Plains All American Report 3Q Results
OREANDA-NEWS. November 12, 2014. Plains All American Pipeline, L.P. (NYSE:PAA) and Plains GP Holdings (NYSE:PAGP) today reported third-quarter 2014 results, with PAA's results exceeding the midpoint of its quarterly guidance range by approximately 10%.
"PAA delivered strong third-quarter results," stated Greg L. Armstrong, Chairman and CEO of Plains All American. "Solid execution in all three segments combined with certain timing shifts between the third and fourth quarter periods resulted in across-the-board over-performance relative to the midpoint of our guidance range."
We remain on track to achieve each of our 2014 goals. PAA and PAGP achieved their respective distribution growth objectives of 10% and 25% for 2014. PAA's quarterly distribution of USD0.66 per unit to be paid next week represents a 10% increase over the distribution paid in November 2013, and PAGP's quarterly distribution of USD 0.19075 per share represents a 28% increase over the initial quarterly distribution included in its October 2013 IPO prospectus."
Armstrong noted that despite PAA's strong performance relative to its third quarter guidance, PAA maintained its full year guidance for adjusted EBITDA of USD 2.175 billion, taking into account both inter-quarter timing adjustments and inherent uncertainty associated with the commodity price environment.
"PAA also provided preliminary adjusted EBITDA guidance for 2015 of USD 2.35 to USD 2.5 billion. We believe our preliminary 2015 guidance range reflects a cautious and prudent approach that acknowledges uncertainties associated with the recent decreases in oil prices and related differentials as well as the potential drilling reductions by producers in various crude oil resource plays. At the USD 2.425 billion midpoint of this preliminary guidance range, adjusted EBITDA is forecasted to increase approximately 11% year-over-year. Absent acquisitions, we are targeting to grow PAA's distribution by approximately 7% to 10% over 2014, while achieving coverage in line with our minimum target range. PAGP's corresponding distribution growth target is approximately 21%."
Armstrong added, "PAA is well positioned for recent developments as our existing asset base and capital program are focused primarily on the core shale basins and key market areas and we ended the quarter with a strong balance sheet, our credit metrics compare favorably to our stated target metrics and we have approximately USD 2.5 billion in committed liquidity."
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