Plains All American Pipeline, L.P. (NYSE: PAA) today reported net income attributable to Plains for the third quarter of 2012 of $165 million, or $0.27 per diluted limited partner unit. These results include the impact of non-cash asset impairment charges totaling $125 million, primarily related to the Partnership’s determination not to proceed with the development of the Pier 400 terminal project in California. Such results compare to net income attributable to Plains of $281 million, or $0.74 per diluted limited partner unit for the third quarter of 2011. The Partnership reported earnings before interest, taxes, depreciation and amortization (“EBITDA”) of $470 million for the third quarter of 2012, compared to reported EBITDA of $421 million for the third quarter of 2011.
The Partnership’s reported results include the impact of items that affect comparability between reporting periods. The impact of items impacting comparability are excluded from adjusted results, as detailed in the table below. Accordingly, the Partnership’s third-quarter 2012 adjusted net income attributable to Plains, adjusted net income per diluted limited partner unit and adjusted EBITDA were $322 million, $0.73 and $502 million, respectively. The comparable amounts for the third quarter of 2011 were $274 million, $0.71 and $414 million. (See the section of this release entitled “Non-GAAP Financial Measures” and the attached tables for discussion of EBITDA and other non-GAAP financial measures and their reconciliation to the most directly comparable GAAP measures.)
“Continuing a multi-quarter trend, PAA delivered strong adjusted results for the third quarter of 2012,” said Greg L. Armstrong, Chairman and CEO of Plains All American. “The environment for crude oil production growth in North America remains very favorable and we continue to experience strong demand for our assets and services. As a result, we have increased our midpoint guidance for adjusted EBITDA to slightly over $2 billion for the full year of 2012, representing a 7% increase over our previous guidance midpoint for 2012.