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PAA · Plains All American Pipeline

27 filings

10-K

PAA 10-K Annual Reports

Plains All American Pipeline - 27 annual reports

Filing record · 2016–202610-K1110-Q338-K168

2025
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2025
Plains All American Pipeline, L.P. (PAA) reported net income attributable to PAA of $1.435 billion for 2025, up from $772 million in 2024, with consolidated total revenues of $44.26 billion and Adjusted EBITDA of $3.374 billion (Adjusted EBITDA attributable to PAA of $2.833 billion). The results include both continuing and discontinued operations, with the Canadian NGL Business classified as held for sale and presented as discontinued operations following a June 2025 agreement to sell it to Keyera Corp. for approximately $3.75 billion USD (CAD$5.15 billion). The sale is expected to close around the end of the first quarter of 2026, and the company expects net proceeds of approximately $3.2 billion after taxes and expenses, which will be used to reduce leverage. The company describes its strategy as transitioning to a crude oil pure play business upon completion of that divestiture. The company's crude oil segment drove results, with Segment Adjusted EBITDA of $2.344 billion, up from $2.276 billion, supported by higher Permian Basin tariff volumes, acquisitions (including the EPIC/Cactus III pipeline acquired in October and November 2025 for total consideration of $2.016 billion), and tariff escalations, partially offset by fewer market-based opportunities and certain Permian long-haul contract rates resetting to market. Total debt was $11.259 billion at year-end 2025 versus $7.618 billion a year earlier, reflecting the EPIC acquisition funding and $3.0 billion of senior notes issued during 2025. The company reported over $2.0 billion of liquidity and stated it was in compliance with its debt covenants. Cash flow and distributions remained a focus. Net cash provided by operating activities was $2.936 billion, while Adjusted Free Cash Flow was negative $875 million after investing outflows, and Adjusted Free Cash Flow after Distributions was negative $2.170 billion. Implied DCF was $2.063 billion. The common unit distribution for the fourth quarter of 2025 was $0.4175 per unit, up from $0.3800 in the prior quarter's comparable period, with the company noting a 2026 investment capital plan of approximately $440 million and maintenance capital of approximately $185 million.
Feb 27, 2026
2024
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2024
Plains All American Pipeline, L.P. (PAA) reported net income attributable to PAA of $772 million for 2024, down from $1.230 billion in 2023, a decline the company attributes largely to Line 901 incident costs (including a $225 million write-off of insurance receivable in Q4 2024 and $120 million of settlements in Q3 2024), losses on asset sales and impairments, and higher Canadian withholding tax expense. Segment Adjusted EBITDA rose on the Crude Oil segment, driven by higher pipeline tariff volumes, tariff escalations and acquisitions, partly offset by a decline in NGL segment Adjusted EBITDA to $480 million from $522 million. Consolidated Adjusted EBITDA was $3.326 billion versus $3.167 billion, and Adjusted EBITDA attributable to PAA was $2.779 billion versus $2.711 billion. Liquidity was over $2.6 billion at December 31, 2024, with net cash provided by operating activities of $2.49 billion. Management targets an investment-grade credit profile and a leverage multiple averaging 3.25x to 3.75x. Total consolidated debt face value was approximately $7.7 billion. In early 2025, the company completed a $1 billion 5.95% senior notes offering, acquired two bolt-on gathering businesses for approximately $580 million net to its interest, and repurchased about 12.7 million Series A preferred units for roughly $333 million. The company expects 2025 investment capital of approximately $500 million ($400 million net to its interest) and maintenance capital of approximately $260 million ($240 million net to its interest), to be funded primarily with retained cash flow. Common unit distributions were $0.38 per unit for the fourth quarter of 2024, paid February 14, 2025.
Feb 28, 2025
2023
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2023
Plains All American Pipeline, L.P. (PAA) reported net income attributable to PAA of $1.230 billion for 2023, up from $1.037 billion in 2022, on consolidated total revenues of $48.71 billion. The filing attributes the higher results to higher crude oil pipeline tariff volumes, tariff escalations and acquisitions, partly offset by fewer market-based merchant opportunities and lower commodity prices. Adjusted EBITDA attributable to PAA was $2.711 billion, versus $2.510 billion in 2022, and Implied DCF was $1.967 billion. The company describes a targeted investment grade credit profile, a leverage multiple of 3.25x to 3.75x, and over $2.6 billion of liquidity at year-end 2023. Net cash provided by operating activities was $2.727 billion, and Adjusted Free Cash Flow after Distributions was $809 million. Common unit distributions paid in 2023 totaled $748 million, with the quarterly distribution raised to $0.3175 per unit for the fourth quarter. Management plans 2024 investment capital of about $465 million and maintenance capital of about $250 million. The filing also highlights ongoing Line 901 exposure: estimated total costs of about $750 million, with a long-term insurance receivable of about $225 million, and insurers covering $185 million of the Class Action Settlement having formally denied coverage. Approximately 99% of long-term debt is publicly traded senior notes, and total consolidated debt face value was about $7.8 billion.
Feb 29, 2024
2022
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2022
Plains All American Pipeline, L.P. (PAA) reported net income attributable to PAA of $1.037 billion for 2022, compared with $593 million in 2021, with results driven primarily by more favorable NGL segment margins and higher crude oil pipeline tariff volumes. Results were partially offset by a $269 million net loss on asset sales and impairments, including a $330 million non-cash impairment on certain California crude oil assets, and by higher field operating costs tied to the Line 901 incident. Consolidated Adjusted EBITDA attributable to PAA was $2.51 billion, up from $2.20 billion, and Implied DCF was $1.79 billion. Balance sheet and liquidity remain central to the investment case. At December 31, 2022, the company reported approximately $3.0 billion of liquidity, a working capital deficit of $536 million, and consolidated debt face value of approximately $8.5 billion. Free Cash Flow was $1.61 billion and Free Cash Flow after Distributions was $828 million, versus $2.37 billion and $1.65 billion in 2021. Management reiterated its target of maintaining an investment grade credit profile and noted that the Series A preferred unitholders elected the Preferred Distribution Rate Reset Option, moving that distribution to 9.375% per annum effective January 31, 2023. Looking ahead, the company projects 2023 investment capital of approximately $420 million ($325 million net to its interest) and maintenance capital of $205 million. Key risks disclosed include competition and capacity overbuild in the Permian and other regions, pending insurer denials of coverage for $185 million of the Line 901 class action settlement recovery, and exposure to commodity price and merchant activity volatility.
Mar 1, 2023
2021
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2021
Plains All American Pipeline, L.P. (PAA) reported net income attributable to PAA of $593 million for 2021, compared with a net loss of $2.590 billion in 2020 and net income of $2.171 billion in 2019. The 2020 loss was driven by a $2.515 billion goodwill impairment and other non-cash impairments. Product sales revenues rose to $40.88 billion in 2021 from $22.06 billion, reflecting higher prices and volumes, while Adjusted EBITDA declined to $2.29 billion from $2.56 billion. The company attributed lower Segment Adjusted EBITDA to less favorable crude oil market conditions, partially offset by lower field operating costs. During 2021 the Partnership formed the Plains Oryx Permian Basin LLC joint venture with Oryx Midstream, in which PAA holds 65%, and completed asset sales totaling more than $4.5 billion since 2016, including the Pine Prairie and Southern Pines natural gas storage facilities for net proceeds of about $850 million. Net cash provided by operating activities was $1.996 billion and Free Cash Flow after Distributions was $1.654 billion. The company reduced debt, repaid $712 million of net commercial paper and credit facility borrowings, and repurchased $178 million of common units. Total face value of consolidated debt was about $9.3 billion at December 31, 2021, and liquidity exceeded $3 billion. The company states it targets an investment grade credit profile and a leverage multiple averaging 3.75x to 4.25x. The filing also highlights ongoing exposure to Line 901 incident costs, which the company estimates at approximately $495 million in aggregate, and to risks from crude oil price volatility, competition and overbuild, and climate-related regulation. The 2022 capital plan calls for about $330 million of investment capital and $220 million of maintenance capital.
Mar 1, 2022
2020
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2020
Plains All American Pipeline, L.P. (PAA) reported a 2020 net loss of $2.580 billion, compared with net income of $2.180 billion in 2019, driven primarily by a $2.515 billion goodwill impairment, approximately $914 million of other non-cash impairment charges on pipeline and long-lived assets, equity investments and assets held for sale, and approximately $233 million of inventory valuation adjustments. Total revenues fell to $23.290 billion from $33.669 billion, and Adjusted EBITDA was $2.560 billion versus $3.237 billion in 2019. The filing describes a 2020 COVID-19 demand shock and a crude oil price collapse, with the Lower 48 rig count down 75% from its March 2020 peak and drilling activity still at a fraction of pre-pandemic levels as of the filing date. Management expects a continued drag on the business in 2021 from muted production growth and excess pipeline capacity. Management responded by cutting the 2020/2021 capital program by $950 million, halving the common unit distribution to $0.18 per quarter, completing roughly $450 million of asset sales, and authorizing a $500 million common equity repurchase program, of which $50 million was used in 2020. Liquidity was about $2.2 billion at year end, and the company states it was in compliance with its covenants. Senior unsecured debt remained rated investment grade by S&P and Fitch, and the company targets a long-term debt-to-Adjusted EBITDA multiple of 3.0x to 3.5x. Total debt was $10.213 billion at December 31, 2020, and the company reported a working capital deficit of $588 million. For investors, the central question is whether the fee-based Transportation and Facilities segments, which the company says should comprise more than 90% of segment results absent material Supply and Logistics outperformance, can sustain distributions and deleveraging through a slow recovery in Permian and other North American drilling. The filing also flags Line 901 litigation, with total estimated costs of about $460 million, and regulatory and tax contingencies, including Canadian transfer pricing reassessments of approximately $91 million.
Mar 1, 2021
2019
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2019
Plains All American Pipeline, L.P. (PAA) reported net income of $2.180 billion for 2019 on total revenues of $33.669 billion, roughly flat with net income of $2.216 billion in 2018. Operating income was $1.988 billion, down from $2.277 billion. The company's three segments are Transportation, Facilities and Supply and Logistics. Segment Adjusted EBITDA rose to $1.722 billion for Transportation (from $1.508 billion) and to $803 million for Supply and Logistics (from $462 million), while Facilities was $705 million (from $711 million). Consolidated Adjusted EBITDA was $3.237 billion, versus $2.684 billion in 2018, and Implied DCF was $2.376 billion. The partnership ended 2019 with approximately $2.5 billion of liquidity, $9.75 billion of face value consolidated debt and partners' capital of $13.195 billion. It completed its Leverage Reduction Plan in April 2019 and lowered its targeted long-term debt-to-Adjusted EBITDA range to 3.0x to 3.5x. Management expects approximately $1.4 billion of 2020 expansion capital, centered on Permian Basin takeaway and long-haul pipelines. In February 2020 the partnership acquired Felix Midstream for approximately $305 million and sold a 10% interest in Saddlehorn Pipeline for approximately $78 million. Common distributions were $1.38 per unit in 2019 versus $1.20 in 2018, and the quarterly rate was $0.36 per unit. The filing flags risks including the Line 901 pipeline incident, for which the partnership estimates aggregate total costs of approximately $390 million and carries a remaining undiscounted gross liability of $83 million. Other risks include Permian takeaway overbuild, the coronavirus-related drop in demand for crude oil and petroleum products in China, and the Canadian dollar exchange rate. Supply and Logistics results benefited in 2019 from favorable crude oil differentials, but management does not expect those margin opportunities to continue for the foreseeable future.
Feb 27, 2020
2018
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2018
Plains All American Pipeline, L.P. (PAA) reported 2018 total revenues of $34,055 million and net income of $2,216 million, up from $858 million in 2017, with the increase driven by favorable regional crude oil differentials and higher lease gathering and NGL margins in its Supply and Logistics segment, net gains on asset sales (including a $200 million gain on the sale of a 30% interest in BridgeTex), and lower interest expense. Segment Adjusted EBITDA for Transportation was $1,508 million, Facilities $711 million and Supply and Logistics $462 million, and consolidated Adjusted EBITDA was $2,684 million. Implied DCF was $1,948 million, against $1,787 million of Implied DCF available to common unitholders and $871 million of common unit cash distributions paid. The company reduced leverage under its Leverage Reduction Plan announced in August 2017 and states it remains on track to achieve its objectives in the first half of 2019. Total debt was $9,209 million at year-end 2018, down from $9,920 million, and liquidity was approximately $2.9 billion. The company invested about $1.9 billion in expansion capital, mainly Permian Basin takeaway pipelines, and plans roughly $1.1 billion of expansion capital in 2019. Quarterly common distributions were held at $0.30 per unit throughout 2018, down from $0.55 in early 2017. The filing also highlights risks including crude oil volume declines, competition and pipeline overbuild in the Permian Basin, the Line 901 incident in California (with an estimated total cost of about $355 million and a pending criminal and civil litigation tail), a possible reversal of the idled Capline pipeline, and the possibility of a credit rating downgrade.
Feb 27, 2019
2017
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2017
Plains All American Pipeline, L.P. (PAA) reported 2017 total revenues of $26.22 billion, operating income of $1.15 billion and net income attributable to PAA of $856 million, up from $726 million in 2016. The filing attributes the year-over-year increase to contributions from recent acquisitions and expansion projects, partially offset by less favorable crude oil and NGL market conditions and margin compression from competition. Segment adjusted EBITDA was $1.29 billion for Transportation and $734 million for Facilities, while Supply and Logistics fell to $60 million from $359 million. Total adjusted EBITDA was $2.08 billion and implied distributable cash flow was $1.31 billion, compared with $1.41 billion in 2016, and the filing notes Implied DCF Shortage of $79 million after common unit distributions of $1.39 billion. The balance sheet and capital plan were central to the filing. Total debt was $9.92 billion at December 31, 2017, and management disclosed a Leverage Reduction Plan announced in August 2017 that includes resetting the annualized common distribution to $1.20 per unit, roughly $1.4 billion of targeted debt reduction through March 31, 2019, and asset sales of about $1.1 billion closed in 2017. The company issued $788 million of net proceeds from 6.125% Series B preferred units and raised about $1.66 billion from common unit sales. Liquidity was about $3.0 billion at year end, and the company expects 2018 expansion capital of approximately $1.4 billion, led by the Permian Basin takeaway projects including Cactus II, which is expected in service in the second half of 2019. The filing also highlights risk factors investors should weigh. Moody's downgraded the company's senior unsecured debt to below investment grade in August 2017, and further downgrades by S&P or Fitch could raise borrowing costs and reduce open credit from counterparties. The company recorded $152 million of non-cash rail and terminal asset write-downs in 2017, and the Line 901 incident in California carries an estimated aggregate total cost of about $335 million, with ongoing legal and regulatory proceedings, including a 2016 indictment on state charges.
Feb 27, 2018
2016
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2016
Plains All American Pipeline, L.P. (PAA) reported 2016 net income attributable to PAA of $726 million, down from $903 million in 2015, with total revenues of $20.18 billion versus $23.15 billion. Management attributed the decline to less favorable crude oil and NGL market conditions, increased competition, and mark-to-market losses on derivatives, partly offset by contributions from recent acquisitions and expansion projects and lower field operating costs. Adjusted EBITDA was $2,169 million in 2016 versus $2,213 million in 2015, and implied distributable cash flow was $1,414 million versus $1,474 million, leaving a DCF shortfall of $151 million against distributions paid of $1,565 million. The partnership completed the Simplification Transactions in November 2016, eliminating its incentive distribution rights and resetting the quarterly distribution. The filing states that the annual reduction in cash distributions is approximately $320 million, and the February 2017 distribution was set at $0.55 per common unit. Management also raised $1.6 billion of Series A preferred units in January 2016 and about $805 million of net proceeds through its continuous offering program, and it sold non-core assets for roughly $550 million in 2016. Total debt was $11.84 billion at year end, with approximately $2.4 billion of liquidity available. Looking ahead, the company acquired the Alpha Crude Connector gathering system in February 2017 for $1.215 billion, plans expansion capital of about $800 million for 2017 (down from $1.4 billion in 2016), and expects to end 2017 with long-term debt at or below year-end 2016 levels. The filing notes that Moody's placed the company's investment grade rating under review for downgrade in late January 2017, and that the Line 901 crude oil release in 2015 continues to generate significant pending litigation and regulatory investigations.
Feb 23, 2017
2015
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2015
Plains All American Pipeline, L.P. (PAA) reported 2015 net income attributable to PAA of $903 million, down from $1.384 billion in 2014, with total revenues of $23.15 billion. The decline was driven by lower Supply and Logistics segment results, which fell to $381 million in segment profit from $782 million, reflecting compressed differentials and increased competition, along with costs and lost revenue from the Line 901 incident in May 2015. Adjusted EBITDA was $2.17 billion versus $2.20 billion in 2014, and implied distributable cash flow was $1.47 billion, leaving a DCF shortage of $240 million after distributions paid of $1.71 billion. The partnership executed a $2.2 billion capital program in 2015 and has a 2016 expansion capital plan of about $1.5 billion. In January 2016 it raised approximately $1.6 billion through the sale of about 61.0 million Series A Convertible Preferred Units at $26.25 per unit, which carry an 8% annual distribution. Management expects long-term debt-to-adjusted EBITDA to be above its target range near term. Total debt was $11.37 billion at year-end, and liquidity was approximately $2.3 billion. The filing discloses substantial legal and regulatory exposure tied to the Line 901 release, including an estimated aggregate cost of $269 million, a remaining undiscounted gross liability of $116 million, PHMSA and DOJ investigations, and multiple class action and derivative lawsuits. No fines or penalties have been assessed by the agencies to date, but the filing states they could be imposed.
Feb 25, 2016
2014
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2014
Plains All American Pipeline, L.P. (PAA) reported 2014 net income attributable to PAA of $1.384 billion, compared with $1.361 billion in 2013, on total revenues of $43.464 billion. The growth in the fee-based Transportation segment, which reported segment profit of $925 million versus $729 million in 2013, was partially offset by lower Facilities segment profit ($584 million versus $616 million) and Supply and Logistics segment profit ($782 million versus $822 million). Adjusted EBITDA was $2.200 billion, down from $2.292 billion in 2013, and implied distributable cash flow was $1.559 billion versus $1.665 billion. Distributions paid to unitholders and the general partner totaled about $1.4 billion, and declared distributions per unit rose to $2.55 from $2.33. The partnership made significant growth investments in 2014, with expansion capital of $2.026 billion and acquisition capital of $1.099 billion, mainly the November 2014 purchase of a 50% interest in BridgeTex Pipeline Company for $1.088 billion. The company expects to spend approximately $1.85 billion on expansion capital in 2015. Total debt rose to $10.049 billion at year end from $7.828 billion, and the company reported approximately $2.6 billion of liquidity. Management noted that crude oil and NGL prices fell meaningfully in late 2014 and early 2015, which it expects to slow North American production growth and may compress margins, particularly in the Supply and Logistics segment. The filing describes a partnership that is effectively controlled by Plains GP Holdings, L.P. through its ownership of the general partner, and highlights risks including the volume dependence of its pipelines, commodity price and market structure volatility, credit exposure to counterparties, leverage, and regulatory and environmental exposure in the U.S. and Canada.
Feb 25, 2015
2013
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2013
Plains All American Pipeline, L.P. (PAA) reported net income attributable to PAA of approximately $1.361 billion, or $2.80 per diluted limited partner unit, for 2013, compared with $1.094 billion, or $2.40 per diluted unit, in 2012. Adjusted EBITDA rose to $2.292 billion from $2.107 billion, and total segment profit was $2.167 billion versus $1.945 billion. Management attributed the improvement mainly to contributions from the USD Rail Terminal and BP NGL acquisitions, incremental fee-based contributions from expansion capital, and favorable unit margins in the Supply and Logistics segment, partly offset by narrower crude oil differentials in 2013. The partnership ended 2013 with total debt of $7.828 billion, partners' capital of $7.703 billion, and about $1.9 billion of liquidity. It reported net cash from operating activities of $1.954 billion and invested $1.653 billion in investing activities. The 2014 capital program is projected at $1.7 billion of expansion projects, with a range of $1.6 to $1.8 billion, led by the Permian Basin area projects and the Cactus Pipeline. The filing notes the completion of the PNG Merger on December 31, 2013, in which PAA issued about 14.7 million common units valued at roughly $760 million. Distributions remain a central focus: the quarterly distribution was raised to $0.6150 per unit and paid on February 14, 2014, a year-over-year increase of approximately 9.3%. The filing also highlights risks including commodity price volatility, reliance on the supply and logistics segment, rising rail regulatory scrutiny following recent derailments, and ongoing environmental and pipeline-integrity costs.
Feb 28, 2014
2012
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2012
Plains All American Pipeline, L.P. (PAA) filed its annual report on Form 10-K on February 27, 2013, for fiscal year 2012. The Partnership reported net income attributable to Plains of $1.094 billion, or $2.40 per diluted limited partner unit, compared with $966 million, or $2.44 per diluted unit, in 2011. Total revenues were $37.797 billion, and Adjusted EBITDA was $2.107 billion versus $1.598 billion in 2011, with implied distributable cash flow of $1.550 billion. Results were driven by fee-based growth in the Transportation and Facilities segments from acquisitions such as BP NGL ($1.68 billion) and by a stronger Supply and Logistics segment, partly offset by lower NGL margins and a $168 million impairment charge. The Partnership ended 2012 with total debt of $7.406 billion, approximately $2.4 billion of available liquidity, and a working capital deficit of about $36 million. It raised approximately $3.0 billion in debt and equity during the year and received credit rating upgrades from two agencies. The quarterly distribution paid on February 14, 2013 was $0.5625 per unit, an increase the filing describes as approximately 9.8% year over year. Management reports that the company was in compliance with all debt covenants. Key risks flagged in the filing include crude oil market volatility and differentials, reliance on the forward market structure, exposure to pipeline integrity and environmental releases (including a Rangeland release with estimated remediation of $51 million), regulatory and derivative-rule changes, and the company's reliance on a $7.4 billion debt load and investment-grade credit ratings.
Feb 27, 2013
2011
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2011
Plains All American Pipeline, L.P. (PAA), a Delaware limited partnership formed in 1998, reported net income attributable to Plains of $966 million for 2011, a $461 million increase over 2010's $505 million. The company operates three segments (Transportation, Facilities, and Supply and Logistics). Segment profit rose to $1,560 million in 2011 from $1,026 million in 2010, with Supply & Logistics segment profit of $647 million versus $240 million, driven by volatile crude oil market conditions, increased production in resource plays, and favorable market structure. Adjusted EBITDA was $1,598 million and implied DCF was $1,149 million for 2011. Total debt was approximately $5.2 billion at December 31, 2011, and liquidity was over $3.6 billion. The company's growth program is substantial. Completed acquisitions in 2011 totaled about $1.4 billion, including Southern Pines ($765 million) and Gardendale Gathering System ($349 million). Internal growth projects were $531 million in 2011, and the 2012 projected expansion capital is $800 million to $950 million. The pending BP NGL acquisition, for approximately $1.67 billion and expected to close in the second quarter of 2012, is the most significant near-term event and would substantially reduce available liquidity to roughly $2 billion on a pro forma basis, per the filing. The company declared a quarterly distribution of $1.025 per unit paid February 14, 2012, a 7.0% year-over-year increase. Key risks include crude oil market volatility and contango/backwardation transition periods affecting Supply & Logistics results, declining OCS production offshore California, environmental release exposure, the successful closing and integration of the BP NGL assets, and dependence on investment-grade credit ratings for access to supplier credit. The company also disclosed a $70 million cost for the April 2011 Rainbow Pipeline release in Alberta, of which roughly $41 million was expected to be recovered from insurance.
Feb 28, 2012
2010
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2010
Plains All American Pipeline, L.P. (PAA) reported 2010 net income attributable to Plains of $505 million, a $74 million (13%) decrease from $579 million in 2009, driven mainly by unfavorable results in its Supply & Logistics segment (segment profit of $240 million versus $345 million), lower LPG margins and derivative losses, and a roughly $30 million increase in equity compensation expense. Growth came from the Facilities segment (segment profit up 30% to $270 million) and the Transportation segment (up 8% to $516 million), supported by acquisitions and expansion projects. Total segment profit was essentially flat at $1,026 million, while revenues rose to $25.89 billion from $18.52 billion, largely from Supply & Logistics. Distributable cash flow was $757 million, and the quarterly distribution was raised to $0.9575 per unit, paid February 14, 2011. The balance sheet grew to $13.70 billion in total assets, with total debt of $5.96 billion and partners' capital of $4.57 billion. Management reported a working capital surplus of about $166 million and roughly $877 million of available liquidity at year-end, which would have risen to about $1.4 billion after early-2011 transactions. Those transactions include the $746 million Southern Pines natural gas storage acquisition by PAA Natural Gas Storage (PNG), a $600 million senior notes offering, a new $500 million 364-day credit facility, and the redemption of $200 million of 7.75% notes. PAA's ownership of PNG fell from about 77% to about 64% after PNG's private placement and PAA's share purchases. Key risks cited include dependence on declining offshore California crude volumes, exposure to commodity price and market-structure volatility, a debt level of about $6.0 billion, goodwill of $1.4 billion, and environmental liabilities reserved at approximately $66 million. Vulcan Energy sold its 50.1% interest in the general partner in December 2010 to a group including Occidental Petroleum, EMG, and Kayne Anderson-affiliated funds.
Feb 25, 2011
2009
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2009
Plains All American Pipeline, L.P. reported full-year 2009 net income of $580 million ($579 million attributable to Plains) on total revenues of $18.52 billion, up from $437 million on $30.06 billion in 2008. Segment profit rose to $1.03 billion from $819 million, led by the Supply & Logistics segment ($345 million versus $221 million), which benefited from strong crude oil contango margins early in the year and derivative gains of $62 million. Transportation segment profit was $477 million and Facilities segment profit was $208 million, with growth driven by acquisitions such as the 50% PNGS interest purchased for $215 million in September 2009 and by internal expansion projects. The partnership ended 2009 with total debt of $5.2 billion, partners' capital of $4.16 billion, and approximately $950 million of available committed credit. Its senior unsecured ratings were BBB- (S&P) and Baa3 (Moody's), both stable and investment grade. Common unit distributions were $3.62 per unit for 2009, and the February 2010 distribution was $0.9275 per unit, a 3.9% year-over-year increase. The company targets a long-term debt-to-adjusted EBITDA multiple of about 3.5x and a total debt-to-capitalization ratio of about 60%. Key risks in the filing include the decline in offshore California (OCS) production that feeds the All American Pipeline, the Pier 400 Los Angeles project, which has been scaled back and whose cost has risen to about $445 million, pending environmental and legal matters including EPA and DOJ penalty proceedings, and the potential effect of a credit rating downgrade on open supplier credit. Its 2010 capital program was budgeted at $360 million.
Feb 26, 2010
2008
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2008
Plains All American Pipeline, L.P. (PAA) reported 2008 total revenues of $30.06 billion and net income of $437 million, up from $365 million in 2007. Results were driven mainly by fee-based Transportation and Facilities segments, which posted segment profit of $445 million and $153 million, respectively. Marketing segment profit fell to $221 million from $269 million, reflecting a $145 million inventory writedown partly offset by $134 million of related derivative gains. Total segment profit rose to $819 million from $713 million. The Partnership's balance sheet showed total debt of $4.29 billion at December 31, 2008, including $1.03 billion of short-term debt, against partners' capital of $3.55 billion. Senior unsecured ratings were BBB- (S&P) and Baa3 (Moody's), both investment grade with stable outlooks. Management stated it was in line with its targeted credit metrics at year-end and had about $1.0 billion of available credit capacity across its committed facilities. Acquisitions in 2008 totaled $735 million, led by the $687 million Rainbow pipeline in Alberta. Expansion capital for 2009 was reduced to approximately $295 million from $491 million in 2008, and the company said it could fund its 2009 capital program without accessing debt or equity markets. Key risks disclosed include declining Outer Continental Shelf volumes offshore California, dependence on credit ratings and open supplier credit, the Pier 400 Los Angeles project, whose cost had risen to an estimated $575 to $600 million, and pending environmental penalty proceedings with the EPA and DOJ.
Feb 26, 2009
2007
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2007
Plains All American Pipeline, L.P. (PAA) is a Delaware limited partnership formed in 1998 that transports, stores, terminals and markets crude oil, refined products and LPG, and holds a 50% interest in PAA/Vulcan Gas Storage, LLC for natural gas storage. It operates three segments: Transportation, Facilities and Marketing. Segment profit rose to $713 million in 2007 from $463 million in 2006, and net income was $365 million, or $2.52 per diluted limited partner unit, versus $285 million in 2006. Distributions paid in 2007 totaled $3.28 per unit, compared with $2.87 in 2006. The company's acquisition activity was modest in 2007, with four acquisitions for about $123 million, following the roughly $2.46 billion Pacific Energy Partners merger completed in November 2006. Internal growth capital spending was $525 million in 2007, and management plans about $330 million of internal growth projects in 2008. Total debt was $3.58 billion at year-end 2007, with long-term debt-to-total capitalization of about 43%. Senior unsecured ratings were BBB- (S&P) and Baa3 (Moody's), both investment grade with stable outlooks. Key risks highlighted include declining offshore California (OCS) crude volumes, marketing results that depend on the contango/backwardation market structure (the market shifted to backwardation in July 2007), environmental releases and related EPA and DOJ proceedings, and pending Pier 400 and Patoka projects subject to regulatory approval. The filing also discloses a $1.0 billion available borrowing capacity under committed credit facilities at year-end 2007.
Feb 29, 2008
2006
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2006
Plains All American Pipeline, L.P. reported net income of $285.1 million in 2006 and earnings of $2.88 per diluted limited partner unit, compared with $217.8 million and $2.72 in 2005. Results were driven by favorable crude oil market conditions and risk management execution in the marketing segment, along with higher volumes and tariff revenues on its pipeline systems. Total revenues were $22,444.4 million, up from $31,176.5 million in 2005, with the decline attributed to the adoption of EITF 04-13, which reduced both revenues and purchases on a buy/sell basis. The defining event of the year was the November 15, 2006 acquisition of Pacific Energy Partners, L.P., with a total value of approximately $2.5 billion. The Pacific merger, together with six other 2006 acquisitions totaling about $565 million, pushed total assets to $8,714.9 million and long-term debt to $2,626.3 million, and the filing states the partnership was above its targeted long-term debt-to-EBITDA parameter at year end. Management plans roughly $500 million of internal growth capital spending in 2007 and reports an expected 2007 capital program of $545 million including maintenance. Investors should weigh the leverage increase and the filing's risk disclosures, including pipeline release-related penalties under review by the DOJ, the Pacific-related California matters, the Pier 400 project milestone delays under the Valero agreements, and exposure to crude oil price and market structure volatility. The partnership's credit ratings were BBB- (negative outlook) from Standard & Poor's and Baa3 (stable outlook) from Moody's as of February 2007.
Mar 1, 2007
2005
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2005
Plains All American Pipeline, L.P. (PAA), a Delaware limited partnership formed in September 1998, reported its 2005 annual results in this Form 10-K filed March 2, 2006. The partnership describes itself as one of the largest midstream crude oil companies in North America, operating about 15,000 miles of gathering and mainline crude oil pipelines, about 39 million barrels of active above-ground crude oil terminalling and storage, and an LPG business. Its 50% interest in PAA/Vulcan Gas Storage, LLC, formed in 2005 to acquire Energy Center Investments LLC for approximately $250 million, marks its entry into natural gas storage. For 2005, revenues were $31,177.3 million (up from $20,975.5 million in 2004), operating income was $275.6 million (up from $180.0 million), and net income was $217.8 million, or $2.72 per diluted limited partner unit, compared with $130.0 million and $1.89 in 2004. Management attributed the improvement to favorable contango market conditions, a full year of 2004 acquisitions (notably Link Energy and Capline), and higher volumes. Results were partly offset by a $26.1 million Long-Term Incentive Plan charge and an $18.9 million mark-to-market loss under SFAS 133. Cash flow from operations fell to $24.1 million in 2005 from $104.0 million in 2004, reflecting a $412 million inventory build. Total long-term debt was $951.7 million at year-end, and partners' capital was $1,330.7 million. Credit ratings were BBB- (S&P) and Baa3 (Moody's), both stable and investment grade as of February 2006. Distributions paid in 2005 totaled $2.58 per unit, and a quarterly distribution of $0.6875 was paid on February 14, 2006. Risks disclosed include a pending export license investigation by the Bureau of Industry and Security, a possible Clean Water Act civil penalty action related to two 2004–2005 crude oil pipeline releases, dependence on production from offshore California fields with declining volumes, and the costs of pipeline integrity and API 653 tank-inspection compliance.
Mar 2, 2006
2004
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2004
Plains All American Pipeline, L.P. (PAA) reported 2004 net income of $130.0 million, or $1.89 per limited partner unit, on total revenues of $20.98 billion, up from $12.59 billion in 2003 and $8.38 billion in 2002. Growth was driven mainly by acquisitions completed in 2003 and 2004, most notably the Link Energy LLC crude oil and pipeline operations (approximately $332 million, effective April 1, 2004) and the Capline and Capwood pipeline interests (approximately $158.5 million). Segment profit rose to $248.7 million from $144.4 million, with the pipeline segment at $157.2 million and gathering, marketing, terminalling and storage at $91.5 million. Total assets were $3.16 billion at year end and long-term debt was $949.0 million. The company stated it was slightly above its targeted long-term debt-to-EBITDA ratio because of 2004 acquisitions. The filing describes a partnership that transports crude oil through about 15,000 miles of active gathering and mainline pipelines and stores crude oil at about 37 million barrels of terminalling and storage capacity, most notably at the Cushing Interchange in Oklahoma. Its credit ratings were BBB- (S&P) and Baa3 (Moody's), both stable and investment grade as of February 2005. Declared distributions were $2.30 per unit in 2004, and the quarterly distribution was $0.6125 per unit. Key risks disclosed include declining volumes from offshore California fields that feed the All American Pipeline, exposure to crude oil price and market structure swings, a pending Bureau of Industry and Security export licensing matter for which no penalty can yet be estimated, and an environmental reserve of $19.8 million. The company also reported two pipeline releases in December 2004 and January 2005 with estimated aggregate remediation costs of $1.7 million and $1.4 million.
Mar 3, 2005
2003-A
Plains All American Pipeline Annual Report (Amendment), Year Ended Dec 31, 2003
Plains All American Pipeline, L.P. reported 2003 total revenues of $12,589.8 million, up from $8,384.2 million in 2002, driven mainly by its gathering, marketing, terminalling and storage segment, which posted revenues of $11,985.6 million. Operating income was $98.2 million compared with $94.6 million in 2002, but net income fell to $59.4 million from $65.3 million, reflecting $28.8 million of Long-Term Incentive Plan (LTIP) compensation charges. Diluted net income per limited partner unit was $1.00, versus $1.34 in 2002. Segment profit totaled $144.4 million, with pipeline operations contributing $81.3 million and the gathering, marketing, terminalling and storage segment $63.1 million. The company describes its counter-cyclical balance of gathering, marketing and storage activities as stabilizing its cash flows. The balance sheet at December 31, 2003 showed total assets of $2,095.6 million, long-term debt of $519.0 million and partners' capital of $746.7 million, with a working capital deficit of $68.9 million. Net cash provided by operating activities fell to $68.5 million from $173.9 million in 2002. The company completed ten acquisitions for about $159.5 million in 2003, issued equity and senior notes, and raised its distribution to $0.5625 per unit for the fourth quarter. Its credit profile was within its targeted range, and it had $596.8 million of unused committed credit capacity at year end. After year end, the company completed the acquisition of substantially all of the North American crude oil and pipeline operations of Link Energy LLC on April 1, 2004 for approximately $330 million, and a pending acquisition of Shell's interests in the Capline and Capwood pipeline systems for about $158 million was expected to close in the first quarter of 2004. Risks highlighted include declining volumes from California offshore fields, a Texas Attorney General investigation of the Link acquisition, a pending export license matter with the Bureau of Industry and Security, and a shareholder class action tied to the proposed buyout of Plains Resources Inc.
Jul 19, 2004
2003
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2003
Plains All American Pipeline, L.P. reported its 2003 Form 10-K, filed with total revenues of $12.59 billion and net income of $59.4 million for the year ended December 31, 2003, compared with $65.3 million in 2002 and $44.2 million in 2001. The Partnership operates roughly 7,000 miles of crude oil pipelines in the United States and Canada and owns about 24.0 million barrels of terminalling and storage capacity, including the Cushing Terminal at the Cushing Interchange. Net income was reduced by a $28.8 million Long-Term Incentive Plan charge, and the Partnership completed ten acquisitions in 2003 for about $159.5 million. The Partnership remained within its targeted credit profile at December 31, 2003, and Moody's and Standard & Poor's raised its senior unsecured ratings during 2003 (Ba1 and BBB-, respectively). Liquidity was supported by $750 million of new senior unsecured credit facilities, a $200 million uncommitted hedged inventory facility, and $250 million of 5.625% senior notes issued in December 2003. At year end the Partnership had a working capital deficit of $68.9 million and about $596.8 million of unused committed credit facility capacity. The filing highlights a pending acquisition of interests in the Capline and Capwood pipeline systems from Shell Pipeline Company for approximately $158 million, expected to close in the first quarter of 2004, and an advanced negotiation for other assets priced at $300 million to $400 million. Risks disclosed include declining production from offshore California fields that feed the All American Pipeline, an Export Administration Regulations matter with the Bureau of Industry and Security for which no penalty estimate exists, and a putative class action in Delaware related to the proposed buyout of Plains Resources Inc.
Mar 1, 2004
2002
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2002
Plains All American Pipeline, L.P. (NYSE: PAA) reported net income of $65.3 million on revenues of $8.38 billion for the year ended December 31, 2002, compared with net income of $44.2 million on revenues of $6.87 billion in 2001. The Partnership is a Delaware limited partnership engaged in interstate and intrastate marketing, transportation and terminalling of crude oil and marketing of LPG, with operations concentrated in Texas, Oklahoma, California, Louisiana and Alberta and Saskatchewan. Gross margin rose to $174.3 million from $142.3 million, and net cash provided by operating activities was $173.9 million, versus cash used of $30.0 million in 2001. Adjusted EBITDA was $130.4 million, and the Partnership stated it was within its targeted credit profile at December 31, 2002. The largest 2002 event was the $324.4 million Shell West Texas acquisition on August 1, 2002, which added about 2,000 miles of gathering and mainline pipelines and 8.9 million barrels of storage net to the Partnership's interest. The Rancho Pipeline System will be taken out of service in March 2003, with no nominations accepted after February 28, 2003, and management expects increased Basin System movements to substantially offset the adverse impact. In February 2003, Standard & Poor's upgraded the Partnership's corporate credit rating to investment grade (BBB-, stable outlook). The filing also discloses an export license matter under review by the Bureau of Industry and Security for which the Partnership cannot estimate the ultimate impact, and it describes the 1999 unauthorized trading losses of approximately $174.0 million and their resolution. Key risks highlighted include production declines from the offshore California Santa Ynez and Point Arguello fields, dependence on third-party shipper volumes, credit risk among counterparties, and the subordinated unit conversion schedule, with 25% of subordinated units expected to convert in the fourth quarter of 2003 if testing requirements are met and the remainder in the first quarter of 2004.
Feb 28, 2003
2001
Plains All American Pipeline Annual Report, Year Ended Dec 31, 2001
Plains All American Pipeline, L.P. (filed as Plains All American Pipeline, L.P.) reported 2001 net income of $44.2 million on revenues of $6.87 billion, compared with net income of $77.5 million on $6.64 billion of revenue in 2000. Management states that excluding listed unusual and non-recurring items, net income would have been $57.3 million in 2001. Gross margin rose to $142.3 million in 2001 from $127.7 million in 2000, driven largely by the Murphy Oil Canadian acquisition, while gathering and marketing margins weakened in a flat-to-contango crude market. Adjusted EBITDA was $109.6 million, and operating cash flow was negative $30.0 million, largely because of inventory build, which management says would otherwise have been about $88.0 million positive. The partnership expanded into Canada in 2001 through the Murphy Oil Canadian midstream acquisition for about $161.0 million, the CANPET marketing business, and the Wapella pipeline. It also completed a General Partner Transition in June 2001, after which Plains Resources' effective ownership fell to about 29%. Total debt at year-end 2001 was $456.2 million, and partners' capital rose to $402.8 million from $214.0 million, largely due to unit offerings. Management reports the partnership was within its targeted credit profile at December 31, 2001. In early 2002 it completed or announced further acquisitions, including Coast/Lantern and a 22% stake in Butte Pipe Line Company, and a Cushing Terminal expansion to about 5.3 million barrels. Investors should weigh the partnership's dependence on Santa Ynez and Point Arguello offshore California volumes, which declined from 1995 through 2001, and the legacy effects of the 1999 unauthorized trading losses of approximately $174.0 million, which led to lawsuits that are now largely settled. Quarterly distributions reached $0.5125 per unit in the fourth quarter of 2001, and a $0.5125 distribution was paid on February 14, 2002.
Mar 21, 2002
1998
Plains All American Pipeline Annual Report, Year Ended Dec 31, 1998
Plains All American Pipeline, L.P. (PAA) was formed in late 1998 to acquire and operate the midstream crude oil business and assets of Plains Resources Inc. Its operations are concentrated in California, Texas, Oklahoma, Louisiana and the Gulf of Mexico, and it is engaged in crude oil pipeline transportation, terminalling and storage, and gathering and marketing. Its core assets are the 1,233-mile All American Pipeline, the 45-mile SJV Gathering System, and the two million barrel Cushing Terminal. The Partnership completed its initial public offering on November 23, 1998, receiving net proceeds of approximately $244.7 million. For the year ended December 31, 1998, pro forma gross margin was $74.1 million, EBITDA was $68.2 million, and net income was $43.9 million. Pro forma revenues were $1.57 billion, compared with $1.75 billion in pro forma 1997 revenues, and the filing attributes the decline mainly to lower Santa Ynez field volumes. The balance sheet at December 31, 1998 shows total assets of $610.2 million, total debt of $184.8 million, and partners' equity of $277.6 million. The Partnership carries a $175 million term loan facility, which is fixed at a weighted average rate of approximately 5.24% on the LIBOR portion through two interest rate swaps. The Partnership also has a $50 million revolving credit facility and a $175 million letter of credit facility. The minimum quarterly distribution is $0.45 per unit, and a partial distribution of $0.193 per unit was paid on February 12, 1999. The filing notes that a signed agreement to acquire Scurlock Permian LLC and certain other pipeline assets from Marathon Ashland Petroleum for approximately $138 million is expected to close in the second quarter of 1999. Key risks include dependence on Santa Ynez and Point Arguello production, the uncertain future of offshore California reserves, and Year 2000 compliance exposure.
Mar 31, 1999