Dean Liollio, PNG’s President, stated, “This modification is tangible evidence of PAA’s strong sponsorship and commitment to PNG and its future growth. Although current natural gas storage market conditions remain challenging, we continue to believe that PNG represents an attractive long-term growth vehicle.”The following table sets forth the operating and financial benchmarks pre- and post-modification that must be satisfied in order for each tranche of Series B Subordinated Units to convert into Series A Subordinated Units or Common Units (units in millions and capacity in billion cubic feet (Bcf); quarterly distribution benchmarks are expressed on an annualized basis):
|Distribution Benchmark||PPEC Capacity Benchmark||Distribution Benchmark||PPEC Capacity Benchmark|
PAA Natural Gas Storage, L.P. is a publicly traded master limited partnership engaged in the development, acquisition, operation and commercial management of natural gas storage facilities. The Partnership currently owns and operates three natural gas storage facilities located in Louisiana, Mississippi and Michigan. The Partnership's general partner, as well as the majority of the Partnership's limited partner interests, is owned by Plains All American Pipeline, L.P. PNG is headquartered in Houston, TX.