PAA Natural Gas Storage, L.P. (NYSE: PNG) today reported net income of $22.0 million, or $0.30 per diluted unit, for the fourth quarter of 2011 and net income of $59.7 million, or $0.85 per diluted unit, for the full year 2011. Net income for the fourth quarter of 2010 was $9.8 million, or $0.22 per diluted unit, and full-year 2010 net income was $29.8 million.
The Partnership reported earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) of $32.6 million and $98.8 million for the respective fourth-quarter and full-year 2011 periods, compared with EBITDA of $14.4 million for the fourth quarter of 2010 and $51.2 million for the full year 2010.
“PNG delivered strong results, which were above the high end of our fourth-quarter and full-year guidance range during a period of challenging market conditions,” said Dean Liollio, President of PAA Natural Gas Storage. “This strong performance was underpinned by our high percentage of fee-based firm storage revenue and was enhanced through favorable hub service and merchant storage activities. Looking forward, the midpoint of PNG’s 2012 adjusted EBITDA guidance represents an increase of approximately 12% over 2011. This projected growth reflects the continued expansion of our storage facilities and a high level of third-party storage contracts for the 2012-2013 storage season.”
The Partnership’s reported results include items that affect comparability between reporting periods. These items are excluded from adjusted results, as further described in the second table below. Accordingly, the Partnership’s fourth-quarter 2011 adjusted net income and adjusted EBITDA were $22.8 million and $33.4 million, respectively, as compared to fourth-quarter 2010 adjusted net income and adjusted EBITDA of $11.3 million and $15.9 million, respectively. The Partnership’s adjusted net income per diluted unit for the fourth quarter of 2011 equaled $0.31 compared to $0.25 for the fourth quarter of 2010. The Partnership’s adjusted net income and adjusted EBITDA for the full year 2011 were $68.2 million and $107.2 million, respectively, as compared to adjusted net income and adjusted EBITDA for the full year 2010 of $32.4 million and $53.9 million, respectively. The Partnership’s adjusted net income per diluted unit for the full year 2011 equaled $0.97. (See the section of this release entitled “Non-GAAP and Segment Financial Measures” and the tables included with this press release for discussion of adjusted EBITDA and other non-GAAP financial measures, and reconciliations of such measures to the comparable GAAP measures.)
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