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Quick Look: Mgt Speaks, Q3 Plains All American

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Plains All American reported their Q3 results on Tuesday (11/3) along with lower guidance for 2015.  Below are a few of the highlights:


-  Q3 Distributable Cash Flows was only .78x and .93x over the trailing twelve months

-  Q4  midpoint DCF is expected to be $405M, implying Q4 DCF coverage of .93x

-  Lowered midpoint 2015 EBITDA by $72MM to $1950MM

-  Line 901 Incident resulted in a $65MM charge and $25MM of additional maintenance capex


During their Q2 Earnings Call, Greg Armstrong hinted at the scenario of keeping distributions flat in 2016 to maintain 1.0x coverage, and renew growth in 2017 as new projects come online. After the comments, PAA dropped 16% and is trading -5.6% lower as of Tuesday's close.  


On the 11/4 Q3, Management made the following comments:

-  Q3 in line, but Negative transportation impacts are accelerating in Q4 2014

-  Shippers are overcommited on their volume guarantees, 

-  Lower crude volumes from Permian Basin

-  No ATM issuance since Jan 2015

-  Will need 2016 Equity, but will be less than 2015 $1B

-  Highly Cautious in 2016, Bullish in 2017+ long term

-  Management defers to Feb 2016 Guidance due to limited E&P visibility

-  Looking to reduce 2016 Capex, 25-30% lower than 2015

-  Mgt implies less than 1.0x coverage and flat distributions for 2016















MLPData will update Q3 Distributable Cash Flows, Coverage Ratios, Unit Metrics and Guidance shortly after the earning call.  Quick Look summaries for select units ca be  accessed Here



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