

 

 

 

 

Net income attributable to PAA

$

446

 

 

$

100

 

 

$

1,416

 

 

$

388

 

Distributions to Series A preferred unitholders

(37

)

 

(37

)

 

(74

)

 

(74

)

Distributions to Series B preferred unitholders

(12

)

 

(12

)

 

(25

)

 

(25

)

Other

(2

)

 

(1

)

 

(6

)

 

(3

)

Net income allocated to common unitholders

$

395

 

 

$

50

 

 

$

1,311

 

 

$

286

 

 

 

 

 

 

 

 

 

Basic weighted average common units outstanding

727

 

 

725

 

 

727

 

 

725

 

 

 

 

 

 

 

 

 

Basic net income per common unit

$

0.54

 

 

$

0.07

 

 

$

1.80

 

 

$

0.39

 

 

 

 

 

 

 

 

 

Diluted Net Income per Common Unit

 

 

 

 

 

 

 

Net income attributable to PAA

$

446

 

 

$

100

 

 

$

1,416

 

 

$

388

 

Distributions to Series A preferred unitholders

 

 

(37

)

 

 

 

(74

)

Distributions to Series B preferred unitholders

(12

)

 

(12

)

 

(25

)

 

(25

)

Other

(1

)

 

(1

)

 

(2

)

 

(3

)

Net income allocated to common unitholders

$

433

 

 

$

50

 

 

$

1,389

 

 

$

286

 

 

 

 

 

 

 

 

 

Basic weighted average common units outstanding

727

 

 

725

 

 

727

 

 

725

 

Effect of dilutive securities:

 

 

 

 

 

 

 

Series A preferred units (2)

71

 

 

 

 

71

 

 

 

Equity-indexed compensation plan awards (3)

2

 

 

2

 

 

2

 

 

2

 

Diluted weighted average common units outstanding

800

 

 

727

 

 

800

 

 

727

 

 

 

 

 

 

 

 

 

Diluted net income per common unit

$

0.54

 

 

$

0.07

 

 

$

1.74

 

 

$

0.39

 

_________________________________

(1)

We calculate net income allocated to common unitholders based on the distributions pertaining to the current period’s net income (whether paid in cash or in-kind). After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to 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.

(2)

The possible conversion of our Series A preferred units was excluded from the calculation of diluted net income per common unit for the three and six months ended June 30, 2018 as the effect was antidilutive.

(3)

Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 
 

SELECTED ITEMS IMPACTING COMPARABILITY

(in millions)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Selected Items Impacting Comparability: (1)

 

 

 

 

 

 

 

Gains/(losses) from derivative activities, net of inventory valuation adjustments (2)

$

(51

)

 

$

(232

)

 

$

45

 

 

$

(211

)

Long-term inventory costing adjustments (3)

(25

)

 

(5

)

 

(4

)

 

7

 

Deficiencies under minimum volume commitments, net (4)

(1

)

 

(3

)

 

7

 

 

(13

)

Equity-indexed compensation expense (5)

(4

)

 

(12

)

 

(7

)

 

(23

)

Net gain/(loss) on foreign currency revaluation (6)

(8

)

 

4

 

 

(12

)

 

(4

)

Line 901 incident (7)

(10

)

 

 

 

(10

)

 

 

Selected items impacting comparability - Adjusted EBITDA

$

(99

)

 

$

(248

)

 

$

19

 

 

$

(244

)

Gains/(losses) from derivative activities (2)

(1

)

 

 

 

(1

)

 

3

 

Gain on investment in unconsolidated entities (8)

 

 

 

 

267

 

 

 

Gains/(losses) on asset sales and asset impairments, net

4

 

 

81

 

 

 

 

81

 

Tax effect on selected items impacting comparability

(9

)

 

24

 

 

15

 

 

(5

)

Selected items impacting comparability - Adjusted net income attributable to PAA

$

(105

)

 

$

(143

)

 

$

300

 

 

$

(165

)

_________________________________

(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)

In January 2019, the owners of the Capline pipeline system contributed their undivided joint interests in the Capline pipeline system for equity interests in Capline Pipeline Company LLC (“Capline LLC”). This transaction resulted in a loss of control of our undivided joint interest, which was derecognized and contributed to Capline LLC. This loss of control required us to measure our equity interest in Capline LLC at fair value. The resulting gain was classified as a selected item impacting comparability.

 

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 Ended
June 30,

 

Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Basic Adjusted Net Income per Common Unit

 

 

 

 

 

 

 

Net income attributable to PAA

$

446

 

 

$

100

 

 

$

1,416

 

 

$

388

 

Selected items impacting comparability - Adjusted net income attributable to PAA (2)

105

 

 

143

 

 

(300

)

 

165

 

Adjusted net income attributable to PAA

$

551

 

 

$

243

 

 

$

1,116

 

 

$

553

 

Distributions to Series A preferred unitholders

(37

)

 

(37

)

 

(74

)

 

(74

)

Distributions to Series B preferred unitholders

(12

)

 

(12

)

 

(25

)

 

(25

)

Other

(2

)

 

(1

)

 

(3

)

 

(3

)

Adjusted net income allocated to common unitholders

$

500

 

 

$

193

 

 

$

1,014

 

 

$

451

 

 

 

 

 

 

 

 

 

Basic weighted average common units outstanding

727

 

 

725

 

 

727

 

 

725

 

 

 

 

 

 

 

 

 

Basic adjusted net income per common unit

$

0.69

 

 

$

0.27

 

 

$

1.39

 

 

$

0.62

 

 

 

 

 

 

 

 

 

Diluted Adjusted Net Income per Common Unit

 

 

 

 

 

 

 

Net income attributable to PAA

$

446

 

 

$

100

 

 

$

1,416

 

 

$

388

 

Selected items impacting comparability - Adjusted net income attributable to PAA (2)

105

 

 

143

 

 

(300

)

 

165

 

Adjusted net income attributable to PAA

$

551

 

 

$

243

 

 

$

1,116

 

 

$

553

 

Distributions to Series A preferred unitholders

 

 

(37

)

 

 

 

(74

)

Distributions to Series B preferred unitholders

(12

)

 

(12

)

 

(25

)

 

(25

)

Other

(1

)

 

(1

)

 

(2

)

 

(3

)

Adjusted net income allocated to common unitholders

$

538

 

 

$

193

 

 

$

1,089

 

 

$

451

 

 

 

 

 

 

 

 

 

Basic weighted average common units outstanding

727

 

 

725

 

 

727

 

 

725

 

Effect of dilutive securities:

 

 

 

 

 

 

 

Series A preferred units (3)

71

 

 

 

 

71

 

 

 

Equity-indexed compensation plan awards (4)

2

 

 

2

 

 

2

 

 

2

 

Diluted weighted average common units outstanding

800

 

 

727

 

 

800

 

 

727

 

 

 

 

 

 

 

 

 

Diluted adjusted net income per common unit

$

0.67

 

 

$

0.27

 

 

$

1.36

 

 

$

0.62

 

_________________________________

(1)

We calculate adjusted net income allocated to common unitholders based on the distributions pertaining to the current period’s net income (whether paid in cash or in-kind). After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the 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.

(2)

Certain of our non-GAAP financial measures may not be impacted by each of the selected items impacting comparability.

(3)

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 six months ended June 30, 2018 as the effect was antidilutive.

(4)

Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 
 

NON-GAAP RECONCILIATIONS

 

Net Income Per Common Unit to Adjusted Net Income Per Common Unit Reconciliations:

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Basic net income per common unit

$

0.54

 

 

$

0.07

 

 

$

1.80

 

 

$

0.39

 

Selected items impacting comparability per common unit (1)

0.15

 

 

0.20

 

 

(0.41

)

 

0.23

 

Basic adjusted net income per common unit

$

0.69

 

 

$

0.27

 

 

$

1.39

 

 

$

0.62

 

 

 

 

 

 

 

 

 

Diluted net income per common unit

$

0.54

 

 

$

0.07

 

 

$

1.74

 

 

$

0.39

 

Selected items impacting comparability per common unit (1)

0.13

 

 

0.20

 

 

(0.38

)

 

0.23

 

Diluted adjusted net income per common unit

$

0.67

 

 

$

0.27

 

 

$

1.36

 

 

$

0.62

 

_________________________________

(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 Ended
December 31,

 

2018

 

2017

Diluted net income per common unit

$

2.71

 

 

$

0.95

 

Selected items impacting comparability per common unit

(0.83

)

 

0.15

 

Diluted adjusted net income per common unit

$

1.88

 

 

$

1.10

 

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 
 

NON-GAAP RECONCILIATIONS (continued)

(in millions, except per unit and ratio data)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Net Income to Adjusted EBITDA and Implied DCF Reconciliation

 

 

 

 

 

 

 

Net Income

$

448

 

 

$

100

 

 

$

1,418

 

 

$

388

 

Interest expense, net

103

 

 

111

 

 

203

 

 

217

 

Income tax expense/(benefit)

(23

)

 

(16

)

 

1

 

 

45

 

Depreciation and amortization

147

 

 

130

 

 

283

 

 

256

 

(Gains)/losses on asset sales and asset impairments, net

(4

)

 

(81

)

 

 

 

(81

)

Gain on investment in unconsolidated entities

 

 

 

 

(267

)

 

 

Depreciation and amortization of unconsolidated entities (1)

14

 

 

14

 

 

27

 

 

29

 

Selected items impacting comparability - Adjusted EBITDA (2)

99

 

 

248

 

 

(19

)

 

244

 

Adjusted EBITDA

$

784

 

 

$

506

 

 

$

1,646

 

 

$

1,098

 

Interest expense, net of certain non-cash items (3)

(98

)

 

(107

)

 

(194

)

 

(212

)

Maintenance capital

(72

)

 

(63

)

 

(118

)

 

(108

)

Current income tax expense

(24

)

 

(7

)

 

(53

)

 

(20

)

Adjusted equity earnings in unconsolidated entities, net of distributions (4)

 

 

1

 

 

1

 

 

15

 

Implied DCF

$

590

 

 

$

330

 

 

$

1,282

 

 

$

773

 

Preferred unit distributions paid (5)

(62

)

 

(62

)

 

(99

)

 

(62

)

Implied DCF Available to Common Unitholders

$

528

 

 

$

268

 

 

$

1,183

 

 

$

711

 

 

 

 

 

 

 

 

 

Weighted Average Common Units Outstanding

727

 

 

725

 

 

727

 

 

725

 

Weighted Average Common Units and Common Equivalent Units

798

 

 

796

 

 

798

 

 

796

 

 

 

 

 

 

 

 

 

Implied DCF per Common Unit (6)

$

0.73

 

 

$

0.37

 

 

$

1.63

 

 

$

0.98

 

Implied DCF per Common Unit and Common Equivalent Unit (7)

$

0.71

 

 

$

0.38

 

 

$

1.58

 

 

$

0.94

 

 

 

 

 

 

 

 

 

Cash Distribution Paid per Common Unit

$

0.36

 

 

$

0.30

 

 

$

0.66

 

 

$

0.60

 

Common Unit Cash Distributions (8)

$

262

 

 

$

218

 

 

$

480

 

 

$

435

 

Common Unit Distribution Coverage Ratio

2.02x

 

1.23x

 

2.46x

 

1.63x

 

 

 

 

 

 

 

 

Implied DCF Excess / (Shortage)

$

266

 

 

$

50

 

 

$

703

 

 

$

276

 

_________________________________

(1)

Adjustment to add back our proportionate share of depreciation and amortization expense of, and gains and losses on significant asset sales by, 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)

Comprised of cash distributions received from unconsolidated entities less equity earnings in unconsolidated entities (adjusted for our proportionate share of depreciation and amortization and gains and losses on significant asset sales).

(5)

Cash distributions paid to our preferred unitholders during the period presented. The current $0.5250 quarterly ($2.10 annualized) per unit distribution requirement of our Series A preferred units was paid-in-kind for each quarterly distribution from their issuance through February 2018. Distributions on our Series A preferred units have been paid in cash since the May 2018 quarterly distribution. The current $61.25 per unit annual distribution requirement of our Series B preferred units is payable semi-annually in arrears on May 15 and November 15.

(6)

Implied DCF Available to Common Unitholders for the period divided by the weighted average common units outstanding for the period.

(7)

Implied DCF Available to Common Unitholders for the period, adjusted for Series A preferred unit cash distributions paid (if any), divided by the weighted average common units and common equivalent units outstanding for the periods. Our Series A preferred units are convertible into common units, generally on a one-for-one basis and subject to customary anti-dilution adjustments, in whole or in part, subject to certain minimum conversion amounts.

(8)

Cash distributions paid during the period presented.

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 
 

NON-GAAP RECONCILIATIONS (continued)

(in millions, except per unit and ratio data)

 

 

Twelve Months Ended
December 31,

 

2018

 

2017

Net Income to Adjusted EBITDA and Implied DCF Reconciliation

 

 

 

Net Income

$

2,216

 

 

$

858

 

Interest expense, net

431

 

 

510

 

Income tax expense

198

 

 

44

 

Depreciation and amortization

520

 

 

517

 

(Gains)/losses on asset sales and asset impairments, net

(114

)

 

109

 

Gain on investment in unconsolidated entities

(200

)

 

 

Depreciation and amortization of unconsolidated entities (1)

56

 

 

45

 

Selected items impacting comparability - Adjusted EBITDA

(423

)

 

(1

)

Adjusted EBITDA

$

2,684

 

 

$

2,082

 

Interest expense, net of certain non-cash items (2)

(419

)

 

(483

)

Maintenance capital

(252

)

 

(247

)

Current income tax expense

(66

)

 

(28

)

Adjusted equity earnings in unconsolidated entities, net of distributions (3)

1

 

 

(10

)

Distributions to noncontrolling interests (4)

 

 

(2

)

Implied DCF

$

1,948

 

 

$

1,312

 

Preferred unit distributions paid (5)

(161

)

 

(5

)

Implied DCF Available to Common Unitholders

$

1,787

 

 

$

1,307

 

 

 

 

 

Weighted Average Common Units Outstanding

726

 

717

Weighted Average Common Units and Common Equivalent Units

797

 

784

 

 

 

 

Implied DCF per Common Unit (6)

$

2.46

 

 

$

1.82

 

Implied DCF per Common Unit and Common Equivalent Unit (7)

$

2.38

 

 

$

1.67

 

 

 

 

 

Cash Distribution Paid per Common Unit

$

1.20

 

 

$

1.95

 

Common Unit Cash Distributions (4)

$

871

 

 

$

1,386

 

Common Unit Distribution Coverage Ratio

2.05x

 

0.94x

 

 

 

 

Implied DCF Excess / (Shortage)

$

916

 

 

$

(79

)

_________________________________

(1)

Adjustment to add back our proportionate share of depreciation and amortization expense of, and gains and losses on significant asset sales by, unconsolidated entities.

(2)

Excludes certain non-cash items impacting interest expense such as amortization of debt issuance costs and terminated interest rate swaps.

(3)

Comprised of cash distributions received from unconsolidated entities less equity earnings in unconsolidated entities (adjusted for our proportionate share of depreciation and amortization and gains and losses on significant asset sales).

(4)

Cash distributions paid during the period presented.

(5)

Cash distributions paid to our preferred unitholders during the period presented. The $0.5250 quarterly ($2.10 annualized) per unit distribution requirement of our Series A preferred units was paid-in-kind for each quarterly distribution through February 2018. Distributions on our Series A preferred units have been paid in cash since the May 2018 quarterly distribution. The $61.25 per unit annual distribution requirement of our Series B preferred units is payable semi-annually in arrears on May 15 and November 15. A pro-rated initial distribution on the Series B preferred units was paid on November 15, 2017.

(6)

Implied DCF Available to Common Unitholders for the period divided by the weighted average common units outstanding for the period.

(7)

Implied DCF Available to Common Unitholders for the period, adjusted for Series A preferred unit cash distributions paid (if any), divided by the weighted average common units and common equivalent units outstanding for the period. Our Series A preferred units are convertible into common units, generally on a one-for-one basis and subject to customary anti-dilution adjustments, in whole or in part, subject to certain minimum conversion amounts.

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 
 

NON-GAAP RECONCILIATIONS (continued)

 

Net Income Per Common Unit to Implied DCF Per Common Unit and Common Equivalent Unit Reconciliations:

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Basic net income per common unit

$

0.54

 

 

$

0.07

 

 

$

1.80

 

 

$

0.39

 

Reconciling items per common unit (1) (2)

0.19

 

 

0.30

 

 

(0.17

)

 

0.59

 

Implied DCF per common unit

$

0.73

 

 

$

0.37

 

 

$

1.63

 

 

$

0.98

 

 

 

 

 

 

 

 

 

Basic net income per common unit

$

0.54

 

 

$

0.07

 

 

$

1.80

 

 

$

0.39

 

Reconciling items per common unit and common equivalent unit (1) (3)

0.17

 

 

0.31

 

 

(0.22

)

 

0.55

 

Implied DCF per common unit and common equivalent unit

$

0.71

 

 

$

0.38

 

 

$

1.58

 

 

$

0.94

 

 

Twelve Months Ended
December 31,

 

2018

 

2017

Basic net income per common unit

$

2.77

 

 

$

0.96

 

Reconciling items per common unit (1) (4)

(0.31

)

 

0.86

 

Implied DCF per common unit

$

2.46

 

 

$

1.82

 

 

 

 

 

Basic net income per common unit

$

2.77

 

 

$

0.96

 

Reconciling items per common unit and common equivalent unit (1) (5)

(0.39

)

 

0.71

 

Implied DCF per common unit and common equivalent unit

$

2.38

 

 

$

1.67

 

_________________________________

(1)

Represents adjustments to Net Income to calculate Implied DCF Available to Common Unitholders. See the “Net Income to Adjusted EBITDA and Implied DCF Reconciliation” table for additional information.

(2)

Based on weighted average common units outstanding for the period of 727 million, 725 million, 727 million and 725 million, respectively.

(3)

Based on weighted average common units outstanding for the period, as well as weighted average Series A preferred units outstanding of 71 million for each of the periods presented.

(4)

Based on weighted average common units outstanding for the period of 726 million and 717 million, respectively.

(5)

Based on weighted average common units outstanding for the period, as well as weighted average Series A preferred units outstanding for the period of approximately 71 million and 67 million, respectively.

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 
 

SELECTED FINANCIAL DATA BY SEGMENT

(in millions)

 

 

Three Months Ended
June 30, 2019

 

 

Three Months Ended
June 30, 2018

 

Transportation

 

Facilities

 

Supply and
Logistics

 

 

Transportation

 

Facilities

 

Supply and
Logistics

Revenues (1)

$

559

 

 

$

291

 

 

$

7,915

 

 

 

$

475

 

 

$

284

 

 

$

7,781

 

Purchases and related costs (1)

(48

)

 

(4

)

 

(7,700

)

 

 

(46

)

 

(3

)

 

(7,959

)

Field operating costs (1) (2)

(186

)

 

(88

)

 

(70

)

 

 

(157

)

 

(92

)

 

(66

)

Segment general and administrative expenses (2) (3)

(27

)

 

(21

)

 

(27

)

 

 

(30

)

 

(21

)

 

(29

)

Equity earnings in unconsolidated entities

83

 

 

 

 

 

 

 

96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments: (4)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization of unconsolidated entities

14

 

 

 

 

 

 

 

14

 

 

 

 

 

(Gains)/losses from derivative activities, net of inventory valuation adjustments

2

 

 

(7

)

 

49

 

 

 

 

 

(1

)

 

241

 

Long-term inventory costing adjustments

 

 

 

 

25

 

 

 

 

 

 

 

5

 

Deficiencies under minimum volume commitments, net

1

 

 

 

 

 

 

 

1

 

 

2

 

 

 

Equity-indexed compensation expense

2

 

 

1

 

 

1

 

 

 

7

 

 

2

 

 

3

 

Net (gain)/loss on foreign currency revaluation

 

 

 

 

7

 

 

 

 

 

 

 

(2

)

Line 901 incident

10

 

 

 

 

 

 

 

 

 

 

 

 

Segment Adjusted EBITDA

$

410

 

 

$

172

 

 

$

200

 

 

 

$

360

 

 

$

171

 

 

$

(26

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Maintenance capital

$

39

 

 

$

30

 

 

$

3

 

 

 

$

32

 

 

$

26

 

 

$

5

 

_________________________________

(1)

Includes intersegment amounts.

(2)

Field operating costs and Segment general and administrative expenses include equity-indexed compensation expense.

(3)

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.

(4)

Represents adjustments utilized by our Chief Operating Decision Maker (“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

(in millions)

 

 

Six Months Ended
June 30, 2019

 

 

Six Months Ended
June 30, 2018

 

Transportation

 

Facilities

 

Supply and
Logistics

 

 

Transportation

 

Facilities

 

Supply and
Logistics

Revenues (1)

$

1,115

 

 

$

589

 

 

$

15,938

 

 

 

$

929

 

 

$

576

 

 

$

15,893

 

Purchases and related costs (1)

(100

)

 

(7

)

 

(15,262

)

 

 

(92

)

 

(8

)

 

(15,884

)

Field operating costs (1) (2)

(360

)

 

(175

)

 

(139

)

 

 

(304

)

 

(176

)

 

(131

)

Segment general and administrative expenses (2) (3)

(54

)

 

(41

)

 

(56

)

 

 

(58

)

 

(42

)

 

(59

)

Equity earnings in unconsolidated entities

172

 

 

 

 

 

 

 

171

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments: (4)

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization of unconsolidated entities

27

 

 

 

 

 

 

 

29

 

 

 

 

 

(Gains)/losses from derivative activities, net of inventory valuation adjustments

2

 

 

(11

)

 

(21

)

 

 

(1

)

 

(2

)

 

219

 

Long-term inventory costing adjustments

 

 

 

 

4

 

 

 

 

 

 

 

(7

)

Deficiencies under minimum volume commitments, net

(7

)

 

 

 

 

 

 

9

 

 

4

 

 

 

Equity-indexed compensation expense

4

 

 

1

 

 

2

 

 

 

12

 

 

5

 

 

6

 

Net loss on foreign currency revaluation

 

 

 

 

12

 

 

 

 

 

 

 

8

 

Line 901 incident

10

 

 

 

 

 

 

 

 

 

 

 

 

Segment Adjusted EBITDA

$

809

 

 

$

356

 

 

$

478

 

 

 

$

695

 

 

$

357

 

 

$

45

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Maintenance capital

$

67

 

 

$

46

 

 

$

5

 

 

 

$

61

 

 

$

41

 

 

$

6

 

_________________________________

(1)

Includes intersegment amounts.

(2)

Field operating costs and Segment general and administrative expenses include equity-indexed compensation expense.

(3)

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.

(4)

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)

 
 

OPERATING DATA BY SEGMENT (1)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Transportation segment (average daily volumes in thousands of barrels per day):

 

 

 

 

 

 

 

Tariff activities volumes

 

 

 

 

 

 

 

Crude oil pipelines (by region):

 

 

 

 

 

 

 

Permian Basin (2)

4,575

 

 

3,734

 

 

4,423

 

 

3,489

 

South Texas / Eagle Ford (2)

448

 

 

434

 

 

454

 

 

428

 

Central (2)

525

 

 

448

 

 

517

 

 

445

 

Gulf Coast

147

 

 

170

 

 

152

 

 

187

 

Rocky Mountain (2)

313

 

 

270

 

 

307

 

 

263

 

Western

195

 

 

181

 

 

188

 

 

177

 

Canada

319

 

 

298

 

 

321

 

 

308

 

Crude oil pipelines

6,522

 

 

5,535

 

 

6,362

 

 

5,297

 

NGL pipelines

182

 

 

171

 

 

196

 

 

172

 

Tariff activities total volumes

6,704

 

 

5,706

 

 

6,558

 

 

5,469

 

Trucking volumes

83

 

 

91

 

 

88

 

 

95

 

Transportation segment total volumes

6,787

 

 

5,797

 

 

6,646

 

 

5,564

 

 

 

 

 

 

 

 

 

Facilities segment (average monthly volumes):

 

 

 

 

 

 

 

Liquids storage (average monthly capacity in millions of barrels)

109

 

 

109

 

 

109

 

 

109

 

Natural gas storage (average monthly working capacity in billions of cubic feet)

63

 

 

65

 

 

63

 

 

66

 

NGL fractionation (average volumes in thousands of barrels per day)

137

 

 

132

 

 

147

 

 

135

 

Facilities segment total volumes (average monthly volumes in millions of barrels) (3)

124

 

 

124

 

 

124

 

 

124

 

 

 

 

 

 

 

 

 

Supply and Logistics segment (average daily volumes in thousands of barrels per day):

 

 

 

 

 

 

 

Crude oil lease gathering purchases

1,102

 

 

1,028

 

 

1,115

 

 

1,030

 

NGL sales

158

 

 

174

 

 

242

 

 

266

 

Supply and Logistics segment total volumes

1,260

 

 

1,202

 

 

1,357

 

 

1,296

 

_________________________________

(1)

Average volumes are calculated as the total volumes (attributable to our interest) for the period 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) liquids storage capacity; (ii) 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 (iii) 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)

 
 

NON-GAAP SEGMENT RECONCILIATIONS

(in millions)

 

Fee-based Segment Adjusted EBITDA to Adjusted EBITDA Reconciliations:

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Transportation Segment Adjusted EBITDA

$

410

 

 

$

360

 

 

$

809

 

 

$

695

 

Facilities Segment Adjusted EBITDA

172

 

 

171

 

 

356

 

 

357

 

Fee-based Segment Adjusted EBITDA

$

582

 

 

$

531

 

 

$

1,165

 

 

$

1,052

 

Supply and Logistics Segment Adjusted EBITDA

200

 

 

(26

)

 

478

 

 

45

 

Adjusted other income/(expense), net (1)

2

 

 

1

 

 

3

 

 

1

 

Adjusted EBITDA (2)

$

784

 

 

$

506

 

 

$

1,646

 

 

$

1,098

 

 

Twelve Months Ended
December 31,

 

2018

 

2017

Transportation Segment Adjusted EBITDA

$

1,508

 

 

$

1,287

 

Facilities Segment Adjusted EBITDA

711

 

 

734

 

Fee-based Segment Adjusted EBITDA

$

2,219

 

 

$

2,021

 

Supply and Logistics Segment Adjusted EBITDA

462

 

 

60

 

Adjusted other income/(expense), net (3)

3

 

 

1

 

Adjusted EBITDA (2)

$

2,684

 

 

$

2,082

 

_________________________________

(1)

Represents “Other income/(expense), net” as reported on our Condensed Consolidated Statements of Operations, adjusted for selected items impacting comparability of $8 million, $(10) million, $(15) million and $(9) million for the three and six months ended June 30, 2019 and 2018, respectively. See the “Selected Items Impacting Comparability” table for additional information.

(2)

See the “Net Income to Adjusted EBITDA and Implied DCF Reconciliation” table for reconciliation to Net Income.

(3)

Represents “Other income/(expense), net” as reported on our Consolidated Statements of Operations, adjusted for selected items impacting comparability of $10 million and $32 million for the twelve months ended December 31, 2018 and 2017, respectively.

 

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 
 

NON-GAAP SEGMENT RECONCILIATIONS

(in millions)

 

Reconciliation of Segment Adjusted EBITDA to Segment Adjusted EBITDA further adjusted for impact of divested assets:

 

 

Three Months Ended
June 30, 2019

 

 

Three Months Ended
June 30, 2018

 

Transportation

 

Facilities

 

Supply and
Logistics

 

 

Transportation

 

Facilities

 

Supply and
Logistics

Segment Adjusted EBITDA

$

410

 

 

$

172

 

 

$

200

 

 

 

$

360

 

 

$

171

 

 

$

(26

)

Impact of divested assets (1)

 

 

 

 

 

 

 

(23

)

 

 

 

 

Segment Adjusted EBITDA further adjusted for impact of divested assets

$

410

 

 

$

172

 

 

$

200

 

 

 

$

337

 

 

$

171

 

 

$

(26

)

 

 

Six Months Ended
June 30, 2019

 

 

Six Months Ended
June 30, 2018

 

Transportation

 

Facilities

 

Supply and
Logistics

 

 

Transportation

 

Facilities

 

Supply and
Logistics

Segment Adjusted EBITDA

$

809

 

 

$

356

 

 

$

478

 

 

 

$

695

 

 

$

357

 

 

$

45

 

Impact of divested assets (1)

 

 

 

 

 

 

 

(42

)

 

(2

)

 

 

Segment Adjusted EBITDA further adjusted for impact of divested assets

$

809

 

 

$

356

 

 

$

478

 

 

 

$

653

 

 

$

355

 

 

$

45

 

_________________________________

(1)

Estimated impact of divestitures completed during 2018, assuming an effective date of January 1, 2018. Divested assets primarily included a 30% interest in BridgeTex Pipeline Company, LLC and certain pipelines in the Rocky Mountain region that were previously reported in our Transportation segment, as well as a natural gas processing facility that was previously reported in our Facilities segment.

 

PLAINS GP HOLDINGS AND SUBSIDIARIES

FINANCIAL SUMMARY (unaudited)

 
 

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

(in millions, except per share data)

 

 

Three Months Ended
June 30, 2019

 

 

Three Months Ended
June 30, 2018

 

 

 

Consolidating

 

 

 

 

 

 

Consolidating

 

 

 

PAA

 

Adjustments (1)

 

PAGP

 

 

PAA

 

Adjustments (1)

 

PAGP

REVENUES

$

8,253

 

 

$

 

 

$

8,253

 

 

 

$

8,080

 

 

$

 

 

$

8,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Purchases and related costs

7,244

 

 

 

 

7,244

 

 

 

7,551

 

 

 

 

7,551

 

Field operating costs

340

 

 

 

 

340

 

 

 

312

 

 

 

 

312

 

General and administrative expenses

75

 

 

1

 

 

76

 

 

 

80

 

 

1

 

 

81

 

Depreciation and amortization

147

 

 

1

 

 

148

 

 

 

130

 

 

1

 

 

131

 

(Gains)/losses on asset sales and asset impairments, net

(4

)

 

 

 

(4

)

 

 

(81

)

 

 

 

(81

)

Total costs and expenses

7,802

 

 

2

 

 

7,804

 

 

 

7,992

 

 

2

 

 

7,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

451

 

 

(2

)

 

449

 

 

 

88

 

 

(2

)

 

86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME/(EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

Equity earnings in unconsolidated entities

83

 

 

 

 

83

 

 

 

96

 

 

 

 

96

 

Interest expense, net

(103

)

 

 

 

(103

)

 

 

(111

)

 

 

 

(111

)

Other income/(expense), net

(6

)

 

 

 

(6

)

 

 

11

 

 

 

 

11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE TAX

425

 

 

(2

)

 

423

 

 

 

84

 

 

(2

)

 

82

 

Current income tax expense

(24

)

 

 

 

(24

)

 

 

(7

)

 

 

 

(7

)

Deferred income tax benefit

47

 

 

(20

)

 

27

 

 

 

23

 

 

(2

)

 

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

448

 

 

(22

)

 

426

 

 

 

100

 

 

(4

)

 

96

 

Net income attributable to noncontrolling interests

(2

)

 

(358

)

 

(360

)

 

 

 

 

(89

)

 

(89

)

NET INCOME ATTRIBUTABLE TO PAGP

$

446

 

 

$

(380

)

 

$

66

 

 

 

$

100

 

 

$

(93

)

 

$

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC NET INCOME PER CLASS A SHARE

 

$

0.41

 

 

 

 

 

 

 

$

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DILUTED NET INCOME PER CLASS A SHARE

 

$

0.40

 

 

 

 

 

 

 

$

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING

 

162

 

 

 

 

 

 

 

157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING

 

164

 

 

 

 

 

 

 

157

 

_________________________________

(1)

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

(in millions, except per share data)

 

 

Six Months Ended
June 30, 2019

 

 

Six Months Ended
June 30, 2018

 

 

 

Consolidating

 

 

 

 

 

 

Consolidating

 

 

 

PAA

 

Adjustments (1)

 

PAGP

 

 

PAA

 

Adjustments (1)

 

PAGP

REVENUES

$

16,628

 

 

$

 

 

$

16,628

 

 

 

$

16,478

 

 

$

 

 

$

16,478

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COSTS AND EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

Purchases and related costs

14,362

 

 

 

 

14,362

 

 

 

15,070

 

 

 

 

15,070

 

Field operating costs

667

 

 

 

 

667

 

 

 

605

 

 

 

 

605

 

General and administrative expenses

151

 

 

3

 

 

154

 

 

 

159

 

 

2

 

 

161

 

Depreciation and amortization

283

 

 

1

 

 

284

 

 

 

256

 

 

1

 

 

257

 

(Gains)/losses on asset sales and asset impairments, net

 

 

 

 

 

 

 

(81

)

 

 

 

(81

)

Total costs and expenses

15,463

 

 

4

 

 

15,467

 

 

 

16,009

 

 

3

 

 

16,012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING INCOME

1,165

 

 

(4

)

 

1,161

 

 

 

469

 

 

(3

)

 

466

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME/(EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

Equity earnings in unconsolidated entities

172

 

 

 

 

172

 

 

 

171

 

 

 

 

171

 

Gain on investment in unconsolidated entities

267

 

 

 

 

267

 

 

 

 

 

 

 

 

Interest expense, net

(203

)

 

 

 

(203

)

 

 

(217

)

 

 

 

(217

)

Other income, net

18

 

 

 

 

18

 

 

 

10

 

 

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE TAX

1,419

 

 

(4

)

 

1,415

 

 

 

433

 

 

(3

)

 

430

 

Current income tax expense

(53

)

 

 

 

(53

)

 

 

(20

)

 

 

 

(20

)

Deferred income tax (expense)/benefit

52

 

 

(74

)

 

(22

)

 

 

(25

)

 

(16

)

 

(41

)

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

1,418

 

 

(78

)

 

1,340

 

 

 

388

 

 

(19

)

 

369

 

Net income attributable to noncontrolling interests

(2

)

 

(1,125

)

 

(1,127

)

 

 

 

 

(325

)

 

(325

)

NET INCOME ATTRIBUTABLE TO PAGP

$

1,416

 

 

$

(1,203

)

 

$

213

 

 

 

$

388

 

 

$

(344

)

 

$

44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC NET INCOME PER CLASS A SHARE

 

$

1.32

 

 

 

 

 

 

 

$

0.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DILUTED NET INCOME PER CLASS A SHARE

 

$

1.32

 

 

 

 

 

 

 

$

0.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING

 

161

 

 

 

 

 

 

 

157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING

 

161

 

 

 

 

 

 

 

157

 

_________________________________

(1)

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)

 

 

June 30, 2019

 

 

December 31, 2018

 

 

 

Consolidating

 

 

 

 

 

 

Consolidating

 

 

 

PAA

 

Adjustments (1)

 

PAGP

 

 

PAA

 

Adjustments (1)

 

PAGP

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

$

4,282

 

 

$

9

 

 

$

4,291

 

 

 

$

3,533

 

 

$

3

 

 

$

3,536

 

Property and equipment, net

15,141

 

 

13

 

 

15,154

 

 

 

14,787

 

 

15

 

 

14,802

 

Goodwill

2,537

 

 

 

 

2,537

 

 

 

2,521

 

 

 

 

2,521

 

Investments in unconsolidated entities

3,377

 

 

 

 

3,377

 

 

 

2,702

 

 

 

 

2,702

 

Deferred tax asset

 

 

1,256

 

 

1,256

 

 

 

 

 

1,304

 

 

1,304

 

Linefill and base gas

922

 

 

 

 

922

 

 

 

916

 

 

 

 

916

 

Long-term operating lease right-of-use assets, net

469

 

 

 

 

469

 

 

 

 

 

 

 

 

Long-term inventory

152

 

 

 

 

152

 

 

 

136

 

 

 

 

136

 

Other long-term assets, net

877

 

 

(2

)

 

875

 

 

 

916

 

 

(3

)

 

913

 

Total assets

$

27,757

 

 

$

1,276

 

 

$

29,033

 

 

 

$

25,511

 

 

$

1,319

 

 

$

26,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND PARTNERS’ CAPITAL

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

$

4,294

 

 

$

7

 

 

$

4,301

 

 

 

$

3,456

 

 

$

2

 

 

$

3,458

 

Senior notes, net

8,945

 

 

 

 

8,945

 

 

 

8,941

 

 

 

 

8,941

 

Other long-term debt, net

231

 

 

 

 

231

 

 

 

202

 

 

 

 

202

 

Long-term operating lease liabilities

370

 

 

 

 

370

 

 

 

 

 

 

 

 

Other long-term liabilities and deferred credits

844

 

 

 

 

844

 

 

 

910

 

 

 

 

910

 

Total liabilities

$

14,684

 

 

$

7

 

 

$

14,691

 

 

 

$

13,509

 

 

$

2

 

 

$

13,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Partners’ capital excluding noncontrolling interests

12,941

 

 

(10,905

)

 

2,036

 

 

 

12,002

 

 

(10,156

)

 

1,846

 

Noncontrolling interests

132

 

 

12,174

 

 

12,306

 

 

 

 

 

11,473

 

 

11,473

 

Total partners’ capital

13,073

 

 

1,269

 

 

14,342

 

 

 

12,002

 

 

1,317

 

 

13,319

 

Total liabilities and partners’ capital

$

27,757

 

 

$

1,276

 

 

$

29,033

 

 

 

$

25,511

 

 

$

1,319

 

 

$

26,830

 

_________________________________

(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

(in millions, except per share data)

 

 

Three Months Ended
June 30,

 

Six Months Ended
June 30,

 

2019

 

2018

 

2019

 

2018

Basic Net Income per Class A Share

 

 

 

 

 

 

 

Net income attributable to PAGP

$

66

 

 

$

7

 

 

$

213

 

 

$

44

 

Basic weighted average Class A shares outstanding

162

 

 

157

 

 

161

 

 

157

 

 

 

 

 

 

 

 

 

Basic net income per Class A share

$

0.41

 

 

$

0.05

 

 

$

1.32

 

 

$

0.28

 

 

 

 

 

 

 

 

 

Diluted Net Income per Class A Share

 

 

 

 

 

 

 

Net income attributable to PAGP

$

66

 

 

$

7

 

 

$

213

 

 

$

44

 

Incremental net income attributable to PAGP resulting from assumed exchange of AAP Management Units

 

 

 

 

 

 

 

Net income attributable to PAGP including incremental net income from assumed exchange of AAP Management Units

$

66

 

 

$

7

 

 

$

213

 

 

$

44

 

 

 

 

 

 

 

 

 

Basic weighted average Class A shares outstanding

162

 

 

157

 

 

161

 

 

157

 

Dilutive shares resulting from assumed exchange of AAP Management Units

2

 

 

 

 

 

 

 

Diluted weighted average Class A shares outstanding

164

 

 

157

 

 

161

 

 

157

 

 

 

 

 

 

 

 

 

Diluted net income per Class A share (1)

$

0.40

 

 

$

0.05

 

 

$

1.32

 

 

$

0.28

 

_________________________________

(1)

For the three and six months ended June 30, 2019 and 2018, the possible exchange of any AAP units would have had an antidilutive effect on basic net income per Class A share. For the three months ended June 30, 2019, the possible exchange of AAP Management Units would have had a dilutive effect on basic net income per Class A share and for the six months ended June 30, 2019 and the three and six months ended June 30, 2018, the possible exchange of AAP Management units would not have had a dilutive effect on basic net income per Class A share.

 

Contacts

Plains All American Pipeline, L.P. and Plains GP Holdings
Roy Lamoreaux
Vice President, Investor Relations & Communications
(866) 809-1291

Brett Magill
Director, Investor Relations
(866) 809-1291

Contacts

Plains All American Pipeline, L.P. and Plains GP Holdings
Roy Lamoreaux
Vice President, Investor Relations & Communications
(866) 809-1291

Brett Magill
Director, Investor Relations
(866) 809-1291