This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

PAA Natural Gas Storage Reports Second-Quarter 2012 Results

Stock quotes in this article: PNG

PAA Natural Gas Storage, L.P. (NYSE: PNG) today reported net income of $17.0 million, or $0.23 per diluted limited partner unit, for the second quarter of 2012, compared to respective results for the second quarter of 2011 of $15.9 million and $0.22. The Partnership reported earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) of $28.0 million for the second quarter of 2012, compared with EBITDA of $26.3 million for the second quarter of 2011.

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 second-quarter 2012 adjusted net income, adjusted net income per diluted limited partner unit and adjusted EBITDA were $18.6 million, $0.25 and $29.7 million, respectively, as compared to second-quarter 2011 respective results of $17.1 million, $0.23 and $27.5 million. (See the section of this release entitled “Non-GAAP and Segment Financial Measures” and the tables included with this press release for a presentation of adjusted EBITDA and other non-GAAP financial measures, and reconciliations of such measures to the comparable GAAP measures.)

“PNG delivered second-quarter results near the high-end of guidance, capping the eighth consecutive quarter of delivering results in line with guidance,” said Dean Liollio, President of PAA Natural Gas Storage. “PNG’s consistent performance – despite challenging market conditions – highlights the combination of our disciplined business strategy, strategically located assets, a high percentage of multi-year fee-based contracts, and continued successful execution by our commercial optimization team. We are on schedule and budget with our low-cost storage capacity additions at Southern Pines and Pine Prairie, and remain well positioned with a solid balance sheet and $187 million of committed liquidity.”

The following tables present certain selected financial information for the applicable periods (amounts in thousands):

               
Three Months Ended

June 30,

Six Months Ended

June 30,

2012 2011 2012 2011
 
Revenues
Firm storage services $ 35,475 $ 35,415 $ 69,282 $ 64,539
Hub services and merchant storage (1) 64,336 18,207 138,092 38,704
Other   330     742     1,489     1,541  
Total revenues 100,141 54,364 208,863 104,784
 
Storage related costs (2) (64,510 ) (20,571 ) (138,365 ) (45,072 )
Field operating costs (3,009 ) (2,915 ) (6,056 ) (6,002 )
General and administrative expenses (3) (4,616 ) (4,641 ) (9,663 ) (13,825 )
Other income / (expense), net   28     17     17     17  
EBITDA $ 28,034   $ 26,254   $ 54,796   $ 39,902  
 
Selected items impacting comparability   1,635     1,253     2,688     7,105  
Adjusted EBITDA $ 29,669   $ 27,507   $ 57,484   $ 47,007  
 
Reconciliation to net income:
Depreciation, depletion and amortization (9,318 ) (8,940 ) (18,394 ) (15,409 )
Interest expense, net of capitalized interest   (1,709 )   (1,445 )   (3,377 )   (2,279 )
Adjusted Net Income $ 18,642   $ 17,122   $ 35,713   $ 29,319  
 
Selected items impacting comparability   (1,635 )   (1,253 )   (2,688 )   (7,105 )
Net income $ 17,007   $ 15,869   $ 33,025   $ 22,214  
 
(1) Includes revenues associated with sales of natural gas through commercial marketing activities.
(2) Includes costs associated with natural gas sold through commercial marketing activities.
(3) Includes equity compensation expense for all periods presented. The six months ended June 30, 2011 include approximately $4 million of acquisition-related costs.

Second quarter 2012 adjusted EBITDA increased 7.9% over the prior-year period. This increase is primarily associated with storage capacity expansions and increased hub services activities.

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs