Plains All American Pipeline (PAA) Misses Q2 EPS by 2c, Updates FY Guidance

Plains All American Pipeline (NYSE: PAA) reported Q2 EPS of $0.27, $0.02 worse than the analyst estimate of $0.29. Revenue for the quarter came in at $6.66 billion versus the consensus estimate of $7.52 billion.

“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,” said Greg L. Armstrong, Chairman and CEO of Plains All American. “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.”

For earnings history and earnings-related data on Plains All American Pipeline (PAA) click here.

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