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Plains All American Reports Increased Volumes in Permian, Eagle Ford

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Plains All American Pipeline, L.P. and Plains GP Holdings have reported second-quarter 2015 results.

Greg L. Armstrong, Chairman and CEO of Plains All American: "PAA reported solid second quarter results, with adjusted EBITDA of $486 million, which was approximately $26 million above the mid-point of our quarterly guidance range. PAA will pay a quarterly distribution of $0.695 per limited partner unit next week, which is the equivalent of $2.78 per unit on an annualized basis, while PAGP will pay a quarterly distribution of $0.227 per Class A share, or $0.908 per share on an annualized basis. These distributions represent a 7.8% and 23.8% increase over comparative distributions paid in the same quarter of 2014, respectively.

Over the intermediate to long-term, we remain very constructive on the outlook for the North American crude oil industry. Near term, we are cautious as high crude oil and refined product inventory levels will influence oilfield activity and crude oil production levels over the next six to twelve months and competition for the marginal barrel will intensify. Additionally, our current forecast assumes that our All American pipeline in California will not be returned to service during the balance of 2015."

Armstrong added: "Based on this outlook, we have reduced the midpoint of our full-year guidance for adjusted EBITDA by $50 million. The resulting midpoint guidance of $2.275 billion remains in line with the full-year guidance range provided at the beginning of the year, albeit near the lower end of the initial range. Importantly, PAA remains well positioned to manage through industry down cycles and capitalize on attractive opportunities as it ended the second quarter of 2015 with approximately $3.1 billion of committed liquidity, a strong balance sheet and credit metrics that are consistent with our targeted levels."

Second-quarter 2015 Transportation adjusted segment profit increased 12% versus comparable 2014 results. This increase was driven by earnings from our 50% interest in the BridgeTex pipeline acquired in November 2014 and higher crude oil pipeline volumes associated with recently completed organic growth projects primarily within the Permian Basin and Eagle Ford producing regions.

Second-quarter 2015 Facilities adjusted segment profit increased by 6% over comparable 2014 results. This increase was primarily due to lower field operating costs associated with our NGL fractionation and Canadian natural gas processing activities.

Second-quarter 2015 Supply and Logistics adjusted segment profit exceeded the high end of our quarterly guidance range but decreased by 42% compared to 2014 results. This decrease was primarily driven by lower margins associated with less favorable crude oil market conditions.