Based on the estimated range of Adjusted EBITDA for 2013 and assuming generally stable broader market conditions, the Partnership expects to be in a position to increase distributions per common unit by 10% to 12% in 2013 compared to 2012, subject to approval of the board of directors of the Partnership's general partner.These initial estimates for the third quarter and full year 2012, and for 2013 and 2014, are preliminary estimates and, accordingly, remain subject to changes that could be significant. See the section of this release entitled "Non-GAAP Financial Measure" for a discussion of Adjusted EBITDA and a reconciliation of this measure to its most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Growth Projects Update The Partnership has recently approved two new projects with estimated incremental growth capital of approximately $450 million:
- A new 200 MMcf/d cryogenic processing plant at SAOU to meet increasing production and continued producer activity on the eastern side of the Permian Basin. The new processing plant is expected to be operational in mid-2014. Total capital expenditures related to the new processing plant are expected to be $225 million.
- Expansion of our LPG Export Project to increase export capability to approximately 5+ million barrels per month. Total capital expenditures for the project are now expected to be $480 million compared to the $250 million that was originally announced. The original export project scope adds the capability to load four VLGC (very large gas carrier) cargoes of international grade propane per month starting in the third quarter of 2013. The expanded project scope will increase that capability by an additional two to four VLGCs starting in the third quarter of 2014, while retaining and increasing our capability to load HD5 propane and butanes for small and mid-sized vessels.
|$ in millions||2013|
|SAOU - New Processing Plant (200 MMcf/d) (1)||$100|
|North Texas Longhorn project||85|
|Other 2013 Gathering & Processing Expansions||50|
|CBF Train 4||100|
|International Export Project - Expanded (2)||270|
|Petroleum Logistics projects||50|
|(1) New Permian Basin plant described above|
|(2) Expansion of our capabilities to export propane and butane described above|