PAA Natural Gas Storage, L.P. (NYSE: PNG) today reported net income of $17.9 million, or $0.24 per diluted limited partner unit, for the third quarter of 2012, compared to respective results for the third quarter of 2011 of $15.4 million and $0.21. The Partnership reported earnings before interest, taxes, depreciation, depletion and amortization (“EBITDA”) of $29.3 million for the third quarter of 2012, compared with EBITDA of $26.3 million for the third 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 third-quarter 2012 adjusted net income, adjusted net income per diluted limited partner unit and adjusted EBITDA were $18.3 million, $0.25 and $29.7 million, respectively, as compared to third-quarter 2011 respective results of $16.0 million, $0.22 and $26.9 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 solid third-quarter results above the high-end of our guidance marking the ninth consecutive quarter PNG has performed in line with or ahead of guidance. This performance was underpinned by fee-based cash flow associated with our highly contracted storage capacity along with solid execution from our commercial optimization team,” said Dean Liollio, President of PAA Natural Gas Storage. “Our preliminary 2013 guidance reflects the addition of low-cost storage capacity at Southern Pines and Pine Prairie, which is expected to largely offset the adverse impact of lease renewals during challenging natural gas storage market conditions. With strategically located assets, an attractive portfolio of fee-based storage contracts, a solid balance sheet and approximately $173 million of committed liquidity, the Partnership remains well positioned for 2013 and to participate in the long-term fundamental growth in storage demand.”