Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP
Holdings (Nasdaq: PAGP) today reported second-quarter 2022 results
and provided the following updates:
- Second-quarter Net income attributable to PAA of $203 million
and Net cash provided by operating activities of $792 million
- Second-quarter Adjusted EBITDA attributable to PAA of $615
million and increased guidance for full-year 2022 Adjusted EBITDA
attributable to PAA by $100 million to +/- $2.375 billion
- Expect further deleveraging to achieve mid-point (4.0x) of
targeted leverage range by year-end 2022 (previously expected
year-end leverage of 4.25x)
- Increased 2022 Asset Sales target to +/- $200 million (+$100
million)
- Repurchased $49 million of common units during the quarter,
bringing year-to-date repurchases to $74 million, and total
repurchases since program inception to ~$300 million
- Completed $42 million (net to our interest, excludes customary
closing adjustments) Permian Basin bolt-on acquisition of the
remaining 50% ownership interest of the Advantage JV pipeline
“We delivered better than expected second-quarter results and
increased our full-year 2022 Adjusted EBITDA guidance by an
additional $100 million to plus or minus $2.375 billion, which is
$175 million above our initial February guidance, enabling us to
achieve the mid-point of our leverage target by year-end 2022, well
ahead of our original expectations,” stated Willie Chiang, Chairman
and CEO of Plains. “Our increased guidance is driven by higher
volumes and higher commodity prices in both our Crude Oil and NGL
segments. We are well positioned to capture growing
production, advance multiple optimization opportunities, and
generate significant Free Cash Flow over the next several years,
giving Plains increased financial flexibility and the ability to
enhance cash returned to unitholders.”
Plains All American Pipeline
Summary Financial Information (unaudited)(in
millions, except per unit data)
|
|
Three Months EndedJune 30, |
|
% |
|
|
Six Months EndedJune 30, |
|
% |
GAAP Results |
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
|
|
2022 |
|
|
|
2021 |
|
|
Change |
Net income/(loss) attributable to PAA |
|
$ |
203 |
|
|
$ |
(220 |
) |
|
** |
|
|
$ |
390 |
|
|
$ |
202 |
|
|
93 |
% |
Diluted net income/(loss) per
common unit |
|
$ |
0.22 |
|
|
$ |
(0.37 |
) |
|
** |
|
|
$ |
0.41 |
|
|
$ |
0.14 |
|
|
193 |
% |
Diluted weighted average common units outstanding |
|
|
702 |
|
|
|
720 |
|
|
(3 |
)% |
|
|
|
703 |
|
|
|
721 |
|
|
(2 |
)% |
Net cash provided by operating
activities |
|
$ |
792 |
|
|
$ |
235 |
|
|
237 |
% |
|
|
$ |
1,132 |
|
|
$ |
1,026 |
|
|
10 |
% |
Distribution per common unit
declared for the period |
|
$ |
0.2175 |
|
|
$ |
0.18 |
|
|
21 |
% |
|
|
$ |
0.4350 |
|
|
$ |
0.36 |
|
|
21 |
% |
|
|
Three Months EndedJune 30, |
|
% |
|
|
Six Months EndedJune 30, |
|
% |
Non-GAAP Results (1) |
|
|
2022 |
|
|
|
2021 |
|
|
Change |
|
|
|
2022 |
|
|
|
2021 |
|
|
Change |
Adjusted net income attributable to PAA |
|
$ |
260 |
|
|
$ |
213 |
|
|
22 |
% |
|
|
$ |
526 |
|
|
$ |
445 |
|
|
18 |
% |
Diluted adjusted net income
per common unit |
|
$ |
0.30 |
|
|
$ |
0.23 |
|
|
30 |
% |
|
|
$ |
0.60 |
|
|
$ |
0.48 |
|
|
25 |
% |
Adjusted EBITDA |
|
$ |
704 |
|
|
$ |
579 |
|
|
22 |
% |
|
|
$ |
1,394 |
|
|
$ |
1,125 |
|
|
24 |
% |
Adjusted EBITDA attributable
to PAA (2) |
|
$ |
615 |
|
|
$ |
575 |
|
|
7 |
% |
|
|
$ |
1,228 |
|
|
$ |
1,118 |
|
|
10 |
% |
Implied DCF per common unit
and common unit equivalent |
|
$ |
0.57 |
|
|
$ |
0.52 |
|
|
10 |
% |
|
|
$ |
1.13 |
|
|
$ |
1.03 |
|
|
10 |
% |
Free Cash Flow |
|
$ |
688 |
|
|
$ |
60 |
|
|
** |
|
|
$ |
888 |
|
|
$ |
738 |
|
|
20 |
% |
Free Cash Flow after
Distributions |
|
$ |
473 |
|
|
$ |
(132 |
) |
|
** |
|
|
$ |
509 |
|
|
$ |
379 |
|
|
34 |
% |
________________________** Indicates that variance
as a percentage is not meaningful.(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 our Non-GAAP financial measures,
including their reconciliation to the most directly comparable
measures as reported in accordance with GAAP, and certain selected
items that PAA believes impact comparability of financial results
between reporting periods.(2) Excludes amounts
attributable to noncontrolling interests in the Plains Oryx Permian
Basin LLC joint venture (the “Permian JV’) and Red River Pipeline
LLC.
Summary of Selected Financial Data by Segment
(unaudited)(in millions)
|
Segment Adjusted EBITDA (1)
(2) |
|
Crude Oil |
|
NGL |
Three Months Ended June 30, 2022 |
$ |
494 |
|
|
$ |
120 |
|
Three Months Ended June 30,
2021 |
$ |
553 |
|
|
$ |
21 |
|
Percentage change in
Segment Adjusted EBITDA versus 2021 period |
(11 |
)% |
|
|
471 |
% |
Percentage change in
Segment Adjusted EBITDA versus 2021 period further adjusted for
impact of divested assets (3) |
(8 |
)% |
|
|
471 |
% |
|
|
|
|
|
Segment Adjusted EBITDA (1)
(2) |
|
Crude Oil |
|
NGL |
Six Months Ended June 30,
2022 |
$ |
946 |
|
|
$ |
281 |
|
Six Months Ended June 30,
2021 |
$ |
1,027 |
|
|
$ |
90 |
|
Percentage change in
Segment Adjusted EBITDA versus 2021 period |
(8 |
)% |
|
|
212 |
% |
Percentage change in
Segment Adjusted EBITDA versus 2021 period further adjusted for
impact of divested assets (3) |
(3 |
)% |
|
|
212 |
% |
________________________(1) During the fourth
quarter of 2021, we modified our definition of Segment Adjusted
EBITDA to exclude amounts attributable to noncontrolling interests.
In connection with the Permian JV formation in October 2021, our
Chief Operating Decision Maker (“CODM”) determined this
modification resulted in amounts that were more meaningful to
evaluate segment performance. Amounts for prior periods have been
recast to reflect this modification.(2) During the
fourth quarter of 2021, we effected changes in the primary
financial information provided to our CODM (our Chief Executive
Officer) for assessing performance and allocating resources to
present two operating segments, Crude Oil and NGL. Prior to the
fourth quarter of 2021, this information was organized into three
operating segments: Transportation, Facilities and Supply and
Logistics. The change in our segments is reflective of a change in
how our CODM views our business and stems primarily from (i) a
multi-year transition in the midstream energy industry driven by
increased competition that has reduced the stand alone earnings
opportunities of our supply and logistics activities such that
those activities now primarily support our effort to increase the
utilization of our Crude Oil and NGL assets and (ii) internal
changes regarding the oversight and reporting of our assets and
related results of operations. All segment data and related
disclosures for earlier periods presented herein have been recast
to reflect the new segment reporting
structure.(3) Estimated impact of divestitures
completed during 2021, assuming an effective date of January 1,
2021. Divested assets primarily included natural gas storage
facilities previously included in our Crude Oil segment.
Second-quarter 2022 Crude Oil Segment Adjusted EBITDA decreased
11% versus comparable 2021 results primarily due to (i) the sale of
our natural gas storage facilities in August of 2021 and (ii) the
monetization of contango hedges that benefited the 2021 period.
These items were partially offset by increased earnings in the
second quarter of 2022 from higher tariff volumes on our pipelines
and higher loss allowance revenue.
Second-quarter 2022 NGL Segment Adjusted EBITDA increased 471%
versus comparable 2021 results primarily due to the favorable
impact of higher realized fractionation spreads between the price
of natural gas and the extracted NGL (“frac spreads”) and higher
NGL sales prices, partially offset by lower NGL sales volumes.
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 attached
hereto.
Conference Call
PAA and PAGP will hold a joint conference call at 4:30 p.m. CT
on Wednesday, August 3, 2022 to discuss the following items:
- PAA’s second-quarter 2022 performance;
- Capitalization and
liquidity; and
- Financial and operating
guidance.
Conference Call Webcast Instructions
To access the internet webcast, please go to
https://edge.media-server.com/mmc/p/5ttt3v92.
Alternatively, the webcast can be accessed on our website
(www.plains.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.
Slides will be posted prior to the call and a complete transcript
will be posted 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 and to assess the amount of cash that is
available for distributions, debt repayments, common equity
repurchases and other general partnership purposes. The primary
additional measures used by management are Adjusted EBITDA,
Adjusted EBITDA attributable to PAA, Implied distributable cash
flow (“DCF”), Free Cash Flow and Free Cash Flow after
Distributions.
Adjusted EBITDA is defined as earnings before interest, taxes,
depreciation and amortization (including our proportionate share of
depreciation and amortization, including write-downs related to
cancelled projects, of unconsolidated entities), gains and losses
on asset sales and asset impairments, goodwill impairment losses
and gains on and impairments of investments in unconsolidated
entities, adjusted for certain selected items impacting
comparability. Our definition and calculation of certain non-GAAP
financial measures may not be comparable to similarly-titled
measures of other companies. Adjusted EBITDA, Adjusted EBITDA
attributable to PAA, Implied DCF and certain other non-GAAP
financial performance measures are reconciled to Net Income, and
Free Cash Flow and Free Cash Flow after Distributions are
reconciled to Net Cash Provided by Operating Activities (the most
directly comparable measures 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
accompanying notes. In addition, we encourage you to visit our
website at www.plains.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. We do
not reconcile non-GAAP financial measures on a forward-looking
basis as it is impractical to do so without unreasonable
effort.
Performance Measures
Management believes that the presentation of Adjusted EBITDA,
Adjusted EBITDA attributable to PAA and Implied DCF 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 and
losses on derivative instruments that are related to underlying
activities in another period (or the reversal of such adjustments
from a prior period), gains and losses on derivatives that are
either related to investing activities (such as the purchase of
linefill) or purchases of long-term inventory, and inventory
valuation adjustments, as applicable, (iii) long-term inventory
costing adjustments, (iv) items that are not indicative of our core
operating results and/or (v) other items that we believe should be
excluded in understanding our core operating performance. These
measures may be further 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” in our Condensed Consolidated Financial Statements. We
also adjust for amounts billed by our equity method investees
related to deficiencies under minimum volume commitments. All 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, investment capital 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.
Liquidity Measures
Management also uses the non-GAAP financial measures Free Cash
Flow and Free Cash Flow after Distributions to assess the amount of
cash that is available for distributions, debt repayments, common
equity repurchases and other general partnership purposes. Free
Cash Flow is defined as Net Cash Provided by Operating Activities,
less Net Cash Used in Investing Activities, which primarily
includes acquisition, investment and maintenance capital
expenditures, investments in unconsolidated entities and the impact
from the purchase and sale of linefill and base gas, net of
proceeds from the sales of assets and further impacted by cash
received from or paid to noncontrolling interests. Free Cash Flow
is further reduced by cash distributions paid to our preferred and
common unitholders to arrive at Free Cash Flow after
Distributions.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(in millions, except per unit data)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
REVENUES |
$ |
16,359 |
|
|
$ |
9,930 |
|
|
$ |
30,053 |
|
|
$ |
18,313 |
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES |
|
|
|
|
|
|
|
Purchases and related
costs |
|
15,324 |
|
|
|
9,277 |
|
|
|
28,109 |
|
|
|
16,669 |
|
Field operating costs |
|
307 |
|
|
|
252 |
|
|
|
653 |
|
|
|
471 |
|
General and administrative
expenses |
|
78 |
|
|
|
72 |
|
|
|
160 |
|
|
|
139 |
|
Depreciation and
amortization |
|
242 |
|
|
|
196 |
|
|
|
473 |
|
|
|
374 |
|
(Gains)/losses on asset sales
and asset impairments, net |
|
(3 |
) |
|
|
369 |
|
|
|
(46 |
) |
|
|
370 |
|
Total costs and expenses |
|
15,948 |
|
|
|
10,166 |
|
|
|
29,349 |
|
|
|
18,023 |
|
|
|
|
|
|
|
|
|
OPERATING
INCOME/(LOSS) |
|
411 |
|
|
|
(236 |
) |
|
|
704 |
|
|
|
290 |
|
|
|
|
|
|
|
|
|
OTHER
INCOME/(EXPENSE) |
|
|
|
|
|
|
|
Equity earnings in
unconsolidated entities |
|
104 |
|
|
|
33 |
|
|
|
201 |
|
|
|
121 |
|
Interest expense, net |
|
(99 |
) |
|
|
(107 |
) |
|
|
(206 |
) |
|
|
(213 |
) |
Other income/(expense),
net |
|
(118 |
) |
|
|
84 |
|
|
|
(155 |
) |
|
|
23 |
|
|
|
|
|
|
|
|
|
INCOME/(LOSS) BEFORE
TAX |
|
298 |
|
|
|
(226 |
) |
|
|
544 |
|
|
|
221 |
|
Current income tax
expense |
|
(30 |
) |
|
|
(1 |
) |
|
|
(48 |
) |
|
|
(3 |
) |
Deferred income tax
(expense)/benefit |
|
(17 |
) |
|
|
11 |
|
|
|
(20 |
) |
|
|
(11 |
) |
|
|
|
|
|
|
|
|
NET
INCOME/(LOSS) |
|
251 |
|
|
|
(216 |
) |
|
|
476 |
|
|
|
207 |
|
Net income attributable to noncontrolling interests |
|
(48 |
) |
|
|
(4 |
) |
|
|
(86 |
) |
|
|
(5 |
) |
NET INCOME/(LOSS)
ATTRIBUTABLE TO PAA |
$ |
203 |
|
|
$ |
(220 |
) |
|
$ |
390 |
|
|
$ |
202 |
|
|
|
|
|
|
|
|
|
NET INCOME/(LOSS) PER
COMMON UNIT: |
|
|
|
|
|
|
|
Net income/(loss) allocated to common unitholders — Basic and
Diluted |
$ |
153 |
|
|
$ |
(269 |
) |
|
$ |
290 |
|
|
$ |
103 |
|
Basic and diluted weighted average common units outstanding |
|
702 |
|
|
|
720 |
|
|
|
703 |
|
|
|
721 |
|
Basic and diluted net income/(loss) per common unit |
$ |
0.22 |
|
|
$ |
(0.37 |
) |
|
$ |
0.41 |
|
|
$ |
0.14 |
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
CONDENSED CONSOLIDATED BALANCE SHEET DATA(in
millions)
|
June 30,2022 |
|
December 31,2021 |
ASSETS |
|
|
|
Current assets (including Cash and cash equivalents of $267 and
$449, respectively) |
$ |
6,661 |
|
|
$ |
6,137 |
|
Property and equipment,
net |
|
14,673 |
|
|
|
14,903 |
|
Investments in unconsolidated
entities |
|
3,773 |
|
|
|
3,805 |
|
Intangible assets, net |
|
1,839 |
|
|
|
1,960 |
|
Linefill |
|
931 |
|
|
|
907 |
|
Long-term operating lease
right-of-use assets, net |
|
365 |
|
|
|
393 |
|
Long-term inventory |
|
378 |
|
|
|
253 |
|
Other long-term assets,
net |
|
266 |
|
|
|
251 |
|
Total assets |
$ |
28,886 |
|
|
$ |
28,609 |
|
|
|
|
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
Current liabilities |
$ |
6,874 |
|
|
$ |
6,232 |
|
Senior notes, net |
|
7,933 |
|
|
|
8,329 |
|
Other long-term debt, net |
|
53 |
|
|
|
69 |
|
Long-term operating lease
liabilities |
|
316 |
|
|
|
339 |
|
Other long-term liabilities
and deferred credits |
|
991 |
|
|
|
830 |
|
Total liabilities |
|
16,167 |
|
|
|
15,799 |
|
|
|
|
|
Partners’ capital excluding
noncontrolling interests |
|
9,931 |
|
|
|
9,972 |
|
Noncontrolling interests |
|
2,788 |
|
|
|
2,838 |
|
Total partners’ capital |
|
12,719 |
|
|
|
12,810 |
|
Total liabilities and partners’ capital |
$ |
28,886 |
|
|
$ |
28,609 |
|
DEBT CAPITALIZATION RATIOS(in millions)
|
June 30,2022 |
|
December 31,2021 |
Short-term debt |
$ |
630 |
|
|
$ |
822 |
|
Long-term debt |
|
7,986 |
|
|
|
8,398 |
|
Total debt |
$ |
8,616 |
|
|
$ |
9,220 |
|
|
|
|
|
Long-term debt |
$ |
7,986 |
|
|
$ |
8,398 |
|
Partners’ capital excluding
noncontrolling interests |
|
9,931 |
|
|
|
9,972 |
|
Total book capitalization excluding noncontrolling interests
(“Total book capitalization”) |
$ |
17,917 |
|
|
$ |
18,370 |
|
Total book capitalization, including short-term debt |
$ |
18,547 |
|
|
$ |
19,192 |
|
|
|
|
|
Long-term debt-to-total book
capitalization |
|
45% |
|
|
|
46% |
|
Total debt-to-total book
capitalization, including short-term debt |
|
46% |
|
|
|
48% |
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
COMPUTATION OF BASIC AND DILUTED NET INCOME/(LOSS) PER
COMMON UNIT (1)(in millions, except per
unit data)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Basic and Diluted Net
Income/(Loss) per Common Unit |
|
|
|
|
|
|
|
Net income/(loss) attributable
to PAA |
$ |
203 |
|
|
$ |
(220 |
) |
|
$ |
390 |
|
|
$ |
202 |
|
Distributions to Series A preferred unitholders |
|
(37 |
) |
|
|
(37 |
) |
|
|
(74 |
) |
|
|
(74 |
) |
Distributions to Series B preferred unitholders |
|
(12 |
) |
|
|
(12 |
) |
|
|
(25 |
) |
|
|
(25 |
) |
Other |
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
Net income/(loss) allocated to
common unitholders |
$ |
153 |
|
|
$ |
(269 |
) |
|
$ |
290 |
|
|
$ |
103 |
|
|
|
|
|
|
|
|
|
Basic and diluted weighted
average common units outstanding (2) (3) |
|
702 |
|
|
|
720 |
|
|
|
703 |
|
|
|
721 |
|
|
|
|
|
|
|
|
|
Basic and diluted net
income/(loss) per common unit |
$ |
0.22 |
|
|
$ |
(0.37 |
) |
|
$ |
0.41 |
|
|
$ |
0.14 |
|
________________________(1) We calculate net
income/(loss) allocated to common unitholders based on the
distributions pertaining to the current period’s net income/(loss).
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/(loss) per common unit for the three and six months ended
June 30, 2022 and 2021 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. For the three and six months ended June 30,
2022 and 2021, the effect of equity-indexed compensation plan
awards was antidilutive, or did not change the presentation of
diluted weighted average common units outstanding or diluted net
income/(loss) per common unit.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
NON-GAAP RECONCILIATIONS
COMPUTATION OF BASIC AND DILUTED ADJUSTED NET INCOME PER
COMMON UNIT (1)(in millions, except per
unit data)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Basic and Diluted
Adjusted Net Income per Common Unit |
|
|
|
|
|
|
|
Net income attributable to
PAA |
$ |
203 |
|
|
$ |
(220 |
) |
|
$ |
390 |
|
|
$ |
202 |
|
Selected items impacting comparability - Adjusted net income
attributable to PAA (2) |
|
57 |
|
|
|
433 |
|
|
|
136 |
|
|
|
243 |
|
Adjusted net income
attributable to PAA |
$ |
260 |
|
|
$ |
213 |
|
|
$ |
526 |
|
|
$ |
445 |
|
Distributions to Series A preferred unitholders |
|
(37 |
) |
|
|
(37 |
) |
|
|
(74 |
) |
|
|
(74 |
) |
Distributions to Series B preferred unitholders |
|
(12 |
) |
|
|
(12 |
) |
|
|
(25 |
) |
|
|
(25 |
) |
Other |
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(1 |
) |
Adjusted net income allocated
to common unitholders |
$ |
210 |
|
|
$ |
163 |
|
|
$ |
425 |
|
|
$ |
345 |
|
|
|
|
|
|
|
|
|
Basic and diluted weighted
average common units outstanding (3) (4) |
|
702 |
|
|
|
720 |
|
|
|
703 |
|
|
|
721 |
|
|
|
|
|
|
|
|
|
Basic and diluted adjusted net
income per common unit |
$ |
0.30 |
|
|
$ |
0.23 |
|
|
$ |
0.60 |
|
|
$ |
0.48 |
|
________________________(1) We calculate
adjusted net income allocated to common unitholders based on the
distributions pertaining to the current period’s net income. After
adjusting for the appropriate period’s distributions, the remaining
undistributed earnings or excess distributions over earnings, 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. See the “Selected Items
Impacting Comparability” table for additional
information.(3) 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, 2022 and 2021 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. For the three and six months ended June 30,
2022 and 2021, the effect of equity-indexed compensation plan
awards was antidilutive, or did not change the presentation of
diluted weighted average common units outstanding or diluted
adjusted net income per common unit.
Net Income/(Loss) Per Common Unit to Adjusted Net Income
Per Common Unit Reconciliation:
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Basic and diluted net
income/(loss) per common unit |
$ |
0.22 |
|
|
$ |
(0.37 |
) |
|
$ |
0.41 |
|
|
$ |
0.14 |
|
Selected items impacting
comparability per common unit (1) |
|
0.08 |
|
|
|
0.60 |
|
|
|
0.19 |
|
|
|
0.34 |
|
Basic and diluted adjusted net
income per common unit |
$ |
0.30 |
|
|
$ |
0.23 |
|
|
$ |
0.60 |
|
|
$ |
0.48 |
|
________________________(1) See the “Selected
Items Impacting Comparability” and the “Computation of Basic and
Diluted Adjusted Net Income Per Common Unit” tables for additional
information.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
NON-GAAP RECONCILIATIONS (continued) (in
millions, except per unit and ratio data)
Net Income/(Loss) to Adjusted EBITDA attributable to PAA
and Implied DCF Reconciliation:
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net Income/(Loss) |
$ |
251 |
|
|
$ |
(216 |
) |
|
$ |
476 |
|
|
$ |
207 |
|
Interest expense, net |
|
99 |
|
|
|
107 |
|
|
|
206 |
|
|
|
213 |
|
Income tax expense |
|
47 |
|
|
|
(10 |
) |
|
|
68 |
|
|
|
14 |
|
Depreciation and amortization |
|
242 |
|
|
|
196 |
|
|
|
473 |
|
|
|
374 |
|
(Gains)/losses on asset sales and asset impairments, net |
|
(3 |
) |
|
|
369 |
|
|
|
(46 |
) |
|
|
370 |
|
Depreciation and amortization of unconsolidated entities (1) |
|
17 |
|
|
|
68 |
|
|
|
37 |
|
|
|
88 |
|
Selected items impacting comparability - Adjusted EBITDA (2) |
|
51 |
|
|
|
65 |
|
|
|
180 |
|
|
|
(141 |
) |
Adjusted EBITDA |
$ |
704 |
|
|
$ |
579 |
|
|
$ |
1,394 |
|
|
$ |
1,125 |
|
Adjusted EBITDA attributable to noncontrolling interests |
|
(89 |
) |
|
|
(4 |
) |
|
|
(166 |
) |
|
|
(7 |
) |
Adjusted EBITDA attributable
to PAA |
$ |
615 |
|
|
$ |
575 |
|
|
$ |
1,228 |
|
|
$ |
1,118 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
704 |
|
|
$ |
579 |
|
|
$ |
1,394 |
|
|
$ |
1,125 |
|
Interest expense, net of certain non-cash items (3) |
|
(97 |
) |
|
|
(101 |
) |
|
|
(199 |
) |
|
|
(202 |
) |
Maintenance capital |
|
(43 |
) |
|
|
(37 |
) |
|
|
(70 |
) |
|
|
(73 |
) |
Investment capital of noncontrolling interests (4) |
|
(15 |
) |
|
|
— |
|
|
|
(30 |
) |
|
|
— |
|
Current income tax expense |
|
(30 |
) |
|
|
(1 |
) |
|
|
(48 |
) |
|
|
(3 |
) |
Distributions from unconsolidated entities in excess of/(less than)
adjusted equity earnings (5) |
|
5 |
|
|
|
(5 |
) |
|
|
(26 |
) |
|
|
1 |
|
Distributions to noncontrolling interests (6) |
|
(62 |
) |
|
|
— |
|
|
|
(121 |
) |
|
|
(6 |
) |
Implied DCF |
$ |
462 |
|
|
$ |
435 |
|
|
$ |
900 |
|
|
$ |
842 |
|
Preferred unit distributions paid (6) |
|
(62 |
) |
|
|
(62 |
) |
|
|
(99 |
) |
|
|
(99 |
) |
Implied DCF Available to
Common Unitholders |
$ |
400 |
|
|
$ |
373 |
|
|
$ |
801 |
|
|
$ |
743 |
|
|
|
|
|
|
|
|
|
Weighted Average Common Units
Outstanding |
|
702 |
|
|
|
720 |
|
|
|
703 |
|
|
|
721 |
|
Weighted Average Common Units
and Common Unit Equivalents |
|
773 |
|
|
|
791 |
|
|
|
774 |
|
|
|
792 |
|
|
|
|
|
|
|
|
|
Implied DCF per Common Unit
(7) |
$ |
0.57 |
|
|
$ |
0.52 |
|
|
$ |
1.14 |
|
|
$ |
1.03 |
|
Implied DCF per Common Unit
and Common Unit Equivalent (8) |
$ |
0.57 |
|
|
$ |
0.52 |
|
|
$ |
1.13 |
|
|
$ |
1.03 |
|
|
|
|
|
|
|
|
|
Cash Distribution Paid per
Common Unit |
$ |
0.2175 |
|
|
$ |
0.18 |
|
|
$ |
0.3975 |
|
|
$ |
0.36 |
|
Common Unit Cash Distributions
(6) |
$ |
153 |
|
|
$ |
130 |
|
|
$ |
280 |
|
|
$ |
260 |
|
Common Unit Distribution
Coverage Ratio |
2.61x |
|
2.87x |
|
2.86x |
|
2.86x |
|
|
|
|
|
|
|
|
Implied DCF Excess |
$ |
247 |
|
|
$ |
243 |
|
|
$ |
521 |
|
|
$ |
483 |
|
________________________(1) Adjustment to
exclude our proportionate share of depreciation and amortization
expense (including write-downs related to cancelled projects) of
unconsolidated entities.(2) See the “Selected
Items Impacting Comparability” table for additional
information.(3) Excludes certain non-cash items
impacting interest expense such as amortization of debt issuance
costs and terminated interest rate
swaps.(4) Investment capital expenditures
attributable to noncontrolling interests that reduce Implied DCF
available to PAA common unitholders.(5) Comprised
of cash distributions received from unconsolidated entities less
equity earnings in unconsolidated entities (adjusted for our
proportionate share of depreciation and amortization, including
write-downs related to cancelled projects, and selected items
impacting comparability of unconsolidated
entities).(6) Cash distributions paid during the
period presented.(7) Implied DCF Available to
Common Unitholders for the period divided by the weighted average
common units outstanding for the
period.(8) Implied DCF Available to Common
Unitholders for the period, adjusted for Series A preferred unit
cash distributions paid, divided by the weighted average common
units and common unit equivalents 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
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
NON-GAAP RECONCILIATIONS (continued)
Net Income/(Loss) Per Common Unit to Implied DCF Per
Common Unit and Common Unit Equivalent Reconciliation:
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Basic net income/(loss) per
common unit |
$ |
0.22 |
|
|
$ |
(0.37 |
) |
|
$ |
0.41 |
|
|
$ |
0.14 |
|
Reconciling items per common
unit (1) (2) |
|
0.35 |
|
|
|
0.89 |
|
|
|
0.73 |
|
|
|
0.89 |
|
Implied DCF per common
unit |
$ |
0.57 |
|
|
$ |
0.52 |
|
|
$ |
1.14 |
|
|
$ |
1.03 |
|
|
|
|
|
|
|
|
|
Basic net income/(loss) per
common unit |
$ |
0.22 |
|
|
$ |
(0.37 |
) |
|
$ |
0.41 |
|
|
$ |
0.14 |
|
Reconciling items per common
unit and common unit equivalent (1) (3) |
|
0.35 |
|
|
|
0.89 |
|
|
|
0.72 |
|
|
|
0.89 |
|
Implied DCF per common unit
and common unit equivalent |
$ |
0.57 |
|
|
$ |
0.52 |
|
|
$ |
1.13 |
|
|
$ |
1.03 |
|
________________________(1) Represents
adjustments to Net Income/(Loss) to calculate Implied DCF Available
to Common Unitholders. See the “Net Income/(Loss) to Adjusted
EBITDA attributable to PAA and Implied DCF Reconciliation” table
for additional information.(2) Based on weighted
average common units outstanding for the period of 702 million, 720
million, 703 million and 721 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.
Free Cash Flow and Free Cash Flow after Distributions
Reconciliation (1):
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net cash provided by operating
activities |
$ |
792 |
|
|
$ |
235 |
|
|
$ |
1,132 |
|
|
$ |
1,026 |
|
Adjustments to reconcile net
cash provided by operating activities to free cash flow: |
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(42 |
) |
|
|
(175 |
) |
|
|
(123 |
) |
|
|
(283 |
) |
Cash contributions from noncontrolling interests |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
Cash distributions paid to noncontrolling interests (2) |
|
(62 |
) |
|
|
— |
|
|
|
(121 |
) |
|
|
(6 |
) |
Free Cash Flow |
$ |
688 |
|
|
$ |
60 |
|
|
$ |
888 |
|
|
$ |
738 |
|
Cash distributions (3) |
|
(215 |
) |
|
|
(192 |
) |
|
|
(379 |
) |
|
|
(359 |
) |
Free Cash Flow after
Distributions |
$ |
473 |
|
|
$ |
(132 |
) |
|
$ |
509 |
|
|
$ |
379 |
|
________________________(1) Management uses the
Non-GAAP financial liquidity measures Free Cash Flow and Free Cash
Flow after Distributions to assess the amount of cash that is
available for distributions, debt repayments, common equity
repurchases and other general partnership
purposes.(2) Cash distributions paid during the
period presented.(3) Cash distributions paid to
preferred and common unitholders during the period.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
SELECTED ITEMS IMPACTING COMPARABILITY(in
millions)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Selected Items
Impacting Comparability: (1) |
|
|
|
|
|
|
|
Gains/(losses) from derivative
activities and inventory valuation adjustments (2) |
$ |
(28 |
) |
|
$ |
(86 |
) |
|
$ |
(160 |
) |
|
$ |
44 |
|
Long-term inventory costing
adjustments (3) |
|
13 |
|
|
|
27 |
|
|
|
105 |
|
|
|
68 |
|
Deficiencies under minimum
volume commitments, net (4) |
|
(10 |
) |
|
|
(6 |
) |
|
|
(15 |
) |
|
|
26 |
|
Equity-indexed compensation
expense (5) |
|
(7 |
) |
|
|
(4 |
) |
|
|
(15 |
) |
|
|
(9 |
) |
Net gain/(loss) on foreign
currency revaluation (6) |
|
(19 |
) |
|
|
7 |
|
|
|
(10 |
) |
|
|
15 |
|
Line 901 incident (7) |
|
— |
|
|
|
— |
|
|
|
(85 |
) |
|
|
— |
|
Significant
transaction-related expenses (8) |
|
— |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
Selected items impacting comparability - Adjusted EBITDA |
$ |
(51 |
) |
|
$ |
(65 |
) |
|
$ |
(180 |
) |
|
$ |
141 |
|
Gains from derivative
activities |
|
4 |
|
|
|
— |
|
|
|
4 |
|
|
|
— |
|
Gains/(losses) on asset sales
and asset impairments, net |
|
3 |
|
|
|
(369 |
) |
|
|
46 |
|
|
|
(370 |
) |
Tax effect on selected items
impacting comparability |
|
(13 |
) |
|
|
1 |
|
|
|
(6 |
) |
|
|
(14 |
) |
Selected items impacting comparability - Adjusted net income
attributable to PAA |
$ |
(57 |
) |
|
$ |
(433 |
) |
|
$ |
(136 |
) |
|
$ |
(243 |
) |
________________________(1) Certain of our
non-GAAP financial measures may not be impacted by each of the
selected items impacting comparability. See the “Net Income to
Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation”
and “Computation of Basic and Diluted Adjusted Net Income Per
Common Unit” table for additional details on how these selected
items impacting comparability affect such
measures.(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 differences in the timing of earnings from
the derivative instruments and the underlying transactions and
exclude the related gains and losses in determining adjusted
results such that the earnings from the derivative instruments and
the underlying transactions impact adjusted results in the same
period. In addition, we exclude gains and losses on derivatives
that are related to (i) investing activities, such as the purchase
of linefill, and (ii) purchases of long-term inventory. We also
exclude the impact of corresponding inventory valuation
adjustments, as applicable.(3) We carry crude oil
and NGL inventory that is 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 write-downs of such inventory that result from price
declines as a selected item impacting
comparability.(4) We, and certain of our equity
method investments, 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 capital expenditure necessary to construct the related
asset. Some of these agreements include make-up rights if the
minimum volume is not met. We, or our equity method investees,
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, or our equity method
investees, 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 or equity earnings, 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 be
settled in units and awards that will be settled in cash. The
awards that will 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, as
applicable. The portion of compensation expense associated with
awards that will 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 the realization of
foreign exchange gains and losses on the settlement of foreign
currency transactions as well as the revaluation of monetary assets
and liabilities denominated in a foreign currency. These gains and
losses are not integral to our core operating performance and were
thus classified as a selected item impacting
comparability.(7) Includes costs recognized during
the period related to the Line 901 incident that occurred in May
2015, net of amounts we believe are probable of recovery from
insurance.(8) Includes expenses associated with
the Permian Basin joint venture transaction announced in July
2021.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
SELECTED FINANCIAL DATA BY SEGMENT(in
millions)
|
Three Months EndedJune 30,
2022 |
|
|
Three Months EndedJune 30,
2021 |
|
Crude Oil |
|
NGL |
|
|
Crude Oil |
|
NGL |
Revenues (1) |
$ |
15,940 |
|
|
$ |
570 |
|
|
|
$ |
9,779 |
|
|
$ |
230 |
|
Purchases and related costs
(1) |
|
(15,163 |
) |
|
|
(312 |
) |
|
|
|
(9,127 |
) |
|
|
(229 |
) |
Field operating costs (2) |
|
(233 |
) |
|
|
(74 |
) |
|
|
|
(203 |
) |
|
|
(49 |
) |
Segment general and
administrative expenses (2) (3) |
|
(59 |
) |
|
|
(19 |
) |
|
|
|
(54 |
) |
|
|
(18 |
) |
Equity earnings in
unconsolidated entities |
|
104 |
|
|
|
— |
|
|
|
|
33 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Adjustments: (4) |
|
|
|
|
|
|
|
|
Depreciation and amortization of unconsolidated entities |
|
17 |
|
|
|
— |
|
|
|
|
68 |
|
|
|
— |
|
(Gains)/losses from derivative activities and inventory valuation
adjustments |
|
(29 |
) |
|
|
(46 |
) |
|
|
|
76 |
|
|
|
87 |
|
Long-term inventory costing adjustments |
|
(13 |
) |
|
|
— |
|
|
|
|
(27 |
) |
|
|
— |
|
Deficiencies under minimum volume commitments, net |
|
10 |
|
|
|
— |
|
|
|
|
6 |
|
|
|
— |
|
Equity-indexed compensation expense |
|
7 |
|
|
|
— |
|
|
|
|
4 |
|
|
|
— |
|
Net (gain)/loss on foreign currency revaluation |
|
2 |
|
|
|
1 |
|
|
|
|
(1 |
) |
|
|
— |
|
Significant transaction-related expenses |
|
— |
|
|
|
— |
|
|
|
|
3 |
|
|
|
— |
|
Adjusted EBITDA attributable to noncontrolling interests (5) |
|
(89 |
) |
|
|
— |
|
|
|
|
(4 |
) |
|
|
— |
|
Segment Adjusted EBITDA
(6) |
$ |
494 |
|
|
$ |
120 |
|
|
|
$ |
553 |
|
|
$ |
21 |
|
|
|
|
|
|
|
|
|
|
Maintenance capital |
$ |
25 |
|
|
$ |
18 |
|
|
|
$ |
23 |
|
|
$ |
14 |
|
________________________(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.(5) Reflects amounts attributable to
noncontrolling interests in the Permian JV (beginning October 2021)
and Red River Pipeline LLC.(6) During the fourth
quarter of 2021, we modified our definition of Segment Adjusted
EBITDA to exclude amounts attributable to noncontrolling interests.
In connection with the Permian JV formation in October 2021, our
CODM determined this modification resulted in amounts that were
more meaningful to evaluate segment performance. Amounts
attributable to noncontrolling interests for periods prior have
been recast to reflect this modification.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
SELECTED FINANCIAL DATA BY SEGMENT(in
millions)
|
Six Months EndedJune 30,
2022 |
|
|
Six Months EndedJune 30,
2021 |
|
Crude Oil |
|
NGL |
|
|
Crude Oil |
|
NGL |
Revenues (1) |
$ |
29,019 |
|
|
$ |
1,304 |
|
|
|
$ |
17,632 |
|
|
$ |
869 |
|
Purchases and related costs
(1) |
|
(27,556 |
) |
|
|
(823 |
) |
|
|
|
(16,174 |
) |
|
|
(683 |
) |
Field operating costs (2) |
|
(515 |
) |
|
|
(138 |
) |
|
|
|
(368 |
) |
|
|
(103 |
) |
Segment general and
administrative expenses (2) (3) |
|
(122 |
) |
|
|
(38 |
) |
|
|
|
(104 |
) |
|
|
(35 |
) |
Equity earnings in
unconsolidated entities |
|
201 |
|
|
|
— |
|
|
|
|
121 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Adjustments: (4) |
|
|
|
|
|
|
|
|
Depreciation and amortization of unconsolidated entities |
|
37 |
|
|
|
— |
|
|
|
|
88 |
|
|
|
— |
|
(Gains)/losses from derivative activities and inventory valuation
adjustments |
|
30 |
|
|
|
(17 |
) |
|
|
|
(83 |
) |
|
|
48 |
|
Long-term inventory costing adjustments |
|
(98 |
) |
|
|
(7 |
) |
|
|
|
(62 |
) |
|
|
(6 |
) |
Deficiencies under minimum volume commitments, net |
|
15 |
|
|
|
— |
|
|
|
|
(26 |
) |
|
|
— |
|
Equity-indexed compensation expense |
|
15 |
|
|
|
— |
|
|
|
|
9 |
|
|
|
— |
|
Net (gain)/loss on foreign currency revaluation |
|
1 |
|
|
|
— |
|
|
|
|
(2 |
) |
|
|
— |
|
Line 901 incident |
|
85 |
|
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
Significant transaction-related expenses |
|
— |
|
|
|
— |
|
|
|
|
3 |
|
|
|
— |
|
Adjusted EBITDA attributable to noncontrolling interests (5) |
|
(166 |
) |
|
|
— |
|
|
|
|
(7 |
) |
|
|
— |
|
Segment Adjusted EBITDA
(6) |
$ |
946 |
|
|
$ |
281 |
|
|
|
$ |
1,027 |
|
|
$ |
90 |
|
|
|
|
|
|
|
|
|
|
Maintenance capital |
$ |
45 |
|
|
$ |
25 |
|
|
|
$ |
52 |
|
|
$ |
21 |
|
________________________(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.(5) Reflects amounts attributable to
noncontrolling interests in the Permian JV (beginning October 2021)
and Red River Pipeline LLC.(6) During the fourth
quarter of 2021, we modified our definition of Segment Adjusted
EBITDA to exclude amounts attributable to noncontrolling interests.
In connection with the Permian JV formation in October 2021, our
CODM determined this modification resulted in amounts that were
more meaningful to evaluate segment performance. Amounts
attributable to noncontrolling interests for periods prior have
been recast to reflect this modification.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
OPERATING DATA BY SEGMENT
(1)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Crude Oil Segment
Volumes |
|
|
|
|
|
|
|
|
|
|
|
Crude oil pipeline tariff volumes (by region) (1): |
|
|
|
|
|
|
|
|
|
|
|
Permian Basin (2) |
5,434 |
|
|
4,189 |
|
|
5,324 |
|
|
3,972 |
|
South Texas / Eagle Ford (2) |
338 |
|
|
314 |
|
|
352 |
|
|
317 |
|
Mid-Continent (2) |
483 |
|
|
467 |
|
|
478 |
|
|
420 |
|
Gulf Coast |
200 |
|
|
159 |
|
|
198 |
|
|
152 |
|
Rocky Mountain (2) |
353 |
|
|
327 |
|
|
350 |
|
|
307 |
|
Western |
284 |
|
|
256 |
|
|
259 |
|
|
246 |
|
Canada |
325 |
|
|
294 |
|
|
328 |
|
|
305 |
|
Crude oil pipeline tariff volumes (average volumes in thousands of
barrels per day) (1) (2) |
7,417 |
|
|
6,006 |
|
|
7,289 |
|
|
5,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial crude oil storage capacity (average monthly volumes in
millions of barrels) (2) (3) |
72 |
|
|
73 |
|
|
72 |
|
|
73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil lease gathering purchases (average volumes in thousands
of barrels per day) (1) |
1,368 |
|
|
1,352 |
|
|
1,364 |
|
|
1,264 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NGL Segment
Volumes |
|
|
|
|
|
|
|
|
|
|
|
NGL fractionation (average volumes in thousands of barrels per day)
(1) |
137 |
|
|
129 |
|
|
136 |
|
|
136 |
|
NGL pipeline tariff volumes (average volumes in thousands of
barrels per day) (1) |
187 |
|
|
181 |
|
|
182 |
|
|
182 |
|
NGL sales (average volumes in thousands of barrels per day)
(1) |
101 |
|
|
112 |
|
|
134 |
|
|
165 |
|
________________________(1) Average daily
volumes calculated as the total volumes (attributable to our
interest for pipelines owned by unconsolidated entities or
undivided joint interests) for the period divided by the number of
days in the period. 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) Includes volumes
(attributable to our interest) from assets owned by unconsolidated
entities.(3) Average monthly capacity calculated
as total volumes for the period divided by the number of months in
the period.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
NON-GAAP SEGMENT RECONCILIATIONS(in
millions)
Segment Adjusted EBITDA to Adjusted EBITDA attributable
to PAA Reconciliation:
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Crude Oil Segment Adjusted
EBITDA |
$ |
494 |
|
|
$ |
553 |
|
|
$ |
946 |
|
|
$ |
1,027 |
|
NGL Segment Adjusted
EBITDA |
|
120 |
|
|
|
21 |
|
|
|
281 |
|
|
|
90 |
|
Segment Adjusted EBITDA |
$ |
614 |
|
|
$ |
574 |
|
|
$ |
1,227 |
|
|
$ |
1,117 |
|
Adjusted other
income/(expense), net (1) |
|
1 |
|
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Adjusted EBITDA attributable
to PAA (2) |
$ |
615 |
|
|
$ |
575 |
|
|
$ |
1,228 |
|
|
$ |
1,118 |
|
________________________(1) Represents “Other
income/(expense), net” as reported on our Condensed Consolidated
Statements of Operations, adjusted for selected items impacting
comparability of $119 million and $(83) million for the three
months ended June 30, 2022 and 2021, respectively and $156 million
and $(22) million for the six months ended June 30, 2022 and 2021,
respectively. See the “Selected Items Impacting Comparability”
table for additional information. Adjusted other income/(expense),
net attributable to noncontrolling interests is less than $1
million for each of the periods presented.(2) See
the “Net Income/(Loss) to Adjusted EBITDA attributable to PAA and
Implied DCF Reconciliation” table for reconciliation to Net
Income.
Reconciliation of Segment Adjusted EBITDA to Segment
Adjusted EBITDA further adjusted for impact of divested
assets:
|
Three Months EndedJune 30,
2022 |
|
|
Three Months EndedJune 30,
2021 |
|
Crude Oil |
|
NGL |
|
|
Crude Oil |
|
NGL |
Segment Adjusted EBITDA |
$ |
494 |
|
|
$ |
120 |
|
|
|
$ |
553 |
|
|
$ |
21 |
|
Impact of divested assets
(1) |
|
— |
|
|
|
— |
|
|
|
|
(18 |
) |
|
|
— |
|
Segment Adjusted EBITDA
further adjusted for impact of divested assets |
$ |
494 |
|
|
$ |
120 |
|
|
|
$ |
535 |
|
|
$ |
21 |
|
|
Six Months EndedJune 30,
2022 |
|
|
Six Months EndedJune 30,
2021 |
|
Crude Oil |
|
NGL |
|
|
Crude Oil |
|
NGL |
Segment Adjusted EBITDA |
$ |
946 |
|
|
$ |
281 |
|
|
|
$ |
1,027 |
|
|
$ |
90 |
|
Impact of divested assets
(1) |
|
— |
|
|
|
— |
|
|
|
|
(53 |
) |
|
|
— |
|
Segment Adjusted EBITDA
further adjusted for impact of divested assets |
$ |
946 |
|
|
$ |
281 |
|
|
|
$ |
974 |
|
|
$ |
90 |
|
________________________(1) Estimated impact of
divestitures completed during 2021, assuming an effective date of
January 1, 2021. Divested assets primarily included natural gas
storage facilities previously included in our Crude Oil segment.
Note: The natural gas storage business captured one-time benefits
from Winter Storm Uri in the first quarter 2021.
PLAINS GP HOLDINGS AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
CONDENSED CONSOLIDATING STATEMENTS OF
OPERATIONS(in millions, except per share data)
|
Three Months EndedJune 30,
2022 |
|
|
Three Months EndedJune 30,
2021 |
|
|
|
Consolidating |
|
|
|
|
|
|
Consolidating |
|
|
|
PAA |
|
Adjustments (1) |
|
PAGP |
|
|
PAA |
|
Adjustments (1) |
|
PAGP |
REVENUES |
$ |
16,359 |
|
|
$ |
— |
|
|
$ |
16,359 |
|
|
|
$ |
9,930 |
|
|
$ |
— |
|
|
$ |
9,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases and related
costs |
|
15,324 |
|
|
|
— |
|
|
|
15,324 |
|
|
|
|
9,277 |
|
|
|
— |
|
|
|
9,277 |
|
Field operating costs |
|
307 |
|
|
|
— |
|
|
|
307 |
|
|
|
|
252 |
|
|
|
— |
|
|
|
252 |
|
General and administrative
expenses |
|
78 |
|
|
|
2 |
|
|
|
80 |
|
|
|
|
72 |
|
|
|
2 |
|
|
|
74 |
|
Depreciation and
amortization |
|
242 |
|
|
|
1 |
|
|
|
243 |
|
|
|
|
196 |
|
|
|
1 |
|
|
|
197 |
|
(Gains)/losses on asset sales
and asset impairments, net |
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
|
|
|
369 |
|
|
|
— |
|
|
|
369 |
|
Total costs and expenses |
|
15,948 |
|
|
|
3 |
|
|
|
15,951 |
|
|
|
|
10,166 |
|
|
|
3 |
|
|
|
10,169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME/(LOSS) |
|
411 |
|
|
|
(3 |
) |
|
|
408 |
|
|
|
|
(236 |
) |
|
|
(3 |
) |
|
|
(239 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME/(EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings in
unconsolidated entities |
|
104 |
|
|
|
— |
|
|
|
104 |
|
|
|
|
33 |
|
|
|
— |
|
|
|
33 |
|
Interest expense, net |
|
(99 |
) |
|
|
— |
|
|
|
(99 |
) |
|
|
|
(107 |
) |
|
|
— |
|
|
|
(107 |
) |
Other income/(expense),
net |
|
(118 |
) |
|
|
— |
|
|
|
(118 |
) |
|
|
|
84 |
|
|
|
— |
|
|
|
84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME/(LOSS) BEFORE
TAX |
|
298 |
|
|
|
(3 |
) |
|
|
295 |
|
|
|
|
(226 |
) |
|
|
(3 |
) |
|
|
(229 |
) |
Current income tax
expense |
|
(30 |
) |
|
|
— |
|
|
|
(30 |
) |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(1 |
) |
Deferred income tax
(expense)/benefit |
|
(17 |
) |
|
|
(9 |
) |
|
|
(26 |
) |
|
|
|
11 |
|
|
|
7 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME/(LOSS) |
|
251 |
|
|
|
(12 |
) |
|
|
239 |
|
|
|
|
(216 |
) |
|
|
4 |
|
|
|
(212 |
) |
Net (income)/loss attributable to noncontrolling interests |
|
(48 |
) |
|
|
(160 |
) |
|
|
(208 |
) |
|
|
|
(4 |
) |
|
|
147 |
|
|
|
143 |
|
NET INCOME/(LOSS)
ATTRIBUTABLE TO PAGP |
$ |
203 |
|
|
$ |
(172 |
) |
|
$ |
31 |
|
|
|
$ |
(220 |
) |
|
$ |
151 |
|
|
$ |
(69 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED WEIGHTED AVERAGE CLASS A SHARES
OUTSTANDING |
|
|
194 |
|
|
|
|
|
|
|
|
194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET INCOME/(LOSS) PER CLASS A
SHARE |
|
$ |
0.16 |
|
|
|
|
|
|
|
$ |
(0.35 |
) |
________________________(1) Represents the
aggregate consolidating adjustments necessary to produce
consolidated financial statements for PAGP.
PLAINS GP HOLDINGS AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
CONDENSED CONSOLIDATING STATEMENTS OF
OPERATIONS(in millions, except per share data)
|
Six Months EndedJune 30,
2022 |
|
|
Six Months EndedJune 30,
2021 |
|
|
|
Consolidating |
|
|
|
|
|
|
Consolidating |
|
|
|
PAA |
|
Adjustments (1) |
|
PAGP |
|
|
PAA |
|
Adjustments (1) |
|
PAGP |
REVENUES |
$ |
30,053 |
|
|
$ |
— |
|
|
$ |
30,053 |
|
|
|
$ |
18,313 |
|
|
$ |
— |
|
|
$ |
18,313 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases and related
costs |
|
28,109 |
|
|
|
— |
|
|
|
28,109 |
|
|
|
|
16,669 |
|
|
|
— |
|
|
|
16,669 |
|
Field operating costs |
|
653 |
|
|
|
— |
|
|
|
653 |
|
|
|
|
471 |
|
|
|
— |
|
|
|
471 |
|
General and administrative
expenses |
|
160 |
|
|
|
3 |
|
|
|
163 |
|
|
|
|
139 |
|
|
|
3 |
|
|
|
142 |
|
Depreciation and
amortization |
|
473 |
|
|
|
2 |
|
|
|
475 |
|
|
|
|
374 |
|
|
|
1 |
|
|
|
375 |
|
(Gains)/losses on asset sales
and asset impairments, net |
|
(46 |
) |
|
|
— |
|
|
|
(46 |
) |
|
|
|
370 |
|
|
|
— |
|
|
|
370 |
|
Total costs and expenses |
|
29,349 |
|
|
|
5 |
|
|
|
29,354 |
|
|
|
|
18,023 |
|
|
|
4 |
|
|
|
18,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME |
|
704 |
|
|
|
(5 |
) |
|
|
699 |
|
|
|
|
290 |
|
|
|
(4 |
) |
|
|
286 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME/(EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings in
unconsolidated entities |
|
201 |
|
|
|
— |
|
|
|
201 |
|
|
|
|
121 |
|
|
|
— |
|
|
|
121 |
|
Interest expense, net |
|
(206 |
) |
|
|
— |
|
|
|
(206 |
) |
|
|
|
(213 |
) |
|
|
— |
|
|
|
(213 |
) |
Other income/(expense),
net |
|
(155 |
) |
|
|
— |
|
|
|
(155 |
) |
|
|
|
23 |
|
|
|
— |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
TAX |
|
544 |
|
|
|
(5 |
) |
|
|
539 |
|
|
|
|
221 |
|
|
|
(4 |
) |
|
|
217 |
|
Current income tax
expense |
|
(48 |
) |
|
|
— |
|
|
|
(48 |
) |
|
|
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
Deferred income tax
expense |
|
(20 |
) |
|
|
(23 |
) |
|
|
(43 |
) |
|
|
|
(11 |
) |
|
|
(22 |
) |
|
|
(33 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME |
|
476 |
|
|
|
(28 |
) |
|
|
448 |
|
|
|
|
207 |
|
|
|
(26 |
) |
|
|
181 |
|
Net income attributable to noncontrolling interests |
|
(86 |
) |
|
|
(309 |
) |
|
|
(395 |
) |
|
|
|
(5 |
) |
|
|
(175 |
) |
|
|
(180 |
) |
NET INCOME
ATTRIBUTABLE TO PAGP |
$ |
390 |
|
|
$ |
(337 |
) |
|
$ |
53 |
|
|
|
$ |
202 |
|
|
$ |
(201 |
) |
|
$ |
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED WEIGHTED AVERAGE CLASS A SHARES
OUTSTANDING |
|
|
194 |
|
|
|
|
|
|
|
|
194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET INCOME PER CLASS A
SHARE |
|
$ |
0.27 |
|
|
|
|
|
|
|
$ |
— |
|
________________________(1) Represents the
aggregate consolidating adjustments necessary to produce
consolidated financial statements for PAGP.
PLAINS GP HOLDINGS AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
CONDENSED CONSOLIDATING BALANCE SHEET DATA(in
millions)
|
June 30, 2022 |
|
|
December 31, 2021 |
|
|
|
Consolidating |
|
|
|
|
|
|
Consolidating |
|
|
|
PAA |
|
Adjustments (1) |
|
PAGP |
|
|
PAA |
|
Adjustments (1) |
|
PAGP |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
$ |
6,661 |
|
|
$ |
3 |
|
|
$ |
6,664 |
|
|
|
$ |
6,137 |
|
|
$ |
3 |
|
|
$ |
6,140 |
|
Property and equipment,
net |
|
14,673 |
|
|
|
4 |
|
|
|
14,677 |
|
|
|
|
14,903 |
|
|
|
6 |
|
|
|
14,909 |
|
Investments in unconsolidated
entities |
|
3,773 |
|
|
|
— |
|
|
|
3,773 |
|
|
|
|
3,805 |
|
|
|
— |
|
|
|
3,805 |
|
Intangible assets, net |
|
1,839 |
|
|
|
— |
|
|
|
1,839 |
|
|
|
|
1,960 |
|
|
|
— |
|
|
|
1,960 |
|
Deferred tax asset |
|
— |
|
|
|
1,335 |
|
|
|
1,335 |
|
|
|
|
— |
|
|
|
1,362 |
|
|
|
1,362 |
|
Linefill |
|
931 |
|
|
|
— |
|
|
|
931 |
|
|
|
|
907 |
|
|
|
— |
|
|
|
907 |
|
Long-term operating lease
right-of-use assets, net |
|
365 |
|
|
|
— |
|
|
|
365 |
|
|
|
|
393 |
|
|
|
— |
|
|
|
393 |
|
Long-term inventory |
|
378 |
|
|
|
— |
|
|
|
378 |
|
|
|
|
253 |
|
|
|
— |
|
|
|
253 |
|
Other long-term assets,
net |
|
266 |
|
|
|
— |
|
|
|
266 |
|
|
|
|
251 |
|
|
|
(2 |
) |
|
|
249 |
|
Total assets |
$ |
28,886 |
|
|
$ |
1,342 |
|
|
$ |
30,228 |
|
|
|
$ |
28,609 |
|
|
$ |
1,369 |
|
|
$ |
29,978 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
$ |
6,874 |
|
|
$ |
2 |
|
|
$ |
6,876 |
|
|
|
$ |
6,232 |
|
|
$ |
2 |
|
|
$ |
6,234 |
|
Senior notes, net |
|
7,933 |
|
|
|
— |
|
|
|
7,933 |
|
|
|
|
8,329 |
|
|
|
— |
|
|
|
8,329 |
|
Other long-term debt, net |
|
53 |
|
|
|
— |
|
|
|
53 |
|
|
|
|
69 |
|
|
|
— |
|
|
|
69 |
|
Long-term operating lease
liabilities |
|
316 |
|
|
|
— |
|
|
|
316 |
|
|
|
|
339 |
|
|
|
— |
|
|
|
339 |
|
Other long-term liabilities
and deferred credits |
|
991 |
|
|
|
— |
|
|
|
991 |
|
|
|
|
830 |
|
|
|
— |
|
|
|
830 |
|
Total liabilities |
|
16,167 |
|
|
|
2 |
|
|
|
16,169 |
|
|
|
|
15,799 |
|
|
|
2 |
|
|
|
15,801 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partners’ capital excluding
noncontrolling interests |
|
9,931 |
|
|
|
(8,414 |
) |
|
|
1,517 |
|
|
|
|
9,972 |
|
|
|
(8,439 |
) |
|
|
1,533 |
|
Noncontrolling interests |
|
2,788 |
|
|
|
9,754 |
|
|
|
12,542 |
|
|
|
|
2,838 |
|
|
|
9,806 |
|
|
|
12,644 |
|
Total partners’ capital |
|
12,719 |
|
|
|
1,340 |
|
|
|
14,059 |
|
|
|
|
12,810 |
|
|
|
1,367 |
|
|
|
14,177 |
|
Total liabilities and partners’ capital |
$ |
28,886 |
|
|
$ |
1,342 |
|
|
$ |
30,228 |
|
|
|
$ |
28,609 |
|
|
$ |
1,369 |
|
|
$ |
29,978 |
|
________________________(1) Represents the
aggregate consolidating adjustments necessary to produce
consolidated financial statements for PAGP.
PLAINS GP HOLDINGS AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
COMPUTATION OF BASIC AND DILUTED NET INCOME/(LOSS) PER
CLASS A SHARE (1)(in millions, except per
share data)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Basic and Diluted Net
Income/(Loss) per Class A Share |
|
|
|
|
|
|
|
Net income/(loss) attributable to PAGP |
$ |
31 |
|
|
$ |
(69 |
) |
|
$ |
53 |
|
|
$ |
1 |
|
Basic and diluted weighted average Class A shares
outstanding |
|
194 |
|
|
|
194 |
|
|
|
194 |
|
|
|
194 |
|
|
|
|
|
|
|
|
|
Basic and diluted net income/(loss) per Class A share |
$ |
0.16 |
|
|
$ |
(0.35 |
) |
|
$ |
0.27 |
|
|
$ |
— |
|
________________________(1) For each of the
three and six months ended June 30, 2022 and 2021, the possible
exchange of AAP units and AAP Management units would not have had a
dilutive effect on basic net income/(loss) per Class A share.
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, the
following:
- general economic, market or business
conditions in the United States and elsewhere (including the
potential for a recession or significant slowdown in economic
activity levels, the risk of persistently high inflation and
continued supply chain issues, the impact of coronavirus variants
on growth, and the timing, pace and extent of economic recovery)
that impact demand for crude oil, drilling and production
activities and therefore the demand for the midstream services we
provide and commercial opportunities available to us;
- declines in global crude oil demand
and crude oil prices (whether due to the COVID-19 pandemic, future
pandemics or other factors) that correspondingly lead to a
significant reduction of North American crude oil and NGL
production (whether due to reduced producer cash flow to fund
drilling activities or the inability of producers to access
capital, or both, the unavailability of pipeline and/or storage
capacity, the shutting-in of production by producers,
government-mandated pro-ration orders, or other factors), which in
turn could result in significant 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
and/or the reduction of commercial opportunities that might
otherwise be available to us;
- fluctuations in refinery capacity in
areas supplied by our mainlines and other factors affecting demand
for various grades of crude oil and NGL and resulting changes in
pricing conditions or transportation throughput requirements;
- unanticipated changes in crude oil
and NGL market structure, grade differentials and volatility (or
lack thereof);
- the effects of competition and
capacity overbuild in areas where we operate, including contract
renewal risk and the risk of loss of business to other midstream
operators who are willing or under pressure to aggressively reduce
transportation rates in order to capture or preserve
customers;
- negative societal sentiment
regarding the hydrocarbon energy industry and the continued
development and consumption of hydrocarbons, which could influence
consumer preferences and governmental or regulatory actions that
adversely impact our business;
- environmental liabilities or events
that are not covered by an indemnity, insurance or existing
reserves;
- the occurrence of a natural
disaster, catastrophe, terrorist attack (including eco-terrorist
attacks) or other event that materially impacts our operations,
including cyber or other attacks on our electronic and computer
systems;
- weather interference with business
operations or project construction, including the impact of extreme
weather events or conditions;
- the impact of current and future
laws, rulings, governmental regulations, executive orders, trade
policies, accounting standards and statements, and related
interpretations, including legislation, executive orders or
regulatory initiatives that prohibit, restrict or regulate
hydraulic fracturing or that prohibit the development of oil and
gas resources and the related infrastructure on lands dedicated to
or served by our pipelines;
- loss of key personnel and inability
to attract and retain new talent;
- disruptions to futures markets for
crude oil, NGL and other petroleum products, which may impair our
ability to execute our commercial or hedging strategies;
- the effectiveness of our risk
management activities;
- shortages or cost increases of
supplies, materials or labor;
- maintenance of our credit rating and
ability to receive open credit from our suppliers and trade
counterparties;
- 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, investment capital projects, working
capital requirements and the repayment or refinancing of
indebtedness;
- the successful operation of joint
ventures and joint operating arrangements we enter into from time
to time, whether relating to assets operated by us or by third
parties, and the successful integration and future performance of
acquired assets or businesses;
- the availability of, and our ability
to consummate, divestitures, joint ventures, acquisitions or other
strategic opportunities;
- the refusal or inability of our
customers or counterparties to perform their obligations under
their contracts with us (including commercial contracts, asset sale
agreements and other agreements), whether justified or not and
whether due to financial constraints (such as reduced
creditworthiness, liquidity issues or insolvency), market
constraints, legal constraints (including governmental orders or
guidance), the exercise of contractual or common law rights that
allegedly excuse their performance (such as force majeure or
similar claims) or other factors;
- our inability to perform our
obligations under our contracts, whether due to non-performance by
third parties, including our customers or counterparties, market
constraints, third-party constraints, legal constraints (including
governmental orders or guidance), or other factors or events;
- the incurrence of costs and expenses
related to unexpected or unplanned capital expenditures,
third-party claims or other factors;
- failure to implement or capitalize,
or delays in implementing or capitalizing, on investment capital
projects, whether due to permitting delays, permitting withdrawals
or other factors;
- the amplification of other risks
caused by volatile financial markets, capital constraints,
liquidity concerns and inflation;
- the use or availability of
third-party assets upon which our operations depend and over which
we have little or no control;
- the currency exchange rate of the
Canadian dollar to the United States dollar;
- 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;
- significant under-utilization of our
assets and facilities;
- increased costs, or lack of
availability, of insurance;
- fluctuations in the debt and equity
markets, including the price of our units at the time of vesting
under our long-term incentive plans;
- risks related to the development and
operation of our assets; and
- other factors and uncertainties inherent in the transportation,
storage, terminalling and marketing of crude oil, as well as in the
processing, transportation, fractionation, storage and marketing of
NGL as discussed in the Partnerships’ filings with the Securities
and Exchange Commission.
About Plains:
PAA is a publicly traded master limited partnership that owns
and operates midstream energy infrastructure and provides logistics
services for crude oil and natural gas liquids (NGL). PAA owns an
extensive network of pipeline gathering and transportation systems,
in addition to terminalling, storage, processing, fractionation and
other infrastructure assets serving key producing basins,
transportation corridors and major market hubs and export outlets
in the United States and Canada. On average, PAA handles more than
7 million barrels per day of crude oil and NGL.
PAGP 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.
PAA and PAGP are headquartered in Houston, Texas. For more
information, please visit www.plains.com.
Contacts:
Roy Lamoreaux |
Vice President, Investor
Relations, Communications and Government Relations |
(866) 809-1291 |
|
Michael Gladstein |
Director, Investor
Relations |
(866) 809-1291 |
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