OREANDA-NEWS. August 09, 2013. Plains All American Pipeline, L.P. (NYSE: PAA) reported second-quarter 2013 results.

"PAA delivered solid second-quarter results, exceeding the high-end of our guidance and in line with our updated outlook provided in late May," said Greg L. Armstrong, Chairman and CEO of Plains All American. "These results include an approximate USD25 million adverse impact associated with certain operational issues that occurred during the second quarter of 2013.

"This performance was driven by continued strong fundamentals and favorable market conditions, albeit less favorable than experienced during the first quarter of 2013 or the second quarter of 2012. We have increased the midpoint of our 2013 adjusted EBITDA guidance by USD 30 million to USD 2.19 billion, incorporating our strong performance to date and an assumed return to baseline performance levels in our Supply and Logistics segment in the second half of the year.

"We have performed well thus far this year and we are on track to achieve our 2013 goals. Our distribution payable next week represents a 10.3% increase over our distribution paid in August 2012, which is consistent with our 2013 target of 9 to 10% year-over-year distribution growth, and we expect distribution coverage for 2013 to exceed 130%. We have increased our expansion capital program by USD 200 million to USD 1.6 billion and continue to advance our multi-billion dollar project portfolio. Furthermore, PAA remains financially well-positioned, ending the quarter with a strong balance sheet, favorable credit metrics compared to our targets, and approximately USD 2.6 billion in committed liquidity."

Second-quarter 2013 Transportation adjusted segment profit decreased 7% versus comparable 2012 results. This decrease was driven by lost revenue and incremental expenses related to operational issues that occurred during the second quarter of 2013. This impact was partially offset by the benefit of increased volumes from increased producer drilling activities and recently completed organic growth projects.

Second-quarter 2013 Facilities adjusted segment profit increased 29% over comparable 2012 results. This increase was primarily related to the benefit of a recently completed crude oil rail acquisition and rail-related organic growth projects as well as increased profitability from NGL fractionation and gas processing activities.

Second-quarter 2013 Supply and Logistics adjusted segment profit exceeded our guidance, but represented a 30% decrease relative to comparable 2012 results. This decrease was primarily related to relatively less favorable crude oil market conditions, particularly narrower crude oil differentials, partially offset by higher net margins in the NGL business.

The Partnership will hold a conference call on August 6, 2013 (see details below). Prior to this conference call, the Partnership will furnish a current report on Form 8-K, which will include material in this news release as well as financial and operational guidance for the third quarter and full year of 2013. A copy of the Form 8-K will be available on the Partnership's website at www.paalp.com, where PAA routinely posts important information about the Partnership.