November 5, 2015 [OPIS] - Plains All American Pipeline (PAA) reported a stronger third-quarter earnings from its Transportation segment, but the company's total earnings were dragged lower by weaker supply and logistics performance.
Earnings from the Facilities segment were slightly lower than a year ago.
PAA reported third-quarter results with adjusted EBITDA of $497 million, which was $17 million above the mid-point of the company’s quarterly guidance range, said Greg Armstrong, PAA’s CEO.
The third-quarter adjusted EBITDA was down 6% from a year ago.
“PAA will pay a quarterly distribution of $0.70 per limited partner unit next week, which is the equivalent of $2.80 per unit on an annualized basis, while PAGP will pay a quarterly distribution of $0.231 per Class A share, or $0.924 per share on an annualized basis. These distributions represent a 6.1% and 21.1% increase over comparative distributions paid in the same quarter of 2014, respectively,” he said.
Third quarter 2015 Supply and Logistics adjusted segment profit exceeded the high end of the company’s quarterly guidance range but decreased by 33% to $95 million compared to 2014 results.
This decrease was primarily driven by lower margins and volumes associated with its crude oil lease gathering activities due to less favorable crude oil market conditions, partially offset by higher margins in its NGL sales activities, which benefited from a stronger U.S. dollar.
Third quarter 2015 Transportation adjusted segment profit increased by 7% to $253 million.
This increase was driven by higher crude oil pipeline volumes associated with its Cactus pipeline and other recently completed organic growth projects primarily within the Permian Basin and Eagle Ford producing regions, earnings from its 50% interest in the BridgeTex pipeline and lower field operating costs.
These increases were partially offset by lost revenues associated with the shutdown of its All American system in California, lower pipeline loss allowance revenues and the impact of a weaker Canadian dollar.
Third quarter 2015 Facilities adjusted segment profit decreased by 1% from a year ago to $148 million. This decrease was primarily due to a less favorable Canadian dollar and a less favorable environment for both its rail and natural gas storage activities, which was partially offset by lower field operating costs.
