Plains All American Pipeline Comments on Second-Quarter Results

Plains All American Pipeline Comments on Second-Quarter Results

HOUSTON--(BUSINESS WIRE)-- Plains All American Pipeline, L.P. (NYSE: PAA) today announced that it expects adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") for the second quarter of 2013 to exceed the mid-point of its quarterly guidance by approximately 10%. This expected level of performance is driven by continued strong fundamentals and favorable market conditions, albeit less favorable than experienced during the first quarter of 2013.

On May 6, 2013, PAA furnished a Form 8-K providing midpoint adjusted EBITDA guidance of $435 million for the second quarter of 2013 based on a guidance range of $415 million to $455 million. The Partnership's updated outlook does not incorporate potential adjustments associated with equity compensation expense due to variations in PAA's unit price or the Partnership's outlook for future distribution levels.

Plains All American Pipeline, L.P. is a publicly traded master limited partnership engaged in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as in the processing, transportation, fractionation, storage and marketing of natural gas liquids. Through its general partner interest and majority equity ownership position in PAA Natural Gas Storage, L.P. (NYS: PNG) , PAA owns and operates natural gas storage facilities. PAA is headquartered in Houston, Texas.

Non-GAAP Financial Measures and Selected Items Impacting Comparability

EBITDA and adjusted EBITDA are non-GAAP financial measures that are most directly comparable to GAAP measures of net income and cash flow from operating activities. We do not, however, reconcile cash flows from operating activities to EBITDA or adjusted EBITDA because such reconciliations are impractical for a forecasted period. Adjusted EBITDA excludes selected items impacting comparability, which are items that management believes should be excluded in understanding the partnership's core operating performance. The Partnership's Form 8-K furnished on May 6, 2013 presents a calculation of EBITDA and adjusted EBITDA, a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures and further discussion regarding why management believes that the presentation of such financial measures provides useful information to investors regarding performance. A copy of the May 6th Form 8-K is available on the Partnership's website (www.paalp.com) under "Investor Relations - Operating and Financial Guidance," or "Investor Relations - SEC Filings." In addition, the Partnership maintains a reconciliation of all non-GAAP financial information, such as EBITDA and adjusted EBITDA, to the most comparable GAAP measures under "Investor Relations - Non-GAAP Reconciliations" section of its website.

Forward Looking Statements

Except for the historical information contained herein, the matters discussed in this release are forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from results anticipated in the forward-looking statements. These risks and uncertainties include, among other things, failure to implement or capitalize, or delays in implementing or capitalizing, on planned internal growth projects; unanticipated changes in crude oil market structure, grade differentials and volatility (or lack thereof); 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 occurrence of a natural disaster, catastrophe, terrorist attack or other event, including attacks on our electronic and computer systems; tightened capital markets or other factors that increase our cost of capital or limit our access to capital; maintenance of our credit rating and ability to receive open credit from our suppliers and trade counterparties; continued creditworthiness of, and performance by, our counterparties, including financial institutions and trading companies with which we do business; the effectiveness of our risk management activities; environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; declines in the volumes of crude oil, refined product and NGL shipped, processed, purchased, stored, fractionated and/or gathered at or through the use of our facilities, whether due to declines in production from existing oil and gas reserves, failure to develop, or slowdown in the development of, additional oil and gas reserves or other factors; shortages or cost increases of supplies, materials or labor; fluctuations in refinery capacity in areas supplied by our mainlines and other factors affecting demand for various grades of crude oil, refined products and natural gas and resulting changes in pricing conditions or transportation throughput requirements; our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness; the impact of current and future laws, rulings, governmental regulations, accounting standards and statements and related interpretations; non-utilization of our assets and facilities; the effects of competition; interruptions in service on third-party pipelines; increased costs or lack of availability of insurance; fluctuations in the debt and equity markets, including the price of our units at the time of vesting under our long-term incentive plans; the currency exchange rate of the Canadian dollar; weather interference with business operations or project construction; risks related to the development and operation of natural gas storage facilities; factors affecting demand for natural gas and natural gas storage services and rates; general economic, market or business conditions and the amplification of other risks caused by volatile financial markets, capital constraints and pervasive liquidity concerns; and other factors and uncertainties inherent in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as in the storage of natural gas and the processing, transportation, fractionation, storage and marketing of natural gas liquids discussed in the Partnership's filings with the Securities and Exchange Commission.

Plains All American Pipeline, L.P.
Roy I. Lamoreaux, 713-646-4222 - 800-564-3036
Director, Investor Relations

KEYWORDS: United States North America Canada Texas

INDUSTRY KEYWORDS:

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