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 Plains All American Pipeline, L.P. and Plains GP Holdings Report Fourth-Quarter and Full-Year 2016 Results
   Tuesday, February 07, 2017 4:07:02 PM ET

Plains All American Pipeline, L.P. (PAA ) and Plains GP Holdings (PAGP ) today reported fourth-quarter and full-year 2016 results.

 
Plains All American Pipeline, L.P.
 
Summary Financial Information
(unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per unit data)
                                                                                                     Three Months Ended                                                                                               Twelve Months Ended                                         
                                                                                                                                                                                                       December 31,                                                                                                                                                                                 December 31,
                                                                                                                                                              ----------------------------------------------------------------------------------------------                                                                                              ------------------------------------------------------------------------------------------------
GAAP Results                                                                                 2016                          2015                                                          %                                                         2016                           2015                                                           %
                                                                                                                                                                                                                                                                                                        Change                                                                                                                                                                                        Change
---------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      ------------------------                                            ------------------------                                            --------                                            -------------------------                                            -------------------------                                            --------
Net income attributable to PAA                                                                                                                                                   $  126                                                              $  247                                             (49 )%                                                               $   726                                                              $   903                                             (20 )%
Diluted net income per common unit                                                                                                                                               $ 0.14                                                              $ 0.24                                             (42 )%                                                               $  0.43                                                              $  0.77                                             (44 )%
Diluted weighted average common units outstanding                                    662                                              399                                              66 %                                                 466                                               396                                              18 %
---------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- ----                                           -------------------- ----                                           ----- ---                                           -------------------- -----                                           -------------------- -----                                           ----- ---
Distribution per common unit declared for the period                                                 $ 0.55                                                              $ 0.70                                           (21.4 )%                                                               $  2.50                                                              $  2.78                                           (10.1 )%
---------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      -------------------- ----                                           -------------------- ----                                           ----- ---                                           -------------------- -----                                           -------------------- -----                                           ----- ---
 
 
 
                                                                                                                                                                                                    Three Months Ended                                                                                                                                                                           Twelve Months Ended
                                                                                                                                                                                                       December 31,                                                                                                                                                                                 December 31,
                                                                                                                                                              ----------------------------------------------------------------------------------------------                                                                                              ------------------------------------------------------------------------------------------------
Non-GAAP Results (1)                                                                         2016                                                                2015                                                          %                                                         2016                                                                 2015                                                           %
                                                                                                                                                                                                                                                                                                        Change                                                                                                                                                                                        Change
---------------------------------------------------- -------------------- -------------------- -------------------- --------------------                      ------------------------                                            ------------------------                                            --------                                            -------------------------                                            -------------------------                                            --------
Adjusted net income attributable to PAA                                                                                                                                          $  278                                                              $  304                                              (9 )%                                                               $ 1,062                                                              $ 1,191                                             (11 )%
Diluted adjusted net income per common unit                                                                                                                                      $ 0.37                                                              $ 0.38                                              (3 )%                                                               $  1.14                                                              $  1.48                                             (23 )%
Adjusted EBITDA (2)                                                                                                                                                              $  600                                                              $  575                                               4 %                                                                $ 2,169                                                              $ 2,213                                              (2 )%
________________________
 
(1)        See the section of this release entitled "Non-GAAP Financial
                              Measures and Selected Items Impacting Comparability" and the
                              tables attached hereto for information regarding certain selected
                              items that PAA believes impact comparability of financial results
                              between reporting periods, as well as for information regarding
                              non-GAAP financial measures (such as adjusted EBITDA) and their
                              reconciliation to the most directly comparable measures as
                              reported in accordance with GAAP.
                               
(2)                           During the fourth quarter of 2016, we modified our definition of
                              adjusted EBITDA to exclude depreciation and amortization expense
                              associated with equity method investments. Prior period amounts
                              have been recast to reflect this change.
 


"PAA reported fourth-quarter 2016 adjusted EBITDA of $600 million which was essentially in line with the fourth-quarter guidance furnished last November and full-year 2016 adjusted EBITDA of $2.169 billion," said Greg Armstrong, Chairman and CEO of Plains All American.

"Looking forward, we are encouraged by the significant increase in drilling and completion activities in the Permian Basin observed over the latter half of 2016 and continuing into 2017. These activity levels have increased our conviction in significant Permian Basin production growth in 2017 and beyond as we discussed on our acquisition related conference call on January 25th."

Segment adjusted EBITDA for the fourth quarter and full year of 2016 is presented below:

 
Summary of Selected Financial Data by
Segment(1)(unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)
                                                                                                                                                                                  Three Months Ended                                                                                                                                                     Three Months Ended
                                                                                                                                                                                                                                                                                  December 31, 2016                                                                                                                                                                                            December 31, 2015
                                                                                                                                                                         -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------
                                                                                                                                                                                                    Transportation                                                Facilities                                                  Supply and                                                                                 Transportation            Facilities    Supply and
                                                                                                                                                                                                                                                                                                                                                                     Logistics                                                                                                                                                                Logistics
                                                                                                                                                                         -----------------------------------------------------------------                         -------------------------------------------                        -----------------------------------------------------------------                                               -----------------------------                        ----------                       ----------
Segment adjusted EBITDA                                                                                                                                                                     $   278                                             $ 171                                           $    151                                                  $   268                            $   150                          $   157
                                                                                                                                                                         ==================== ===== ==================== ====================                      ==================== === ====================                      ==================== =========================== ====================                                           ==== ===== ====================                      ===== =====                      ===== =====
Percentage change in segment adjusted EBITDA versus 2015 period                                                                                                                4 %                                              14 %                                            (4 )%    
                                                                                                                                                                         ==================== ===== ==================== ====================                      ==================== === ====================                      ==================== === == ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                 Twelve Months Ended                                                                                                                                                                                          Twelve Months Ended
                                                                                                                                                                                                                                                                                  December 31, 2016                                                                                                                                                                                            December 31, 2015
                                                                                                                                                                         -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          --------------------------------------------------------------------------------------------------
                                                                                                                                                                                                    Transportation                                                                   Facilities                                                                     Supply and                                                                                 Transportation                               Facilities                       Supply and
                                                                                                                                                                                                                                                                                                                                                                     Logistics                                                                                                                                                                Logistics
                                                                                                                                                                         -----------------------------------------------------------------                         -------------------------------------------                        -----------------------------------------------------------------                                               -----------------------------                        ----------                       ----------
Segment adjusted EBITDA                                                                                                                                                                     $ 1,141                                             $ 667                                           $    359                                                  $ 1,056                            $   588                          $   568
                                                                                                                                                                         ==================== ===== ==================== ====================                      ==================== === ====================                      ==================== =========================== ====================                                           ==== ===== ====================                      ===== =====                      ===== =====
Percentage change in segment adjusted EBITDA versus 2015 period                                                                                                                8 %                                              13 %                                           (37 )%    
                                                                                                                                                                         ==================== ===== ==================== ====================                      ==================== === ====================                      ==================== === == ==================== ====================
________________________
 
(1)        During the fourth quarter of 2016, we modified our primary segment
                              performance measure to segment adjusted EBITDA from segment
                              profit. Prior period segment amounts have been recast to reflect
                              this change. See additional discussion below.
 

Fourth-quarter 2016 Transportation segment adjusted EBITDA increased by 4% versus comparable 2015 results. This increase was primarily driven by increased volumes and margins on certain of our Permian Basin pipelines, earnings from our 40% interest in the Saddlehorn pipeline which was placed in service in the third quarter of 2016 and lower operating expenses, partially offset by the sale of certain of our Gulf Coast pipelines in early 2016.

Fourth-quarter 2016 Facilities segment adjusted EBITDA increased by 14% versus comparable 2015 results. This increase was primarily due to contributions from the Western Canada NGL assets acquired in August 2016 and contributions from ongoing projects at our Fort Saskatchewan facility as well as lower operating expenses.

Fourth-quarter 2016 Supply and Logistics segment adjusted EBITDA decreased by 4% relative to comparable 2015 results. This decrease was primarily driven by lower volumes and margins associated with our U.S. crude oil lease gathering activities due to less favorable market conditions as a result of increased competition and lower crude oil production in certain regions.

During the fourth quarter of 2016, we modified our primary segment performance measure to segment adjusted EBITDA from segment profit. Segment adjusted EBITDA forms the basis of our internal financial reporting and is the primary measure used by our Chief Operating Decision Maker ("CODM") in assessing performance and allocating resources among our operating segments. In conjunction with this change, we modified our adjusted EBITDA metric to exclude depreciation and amortization expense associated with equity method investments. Prior period amounts have been recast to reflect this change. The 2016 fourth quarter and full year impact of this modification increased adjusted EBITDA by $13 million and $50 million, respectively, and the 2015 fourth quarter and full year impact of this modification increased adjusted EBITDA by $12 million and $45 million, respectively, within the Transportation segment.

2017 Full-Year Guidance

Full-year 2017 financial and operating guidance is presented below:

 
FINANCIAL AND OPERATING GUIDANCE
(unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per barrel data)
                                                                                                                                                                                        Twelve Months Ended December 31,                                                                                                                            
                                                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                   2015                                                  2016                                                2017 (G)                                                                                                            2017 vs 2016
                                                                                                                                             ------------------------------------------------                                                               ------------------------------------------------                                                               ------------------------------------------------                                                               ---------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                 + / -
Segment Adjusted EBITDA
   Transportation                                                                                                                                               $ 1,056                                                                                                        $ 1,141                                                                                                        $ 1,315                                                                                                                            15 %
   Facilities                                                                                                                                                       588                                                                                                            667                                                                                                            680                                                                                                                             2 %
   Supply and Logistics                                                                                                                                             568                                                                                                            359                                                                                                            365                                                                                                                             2 %
                                                                                                                                                   1                                                                        2                                                                        -                                                                       
   Other Income/(Expense), Net
                                                                                                                                             -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                                                -------------------- -------------------- --------------------
Adjusted EBITDA (1)                                                                                                                                             $ 2,213                                                                                     $ 2,169                                                                                     $ 2,360                                                                                       9 %
                                                                                                                                             ==================== ===== ====================                                                                ==================== ===== ====================                                                                ==================== ===== ====================                                                                ==================== ==================== ====================
   Interest expense, net (2)                                                                                                                                       (417 )                                                                                                         (451 )                                                                                                         (500 )                                                                                                                          11 %
   Maintenance capital                                                                                                                                             (220 )                                                                                                         (186 )                                                                                                         (180 )                                                                                                                          (3 )%
   Current income tax expense                                                                                                                                       (84 )                                                                                                          (85 )                                                                                                          (70 )                                                                                                                         (18 )%
   Other                                                                                                                                         (18 )                                                                                       (33 )                                                                                       (10 )                                                                                                      (70 )%
                                                                                                                                             -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                                                -------------------- -------------------- --------------------
Implied DCF (1)                                                                                                                                                 $ 1,474                                                                                     $ 1,414                                                                                     $ 1,600                                                                                      13 %
                                                                                                                                             ==================== ===== ====================                                                                ==================== ===== ====================                                                                ==================== ===== ====================                                                                ==================== ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Operating Data
   Transportation
      Average Daily Volumes (MBbls/d)                                                                                                                             4,453                                                                                                          4,637                                                                                                          5,250                                                                                                                            13 %
      Segment Adjusted EBITDA per Barrel                                                                                                                        $  0.65                                                                                                        $  0.67                                                                                                        $  0.69                                                                                                                             3 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
   Facilities
      Average Capacity (MMBbls/Mo)                                                                                                                                  126                                                                                                            129                                                                                                            130                                                                                                                             1 %
      Segment Adjusted EBITDA per Barrel                                                                                                                        $  0.39                                                                                                        $  0.43                                                                                                        $  0.44                                                                                                                             2 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
   Supply and Logistics
      Average Daily Volumes (MBbls/d)                                                                                                                             1,168                                                                                                          1,160                                                                                                          1,250                                                                                                                             8 %
      Segment Adjusted EBITDA per Barrel                                                                                                                        $  1.33                                                                                                        $  0.85                                                                                                        $  0.80                                                                                                                            (6 )%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Expansion Capital                                                                                                                                               $ 2,170                                                                                                        $ 1,405                                                                                                        $   800                                                                                                        $                 (605 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
First Quarter Adjusted EBITDA as Percentage of Full Year                                                                                                             29 %                                                                                                           29 %                                                                                                           23 %
 
________________________
 
(G)        2017 Guidance forecasts are intended to be + / - amounts.
                               
(1)                           See the section of this release entitled "Non-GAAP Financial
                              Measures and Selected Items Impacting Comparability" and the
                              Financial Data Reconciliations table attached hereto for
                              information regarding non-GAAP financial measures and, for the
                              2015 and 2016 periods, their reconciliation to the most directly
                              comparable measures as reported in accordance with GAAP. We do not
                              provide a reconciliation of non-GAAP financial measures to the
                              equivalent GAAP financial measures on a forward-looking basis as
                              it is impractical to forecast certain items that we have defined
                              as "Selected Items Impacting Comparability" without unreasonable
                              effort, due to the uncertainty and inherent difficulty of
                              predicting the occurrence and financial impact of and the periods
                              in which such items may be recognized. Thus, a reconciliation of
                              non-GAAP financial measures to the equivalent GAAP financial
                              measures could result in disclosure that could be imprecise or
                              potentially misleading.
                               
(2)                           Excludes certain non-cash items impacting interest expense such as
                              amortization of debt issuance costs and terminated interest rate
                              swaps.
 

Plains GP Holdings

PAGP owns an indirect non-economic controlling interest in PAA’s general partner and an indirect limited partner interest in PAA. As the control entity of PAA, PAGP consolidates PAA’s results into its financial statements, which is reflected in the condensed consolidating balance sheet and income statement tables included at the end of this release. Information regarding PAGP’s distributions is reflected below:

 
                                                                     Q4 2016                         Q3 2016                                             Q4 2015
                                                                                                                                                                   ---------                                          -----------------------------------------------                                          ------------------------------------------------
Distribution per Class A share declared for the period                                                                                                               $ 0.55                                                              $ 0.55                                                                $  0.62  
(1)
                                                                                                                                                                                                                      -------------------- ---- --------------------                                           -------------------- ----- --------------------
Q4 2016 distribution percentage change from prior periods                                                                                                                                                                  - %                                                                (11.3 )%
                                                                                                                                                                                                                      ==================== ==== ====================                                           ==================== ===== ====================
 
________________________
 
(1)        A reverse split of PAGP’s Class A shares was completed on November
                              15, 2016. The effect of the reverse split has been retroactively
                              applied to all per-share amounts presented.
 

Conference Call

PAA and PAGP will hold a conference call at 11:00 a.m. ET on Wednesday, February 8, 2017 to discuss the following items:

1. PAA’s fourth-quarter and full-year 2016 performance;

2. Financial and operating guidance for 2017;

3. An update on major capital expansion projects;

4. Capitalization and liquidity; and

5. PAA and PAGP’s outlook for the future.

Prior to the conference call, PAA will furnish a current report on Form 8-K that will include material in this earnings release. A copy of the 8-K and a slide presentation for the conference call will be available at www.plainsallamerican.com, where PAA and PAGP routinely post important information.

Conference Call Webcast Instructions

To access the internet webcast of the conference call, please go to www.plainsallamerican.com, under the "Investor Relations" section of the website (Navigate to: Investor Relations / either "PAA" or "PAGP" / News & Events / Quarterly Earnings). Following the live webcast, an audio replay in MP3 format will be available on the website within two hours after the end of the call and will be accessible for a period of 365 days.

Non-GAAP Financial Measures and Selected Items Impacting Comparability

To supplement our financial information presented in accordance with GAAP, management uses additional measures known as "non-GAAP financial measures" in its evaluation of past performance and prospects for the future. The primary additional measures used by management are earnings before interest, taxes, depreciation and amortization (including our proportionate share of depreciation and amortization of unconsolidated entities) and adjusted for certain selected items impacting comparability ("adjusted EBITDA") and implied distributable cash flow ("DCF").

Management believes that the presentation of such additional financial measures provides useful information to investors regarding our performance and results of operations because these measures, when used to supplement related GAAP financial measures, (i) provide additional information about our core operating performance and ability to fund distributions to our unitholders through cash generated by our operations and (ii) provide investors with the same financial analytical framework upon which management bases financial, operational, compensation and planning/budgeting decisions. We also present these and additional non-GAAP financial measures, including adjusted net income attributable to PAA and basic and diluted adjusted net income per common unit, as they are measurements that investors, rating agencies and debt holders have indicated are useful in assessing us and our results of operations. These non-GAAP measures may exclude, for example, (i) charges for obligations that are expected to be settled with the issuance of equity instruments, (ii) the mark-to-market of derivative instruments that are related to underlying activities in another period (or the reversal of such adjustments from a prior period), the mark-to-market related to our Preferred Distribution Rate Reset Option, gains and losses on derivatives that are related to investing activities (such as the purchase of linefill) and inventory valuation adjustments, as applicable, (iii) long-term inventory costing adjustments, (iv) items that are not indicative of our core operating results and business outlook and/or (v) other items that we believe should be excluded in understanding our core operating performance. These measures may further be adjusted to include amounts related to deficiencies associated with minimum volume commitments whereby we have billed the counterparties for their deficiency obligation and such amounts are recognized as deferred revenue in "Accounts payable and accrued liabilities" on our Consolidated Financial Statements. Such amounts are presented net of applicable amounts subsequently recognized into revenue. Furthermore, the calculation of these measures contemplates tax effects as a separate reconciling item, where applicable. We have defined all such items as "selected items impacting comparability." Due to the nature of the selected items, certain selected items impacting comparability may impact certain non-GAAP financial measures, referred to as adjusted results, but not impact other non-GAAP financial measures. We do not necessarily consider all of our selected items impacting comparability to be non-recurring, infrequent or unusual, but we believe that an understanding of these selected items impacting comparability is material to the evaluation of our operating results and prospects.

Although we present selected items impacting comparability that management considers in evaluating our performance, you should also be aware that the items presented do not represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices, exchange rates, mechanical interruptions, acquisitions, expansion projects and numerous other factors. These types of variations are not separately identified in this release, but will be discussed, as applicable, in management’s discussion and analysis of operating results in our Annual Report on Form 10-K.

Our definition and calculation of certain non-GAAP financial measures may not be comparable to similarly-titled measures of other companies. Adjusted EBITDA, Implied DCF and other non-GAAP financial performance measures are reconciled to Net Income (the most directly comparable measure as reported in accordance with GAAP) for the historical periods presented in the tables attached to this release, and should be viewed in addition to, and not in lieu of, our Consolidated Financial Statements and notes thereto. In addition, we encourage you to visit our website at www.plainsallamerican.com (in particular the section under "Financial Information" entitled "Non-GAAP Reconciliations" within the "Investor Relations" tab), which presents a reconciliation of our commonly used non-GAAP and supplemental financial measures.

Forward Looking Statements

Except for the historical information contained herein, the matters discussed in this release consist of forward-looking statements that involve certain risks and uncertainties that could cause actual results or outcomes to differ materially from results or outcomes anticipated in the forward-looking statements. These risks and uncertainties include, among other things, declines in the volume of crude oil, refined product and NGL shipped, processed, purchased, stored, fractionated and/or gathered at or through the use of our assets, whether due to declines in production from existing oil and gas reserves, reduced demand, failure to develop or slowdown in the development of additional oil and gas reserves, whether from reduced cash flow to fund drilling or the inability to access capital, or other factors; the effects of competition; market distortions caused by producer over-commitments to new or recently constructed infrastructure projects, which impacts volumes, margins, returns and overall earnings; unanticipated changes in crude oil market structure, grade differentials and volatility (or lack thereof); environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; maintenance of our credit rating and ability to receive open credit from our suppliers and trade counterparties; fluctuations in refinery capacity in areas supplied by our mainlines and other factors affecting demand for various grades of crude oil, refined products and natural gas and resulting changes in pricing conditions or transportation throughput requirements; the occurrence of a natural disaster, catastrophe, terrorist attack (including eco-terrorist attacks) or other event, including attacks on our electronic and computer systems; failure to implement or capitalize, or delays in implementing or capitalizing, on expansion projects, whether due to permitting delays, permitting withdrawals or other factors; tightened capital markets or other factors that increase our cost of capital or limit our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, expansion projects, working capital requirements and the repayment or refinancing of indebtedness; the successful integration and future performance of acquired assets or businesses and the risks associated with operating in lines of business that are distinct and separate from our historical operations; the currency exchange rate of the Canadian dollar; continued creditworthiness of, and performance by, our counterparties, including financial institutions and trading companies with which we do business; inability to recognize current revenue attributable to deficiency payments received from customers who fail to ship or move more than minimum contracted volumes until the related credits expire or are used; non-utilization of our assets and facilities; increased costs, or lack of availability, of insurance; weather interference with business operations or project construction, including the impact of extreme weather events or conditions; the availability of, and our ability to consummate, acquisition or combination opportunities; the effectiveness of our risk management activities; shortages or cost increases of supplies, materials or labor; the impact of current and future laws, rulings, governmental regulations, accounting standards and statements and related interpretations; fluctuations in the debt and equity markets, including the price of our units at the time of vesting under our long-term incentive plans; risks related to the development and operation of our assets, including our ability to satisfy our contractual obligations to our customers; factors affecting demand for natural gas and natural gas storage services and rates; general economic, market or business conditions and the amplification of other risks caused by volatile financial markets, capital constraints and pervasive liquidity concerns; and other factors and uncertainties inherent in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as in the storage of natural gas and the processing, transportation, fractionation, storage and marketing of natural gas liquids as discussed in the Partnerships’ filings with the Securities and Exchange Commission.

Plains All American Pipeline, L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, NGLs, natural gas and refined products. PAA owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, PAA handles over 4.6 million barrels per day of crude oil and NGL in its Transportation segment. PAA is headquartered in Houston, Texas. More information is available at www.plainsallamerican.com.

Plains GP Holdings is a publicly traded entity that owns an indirect, non-economic controlling general partner interest in PAA and an indirect limited partner interest in PAA, one of the largest energy infrastructure and logistics companies in North America. PAGP is headquartered in Houston, Texas.

 
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per unit data)
 
                                                                                                                                                   Three Months Ended                                                                                                                                                    Twelve Months Ended
                                                                                                                                                                                                                                  December 31,                                                                                                                                                                                                                   December 31,
                                                                                                                                                         ---------------------------------------------------------------------------------------------------------------------------------------------------------------                                                               -----------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                               2016                                                  2015                                                                                                           2016                                                   2015
                                                                                                                                                         ------------------------------------------------                                                               ------------------------------------------------                                                               -------------------------------------------------                                                               -------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
REVENUES                                                                                                                                                                    $ 5,952                                                                                                        $ 4,996                                                                                                        $ 20,182                                                                                                        $ 23,152
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
COSTS AND EXPENSES
Purchases and related costs                                                                                                                                                   5,234                                                                                                          4,135                                                                                                          17,233                                                                                                          19,726
Field operating costs                                                                                                                                                           289                                                                                                            343                                                                                                           1,182                                                                                                           1,454
General and administrative expenses                                                                                                                                              68                                                                                                             61                                                                                                             279                                                                                                             278
Depreciation and amortization                                                                                                                                143                                                                      113                                                                       494                                                                       432  
                                                                                                                                                         -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                                                -------------------- ------ --------------------                                                                -------------------- ------ --------------------
   Total costs and expenses                                                                                                                                                   5,734                                                                                                          4,652                                                                                                          19,188                                                                                                          21,890
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
OPERATING INCOME                                                                                                                                                                218                                                                                                            344                                                                                                             994                                                                                                           1,262
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
OTHER INCOME/(EXPENSE)
Equity earnings in unconsolidated entities                                                                                                                                       61                                                                                                             49                                                                                                             195                                                                                                             183
Interest expense, net                                                                                                                                                          (127 )                                                                                                         (111 )                                                                                                          (467 )                                                                                                          (432 )
Other income/(expense), net                                                                                                                                  (14 )                                                                                         -                                                                        33                                                                        (7 )
                                                                                                                                                         -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                                                -------------------- ------ --------------------                                                                -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
INCOME BEFORE TAX                                                                                                                                                               138                                                                                                            282                                                                                                             755                                                                                                           1,006
Current income tax expense                                                                                                                                                      (41 )                                                                                                          (12 )                                                                                                           (85 )                                                                                                           (84 )
Deferred income tax benefit/(expense)                                                                                                                         30                                                                      (22 )                                                                                         60                                                                       (16 )
                                                                                                                                                         -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                                                -------------------- ------ --------------------                                                                -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
NET INCOME                                                                                                                                                                      127                                                                                                            248                                                                                                             730                                                                                                             906
   Net income attributable to noncontrolling interests                                                                                                        (1 )                                                                                        (1 )                                                                                         (4 )                                                                                         (3 )
                                                                                                                                                         -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                                                -------------------- ------ --------------------                                                                -------------------- ------ --------------------
NET INCOME ATTRIBUTABLE TO PAA                                                                                                                                              $   126                                                                                     $   247                                                                                     $    726                                                                                     $    903  
                                                                                                                                                         ==================== ===== ====================                                                                ==================== ===== ====================                                                                ==================== ====== ====================                                                                ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
NET INCOME PER COMMON UNIT:
   Net income allocated to common unitholders -- Basic                                                                                                          $    91                                                                                                        $    95                                                                                                        $    200                                                                                                        $    305
   Basic weighted average common units outstanding                                                                                                                              660                                                                                                            398                                                                                                             464                                                                                                             394
   Basic net income per common unit                                                                                                                                         $  0.14                                                                                     $  0.24                                                                                     $   0.43                                                                                     $   0.78  
                                                                                                                                                         ==================== ===== ====================                                                                ==================== ===== ====================                                                                ==================== ====== ====================                                                                ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
   Net income allocated to common unitholders -- Diluted                                                                                                        $    91                                                                                                        $    95                                                                                                        $    200                                                                                                        $    305
   Diluted weighted average common units outstanding                                                                                                                            662                                                                                                            399                                                                                                             466                                                                                                             396
   Diluted net income per common unit                                                                                                                                       $  0.14                                                                                     $  0.24                                                                                     $   0.43                                                                                     $   0.77  
                                                                                                                                                         ==================== ===== ====================                                                                ==================== ===== ====================                                                                ==================== ====== ====================                                                                ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
NON-GAAP ADJUSTED RESULTS
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per unit data)                                                                                                                                                                                            Three Months Ended                                                                                                                                                                                                             Twelve Months Ended
                                                                                                                                                                                                                                  December 31,                                                                                                                                                                                                                   December 31,
                                                                                                                                                         ---------------------------------------------------------------------------------------------------------------------------------------------------------------                                                               -----------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                               2016                                                                                                           2015                                                                                                           2016                                                                                                            2015
                                                                                                                                                         ------------------------------------------------                                                               ------------------------------------------------                                                               -------------------------------------------------                                                               -------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Adjusted net income attributable to PAA                                                                                                                                     $   278                                                                                     $   304                                                                                     $  1,062                                                                                     $  1,191  
                                                                                                                                                         ==================== ===== ====================                                                                ==================== ===== ====================                                                                ==================== ====== ====================                                                                ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Diluted adjusted net income per common unit                                                                                                                                 $  0.37                                                                                     $  0.38                                                                                     $   1.14                                                                                     $   1.48  
                                                                                                                                                         ==================== ===== ====================                                                                ==================== ===== ====================                                                                ==================== ====== ====================                                                                ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Adjusted EBITDA                                                                                                                                                             $   600                                                                                     $   575                                                                                     $  2,169                                                                                     $  2,213  
                                                                                                                                                         ==================== ===== ====================                                                                ==================== ===== ====================                                                                ==================== ====== ====================                                                                ==================== ====== ====================
 
 
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
CONDENSED CONSOLIDATED BALANCE SHEET DATA
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)
                                                                                             December 31,                                           December 31,
                                                                                                                                                                             2016                                                                                         2015
                                                                                                                                                       ---------------------------------------------------------------------                                           -------------------------------------------------
ASSETS
Current assets                                                                                                                                                            $  4,272                                                                                                        $  2,969
Property and equipment, net                                                                                                                                                 13,872                                                                                                          13,474
Goodwill                                                                                                                                                                     2,344                                                                                                           2,405
Investments in unconsolidated entities                                                                                                                                       2,343                                                                                                           2,027
Linefill and base gas                                                                                                                                                          896                                                                                                             898
Long-term inventory                                                                                                                                                            193                                                                                                             129
Other long-term assets, net                                                                                                                                 290                                                                       386  
                                                                                                                                                       -------------------- ------ --------------------                                                                -------------------- ------ --------------------
   Total assets                                                                                                                                                           $ 24,210                                                                                     $ 22,288  
                                                                                                                                                       ==================== ====== ====================                                                                ==================== ====== ====================
                                                                                                                                                                                                                                                                        
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities                                                                                                                                                       $  4,664                                                                                                        $  3,407
Senior notes, net of unamortized discounts and debt issuance costs                                                                                                           9,874                                                                                                           9,698
Other long-term debt                                                                                                                                                           250                                                                                                             677
Other long-term liabilities and deferred credits                                                                                                            606                                                                       567  
                                                                                                                                                       -------------------- ------ --------------------                                                                -------------------- ------ --------------------
   Total liabilities                                                                                                                                                        15,394                                                                                                          14,349
                                                                                                                                                                                                                                                                        
Partners’ capital excluding noncontrolling interests                                                                                                                         8,759                                                                                                           7,881
Noncontrolling interests                                                                                                                                     57                                                                        58  
                                                                                                                                                       -------------------- ------ --------------------                                                                -------------------- ------ --------------------
   Total partners’ capital                                                                                                                                8,816                                                                     7,939  
                                                                                                                                                       -------------------- ------ --------------------                                                                -------------------- ------ --------------------
      Total liabilities and partners’ capital                                                                                                                             $ 24,210                                                                                     $ 22,288  
                                                                                                                                                       ==================== ====== ====================                                                                ==================== ====== ====================
                                                                                                                                                                                                                                                                        
DEBT CAPITALIZATION RATIOS
------------------------------------------------------------------
(in millions)
                                                                                                                                                                         December 31,                                                                                                    December 31,
                                                                                                                                                                             2016                                                                                                            2015
                                                                                                                                                       -------------------------------------------------                                                               -------------------------------------------------
Short-term debt (1)                                                                                                                                                       $  1,715                                                                                                        $    999
Long-term debt                                                                                                                                           10,124                                                                    10,375  
                                                                                                                                                       -------------------- ------ --------------------                                                                -------------------- ------ --------------------
   Total debt                                                                                                                                                             $ 11,839                                                                                     $ 11,374  
                                                                                                                                                       ==================== ====== ====================                                                                ==================== ====== ====================
                                                                                                                                                                                                                                                                        
Long-term debt                                                                                                                                                            $ 10,124                                                                                                        $ 10,375
Partners’ capital                                                                                                                                         8,816                                                                     7,939  
                                                                                                                                                       -------------------- ------ --------------------                                                                -------------------- ------ --------------------
   Total book capitalization                                                                                                                                              $ 18,940                                                                                     $ 18,314  
                                                                                                                                                       ==================== ====== ====================                                                                ==================== ====== ====================
Total book capitalization, including short-term debt                                                                                                                      $ 20,655                                                                                     $ 19,313  
                                                                                                                                                       ==================== ====== ====================                                                                ==================== ====== ====================
                                                                                                                                                                                                                                                                        
Long-term debt-to-total book capitalization                                                                                                                                     53 %                                                                                                            57 %
Total debt-to-total book capitalization, including short-term debt                                                                                                              57 %                                                                                                            59 %
 
________________________
 
(1)        At December 31, 2016, short-term debt includes borrowings of
                              approximately $1,303 million for short-term hedged inventory
                              purchases and borrowings of approximately $410 million for cash
                              margin deposits with our clearing brokers, which are associated
                              with financial derivatives used for hedging purposes.
 
 
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
OPERATING DATA(1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         Three Months Ended                            Twelve Months Ended
                                                                                                                                                                                                        December 31,                                                                        December 31,
                                                                                                                                                                                             -----------------------------------                                          -------------------------------------------------
                                                                                                                                                                                              2016     2015                                             2016            2015
                                                                                                                                                                                             ------                      ------                                           ------                      --------------------
                                                                                                                                                                                                                                                                                                       
  Transportation segment (average daily volumes in thousands of
  barrels per day):
  Tariff activities volumes
    Crude oil pipelines (by region):
       Permian Basin (2)                                                                                                                                                                      2,197                       1,963                                            2,146                                     1,849
       South Texas / Eagle Ford (2)                                                                                                                                                             284                         331                                              284                                       306
       Western                                                                                                                                                                                  171                         190                                              188                                       215
       Rocky Mountain (2)                                                                                                                                                                       454                         433                                              449                                       440
       Gulf Coast                                                                                                                                                                               373                         537                                              497                                       532
       Central (2)                                                                                                                                                                              397                         362                                              394                                       413
       Canada                                                                                                                                                                                   374                         377                                              381                                       392
                                                                                                                                                                                             ------                      ------                                           ------                      --------------------
    Crude oil pipelines                                                                                                                                                                       4,250                       4,193                                            4,339                                     4,147
    NGL pipelines                                                                                                                                                                               190                         189                                              184                                       193
                                                                                                                                                                                             ------                      ------                                           ------                      --------------------
  Tariff activities total volumes                                                                                                                                                             4,440                       4,382                                            4,523                                     4,340
    Trucking                                                                                                                                                                                    118                         109                                              114                                       113
                                                                                                                                                                                             ------                      ------                                           ------                      --------------------
  Transportation segment total volumes                                                                                                                                                        4,558                       4,491                                            4,637                                     4,453
                                                                                                                                                                                             ======                      ======                                           ======                      ====================
                                                                                                                                                                                                                                                                                                       
  Facilities segment (average monthly volumes):
                                                                                                                                                                                                110                         103                                              107                                       100
    Crude oil, refined products and NGL terminalling and storage
      (average monthly capacity in millions of barrels)
                                                                                                                                                                                             ======                      ======                                           ======                      ====================
                                                                                                                                                                                                 42                         172                                               83                                       210
    Rail load / unload volumes
      (average volumes in thousands of barrels per day)
                                                                                                                                                                                             ======                      ======                                           ======                      ====================
                                                                                                                                                                                                 97                          97                                               97                                        97
    Natural gas storage
      (average monthly working capacity in billions of cubic feet)
                                                                                                                                                                                             ======                      ======                                           ======                      ====================
                                                                                                                                                                                                122                         111                                              115                                       103
    NGL fractionation
      (average volumes in thousands of barrels per day)
                                                                                                                                                                                             ======                      ======                                           ======                      ====================
                                                                                                                                                                                                131                         128                                              129                                       126
    Facilities segment total volumes
      (average monthly volumes in millions of barrels) (3)
                                                                                                                                                                                             ======                      ======                                           ======                      ====================
                                                                                                                                                                                                                                                                                                       
  Supply and Logistics segment (average daily volumes in thousands
  of barrels per day):
    Crude oil lease gathering purchases                                                                                                                                                         895                         899                                              894                                       943
    NGL sales                                                                                                                                                                                   346                         266                                              259                                       223
    Waterborne cargos                                                                                                                                                                             7                           2                                                7                                         2
                                                                                                                                                                                             ------                      ------                                           ------                      --------------------
      Supply and Logistics segment total volumes                                                                                                                                              1,248                       1,167                                            1,160                                     1,168
                                                                                                                                                                                             ======                      ======                                           ======                      ====================
 
________________________
 
(1)        Average volumes are calculated as total volumes for the period
                              (attributable to our interest) divided by the number of days or
                              months in the period.
                               
(2)                           Region includes volumes (attributable to our interest) from
                              pipelines owned by unconsolidated entities.
                               
(3)                           Facilities segment total is calculated as the sum of: (i) crude
                              oil, refined products and NGL terminalling and storage capacity;
                              (ii) rail load and unload volumes multiplied by the number of days
                              in the period and divided by the number of months in the period;
                              (iii) natural gas storage working capacity divided by 6 to account
                              for the 6:1 mcf of natural gas to crude Btu equivalent ratio and
                              further divided by 1,000 to convert to monthly volumes in
                              millions; and (iv) NGL fractionation volumes multiplied by the
                              number of days in the period and divided by the number of months
                              in the period.
 
 
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
COMPUTATION OF BASIC AND DILUTED NET
INCOME PER COMMON UNIT(1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per unit data)
                                                                                                                                     Three Months Ended                                                                                                                           Twelve Months Ended
                                                                                                                                                                                                                    December 31,                                                                                                                                                                       December 31,
                                                                                                                                                      ----------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                           2016                                               2015                                                                                     2016                                                2015
                                                                                                                                                      -----------------------------------------------                                          -----------------------------------------------                                          -----------------------------------------------                                          -------------------------------------------------
Basic Net Income per Common Unit
Net income attributable to PAA                                                                                                                                           $  126                                                                                   $  247                                                                                   $  726                                                                                   $    903
   Distributions to Series A preferred units                                                                                                                                (34 )                                                                                      -                                                                                     (122 )                                                                                        -
   Distributions to general partner                                                                                                                                           -                                                                                     (155 )                                                                                   (412 )                                                                                     (608 )
   Distributions to participating securities                                                                                                                                  -                                                                                       (1 )                                                                                     (4 )                                                                                       (6 )
   Undistributed loss allocated to general partner                                                                                                                            -                                                                                        4                                                                                       14                                                                                         16
   Other                                                                                                                                                  (1 )                                                                   -                                                 (2 )                                                                     -  
                                                                                                                                                      -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ------ --------------------
Net income allocated to common unitholders in accordance with                                                                                                            $   91                                                                $   95                                                                $  200                                                                $    305  
application of the two-class method
                                                                                                                                                      ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                  
Basic weighted average common units outstanding (2)                                                                                                                         660                                                                                      398                                                                                      464                                                                                        394
                                                                                                                                                                                                                                                                                                                                                                                                                                  
Basic net income per common unit                                                                                                                                         $ 0.14                                                                $ 0.24                                                                $ 0.43                                                                $   0.78  
                                                                                                                                                      ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                  
Diluted Net Income per Common Unit
Net income attributable to PAA                                                                                                                                           $  126                                                                                   $  247                                                                                   $  726                                                                                   $    903
   Distributions to Series A preferred units                                                                                                                                (34 )                                                                                      -                                                                                     (122 )                                                                                        -
   Distributions to general partner                                                                                                                                           -                                                                                     (155 )                                                                                   (412 )                                                                                     (608 )
   Distributions to participating securities                                                                                                                                  -                                                                                       (1 )                                                                                     (4 )                                                                                       (6 )
   Undistributed loss allocated to general partner                                                                                                                            -                                                                                        4                                                                                       14                                                                                         16
   Other                                                                                                                                                  (1 )                                                                   -                                                 (2 )                                                                     -  
                                                                                                                                                      -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ------ --------------------
Net income allocated to common unitholders in accordance with                                                                                                            $   91                                                                $   95                                                                $  200                                                                $    305  
application of the two-class method
                                                                                                                                                      ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                  
Basic weighted average common units outstanding (2)                                                                                                                         660                                                                                      398                                                                                      464                                                                                        394
   Effect of dilutive securities: Weighted average LTIP units (3)                                                                                          2                                                  1                                                  2                                                    2  
                                                                                                                                                      -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ------ --------------------
Diluted weighted average common units outstanding                                                                                                        662                                                399                                                466                                                  396  
                                                                                                                                                      ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                  
Diluted net income per common unit (4)                                                                                                                                   $ 0.14                                                                $ 0.24                                                                $ 0.43                                                                $   0.77  
                                                                                                                                                      ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ====== ====================
            
________________________
 
(1)                           We calculate net income allocated to common unitholders based on
                              the distributions pertaining to the current period’s net income.
                              After adjusting for the appropriate period’s distributions, the
                              remaining undistributed earnings or excess distributions over
                              earnings, if any, are allocated to the general partner, common
                              unitholders and participating securities in accordance with the
                              contractual terms of our partnership agreement in effect for the
                              period and as further prescribed under the two-class method.
                               
                              The Simplification Transactions, which closed on November 15,
                              2016, included the permanent elimination of our IDRs and the
                              economic rights associated with our 2% general partner interest in
                              exchange for the issuance by us of approximately 244.7 million
                              common units and the assumption of Plains AAP, L.Ps.’s ("AAP")
                              debt. As such, beginning with the distribution pertaining to the
                              fourth quarter of 2016, our general partner is no longer entitled
                              to receive distributions on the IDRs or 2% general partner
                              interest.
                               
(2)                           We have considered the common units issued in connection with the
                              Simplification Transactions to be outstanding for the entire
                              fourth quarter of 2016 in the calculation of weighted average
                              common units outstanding to more closely reflect the ownership
                              interests in us with rights to the distributions for the periods
                              included in the calculation of net income allocated to common
                              unitholders.
                               
(3)                           Our Long-term Incentive Plan ("LTIP") awards that contemplate the
                              issuance of common units are considered dilutive unless (i)
                              vesting occurs only upon the satisfaction of a performance
                              condition and (ii) that performance condition has yet to be
                              satisfied. LTIP awards that are deemed to be dilutive are reduced
                              by a hypothetical unit repurchase based on the remaining
                              unamortized fair value, as prescribed by the treasury stock method
                              in guidance issued by the FASB.
                               
(4)                           The possible conversion of our Series A preferred units was
                              excluded from the calculation of diluted net income per common
                              unit for the three and twelve months ended December 31, 2016 as
                              the effect was antidilutive.
 
 
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
SELECTED FINANCIAL DATA BY SEGMENT(1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                    Three Months Ended                                                                                                                                                                                                                                     Three Months Ended
                                                                                                                                                                                                                                     December 31, 2016                                                                                                                                                                                                                                      December 31, 2015
                                                                                                                                       -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                Supply and                                                                                                                                                                                                       Supply and
                                                                                                                                                                  Transportation                                                                  Facilities                                                           Logistics                                                                                         Transportation                                                                  Facilities                                                           Logistics
                                                                                                                                       --------------------------------------------------------------------                     ----------------------------------------------                     -------------------------------------------------                                          --------------------------------------------------------------------                     ----------------------------------------------                     -------------------------------------------------
Revenues (2)                                                                                                                                              $  396                                                                                   $ 290                                                              $  5,665                                                                                   $  391                                                                                   $ 261                                                              $  4,706
Purchases and related costs (2)                                                                                                                              (25 )                                                                                    (9 )                                                              (5,596 )                                                                                    (23 )                                                                                    (7 )                                                              (4,464 )
Field operating costs (2) (3)                                                                                                                               (131 )                                                                                   (90 )                                                                 (65 )                                                                                   (159 )                                                                                   (94 )                                                                 (94 )
Equity-indexed compensation expense - field operating costs                                                                                                   (5 )                                                                                    (1 )                                                                   -                                                                                        -                                                                                       1                                                                     -
Segment general and administrative expenses (3) (4)                                                                                                          (20 )                                                                                   (13 )                                                                 (22 )                                                                                    (22 )                                                                                   (14 )                                                                 (24 )
Equity-indexed compensation expense - general and administrative                                                                                              (5 )                                                                                    (3 )                                                                  (5 )                                                                                      -                                                                                       -                                                                    (1 )
Equity earnings in unconsolidated entities                                                                                                                    61                                                                                       -                                                                     -                                                                                       49                                                                                       -                                                                     -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Adjustments(5):
   Depreciation and amortization of unconsolidated entities                                                                                                   13                                                                                       -                                                                     -                                                                                       12                                                                                       -                                                                     -
   (Gains)/losses from derivative activities net of inventory valuation                                                                                        -                                                                                      (2 )                                                                 217                                                                                        -                                                                                       2                                                                    (4 )
   adjustments
   Long-term inventory costing adjustments                                                                                                                     -                                                                                       -                                                                   (51 )                                                                                      -                                                                                       -                                                                    37
   Deficiencies under minimum volume commitments, net                                                                                                        (11 )                                                                                    (3 )                                                                   -                                                                                        -                                                                                       -                                                                     -
   Equity-indexed compensation expense                                                                                                                         5                                                                                       2                                                                     3                                                                                        2                                                                                       1                                                                     2
   Net (gain)/loss on foreign currency revaluation                                                                                                             -                                                                                       -                                                                     5                                                                                        -                                                                                       -                                                                    (1 )
   Line 901 incident                                                                                                                        -                              -                               -                                                 18                              -                               -  
                                                                                                                                       -------------------- ---- -------------------- --------------------                      -------------------- --- --------------------                      -------------------- ------ --------------------                                           -------------------- ---- -------------------- --------------------                      -------------------- --- --------------------                      -------------------- ------ --------------------
Segment adjusted EBITDA                                                                                                                                   $  278                                             $ 171                                           $    151                                                                $  268                                             $ 150                                           $    157  
                                                                                                                                       ==================== ==== ==================== ====================                      ==================== === ====================                      ==================== ====== ====================                                           ==================== ==== ==================== ====================                      ==================== === ====================                      ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Maintenance capital                                                                                                                                       $   35                                             $  23                                           $      -                                                                $   43                                             $  20                                           $      3  
                                                                                                                                       ==================== ==== ==================== ====================                      ==================== === ====================                      ==================== ====== ====================                                           ==================== ==== ==================== ====================                      ==================== === ====================                      ==================== ====== ====================
 
 
                                                                                                                                                                             Twelve Months Ended                                                                                                                                                                                                  Twelve Months Ended
                                                                                                                                                                                                                                       December 31, 2016                                                                                                                                                                                                                                          December 31, 2015
                                                                                                                                       -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                       Supply and                                                                                                                                                                                                                              Supply and
                                                                                                                                                                  Transportation                                                 Facilities                                                             Logistics                                                                                         Transportation                                                 Facilities                                                             Logistics
                                                                                                                                       ---------------------------------------------------------------------                     ------------------------------------------------                     --------------------------------------------------                                          ---------------------------------------------------------------------                     ------------------------------------------------                     --------------------------------------------------
Revenues (2)                                                                                                                                              $ 1,584                                                                                   $ 1,107                                                              $  19,018                                                                                   $ 1,594                                                                                   $ 1,050                                                              $  21,945
Purchases and related costs (2)                                                                                                                               (94 )                                                                                     (26 )                                                              (18,627 )                                                                                    (108 )                                                                                     (24 )                                                              (21,018 )
Field operating costs (2) (3)                                                                                                                                (537 )                                                                                    (347 )                                                                 (291 )                                                                                    (652 )                                                                                    (377 )                                                                 (433 )
Equity-indexed compensation expense - field operating costs                                                                                                   (14 )                                                                                      (5 )                                                                   (1 )                                                                                      (5 )                                                                                       -                                                                      -
Segment general and administrative expenses (3) (4)                                                                                                           (88 )                                                                                     (58 )                                                                  (93 )                                                                                     (89 )                                                                                     (65 )                                                                 (102 )
Equity-indexed compensation expense - general and administrative                                                                                              (15 )                                                                                     (10 )                                                                  (15 )                                                                                      (6 )                                                                                      (5 )                                                                  (11 )
Equity earnings in unconsolidated entities                                                                                                                    195                                                                                         -                                                                      -                                                                                       183                                                                                         -                                                                      -
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Adjustments (5):
   Depreciation and amortization of unconsolidated entities                                                                                                    50                                                                                         -                                                                      -                                                                                        45                                                                                         -                                                                      -
   (Gains)/losses from derivative activities net of inventory valuation                                                                                         -                                                                                        (2 )                                                                  406                                                                                         -                                                                                         4                                                                    106
   adjustments
   Long-term inventory costing adjustments                                                                                                                      -                                                                                         -                                                                    (58 )                                                                                       -                                                                                         -                                                                     99
   Deficiencies under minimum volume commitments, net                                                                                                          44                                                                                         2                                                                      -                                                                                         -                                                                                         -                                                                      -
   Equity-indexed compensation expense                                                                                                                         16                                                                                         7                                                                     10                                                                                        11                                                                                         5                                                                     11
   Net (gain)/loss on foreign currency revaluation                                                                                                              -                                                                                        (1 )                                                                   10                                                                                         -                                                                                         -                                                                    (29 )
   Line 901 incident                                                                                                                         -                                -                                -                                                  83                                -                                -  
                                                                                                                                       -------------------- ----- -------------------- --------------------                      -------------------- ----- --------------------                      -------------------- ------- --------------------                                           -------------------- ----- -------------------- --------------------                      -------------------- ----- --------------------                      -------------------- ------- --------------------
Segment adjusted EBITDA                                                                                                                                   $ 1,141                                             $   667                                           $     359                                                                $ 1,056                                             $   588                                           $     568  
                                                                                                                                       ==================== ===== ==================== ====================                      ==================== ===== ====================                      ==================== ======= ====================                                           ==================== ===== ==================== ====================                      ==================== ===== ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
Maintenance capital                                                                                                                                       $   121                                             $    55                                           $      10                                                                $   144                                             $    68                                           $       8  
                                                                                                                                       ==================== ===== ==================== ====================                      ==================== ===== ====================                      ==================== ======= ====================                                           ==================== ===== ==================== ====================                      ==================== ===== ====================                      ==================== ======= ====================
 
________________________
 
(1)        During the fourth quarter of 2016, we modified our primary segment
                              performance measure to segment adjusted EBITDA from segment
                              profit. Segment adjusted EBITDA forms the basis of our internal
                              financial reporting and is the primary measure used by our CODM in
                              assessing performance and allocating resources among our operating
                              segments. Prior period segment amounts have been recast to reflect
                              this change.
                               
(2)                           Includes intersegment amounts.
                               
(3)                           Field operating costs and Segment general and administrative
                              expenses exclude equity-indexed compensation expense, which is
                              presented separately in the table above.
                               
(4)                           Segment general and administrative expenses reflect direct costs
                              attributable to each segment and an allocation of other expenses
                              to the segments. The proportional allocations by segment require
                              judgment by management and are based on the business activities
                              that exist during each period.
                               
(5)                           Represents adjustments utilized by our CODM in the evaluation of
                              segment results. Many of these adjustments are also considered
                              selected items impacting comparability when calculating
                              consolidated non-GAAP financial measures such as Adjusted EBITDA.
                              See the "Selected Items Impacting Comparability" table on the
                              following page for additional discussion.
 
 
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
SELECTED ITEMS IMPACTING COMPARABILITY
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per unit data)
                                                                                                                                         Three Months Ended                                                                                                                            Twelve Months Ended
                                                                                                                                                                                                                        December 31,                                                                                                                                                                        December 31,
                                                                                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                               2016                                                2015                                                                                      2016                                                2015
                                                                                                                                                         ------------------------------------------------                                          ------------------------------------------------                                          ------------------------------------------------                                          -------------------------------------------------
Selected Items Impacting Comparability (1):
Gains/(losses) from derivative activities net of inventory valuation                                                                                                        $  (227 )                                                                                 $     2                                                                                   $  (374 )                                                                                 $   (110 )
adjustments (2)
Long-term inventory costing adjustments (3)                                                                                                                                      51                                                                                       (37 )                                                                                      58                                                                                        (99 )
Deficiencies under minimum volume commitments, net (4)                                                                                                                           14                                                                                         -                                                                                       (46 )                                                                                        -
Equity-indexed compensation expense (5)                                                                                                                                         (10 )                                                                                      (5 )                                                                                     (33 )                                                                                      (27 )
Net gain/(loss) on foreign currency revaluation (6)                                                                                                                              (7 )                                                                                       1                                                                                        (8 )                                                                                       21
Line 901 incident (7)                                                                                                                                          -                                                 (18 )                                                                    -                                                  (83 )
                                                                                                                                                         -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------
   Selected items impacting comparability - Adjusted EBITDA                                                                                                                 $  (179 )                                                                                 $   (57 )                                                                                 $  (403 )                                                                                 $   (298 )
                                                                                                                                                         ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================
Deferred income tax expense (8)                                                                                                                                                   -                                                                                         -                                                                                         -                                                                                        (22 )
Tax effect on selected items impacting comparability                                                                                                          27                                                   -                                                  67                                                   32  
                                                                                                                                                         -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------
   Selected items impacting comparability - Adjusted net income                                                                                                             $  (152 )                                                                                 $   (57 )                                                                                 $  (336 )                                                                                 $   (288 )
   attributable to PAA
                                                                                                                                                         ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                        
Impact to basic net income per common unit                                                                                                                                  $ (0.23 )                                                                                 $ (0.14 )                                                                                 $ (0.72 )                                                                                 $  (0.71 )
                                                                                                                                                         ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================
Impact to diluted net income per common unit                                                                                                                                $ (0.23 )                                                                                 $ (0.14 )                                                                                 $ (0.71 )                                                                                 $  (0.71 )
                                                                                                                                                         ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================
 
________________________
 
(1)        Certain of our non-GAAP financial measures may not be impacted by
                              each of the selected items impacting comparability.
                               
(2)                           We use derivative instruments for risk management purposes and our
                              related processes include specific identification of hedging
                              instruments to an underlying hedged transaction. Although we
                              identify an underlying transaction for each derivative instrument
                              we enter into, there may not be an accounting hedge relationship
                              between the instrument and the underlying transaction. In the
                              course of evaluating our results of operations, we identify the
                              earnings that were recognized during the period related to
                              derivative instruments for which the identified underlying
                              transaction does not occur in the current period and exclude the
                              related gains and losses in determining adjusted results. In
                              addition, we exclude gains and losses on derivatives that are
                              related to investing activities, such as the purchase of linefill.
                              We also exclude the impact of corresponding inventory valuation
                              adjustments, as applicable, as well as the mark-to-market
                              adjustment related to our Preferred Distribution Rate Reset Option.
                               
(3)                           We carry crude oil and NGL inventory that is comprised of minimum
                              working inventory requirements in third-party assets and other
                              working inventory that is needed for our commercial operations. We
                              consider this inventory necessary to conduct our operations and we
                              intend to carry this inventory for the foreseeable future.
                              Therefore, we classify this inventory as long-term on our balance
                              sheet and do not hedge the inventory with derivative instruments
                              (similar to linefill in our own assets). We treat the impact of
                              changes in the average cost of the long-term inventory (that
                              result from fluctuations in market prices) and writedowns of such
                              inventory that result from price declines as a selected item
                              impacting comparability.
                               
(4)                           We have certain agreements that require counterparties to deliver,
                              transport or throughput a minimum volume over an agreed upon
                              period. Substantially all of such agreements were entered into
                              with counterparties to economically support the return on our
                              capital expenditure necessary to construct the related asset. Some
                              of these agreements include make-up rights if the minimum volume
                              is not met. We record a receivable from the counterparty in the
                              period that services are provided or when the transaction occurs,
                              including amounts for deficiency obligations from counterparties
                              associated with minimum volume commitments. If a counterparty has
                              a make-up right associated with a deficiency, we defer the revenue
                              attributable to the counterparty’s make-up right and subsequently
                              recognize the revenue at the earlier of when the deficiency volume
                              is delivered or shipped, when the make-up right expires or when it
                              is determined that the counterparty’s ability to utilize the
                              make-up right is remote. We include the impact of amounts billed
                              to counterparties for their deficiency obligation, net of
                              applicable amounts subsequently recognized into revenue, as a
                              selected item impacting comparability. We believe the inclusion of
                              the contractually committed revenues associated with that period
                              is meaningful to investors as the related asset has been
                              constructed, is standing ready to provide the committed service
                              and the fixed operating costs are included in the current period
                              results.
                               
(5)                           Our total equity-indexed compensation expense includes expense
                              associated with awards that will or may be settled in units and
                              awards that will or may be settled in cash. The awards that will
                              or may be settled in units are included in our diluted net income
                              per unit calculation when the applicable performance criteria have
                              been met. We consider the compensation expense associated with
                              these awards as a selected item impacting comparability as the
                              dilutive impact of the outstanding awards is included in our
                              diluted net income per unit calculation and the majority of the
                              awards are expected to be settled in units. The portion of
                              compensation expense associated with awards that are certain to be
                              settled in cash is not considered a selected item impacting
                              comparability.
                               
(6)                           During the periods presented, there were fluctuations in the value
                              of the Canadian dollar to the U.S. dollar, resulting in gains and
                              losses that were not related to our core operating results for the
                              period and were thus classified as a selected item impacting
                              comparability.
                               
(7)                           Includes costs recognized during the period related to the Line
                              901 incident that occurred in May 2015, net of amounts we believe
                              are probable of recovery from insurance.
                               
(8)                           Includes the initial cumulative effect of a change in Canadian tax
                              legislation impacting the period.
 
 
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
FINANCIAL DATA RECONCILIATIONS
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions)                                                                                                                      Three Months Ended                                                                                                                           Twelve Months Ended
                                                                                                                                                                                                                  December 31,                                                                                                                                                                       December 31,
                                                                                                                                                    ----------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                         2016                                               2015                                                                                      2016                                                2015
                                                                                                                                                    -----------------------------------------------                                          -----------------------------------------------                                          ------------------------------------------------                                          ------------------------------------------------
Net Income to Adjusted EBITDA and Implied DCF Reconciliations
Net Income                                                                                                                                                             $  127                                                                                   $  248                                                                                   $   730                                                                                   $   906
   Interest expense, net                                                                                                                                                  127                                                                                      111                                                                                       467                                                                                       432
   Income tax expense                                                                                                                                                      11                                                                                       34                                                                                        25                                                                                       100
   Depreciation and amortization                                                                                                                                          143                                                                                      113                                                                                       494                                                                                       432
   Depreciation and amortization of unconsolidated entities (1)                                                                                                            13                                                                                       12                                                                                        50                                                                                        45
   Selected items impacting comparability - Adjusted EBITDA (2)                                                                                        179                                                 57                                                 403                                                 298  
                                                                                                                                                    -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------
Adjusted EBITDA                                                                                                                                                        $  600                                                                                   $  575                                                                                   $ 2,169                                                                                   $ 2,213
   Interest expense, net (3)                                                                                                                                             (123 )                                                                                   (107 )                                                                                    (451 )                                                                                    (417 )
   Maintenance capital                                                                                                                                                    (58 )                                                                                    (66 )                                                                                    (186 )                                                                                    (220 )
   Current income tax expense                                                                                                                                             (41 )                                                                                    (12 )                                                                                     (85 )                                                                                     (84 )
   Adjusted equity earnings in unconsolidated entities, net of                                                                                                             (9 )                                                                                     (6 )                                                                                     (29 )                                                                                     (14 )
   distributions (4)
   Distributions to noncontrolling interests (5)                                                                                                        (1 )                                                                  (1 )                                                                   (4 )                                                                   (4 )
                                                                                                                                                    -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ----- --------------------                                           -------------------- ----- --------------------
Implied DCF (6)                                                                                                                                                        $  368                                                                $  383                                                                $ 1,414                                                                $ 1,474  
                                                                                                                                                    ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ===== ====================                                           ==================== ===== ====================
 
________________________
 
(1)        Over the past several years, we have increased our participation
                              in pipeline strategic joint venture projects, which are accounted
                              for under the equity method of accounting. Management excludes our
                              proportionate share of the depreciation and amortization expense
                              associated with such unconsolidated entities when reviewing
                              Adjusted EBITDA.
                               
(2)                           Certain of our non-GAAP financial measures may not be impacted by
                              each of the selected items impacting comparability.
                               
(3)                           Excludes certain non-cash items impacting interest expense such as
                              amortization of debt issuance costs and terminated interest rate
                              swaps.
                               
(4)                           Equity earnings are adjusted for our proportionate share of the
                              depreciation and amortization of unconsolidated entities, as such
                              expenses are excluded from the calculation of Adjusted EBITDA.
                               
(5)                           Includes distributions that pertain to the current period’s net
                              income, which are paid in the subsequent period.
                               
(6)                           Including net costs recognized during the period related to the
                              Line 901 incident that occurred during May 2015, Implied DCF would
                              have been $365 million and $1,391 million for the three and twelve
                              months ended December 31, 2015.
 
 
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
COMPUTATION OF BASIC AND DILUTED ADJUSTED
NET INCOME PER COMMON UNIT (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per unit data)
                                                                                                                                      Three Months Ended                                                                                                                           Twelve Months Ended
                                                                                                                                                                                                                     December 31,                                                                                                                                                                       December 31,
                                                                                                                                                       ----------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                            2016                                               2015                                                                                      2016                                                2015
                                                                                                                                                       -----------------------------------------------                                          -----------------------------------------------                                          ------------------------------------------------                                          -------------------------------------------------
Basic Adjusted Net Income per Common Unit
Net income attributable to PAA                                                                                                                                            $  126                                                                                   $  247                                                                                   $   726                                                                                   $    903
                                                                                                                                                          152                                                 57                                                 336                                                  288  
    Selected items impacting comparability - Adjusted net income
    attributable to PAA (2)
                                                                                                                                                       -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------
Adjusted net income attributable to PAA                                                                                                                                      278                                                                                      304                                                                                     1,062                                                                                      1,191
    Distributions to Series A preferred units                                                                                                                                (34 )                                                                                      -                                                                                      (122 )                                                                                        -
    Distributions to general partner                                                                                                                                           -                                                                                     (155 )                                                                                    (412 )                                                                                     (608 )
    Distributions to participating securities                                                                                                                                  -                                                                                       (1 )                                                                                      (4 )                                                                                       (6 )
    Undistributed loss allocated to general partner                                                                                                                            -                                                                                        3                                                                                        10                                                                                         11
    Other                                                                                                                                                  (1 )                                                                   -                                                  (1 )                                                                     -  
                                                                                                                                                       -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------
Adjusted net income allocated to common unitholders in accordance                                                                                                         $  243                                                                $  151                                                                $   533                                                                $    588  
with application of the two-class method
                                                                                                                                                       ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Basic weighted average common units outstanding (3)                                                                                                                          660                                                                                      398                                                                                       464                                                                                        394
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Basic adjusted net income per common unit                                                                                                                                 $ 0.37                                                                $ 0.38                                                                $  1.15                                                                $   1.49  
                                                                                                                                                       ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Diluted Adjusted Net Income per Common Unit
Net income attributable to PAA                                                                                                                                            $  126                                                                                   $  247                                                                                   $   726                                                                                   $    903
    Selected items impacting comparability - Adjusted net income                                                                                          152                                                 57                                                 336                                                  288  
    attributable to PAA (2)
                                                                                                                                                       -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------
Adjusted net income attributable to PAA                                                                                                                                      278                                                                                      304                                                                                     1,062                                                                                      1,191
    Distributions to Series A preferred units                                                                                                                                (34 )                                                                                      -                                                                                      (122 )                                                                                        -
    Distributions to general partner                                                                                                                                           -                                                                                     (155 )                                                                                    (412 )                                                                                     (608 )
    Distributions to participating securities                                                                                                                                  -                                                                                       (1 )                                                                                      (4 )                                                                                       (6 )
    Undistributed loss allocated to general partner                                                                                                                            -                                                                                        3                                                                                        10                                                                                         11
    Other                                                                                                                                                  (1 )                                                                   -                                                  (1 )                                                                     -  
                                                                                                                                                       -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------
Adjusted net income allocated to common unitholders in accordance                                                                                                         $  243                                                                $  151                                                                $   533                                                                $    588  
with application of the two-class method
                                                                                                                                                       ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Basic weighted average common units outstanding (3)                                                                                                                          660                                                                                      398                                                                                       464                                                                                        394
    Effect of dilutive securities: Weighted average LTIP units (4)                                                                                          2                                                  1                                                   2                                                    2  
                                                                                                                                                       -------------------- ---- --------------------                                           -------------------- ---- --------------------                                           -------------------- ----- --------------------                                           -------------------- ------ --------------------
Diluted weighted average common units outstanding                                                                                                         662                                                399                                                 466                                                  396  
                                                                                                                                                       ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                    
Diluted adjusted net income per common unit (5)                                                                                                                           $ 0.37                                                                $ 0.38                                                                $  1.14                                                                $   1.48  
                                                                                                                                                       ==================== ==== ====================                                           ==================== ==== ====================                                           ==================== ===== ====================                                           ==================== ====== ====================
 
________________________
 
(1)        We calculate adjusted net income allocated to common unitholders
                              based on the distributions pertaining to the current period’s net
                              income. After adjusting for the appropriate period’s
                              distributions, the remaining undistributed earnings or excess
                              distributions over earnings, if any, are allocated to the general
                              partner, common unitholders and participating securities in
                              accordance with the contractual terms of our partnership agreement
                              and as further prescribed under the two-class method.
                               
                              The Simplification Transactions, which closed on November 15,
                              2016, included the permanent elimination of our IDRs and the
                              economic rights associated with our 2% general partner interest in
                              exchange for the issuance by us of approximately 244.7 million
                              common units and the assumption of AAP’s debt. As such, beginning
                              with the distribution pertaining to the fourth quarter of 2016,
                              our general partner is no longer entitled to receive distributions
                              on the IDRs or 2% general partner interest.
                               
(2)                           Certain of our non-GAAP financial measures may not be impacted by
                              each of the selected items impacting comparability.
                               
(3)                           We have considered the common units issued in connection with the
                              Simplification Transactions to be outstanding for the entire
                              fourth quarter of 2016 in the calculation of weighted average
                              common units outstanding to more closely reflect the ownership
                              interests in us with rights to the distributions for the periods
                              included in the calculation of adjusted net income allocated to
                              common unitholders.
                               
(4)                           Our Long-term Incentive Plan ("LTIP") awards that contemplate the
                              issuance of common units are considered dilutive unless (i)
                              vesting occurs only upon the satisfaction of a performance
                              condition and (ii) that performance condition has yet to be
                              satisfied. LTIP awards that are deemed to be dilutive are reduced
                              by a hypothetical unit repurchase based on the remaining
                              unamortized fair value, as prescribed by the treasury stock method
                              in guidance
                              issued by the FASB.
                               
(5)                           The possible conversion of our Series A preferred units was
                              excluded from the calculation of diluted adjusted net income per
                              common unit for the three and twelve months ended December 31,
                              2016 as the effect was antidilutive.
 
PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
CONDENSED CONSOLIDATING STATEMENTS OF
OPERATIONS (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per share data)
 
                                                                                                                                                                                 Three Months Ended                                                                                                                                                                                                                        Three Months Ended
                                                                                                                                                                                                                                                                                 December 31, 2016                                                                                                                                                                                                                                                                                  December 31, 2015
                                                                                                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                              PAA                                            Consolidating                                           PAGP                                                                                                            PAA                                            Consolidating                                           PAGP
                                                                                                                                                                                                                                                                                  Adjustments (2)                                                                                                                                                                                                                                                                                    Adjustments (2)
                                                                                                                                                                       ---------------------------------------------                                             --------------------------------------------                                              ---------------------------------------------                                                                  ---------------------------------------------                                             --------------------------------------------                                              ----------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
REVENUES                                                                                                                                                                                  $ 5,952                                                                                   $    -                                                                                    $ 5,952                                                                                                        $ 4,996                                                                                   $    -                                                                                    $  4,996
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
COSTS AND EXPENSES
Purchases and related costs                                                                                                                                                                 5,234                                                                                        -                                                                                      5,234                                                                                                          4,135                                                                                        -                                                                                       4,135
Field operating costs                                                                                                                                                                         289                                                                                        -                                                                                        289                                                                                                            343                                                                                        -                                                                                         343
General and administrative expenses                                                                                                                                                            68                                                                                        1                                                                                         69                                                                                                             61                                                                                        1                                                                                          62
Depreciation and amortization                                                                                                                                              143                                                  -                                                  143                                                                      113                                                  -                                                   113  
                                                                                                                                                                       -------------------- ----- --------------------                                           -------------------- ---- --------------------                                            -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------
  Total costs and expenses                                                                                                                                                                  5,734                                                                                        1                                                                                      5,735                                                                                                          4,652                                                                                        1                                                                                       4,653
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
OPERATING INCOME                                                                                                                                                                              218                                                                                       (1 )                                                                                      217                                                                                                            344                                                                                       (1 )                                                                                       343
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
OTHER INCOME/(EXPENSE)
Equity earnings in unconsolidated entities                                                                                                                                                     61                                                                                        -                                                                                         61                                                                                                             49                                                                                        -                                                                                          49
Interest expense, net                                                                                                                                                                        (127 )                                                                                     (3 )                                                                                     (130 )                                                                                                         (111 )                                                                                     (3 )                                                                                      (114 )
Other expense, net                                                                                                                                                         (14 )                                                                   -                                                  (14 )                                                                                         -                                                  -                                                     -  
                                                                                                                                                                       -------------------- ----- --------------------                                           -------------------- ---- --------------------                                            -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
INCOME BEFORE TAX                                                                                                                                                                             138                                                                                       (4 )                                                                                      134                                                                                                            282                                                                                       (4 )                                                                                       278
Current income tax expense                                                                                                                                                                    (41 )                                                                                      -                                                                                        (41 )                                                                                                          (12 )                                                                                      -                                                                                         (12 )
Deferred income tax benefit/(expense)                                                                                                                                       30                                                 (1 )                                                                    29                                                                      (22 )                                                                 (28 )                                                                    (50 )
                                                                                                                                                                       -------------------- ----- --------------------                                           -------------------- ---- --------------------                                            -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
NET INCOME                                                                                                                                                                                    127                                                                                       (5 )                                                                                      122                                                                                                            248                                                                                      (32 )                                                                                       216
  Net income attributable to noncontrolling interests                                                                                                                       (1 )                                                                (129 )                                                                  (130 )                                                                                        (1 )                                                                (190 )                                                                   (191 )
                                                                                                                                                                       -------------------- ----- --------------------                                           -------------------- ---- --------------------                                            -------------------- ----- --------------------                                                                -------------------- ----- --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------
NET INCOME/(LOSS) ATTRIBUTABLE TO PAGP                                                                                                                                                    $   126                                                                $ (134 )                                                                                  $    (8 )                                                                                                      $   247                                                                $ (222 )                                                                                  $     25  
                                                                                                                                                                       ==================== ===== ====================                                           ==================== ==== ====================                                            ==================== ===== ====================                                                                ==================== ===== ====================                                           ==================== ==== ====================                                            ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
BASIC AND DILUTED NET INCOME/(LOSS) PER CLASS A SHARE                                                                                                                                                                                                                                                                                                                         $ (0.08 )                                                                                                                                                                                                                                                                                          $   0.29  
                                                                                                                                                                                                                                                                                                                                                           ==================== ===== ====================                                                                                                                                                                                                                                                    ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
BASIC AND DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING                                                                                                                                                                                                                                                                                                  101                                                                                                                                                                                                                                                            86  
                                                                                                                                                                                                                                                                                                                                                           ==================== ===== ====================                                                                                                                                                                                                                                                    ==================== ====== ====================
 
________________________
 
(1)        A reverse split of PAGP’s Class A shares was completed on November
                              15, 2016. The effect of the reverse split has been retroactively
                              applied to all share and per-share amounts presented.
                               
(2)                           Represents the aggregate consolidating adjustments necessary to
                              produce consolidated financial statements for PAGP.
 
 
PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
CONDENSED CONSOLIDATING STATEMENTS OF
OPERATIONS (1)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(in millions, except per share data)
                                                                                                                                                                                                                                        
                                                                                                                                                                                Twelve Months Ended                                                                                                                                                                                                                                                             Twelve Months Ended
                                                                                                                                                                                                                                                             December 31, 2016                                                                                                                                                                                                                                                               December 31, 2015
                                                                                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                         PAA                                             Consolidating                                           PAGP                                                                                        PAA                                             Consolidating                                           PAGP
                                                                                                                                                                                                                                                              Adjustments (2)                                                                                                                                                                                                                                                                 Adjustments (2)
                                                                                                                                                  ----------------------------------------------                                             --------------------------------------------                                              ----------------------------------------------                                             ----------------------------------------------                                             --------------------------------------------                                              ----------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
REVENUES                                                                                                                                                             $ 20,182                                                                                   $    -                                                                                    $ 20,182                                                                                   $ 23,152                                                                                   $    -                                                                                    $ 23,152
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
COSTS AND EXPENSES
Purchases and related costs                                                                                                                                            17,233                                                                                        -                                                                                      17,233                                                                                     19,726                                                                                        -                                                                                      19,726
Field operating costs                                                                                                                                                   1,182                                                                                        -                                                                                       1,182                                                                                      1,454                                                                                        -                                                                                       1,454
General and administrative expenses                                                                                                                                       279                                                                                        3                                                                                         282                                                                                        278                                                                                        3                                                                                         281
Depreciation and amortization                                                                                                                          494                                                  1                                                   495                                                  432                                                  1                                                   433  
                                                                                                                                                  -------------------- ------ --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------
  Total costs and expenses                                                                                                                                             19,188                                                                                        4                                                                                      19,192                                                                                     21,890                                                                                        4                                                                                      21,894
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
OPERATING INCOME                                                                                                                                                          994                                                                                       (4 )                                                                                       990                                                                                      1,262                                                                                       (4 )                                                                                     1,258
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
OTHER INCOME/(EXPENSE)
Equity earnings in unconsolidated entities                                                                                                                                195                                                                                        -                                                                                         195                                                                                        183                                                                                        -                                                                                         183
Interest expense, net                                                                                                                                                    (467 )                                                                                    (13 )                                                                                      (480 )                                                                                     (432 )                                                                                    (11 )                                                                                      (443 )
Other income/(expense), net                                                                                                                             33                                                  -                                                    33                                                   (7 )                                                                   -                                                    (7 )
                                                                                                                                                  -------------------- ------ --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
INCOME BEFORE TAX                                                                                                                                                         755                                                                                      (17 )                                                                                       738                                                                                      1,006                                                                                      (15 )                                                                                       991
Current income tax expense                                                                                                                                                (85 )                                                                                      -                                                                                         (85 )                                                                                      (84 )                                                                                      -                                                                                         (84 )
Deferred income tax benefit/(expense)                                                                                                                   60                                                (53 )                                                                      7                                                  (16 )                                                                 (82 )                                                                    (98 )
                                                                                                                                                  -------------------- ------ --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
NET INCOME                                                                                                                                                                730                                                                                      (70 )                                                                                       660                                                                                        906                                                                                      (97 )                                                                                       809
  Net income attributable to noncontrolling interests                                                                                                   (4 )                                                                (562 )                                                                   (566 )                                                                    (3 )                                                                (688 )                                                                   (691 )
                                                                                                                                                  -------------------- ------ --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ---- --------------------                                            -------------------- ------ --------------------
NET INCOME ATTRIBUTABLE TO PAGP                                                                                                                                      $    726                                                                $ (632 )                                                                                  $     94                                                                $    903                                                                $ (785 )                                                                                  $    118  
                                                                                                                                                  ==================== ====== ====================                                           ==================== ==== ====================                                            ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ==== ====================                                            ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
BASIC AND DILUTED NET INCOME PER CLASS A SHARE                                                                                                                                                                                                                                                                                                            $   0.94                                                                                                                                                                                                                                                     $   1.41  
                                                                                                                                                                                                                                                                                                                                       ==================== ====== ====================                                                                                                                                                                                                                                ==================== ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
BASIC AND DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING                                                                                                                                                                                                                                                                                99                                                                                                                                                                                                                                        83  
                                                                                                                                                                                                                                                                                                                                       ==================== ====== ====================                                                                                                                                                                                                                                ==================== ====== ====================
 
________________________
 
(1)        A reverse split of PAGP’s Class A shares was completed on November
                              15, 2016. The effect of the reverse split has been retroactively
                              applied to all share and per-share amounts presented.
                               
(2)                           Represents the aggregate consolidating adjustments necessary to
                              produce consolidated financial statements for PAGP.
                               
                                                                                                                                                                                                                                                                              
PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)                                                                                                     
------------------------------------------------------------------ -------------------- ---------------------------------------------------- --------------------------------------------------------------------- ----------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                     
CONDENSED CONSOLIDATING BALANCE SHEET DATA
------------------------------------------------------------------
(in millions)
                                                                                                                                                             December 31, 2016                                                                                                                                                                                  December 31, 2015
                                                                                        -----------------------------------------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       PAA                                                     Consolidating                                                     PAGP                                                                     PAA                                                   Consolidating                                                     PAGP
                                                                                                                                                              Adjustments (1)                                                                                                                                                                                  Adjustments (1)
                                                                                        ------------------------------                       ----------------------------------------------                        ------------------------------                                            --------------------------                       ----------------------------------------------                        ------------------------------
ASSETS
Current assets                                                                                             $      4,272                                         $      3                                                              $      4,275                                                              $  2,969                                         $      3                                                              $      2,972
Property and equipment, net                                                                                      13,872                                               18                                                                    13,890                                                                13,474                                               19                                                                    13,493
Goodwill                                                                                                          2,344                                                -                                                                     2,344                                                                 2,405                                                -                                                                     2,405
Investments in unconsolidated entities                                                                            2,343                                                -                                                                     2,343                                                                 2,027                                                -                                                                     2,027
Deferred tax asset                                                                                                    -                                            1,876                                                                     1,876                                                                     -                                            1,835                                                                     1,835
Linefill and base gas                                                                                               896                                                -                                                                       896                                                                   898                                                -                                                                       898
Long-term inventory                                                                                                 193                                                -                                                                       193                                                                   129                                                -                                                                       129
Other long-term assets, net                                                                      290                            (4 )                                                  286                                                386                            (3 )                                                  383
                                                                                        -------------------- ----------                      -------------------- ------ --------------------                      -------------------- ----------                                           -------------------- ------                      -------------------- ------ --------------------                      -------------------- ----------
   Total assets                                                                                            $     24,210                                         $  1,893                                           $     26,103                                                              $ 22,288                                         $  1,854                                           $     24,142
                                                                                        ==================== ==========                      ==================== ====== ====================                      ==================== ==========                                           ==================== ======                      ==================== ====== ====================                      ==================== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                     
LIABILITIES AND PARTNERS’ CAPITAL
Current liabilities                                                                                        $      4,664                                         $      2                                                              $      4,666                                                              $  3,407                                         $      2                                                              $      3,409
Senior notes, net of unamortized discounts and debt issuance costs                                                9,874                                                -                                                                     9,874                                                                 9,698                                                -                                                                     9,698
Other long-term debt, net of unamortized debt issuance costs                                                        250                                                -                                                                       250                                                                   677                                              557                                                                     1,234
Other long-term liabilities and deferred credits                                                 606                             -                                 606                                                567                             -                                 567
                                                                                        -------------------- ----------                      -------------------- ------ --------------------                      -------------------- ----------                                           -------------------- ------                      -------------------- ------ --------------------                      -------------------- ----------
   Total liabilities                                                                                             15,394                                                2                                                                    15,396                                                                14,349                                              559                                                                    14,908
                                                                                                                                                                                                                                                                                                                                                                                                                     
Partners’ capital excluding noncontrolling interests                                                              8,759                                           (7,022 )                                                                   1,737                                                                 7,881                                           (6,119 )                                                                   1,762
Noncontrolling interests                                                                          57                         8,913                               8,970                                                 58                         7,414                               7,472
                                                                                        -------------------- ----------                      -------------------- ------ --------------------                      -------------------- ----------                                           -------------------- ------                      -------------------- ------ --------------------                      -------------------- ----------
   Total partners’ capital                                                                     8,816                         1,891                              10,707                                              7,939                         1,295                               9,234
                                                                                        -------------------- ----------                      -------------------- ------ --------------------                      -------------------- ----------                                           -------------------- ------                      -------------------- ------ --------------------                      -------------------- ----------
      Total liabilities and partners’ capital                                                              $     24,210                                         $  1,893                                           $     26,103                                                              $ 22,288                                         $  1,854                                           $     24,142
                                                                                        ==================== ==========                      ==================== ====== ====================                      ==================== ==========                                           ==================== ======                      ==================== ====== ====================                      ==================== ==========
 
________________________
 
(1)        Represents the aggregate consolidating adjustments necessary to
                              produce consolidated financial statements for PAGP.
 
                                                                                                                                           
PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)                                                       
---------------------------------------------------------------- -------------------- ----------------------------------------- ------------------------------------------ -------------------- ------------------------------------------ ----------------------
                                                                                                                                                                                                                                            
COMPUTATION OF BASIC AND DILUTED NET
INCOME PER CLASS A SHARE (1)
----------------------------------------------------------------
(in millions, except per share data)
                                                                                                             Three Months Ended                                                                                        Twelve Months Ended
                                                                                                                December 31,                                                                                              December 31,
                                                                                      ----------------------------------------------------------------                                          -----------------------------------------------------------------
                                                                                              2016                                       2015                                                            2016                                       2015
                                                                                      ---------------------                     ----------------------                                          ----------------------                     ----------------------
Basic and Diluted Net Income per Class A Share
   Net income/(loss) attributable to PAGP                                                  $     (8 )                                    $         25                                                    $         94                               $        118
   Basic and diluted weighted average Class A shares outstanding                                101                                                86                                                              99                                         83
                                                                                                                                                                                                                                            
   Basic and diluted net income/(loss) per Class A share                                   $  (0.08 )                                    $       0.29                                                    $       0.94                               $       1.41
                                                                                      ====== ====== ======                      ========== ==========                                           ========== ==========                      ========== ==========
 
________________________
 
(1)        A reverse split of PAGP’s Class A shares was completed on November
                              15, 2016. The effect of the reverse split has been retroactively
                              applied to all share and per-share amounts presented.
 

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170207006475r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170207006475/en/

SOURCE: Plains All American Pipeline, L.P. and Plains GP Holdings

Plains All American Pipeline, L.P. and Plains GP Holdings 
Ryan Smith, 866-809-1291 
Director, Investor Relations 
or 
Al Swanson, 800-564-3036 
Executive Vice President, CFO


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