Plains All American Pipeline, L.P.
) has provided its second-quarter 2013 adjusted earnings before
interest, taxes, depreciation and amortization (EBITDA) guidance.
Second-Quarter 2013 Guidance
The partnership has increased the midpoint of its second-quarter
2013 adjusted EBITDA guidance by roughly 10% from its earlier
projection. Previously, Plains All American Pipeline expected
that its adjusted EBITDA will be in the range of $415 million to
$455 million with midpoint being $435 million. Increase in
guidance is primarily driven by positive market conditions and
persistent robust fundamentals.
Full-Year 2013 Outlook
Plains All American Pipeline expects its adjusted EBITDA in 2013
to be in the band of $2,110 to $2,210 million, up from $2,107
million a year ago primarily due to the benefits of solid
first-quarter results and a marginal improvement in the second
First-Quarter 2013 Recap
Plains All American Pipeline reported adjusted EBITDA of $739
million, up 57% year over year owing to strong results from the
fee-based Transportation and Facilities segments, and proper
implementation in the margin-based Supply and Logistics segment.
During the first three months of 2013, Plains All American
Pipeline's net cash provided by operating activities increased
more than 200% year over year to $979 million. Strong liquidity
position enables the partnership to invest additional $300
million in 2013, which will drive the capital spending plan to
It is evident from Plains All American Pipeline's recent
activities that the partnership continues to follow steady
organic growth strategy. The partnership is currently developing
its Mississippian Lime pipeline, Rainbow 2 pipeline and
Gardendale Gathering System projects.
In addition, Plains All American Pipeline recently completed
acquisition of natural gas liquids (NGL) assets from a subsidiary
). The partnership has already experienced positive impact from
the acquisition in first-quarter 2013. The partnership's
Transportation and Facilities segments' robust performance was
primarily driven by the addition of these NGL assets. We believe
this acquisition will boost Plains All American Pipeline's
midstream business in the future through addition of pipelines,
storage capacity, fractionation plants and supply contracts.
Houston, Texas-based Plains All American Pipeline owns assets
strategically located in well-established oil producing regions,
catering to major U.S. refinery and distribution markets.
Plains All American Pipeline currently has a Zacks Rank #3
(Hold). Other stocks from the industry that are presently
performing better include
Delek Logistics Partners, LP
) with a Zacks Rank #1 (Strong Buy) and
Morgan Management LLC
) with a Zacks Rank #2 (Buy).
BP PLC (BP): Free Stock Analysis Report
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KINDER MORG MGT (KMR): Free Stock Analysis
PLAINS ALL AMER (PAA): Free Stock Analysis
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