Delaware | 76-0582150 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
333 Clay Street, Suite 1600, Houston, Texas | 77002 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ý | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o | |
(Do not check if a smaller reporting company) | Emerging growth company o |
Page | |
September 30, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 33 | $ | 47 | |||
Trade accounts receivable and other receivables, net | 2,287 | 2,279 | |||||
Inventory | 884 | 1,343 | |||||
Other current assets | 811 | 603 | |||||
Total current assets | 4,015 | 4,272 | |||||
PROPERTY AND EQUIPMENT | 16,866 | 16,220 | |||||
Accumulated depreciation | (2,597 | ) | (2,348 | ) | |||
Property and equipment, net | 14,269 | 13,872 | |||||
OTHER ASSETS | |||||||
Goodwill | 2,598 | 2,344 | |||||
Investments in unconsolidated entities | 2,671 | 2,343 | |||||
Linefill and base gas | 884 | 896 | |||||
Long-term inventory | 135 | 193 | |||||
Other long-term assets, net | 911 | 290 | |||||
Total assets | $ | 25,483 | $ | 24,210 | |||
LIABILITIES AND PARTNERS’ CAPITAL | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued liabilities | $ | 2,713 | $ | 2,588 | |||
Short-term debt | 918 | 1,715 | |||||
Other current liabilities | 385 | 361 | |||||
Total current liabilities | 4,016 | 4,664 | |||||
LONG-TERM LIABILITIES | |||||||
Senior notes, net of unamortized discounts and debt issuance costs | 9,881 | 9,874 | |||||
Other long-term debt | 608 | 250 | |||||
Other long-term liabilities and deferred credits | 698 | 606 | |||||
Total long-term liabilities | 11,187 | 10,730 | |||||
COMMITMENTS AND CONTINGENCIES (NOTE 12) | |||||||
PARTNERS’ CAPITAL | |||||||
Series A preferred unitholders (68,329,949 and 64,388,853 units outstanding, respectively) | 1,506 | 1,508 | |||||
Common unitholders (725,189,138 and 669,194,419 units outstanding, respectively) | 8,717 | 7,251 | |||||
Total partners’ capital excluding noncontrolling interests | 10,223 | 8,759 | |||||
Noncontrolling interests | 57 | 57 | |||||
Total partners’ capital | 10,280 | 8,816 | |||||
Total liabilities and partners’ capital | $ | 25,483 | $ | 24,210 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
REVENUES | |||||||||||||||
Supply and Logistics segment revenues | $ | 5,573 | $ | 4,876 | $ | 17,749 | $ | 13,344 | |||||||
Transportation segment revenues | 160 | 159 | 459 | 482 | |||||||||||
Facilities segment revenues | 140 | 135 | 410 | 405 | |||||||||||
Total revenues | 5,873 | 5,170 | 18,618 | 14,231 | |||||||||||
COSTS AND EXPENSES | |||||||||||||||
Purchases and related costs | 5,327 | 4,429 | 16,239 | 12,000 | |||||||||||
Field operating costs | 283 | 289 | 876 | 893 | |||||||||||
General and administrative expenses | 68 | 70 | 210 | 210 | |||||||||||
Depreciation and amortization | 151 | 33 | 401 | 351 | |||||||||||
Total costs and expenses | 5,829 | 4,821 | 17,726 | 13,454 | |||||||||||
OPERATING INCOME | 44 | 349 | 892 | 777 | |||||||||||
OTHER INCOME/(EXPENSE) | |||||||||||||||
Equity earnings in unconsolidated entities | 80 | 46 | 201 | 133 | |||||||||||
Interest expense (net of capitalized interest of $11, $11, $26 and $37, respectively) | (134 | ) | (113 | ) | (390 | ) | (339 | ) | |||||||
Other income/(expense), net | (1 | ) | 17 | (6 | ) | 46 | |||||||||
INCOME/(LOSS) BEFORE TAX | (11 | ) | 299 | 697 | 617 | ||||||||||
Current income tax benefit/(expense) | 1 | (4 | ) | (9 | ) | (45 | ) | ||||||||
Deferred income tax benefit/(expense) | 44 | 3 | (21 | ) | 30 | ||||||||||
NET INCOME | 34 | 298 | 667 | 602 | |||||||||||
Net income attributable to noncontrolling interests | (1 | ) | (1 | ) | (2 | ) | (3 | ) | |||||||
NET INCOME ATTRIBUTABLE TO PAA | $ | 33 | $ | 297 | $ | 665 | $ | 599 | |||||||
NET INCOME/(LOSS) PER COMMON UNIT (NOTE 3): | |||||||||||||||
Net income/(loss) allocated to common unitholders — Basic | $ | (8 | ) | $ | 162 | $ | 547 | $ | 110 | ||||||
Basic weighted average common units outstanding | 725 | 401 | 714 | 399 | |||||||||||
Basic net income/(loss) per common unit | $ | (0.01 | ) | $ | 0.40 | $ | 0.77 | $ | 0.27 | ||||||
Net income/(loss) allocated to common unitholders — Diluted | $ | (8 | ) | $ | 162 | $ | 547 | $ | 110 | ||||||
Diluted weighted average common units outstanding | 725 | 402 | 715 | 400 | |||||||||||
Diluted net income/(loss) per common unit | $ | (0.01 | ) | $ | 0.40 | $ | 0.76 | $ | 0.27 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||||
Net income | $ | 34 | $ | 298 | $ | 667 | $ | 602 | |||||||
Other comprehensive income/(loss) | 145 | (45 | ) | 256 | — | ||||||||||
Comprehensive income | 179 | 253 | 923 | 602 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (1 | ) | (1 | ) | (2 | ) | (3 | ) | |||||||
Comprehensive income attributable to PAA | $ | 178 | $ | 252 | $ | 921 | $ | 599 |
Derivative Instruments | Translation Adjustments | Other | Total | ||||||||||||
(unaudited) | |||||||||||||||
Balance at December 31, 2016 | $ | (228 | ) | $ | (782 | ) | $ | 1 | $ | (1,009 | ) | ||||
Reclassification adjustments | 19 | — | — | 19 | |||||||||||
Deferred loss on cash flow hedges | (15 | ) | — | — | (15 | ) | |||||||||
Currency translation adjustments | — | 252 | — | 252 | |||||||||||
Total period activity | 4 | 252 | — | 256 | |||||||||||
Balance at September 30, 2017 | $ | (224 | ) | $ | (530 | ) | $ | 1 | $ | (753 | ) |
Derivative Instruments | Translation Adjustments | Total | |||||||||
(unaudited) | |||||||||||
Balance at December 31, 2015 | $ | (203 | ) | $ | (878 | ) | $ | (1,081 | ) | ||
Reclassification adjustments | 7 | — | 7 | ||||||||
Deferred loss on cash flow hedges | (178 | ) | — | (178 | ) | ||||||
Currency translation adjustments | — | 171 | 171 | ||||||||
Total period activity | (171 | ) | 171 | — | |||||||
Balance at September 30, 2016 | $ | (374 | ) | $ | (707 | ) | $ | (1,081 | ) |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
(unaudited) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 667 | $ | 602 | |||
Reconciliation of net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 401 | 351 | |||||
Equity-indexed compensation expense | 33 | 40 | |||||
Inventory valuation adjustments | 35 | 3 | |||||
Deferred income tax (benefit)/expense | 21 | (30 | ) | ||||
(Gain)/loss on foreign currency revaluation | (20 | ) | 1 | ||||
Settlement of terminated interest rate hedging instruments | (29 | ) | (50 | ) | |||
Change in fair value of Preferred Distribution Rate Reset Option (Note 10) | — | (42 | ) | ||||
Equity earnings in unconsolidated entities | (201 | ) | (133 | ) | |||
Distributions on earnings from unconsolidated entities | 222 | 151 | |||||
Other | 19 | 13 | |||||
Changes in assets and liabilities, net of acquisitions | 770 | (258 | ) | ||||
Net cash provided by operating activities | 1,918 | 648 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Cash paid in connection with acquisitions, net of cash acquired | (1,282 | ) | (282 | ) | |||
Investments in unconsolidated entities | (356 | ) | (171 | ) | |||
Additions to property, equipment and other | (778 | ) | (1,030 | ) | |||
Proceeds from sales of assets | 407 | 638 | |||||
Return of investment from unconsolidated entities | 21 | — | |||||
Cash received for sales of linefill and base gas | 23 | — | |||||
Other investing activities | 2 | (9 | ) | ||||
Net cash used in investing activities | (1,963 | ) | (854 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Net repayments under commercial paper program (Note 8) | (115 | ) | (617 | ) | |||
Net borrowings under senior secured hedged inventory facility (Note 8) | 7 | 424 | |||||
Repayments of senior notes (Note 8) | (400 | ) | (175 | ) | |||
Net proceeds from the sale of Series A preferred units | — | 1,569 | |||||
Net proceeds from the sale of common units (Note 9) | 1,664 | 283 | |||||
Contributions from general partner | — | 39 | |||||
Distributions paid to common unitholders (Note 9) | (1,168 | ) | (835 | ) | |||
Distributions paid to general partner | — | (464 | ) | ||||
Other financing activities | 41 | (18 | ) | ||||
Net cash provided by financing activities | 29 | 206 | |||||
Effect of translation adjustment on cash | 2 | 4 | |||||
Net increase/(decrease) in cash and cash equivalents | (14 | ) | 4 | ||||
Cash and cash equivalents, beginning of period | 47 | 27 | |||||
Cash and cash equivalents, end of period | $ | 33 | $ | 31 | |||
Cash paid for: | |||||||
Interest, net of amounts capitalized | $ | 325 | $ | 313 | |||
Income taxes, net of amounts refunded | $ | 47 | $ | 78 |
Limited Partners | Partners’ Capital Excluding Noncontrolling Interests | Noncontrolling Interests | Total Partners’ Capital | ||||||||||||||||
Series A Preferred Unitholders | Common Unitholders | ||||||||||||||||||
(unaudited) | |||||||||||||||||||
Balance at December 31, 2016 | $ | 1,508 | $ | 7,251 | $ | 8,759 | $ | 57 | $ | 8,816 | |||||||||
Net income | — | 665 | 665 | 2 | 667 | ||||||||||||||
Cash distributions to partners | — | (1,168 | ) | (1,168 | ) | (2 | ) | (1,170 | ) | ||||||||||
Sales of common units | — | 1,664 | 1,664 | — | 1,664 | ||||||||||||||
Acquisition of interest in Advantage Joint Venture (Note 6) | — | 40 | 40 | — | 40 | ||||||||||||||
Other comprehensive income | — | 256 | 256 | — | 256 | ||||||||||||||
Other | (2 | ) | 9 | 7 | — | 7 | |||||||||||||
Balance at September 30, 2017 | $ | 1,506 | $ | 8,717 | $ | 10,223 | $ | 57 | $ | 10,280 |
Limited Partners | General Partner | Partners’ Capital Excluding Noncontrolling Interests | Noncontrolling Interests | Total Partners’ Capital | |||||||||||||||||||
Series A Preferred Unitholders | Common Unitholders | ||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||
Balance at December 31, 2015 | $ | — | $ | 7,580 | $ | 301 | $ | 7,881 | $ | 58 | $ | 7,939 | |||||||||||
Net income | — | 209 | 390 | 599 | 3 | 602 | |||||||||||||||||
Cash distributions to partners | — | (835 | ) | (464 | ) | (1,299 | ) | (3 | ) | (1,302 | ) | ||||||||||||
Sale of Series A preferred units | 1,509 | — | 33 | 1,542 | — | 1,542 | |||||||||||||||||
Sales of common units | — | 283 | 6 | 289 | — | 289 | |||||||||||||||||
Other | (1 | ) | 3 | 2 | 4 | — | 4 | ||||||||||||||||
Balance at September 30, 2016 | $ | 1,508 | $ | 7,240 | $ | 268 | $ | 9,016 | $ | 58 | $ | 9,074 |
• | the permanent elimination of our incentive distribution rights (“IDRs”) and the economic rights associated with our 2% general partner interest in exchange for the issuance by us to AAP of 245.5 million PAA common units (including approximately 0.8 million units to be issued in the future) and the assumption by us of all of AAP’s outstanding debt ($642 million); |
• | the implementation of a unified governance structure pursuant to which the board of directors of GP LLC was eliminated and an expanded board of directors of PAGP GP assumed oversight responsibility over both us and PAGP; |
• | the provision for annual PAGP shareholder meetings beginning in 2018 for the purpose of electing certain directors with expiring terms in 2018, and the participation of our common unitholders and Series A preferred unitholders in such elections through our ownership of newly issued Class C shares in PAGP, which provide us, as the sole holder of such Class C shares, the right to vote in elections of eligible PAGP directors together with the holders of PAGP Class A and Class B shares; |
• | the execution by AAP of a reverse split to adjust the number of AAP Class A units (“AAP units”) such that the number of outstanding AAP units (assuming the conversion of AAP Class B units (the “AAP Management Units”) into AAP units) equaled the number of our common units received by AAP at the closing of the Simplification Transactions. Simultaneously, PAGP executed a reverse split to adjust the number of PAGP Class A and Class B shares outstanding |
• | the creation of a right for certain holders of the AAP units to cause AAP to redeem such AAP units in exchange for an equal number of our common units held by AAP. |
AOCI | = | Accumulated other comprehensive income/(loss) |
ASC | = | Accounting Standards Codification |
ASU | = | Accounting Standards Update |
Bcf | = | Billion cubic feet |
Btu | = | British thermal unit |
CAD | = | Canadian dollar |
CODM | = | Chief Operating Decision Maker |
DERs | = | Distribution equivalent rights |
EBITDA | = | Earnings before interest, taxes, depreciation and amortization |
EPA | = | United States Environmental Protection Agency |
FASB | = | Financial Accounting Standards Board |
GAAP | = | Generally accepted accounting principles in the United States |
ICE | = | Intercontinental Exchange |
LIBOR | = | London Interbank Offered Rate |
LTIP | = | Long-term incentive plan |
Mcf | = | Thousand cubic feet |
NGL | = | Natural gas liquids, including ethane, propane and butane |
NYMEX | = | New York Mercantile Exchange |
Oxy | = | Occidental Petroleum Corporation or its subsidiaries |
PLA | = | Pipeline loss allowance |
SEC | = | United States Securities and Exchange Commission |
USD | = | United States dollar |
WTI | = | West Texas Intermediate |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Basic Net Income/(Loss) per Common Unit | |||||||||||||||
Net income attributable to PAA | $ | 33 | $ | 297 | 665 | 599 | |||||||||
Distributions to Series A preferred unitholders (1) | (36 | ) | (33 | ) | (105 | ) | (88 | ) | |||||||
Distributions to general partner (1) | — | (102 | ) | — | (412 | ) | |||||||||
Distributions to participating securities (1) | (1 | ) | (1 | ) | (2 | ) | (3 | ) | |||||||
Undistributed loss allocated to general partner (1) | — | 1 | — | 14 | |||||||||||
Other | (4 | ) | — | (11 | ) | — | |||||||||
Net income/(loss) allocated to common unitholders | $ | (8 | ) | $ | 162 | $ | 547 | $ | 110 | ||||||
Basic weighted average common units outstanding | 725 | 401 | 714 | 399 | |||||||||||
Basic net income/(loss) per common unit | $ | (0.01 | ) | $ | 0.40 | $ | 0.77 | $ | 0.27 | ||||||
Diluted Net Income/(Loss) per Common Unit | |||||||||||||||
Net income attributable to PAA | $ | 33 | $ | 297 | $ | 665 | $ | 599 | |||||||
Distributions to Series A preferred unitholders (1) | (36 | ) | (33 | ) | (105 | ) | (88 | ) | |||||||
Distributions to general partner (1) | — | (102 | ) | — | (412 | ) | |||||||||
Distributions to participating securities (1) | (1 | ) | (1 | ) | (2 | ) | (3 | ) | |||||||
Undistributed loss allocated to general partner (1) | — | 1 | — | 14 | |||||||||||
Other | (4 | ) | — | (11 | ) | — | |||||||||
Net income/(loss) allocated to common unitholders | $ | (8 | ) | $ | 162 | $ | 547 | $ | 110 | ||||||
Basic weighted average common units outstanding | 725 | 401 | 714 | 399 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
LTIP units | — | 1 | 1 | 1 | |||||||||||
Diluted weighted average common units outstanding | 725 | 402 | 715 | 400 | |||||||||||
Diluted net income/(loss) per common unit | $ | (0.01 | ) | $ | 0.40 | $ | 0.76 | $ | 0.27 |
(1) | We calculate net income/(loss) 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 (“undistributed loss”), 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, simplified our governance structure and permanently eliminated our IDRs and the economic rights associated with our 2% general partner interest. Therefore, beginning with the distribution pertaining to the fourth quarter of 2016, our general partner is no longer entitled to receive distributions or allocations on such interests. |
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||
Volumes | Unit of Measure | Carrying Value | Price/ Unit (1) | Volumes | Unit of Measure | Carrying Value | Price/ Unit (1) | |||||||||||||||||||
Inventory | ||||||||||||||||||||||||||
Crude oil | 10,632 | barrels | $ | 480 | $ | 45.15 | 23,589 | barrels | $ | 1,049 | $ | 44.47 | ||||||||||||||
NGL | 16,604 | barrels | 390 | $ | 23.49 | 13,497 | barrels | 242 | $ | 17.93 | ||||||||||||||||
Natural gas | — | Mcf | — | N/A | 14,540 | Mcf | 32 | $ | 2.20 | |||||||||||||||||
Other | N/A | 14 | N/A | N/A | 20 | N/A | ||||||||||||||||||||
Inventory subtotal | 884 | 1,343 | ||||||||||||||||||||||||
Linefill and base gas | ||||||||||||||||||||||||||
Crude oil | 12,477 | barrels | 729 | $ | 58.43 | 12,273 | barrels | 710 | $ | 57.85 | ||||||||||||||||
NGL | 1,630 | barrels | 47 | $ | 28.83 | 1,660 | barrels | 45 | $ | 27.11 | ||||||||||||||||
Natural gas | 24,976 | Mcf | 108 | $ | 4.32 | 30,812 | Mcf | 141 | $ | 4.58 | ||||||||||||||||
Linefill and base gas subtotal | 884 | 896 | ||||||||||||||||||||||||
Long-term inventory | ||||||||||||||||||||||||||
Crude oil | 1,800 | barrels | 86 | $ | 47.78 | 3,279 | barrels | 163 | $ | 49.71 | ||||||||||||||||
NGL | 2,120 | barrels | 49 | $ | 23.11 | 1,418 | barrels | 30 | $ | 21.16 | ||||||||||||||||
Long-term inventory subtotal | 135 | 193 | ||||||||||||||||||||||||
Total | $ | 1,903 | $ | 2,432 |
(1) | Price per unit of measure is comprised of a weighted average associated with various grades, qualities and locations. Accordingly, these prices may not coincide with any published benchmarks for such products. |
Identifiable assets acquired and liabilities assumed: | Estimated Useful Lives (Years) | Recognized amount | ||||
Property and equipment | 3 - 70 | $ | 299 | |||
Intangible assets | 20 | 646 | ||||
Goodwill | N/A | 271 | ||||
Other assets and liabilities, net (including $4 million of cash acquired) | N/A | 1 | ||||
$ | 1,217 |
Remainder of 2017 | $ | 3 | ||
2018 | $ | 25 | ||
2019 | $ | 34 | ||
2020 | $ | 42 | ||
2021 | $ | 48 |
• | our Bluewater natural gas storage facility located in Michigan; |
• | non-core pipeline segments primarily located in the Midwestern United States; and |
• | a 40% undivided interest in a segment of our Red River Pipeline extending from Cushing, Oklahoma to the Hewitt Station near Ardmore, Oklahoma (the “Hewitt Segment”) for our net book value. We retained a 60% undivided |
• | certain non-core pipelines in the Rocky Mountain and Bakken regions, which closed during the fourth quarter of 2017; and |
• | certain of our West Coast terminal assets located in California. During the third quarter of 2017, in order to avoid continued uncertainty and costs associated with efforts by the Attorney General for the State of California to block the proposed transaction, our previously disclosed definitive agreement for the potential sale of California terminal assets was jointly terminated by us and the potential third party purchaser. During the fourth quarter of 2017, we entered into definitive agreements to sell these assets to another third-party purchaser. |
Transportation | Facilities | Supply and Logistics | Total | ||||||||||||
Balance at December 31, 2016 | $ | 806 | $ | 1,034 | $ | 504 | $ | 2,344 | |||||||
Acquisitions (1) | 271 | — | — | 271 | |||||||||||
Foreign currency translation adjustments | 17 | 8 | 4 | 29 | |||||||||||
Dispositions and reclassifications to assets held for sale | (13 | ) | (33 | ) | — | (46 | ) | ||||||||
Balance at September 30, 2017 | $ | 1,081 | $ | 1,009 | $ | 508 | $ | 2,598 |
(1) | Goodwill is recorded at the acquisition date based on a preliminary fair value determination. This preliminary goodwill balance may be adjusted when the fair value determination is finalized. |
September 30, 2017 | December 31, 2016 | ||||||
SHORT-TERM DEBT | |||||||
Commercial paper notes, bearing a weighted-average interest rate of 2.4% and 1.6%, respectively (1) | $ | 93 | $ | 563 | |||
Senior secured hedged inventory facility, bearing a weighted-average interest rate of 2.3% and 1.8%, respectively (1) | 753 | 750 | |||||
Senior notes: | |||||||
6.13% senior notes due January 2017 | — | 400 | |||||
Other | 72 | 2 | |||||
Total short-term debt (2) | 918 | 1,715 | |||||
LONG-TERM DEBT | |||||||
Senior notes, net of unamortized discounts and debt issuance costs of $69 and $76, respectively (3) | 9,881 | 9,874 | |||||
Commercial paper notes, bearing a weighted-average interest rate of 2.4% and 1.6%, respectively (3) | 605 | 247 | |||||
Other | 3 | 3 | |||||
Total long-term debt | 10,489 | 10,124 | |||||
Total debt (4) | $ | 11,407 | $ | 11,839 |
(1) | We classified these commercial paper notes and credit facility borrowings as short-term as of September 30, 2017 and December 31, 2016, as these notes and borrowings were primarily designated as working capital borrowings, were required to be repaid within one year and were primarily for hedged NGL and crude oil inventory and NYMEX and ICE margin deposits. |
(2) | As of September 30, 2017 and December 31, 2016, balance includes borrowings of $194 million and $410 million, respectively, for cash margin deposits with NYMEX and ICE, which are associated with financial derivatives used for hedging purposes. |
(3) | As of September 30, 2017, we have classified our $600 million, 6.50% senior notes due May 2018 as long-term and as of both September 30, 2017 and December 31, 2016, we have classified a portion of our commercial paper notes as long-term based on our ability and intent to refinance such amounts on a long-term basis. |
(4) | Our fixed-rate senior notes (including current maturities) had a face value of approximately $9.9 billion and $10.3 billion as of September 30, 2017 and December 31, 2016, respectively. We estimated the aggregate fair value of these notes as of September 30, 2017 and December 31, 2016 to be approximately $10.0 billion and $10.4 billion, respectively. Our fixed-rate senior notes are traded among institutions, and these trades are routinely published by a reporting service. Our determination of fair value is based on reported trading activity near the end of the reporting period. We estimate that the carrying value of outstanding borrowings under our credit facilities and commercial paper program approximates fair value as interest rates reflect current market rates. The fair value estimates for our senior notes, credit facilities and commercial paper program are based upon observable market data and are classified in Level 2 of the fair value hierarchy. |
Limited Partners | |||||
Preferred Units | Common Units | ||||
Outstanding at December 31, 2016 | 64,388,853 | 669,194,419 | |||
Issuances of Series A preferred units in connection with in-kind distributions | 3,941,096 | — | |||
Sales of common units | — | 54,119,893 | |||
Issuance of common units in connection with acquisition of interest in Advantage Joint Venture (Note 6) | — | 1,252,269 | |||
Issuances of common units under LTIP | — | 622,557 | |||
Outstanding at September 30, 2017 | 68,329,949 | 725,189,138 |
Limited Partners | |||||
Preferred Units | Common Units | ||||
Outstanding at December 31, 2015 | — | 397,727,624 | |||
Sale of Series A preferred units | 61,030,127 | — | |||
Issuance of Series A preferred units in connection with in-kind distribution | 2,096,204 | — | |||
Sales of common units | — | 9,922,733 | |||
Issuance of common units under LTIP | — | 457,289 | |||
Outstanding at September 30, 2016 | 63,126,331 | 408,107,646 |
Type of Offering | Common Units Issued | Net Proceeds (1) | ||||||||
Continuous Offering Program | 4,033,567 | $ | 129 | (2 | ) | |||||
Omnibus Agreement (3) | 50,086,326 | (4 | ) | 1,535 | ||||||
54,119,893 | $ | 1,664 |
(1) | Amounts are net of costs associated with the offerings. |
(2) | We pay commissions to our sales agents in connection with common units issuances under our Continuous Offering Program. We paid $1 million of such commissions during the nine months ended September 30, 2017. |
(3) | Pursuant to the Omnibus Agreement entered into by the Plains Entities in connection with the Simplification Transactions, PAGP has agreed to use the net proceeds from any public or private offering and sale of Class A shares, after deducting the sales agents’ commissions and offering expenses, to purchase from AAP a number of AAP units equal to the number of Class A shares sold in such offering at a price equal to the net proceeds from such offering. The Omnibus Agreement also provides that immediately following such purchase and sale, AAP will use the net proceeds it receives from such sale of AAP units to purchase from us an equivalent number of our common units. |
(4) | Includes (i) approximately 1.8 million common units issued to AAP in connection with PAGP’s issuance of Class A shares under its Continuous Offering Program and (ii) 48.3 million common units issued to AAP in connection with PAGP’s March 2017 underwritten offering. |
Distributions | Cash Distribution per Common Unit | ||||||||||||||||
Common Unitholders | Total Cash Distribution | ||||||||||||||||
Distribution Payment Date | Public | AAP | |||||||||||||||
November 14, 2017 (1) | $ | 132 | $ | 86 | $ | 218 | $ | 0.30 | |||||||||
August 14, 2017 | $ | 240 | $ | 159 | $ | 399 | $ | 0.55 | |||||||||
May 15, 2017 | $ | 240 | $ | 159 | $ | 399 | $ | 0.55 | |||||||||
February 14, 2017 | $ | 237 | $ | 134 | $ | 371 | $ | 0.55 |
(1) | Payable to unitholders of record at the close of business on October 31, 2017 for the period July 1, 2017 through September 30, 2017. |
• | A net long position of 6.9 million barrels associated with our crude oil purchases, which was unwound ratably during October 2017 to match monthly average pricing. |
• | A net short time spread position of 3.5 million barrels, which hedges a portion of our anticipated crude oil lease gathering purchases through December 2018. |
• | A crude oil grade basis position of 25.2 million barrels through December 2019. These derivatives allow us to lock in grade basis differentials. |
• | A net short position of 14.4 million barrels through December 2020 related to anticipated net sales of our crude oil and NGL inventory. |
Hedged Transaction | Number and Types of Derivatives Employed | Notional Amount | Expected Termination Date | Average Rate Locked | Accounting Treatment | ||||||||
Anticipated interest payments | 16 forward starting swaps (30-year) | $ | 400 | 6/15/2018 | 2.86 | % | Cash flow hedge | ||||||
Anticipated interest payments | 8 forward starting swaps (30-year) | $ | 200 | 6/14/2019 | 2.83 | % | Cash flow hedge |
USD | CAD | Average Exchange Rate USD to CAD | ||||||||||
Forward exchange contracts that exchange CAD for USD: | ||||||||||||
2017 | $ | 174 | $ | 215 | $1.00 - $1.24 | |||||||
2018 | $ | 12 | $ | 15 | $1.00 - $1.22 | |||||||
Forward exchange contracts that exchange USD for CAD: | ||||||||||||
2017 | $ | 307 | $ | 385 | $1.00 - $1.26 | |||||||
2018 | $ | 118 | $ | 147 | $1.00 - $1.25 |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | ||||||||||||||||||||||||
Location of Gain/(Loss) | Derivatives in Hedging Relationships (1) | Derivatives Not Designated as a Hedge | Total | Derivatives in Hedging Relationships (1) | Derivatives Not Designated as a Hedge | Total | |||||||||||||||||||
Commodity Derivatives | |||||||||||||||||||||||||
Supply and Logistics segment revenues | $ | — | $ | (226 | ) | $ | (226 | ) | $ | 1 | $ | 10 | $ | 11 | |||||||||||
Transportation segment revenues | — | — | — | — | 1 | 1 | |||||||||||||||||||
Field operating costs | — | (4 | ) | (4 | ) | — | (2 | ) | (2 | ) | |||||||||||||||
Interest Rate Derivatives | |||||||||||||||||||||||||
Interest expense, net | (10 | ) | — | (10 | ) | (2 | ) | — | (2 | ) | |||||||||||||||
Foreign Currency Derivatives | |||||||||||||||||||||||||
Supply and Logistics segment revenues | — | 3 | 3 | — | (1 | ) | (1 | ) | |||||||||||||||||
Preferred Distribution Rate Reset Option | |||||||||||||||||||||||||
Other income/(expense), net | — | 2 | 2 | — | 17 | 17 | |||||||||||||||||||
Total Gain/(Loss) on Derivatives Recognized in Net Income | $ | (10 | ) | $ | (225 | ) | $ | (235 | ) | $ | (1 | ) | $ | 25 | $ | 24 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | ||||||||||||||||||||||||
Location of Gain/(Loss) | Derivatives in Hedging Relationships (1) | Derivatives Not Designated as a Hedge | Total | Derivatives in Hedging Relationships (1) | Derivatives Not Designated as a Hedge | Total | |||||||||||||||||||
Commodity Derivatives | |||||||||||||||||||||||||
Supply and Logistics segment revenues | $ | — | $ | (31 | ) | $ | (31 | ) | $ | 1 | $ | (118 | ) | $ | (117 | ) | |||||||||
Transportation segment revenues | — | — | — | — | 4 | 4 | |||||||||||||||||||
Field operating costs | — | (8 | ) | (8 | ) | — | (2 | ) | (2 | ) | |||||||||||||||
Depreciation and amortization | (3 | ) | — | (3 | ) | — | — | — | |||||||||||||||||
Interest Rate Derivatives | |||||||||||||||||||||||||
Interest expense, net | (16 | ) | — | (16 | ) | (8 | ) | — | (8 | ) | |||||||||||||||
Foreign Currency Derivatives | |||||||||||||||||||||||||
Supply and Logistics segment revenues | — | 5 | 5 | — | 4 | 4 | |||||||||||||||||||
Preferred Distribution Rate Reset Option | |||||||||||||||||||||||||
Other income/(expense), net | — | — | — | — | 42 | 42 | |||||||||||||||||||
Total Gain/(Loss) on Derivatives Recognized in Net Income | $ | (19 | ) | $ | (34 | ) | $ | (53 | ) | $ | (7 | ) | $ | (70 | ) | $ | (77 | ) |
(1) | During the three and nine months ended September 30, 2017, we reclassified losses of approximately $8 million and $10 million to Interest expense, net, respectively, due to anticipated hedged transactions being probable of not occurring. During the nine months ended September 30, 2016 we reclassified losses of approximately $2 million and $2 million to Supply and Logistics segment revenues and Interest expense, net, respectively, due to anticipated hedged transactions being probable of not occurring. |
Asset Derivatives | Liability Derivatives | |||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate derivatives | Other current liabilities | $ | 2 | Other current liabilities | $ | (26 | ) | |||||
Other long-term liabilities and deferred credits | (10 | ) | ||||||||||
Total derivatives designated as hedging instruments | $ | 2 | $ | (36 | ) | |||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity derivatives | Other current assets | $ | 74 | Other current assets | $ | (184 | ) | |||||
Other long-term assets, net | 1 | Other current liabilities | (97 | ) | ||||||||
Other current liabilities | 10 | Other long-term liabilities and deferred credits | (19 | ) | ||||||||
Other long-term liabilities and deferred credits | 5 | |||||||||||
Foreign currency derivatives | Other current assets | 6 | Other current assets | (2 | ) | |||||||
Other current liabilities | (2 | ) | ||||||||||
Preferred Distribution Rate Reset Option | — | Other long-term liabilities and deferred credits | (33 | ) | ||||||||
Total derivatives not designated as hedging instruments | $ | 96 | $ | (337 | ) | |||||||
Total derivatives | $ | 98 | $ | (373 | ) |
Asset Derivatives | Liability Derivatives | |||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | |||||||||
Derivatives designated as hedging instruments: | ||||||||||||
Interest rate derivatives | $ | — | Other current liabilities | $ | (23 | ) | ||||||
Other long-term liabilities and deferred credits | (27 | ) | ||||||||||
Total derivatives designated as hedging instruments | $ | — | $ | (50 | ) | |||||||
Derivatives not designated as hedging instruments: | ||||||||||||
Commodity derivatives | Other current assets | $ | 101 | Other current assets | $ | (344 | ) | |||||
Other long-term assets, net | 2 | Other long-term assets, net | (1 | ) | ||||||||
Other long-term liabilities and deferred credits | 2 | Other current liabilities | (14 | ) | ||||||||
Other long-term liabilities and deferred credits | (34 | ) | ||||||||||
Foreign currency derivatives | Other current liabilities | 3 | Other current liabilities | (6 | ) | |||||||
Preferred Distribution Rate Reset Option | — | Other long-term liabilities and deferred credits | (32 | ) | ||||||||
Total derivatives not designated as hedging instruments | $ | 108 | $ | (431 | ) | |||||||
Total derivatives | $ | 108 | $ | (481 | ) |
September 30, 2017 | December 31, 2016 | ||||||
Initial margin | $ | 51 | $ | 119 | |||
Variation margin posted | 143 | 291 | |||||
Net broker receivable | $ | 194 | $ | 410 |
September 30, 2017 | December 31, 2016 | |||||||||||||||
Derivative Asset Positions | Derivative Liability Positions | Derivative Asset Positions | Derivative Liability Positions | |||||||||||||
Netting Adjustments: | ||||||||||||||||
Gross position - asset/(liability) | $ | 98 | $ | (373 | ) | $ | 108 | $ | (481 | ) | ||||||
Netting adjustment | (203 | ) | 203 | (350 | ) | 350 | ||||||||||
Cash collateral paid | 194 | — | 410 | — | ||||||||||||
Net position - asset/(liability) | $ | 89 | $ | (170 | ) | $ | 168 | $ | (131 | ) | ||||||
Balance Sheet Location After Netting Adjustments: | ||||||||||||||||
Other current assets | $ | 88 | $ | — | $ | 167 | $ | — | ||||||||
Other long-term assets, net | 1 | — | 1 | — | ||||||||||||
Other current liabilities | — | (113 | ) | — | (40 | ) | ||||||||||
Other long-term liabilities and deferred credits | — | (57 | ) | — | (91 | ) | ||||||||||
$ | 89 | $ | (170 | ) | $ | 168 | $ | (131 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest rate derivatives, net | $ | (3 | ) | $ | (20 | ) | $ | (15 | ) | $ | (178 | ) |
Fair Value as of September 30, 2017 | Fair Value as of December 31, 2016 | ||||||||||||||||||||||||||||||||
Recurring Fair Value Measures (1) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Commodity derivatives | $ | (4 | ) | $ | (198 | ) | $ | (8 | ) | $ | (210 | ) | $ | (113 | ) | $ | (171 | ) | $ | (4 | ) | $ | (288 | ) | |||||||||
Interest rate derivatives | — | (34 | ) | — | (34 | ) | — | (50 | ) | — | (50 | ) | |||||||||||||||||||||
Foreign currency derivatives | — | 2 | — | 2 | — | (3 | ) | — | (3 | ) | |||||||||||||||||||||||
Preferred Distribution Rate Reset Option | — | — | (33 | ) | (33 | ) | — | — | (32 | ) | (32 | ) | |||||||||||||||||||||
Total net derivative liability | $ | (4 | ) | $ | (230 | ) | $ | (41 | ) | $ | (275 | ) | $ | (113 | ) | $ | (224 | ) | $ | (36 | ) | $ | (373 | ) |
(1) | Derivative assets and liabilities are presented above on a net basis but do not include related cash margin deposits. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Beginning Balance | $ | (30 | ) | $ | (35 | ) | $ | (36 | ) | $ | 11 | ||||
Net gains/(losses) for the period included in earnings | (8 | ) | 17 | (1 | ) | 41 | |||||||||
Settlements | (1 | ) | — | 4 | (10 | ) | |||||||||
Derivatives entered into during the period | (2 | ) | 1 | (8 | ) | (59 | ) | ||||||||
Ending Balance | $ | (41 | ) | $ | (17 | ) | $ | (41 | ) | $ | (17 | ) | |||
Change in unrealized gains/(losses) included in earnings relating to Level 3 derivatives still held at the end of the period | $ | (10 | ) | $ | 18 | $ | (8 | ) | $ | 43 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | $ | 204 | $ | 171 | $ | 657 | $ | 424 | |||||||
Purchases and related costs (1) | $ | (68 | ) | $ | 4 | $ | (169 | ) | $ | (46 | ) |
(1) | Purchases and related costs include crude oil buy/sell transactions that are accounted for as inventory exchanges and are presented net in our Condensed Consolidated Statements of Operations. |
September 30, 2017 | December 31, 2016 | ||||||
Trade accounts receivable and other receivables | $ | 877 | $ | 789 | |||
Accounts payable | $ | 833 | $ | 836 |
Three Months Ended September 30, 2017 | Transportation | Facilities | Supply and Logistics | Intersegment Adjustment (1) | Total | |||||||||||||||
Revenues: | ||||||||||||||||||||
External customers (1) | $ | 274 | $ | 140 | $ | 5,573 | $ | (114 | ) | $ | 5,873 | |||||||||
Intersegment (2) | 172 | 151 | 1 | 114 | 438 | |||||||||||||||
Total revenues of reportable segments | $ | 446 | $ | 291 | $ | 5,574 | $ | — | $ | 6,311 | ||||||||||
Equity earnings in unconsolidated entities | $ | 80 | $ | — | $ | — | $ | 80 | ||||||||||||
Segment adjusted EBITDA | $ | 363 | $ | 182 | $ | (56 | ) | $ | 489 | |||||||||||
Maintenance capital | $ | 32 | $ | 28 | $ | 3 | $ | 63 |
Three Months Ended September 30, 2016 | Transportation | Facilities | Supply and Logistics | Intersegment Adjustment (1) | Total | |||||||||||||||
Revenues: | ||||||||||||||||||||
External customers (1) | $ | 227 | $ | 135 | $ | 4,876 | $ | (68 | ) | $ | 5,170 | |||||||||
Intersegment (2) | 174 | 147 | 3 | 68 | 392 | |||||||||||||||
Total revenues of reportable segments | $ | 401 | $ | 282 | $ | 4,879 | $ | — | $ | 5,562 | ||||||||||
Equity earnings in unconsolidated entities | $ | 46 | $ | — | $ | — | $ | 46 | ||||||||||||
Segment adjusted EBITDA | $ | 308 | $ | 171 | $ | (17 | ) | $ | 462 | |||||||||||
Maintenance capital | $ | 29 | $ | 15 | $ | 3 | $ | 47 |
Nine Months Ended September 30, 2017 | Transportation | Facilities | Supply and Logistics | Intersegment Adjustment (1) | Total | |||||||||||||||
Revenues: | ||||||||||||||||||||
External customers (1) | $ | 757 | $ | 410 | $ | 17,749 | $ | (298 | ) | $ | 18,618 | |||||||||
Intersegment (2) | 503 | 463 | 8 | 298 | 1,272 | |||||||||||||||
Total revenues of reportable segments | $ | 1,260 | $ | 873 | $ | 17,757 | $ | — | $ | 19,890 | ||||||||||
Equity earnings in unconsolidated entities | $ | 201 | $ | — | $ | — | $ | 201 | ||||||||||||
Segment adjusted EBITDA | $ | 933 | $ | 550 | $ | (32 | ) | $ | 1,451 | |||||||||||
Maintenance capital | $ | 89 | $ | 94 | $ | 11 | $ | 194 |
Nine Months Ended September 30, 2016 | Transportation | Facilities | Supply and Logistics | Intersegment Adjustment (1) | Total | |||||||||||||||
Revenues: | ||||||||||||||||||||
External customers (1) | $ | 711 | $ | 405 | $ | 13,344 | $ | (229 | ) | $ | 14,231 | |||||||||
Intersegment (2) | 477 | 412 | 9 | 229 | 1,127 | |||||||||||||||
Total revenues of reportable segments | $ | 1,188 | $ | 817 | $ | 13,353 | $ | — | $ | 15,358 | ||||||||||
Equity earnings in unconsolidated entities | $ | 133 | $ | — | $ | — | $ | 133 | ||||||||||||
Segment adjusted EBITDA | $ | 863 | $ | 497 | $ | 208 | $ | 1,568 | ||||||||||||
Maintenance capital | $ | 86 | $ | 32 | $ | 10 | $ | 128 |
(1) | Transportation revenues from external customers include inventory exchanges that are substantially similar to tariff-like arrangements with our customers. Under these arrangements, our Supply and Logistics segment has transacted the inventory exchange and serves as the shipper on our pipeline systems. See Note 2 to our Consolidated Financial Statements included in Part IV of our 2016 Annual Report on Form 10-K for a discussion of our related accounting policy. We have included an estimate of the revenues from these inventory exchanges in our Transportation segment revenue presented above and adjusted those revenues out such that Total revenue from External customers reconciles to our Condensed Consolidated Statements of Operations. This presentation is consistent with the information provided to our CODM. |
(2) | Segment revenues include intersegment amounts that are eliminated in Purchases and related costs and Field operating costs in our Condensed Consolidated Statements of Operations. Intersegment sales are conducted at posted tariff rates, rates similar to those charged to third parties or rates that we believe approximate market at the time the agreement is executed or renegotiated. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment adjusted EBITDA | $ | 489 | $ | 462 | $ | 1,451 | $ | 1,568 | |||||||
Adjustments (1): | |||||||||||||||
Depreciation and amortization of unconsolidated entities (2) | (13 | ) | (13 | ) | (31 | ) | (38 | ) | |||||||
Gains/(losses) from derivative activities net of inventory valuation adjustments (3) | (216 | ) | 52 | 86 | (189 | ) | |||||||||
Long-term inventory costing adjustments (4) | 16 | (38 | ) | 2 | 6 | ||||||||||
Deficiencies under minimum volume commitments, net (5) | (8 | ) | (25 | ) | (5 | ) | (59 | ) | |||||||
Equity-indexed compensation expense (6) | (7 | ) | (8 | ) | (18 | ) | (23 | ) | |||||||
Net gain/(loss) on foreign currency revaluation (7) | 14 | (2 | ) | 27 | (4 | ) | |||||||||
Line 901 incident (8) | — | — | (12 | ) | — | ||||||||||
Significant acquisition-related expenses (9) | — | — | (6 | ) | — | ||||||||||
Depreciation and amortization | (151 | ) | (33 | ) | (401 | ) | (351 | ) | |||||||
Interest expense, net | (134 | ) | (113 | ) | (390 | ) | (339 | ) | |||||||
Other income/(expense), net | (1 | ) | 17 | (6 | ) | 46 | |||||||||
Income/(loss) before tax | (11 | ) | 299 | 697 | 617 | ||||||||||
Income tax benefit/(expense) | 45 | (1 | ) | (30 | ) | (15 | ) | ||||||||
Net income | 34 | 298 | 667 | 602 | |||||||||||
Net income attributable to noncontrolling interests | (1 | ) | (1 | ) | (2 | ) | (3 | ) | |||||||
Net income attributable to PAA | $ | 33 | $ | 297 | $ | 665 | $ | 599 |
(1) | Represents adjustments utilized by our CODM in the evaluation of segment results. |
(2) | Includes our proportionate share of the depreciation and amortization and gains or losses on significant asset sales of equity method investments. |
(3) | 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, 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 segment adjusted EBITDA. 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. |
(4) | 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 exclude 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 from segment adjusted EBITDA. |
(5) | 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 |
(6) | Includes equity-indexed compensation expense associated with awards that will or may be settled in units. |
(7) | Includes gains and losses from the revaluation of foreign currency transactions and monetary assets and liabilities. |
(8) | 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. See Note 12 for additional information regarding the Line 901 incident. |
(9) | Includes acquisition-related expenses associated with the ACC Acquisition. See Note 6 for additional discussion. An adjustment for these non-recurring expenses is included in the calculation of segment adjusted EBITDA for the three and nine months ended September 30, 2017 as our CODM does not view such expenses as integral to understanding our core segment operating performance. Acquisition-related expenses for the 2016 period were not significant to segment adjusted EBITDA. |
Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Executive Summary |
• | Acquisitions and Capital Projects |
• | Results of Operations |
• | Outlook |
• | Liquidity and Capital Resources |
• | Off-Balance Sheet Arrangements |
• | Recent Accounting Pronouncements |
• | Critical Accounting Policies and Estimates |
• | Forward-Looking Statements |
• | The favorable impact of contributions from our recently completed acquisitions and capital expansion projects and gains on certain derivative instruments, partially offset by less favorable crude oil and NGL market conditions and margin compression caused by continued intense competition; |
• | Higher interest expense primarily related to financing activities associated with our capital investments; |
• | Higher depreciation and amortization expense largely driven by (i) recently acquired assets, (ii) the completion of various capital expansion projects and (iii) net losses from non-core assets sales and joint venture formations recognized in the 2017 period, compared to net gains from such activities in 2016, all partially offset by impairment losses recognized during the 2016 period; and |
• | The mark-to-market of our Preferred Distribution Rate Reset Option, resulting in a smaller gain in the current period compared to the prior period. |
• | Reset our annualized distribution per common unit to $1.20, starting with the third-quarter distribution payable in November 2017, which would reduce annual distribution outflow by approximately $725 million per year, representing approximately $1.1 billion over 6 quarters; |
• | Complete pending and/or in-progress non-core/strategic asset sales totaling approximately $700 million; |
• | Reduce our hedged crude oil and NGL inventory volumes and related debt by approximately $300 million (based on current prices); |
• | Fund our second-half 2017 and full-year 2018 expansion capital program with a combination of non-convertible, perpetual preferred equity and a portion of the non-core asset sales proceeds; and |
• | Apply retained cash flows and remaining asset sales proceeds to steadily reduce our total debt as of June 30, 2017 by approximately $1.4 billion through March 31, 2019. |
• | Resetting our annualized distribution per common unit to $1.20 for the third-quarter distribution payable in November 2017; |
• | Reducing hedged inventory related borrowings at the end of the third quarter by approximately $200 million (as compared to the end of the second quarter), with the expectation to reduce these borrowings by an additional $100 million or more over the next quarter or two, assuming current commodity prices; |
• | Completing the issuance of 800,000 Series B preferred units for net proceeds of $788 million; and |
• | Completing sales of assets or joint venture formations for aggregate proceeds of approximately $385 million, and entering into definitive agreements for additional asset sales, which are expected to close by the end of 2017 or early 2018 and substantially complete our $700 million targeted program. |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Acquisition capital (1) (2) | $ | 1,325 | $ | 289 | |||
Expansion capital (2) (3) | 893 | 1,065 | |||||
Maintenance capital (3) | 194 | 128 | |||||
$ | 2,412 | $ | 1,482 |
(1) | Acquisition capital for the first nine months of 2017 primarily relates to the ACC Acquisition. See Note 6 to our Condensed Consolidated Financial Statements for further discussion regarding our acquisition activities. |
(2) | Acquisitions of initial investments or additional interests in unconsolidated entities are included in “Acquisition capital.” Subsequent contributions to unconsolidated entities related to expansion projects of such entities are recognized in “Expansion capital.” We account for our investments in such entities under the equity method of accounting. |
(3) | Capital expenditures made to expand the existing operating and/or earnings capacity of our assets are classified as expansion capital. Capital expenditures for the replacement of partially or fully depreciated assets in order to maintain the operating and/or earnings capacity of our existing assets are classified as maintenance capital. |
Projects | 2017 | |
Diamond Pipeline (1) | $300 | |
Permian Basin Area Systems Projects | 235 | |
Fort Saskatchewan Facility Projects | 75 | |
STACK Projects (1) | 55 | |
Cushing Terminal Expansions | 40 | |
Corpus Christi JV Dock (1) | 30 | |
St. James Terminal Projects | 10 | |
Other Projects | 305 | |
Total Projected 2017 Expansion Capital Expenditures | $1,050 |
(1) | Represents contributions related to our 50% investment interest. |
Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||
2017 | 2016 | $ | % | 2017 | 2016 | $ | % | |||||||||||||||||||||||
Transportation segment adjusted EBITDA (1) | $ | 363 | $ | 308 | $ | 55 | 18 | % | $ | 933 | $ | 863 | $ | 70 | 8 | % | ||||||||||||||
Facilities segment adjusted EBITDA (1) | 182 | 171 | 11 | 6 | % | 550 | 497 | 53 | 11 | % | ||||||||||||||||||||
Supply and Logistics segment adjusted EBITDA (1) | (56 | ) | (17 | ) | (39 | ) | (229 | )% | (32 | ) | 208 | (240 | ) | (115 | )% | |||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||
Depreciation and amortization of unconsolidated entities | (13 | ) | (13 | ) | — | — | % | (31 | ) | (38 | ) | 7 | 18 | % | ||||||||||||||||
Selected items impacting comparability - segment adjusted EBITDA | (201 | ) | (21 | ) | (180 | ) | ** | 74 | (269 | ) | 343 | ** | ||||||||||||||||||
Depreciation and amortization | (151 | ) | (33 | ) | (118 | ) | (358 | )% | (401 | ) | (351 | ) | (50 | ) | (14 | )% | ||||||||||||||
Interest expense, net | (134 | ) | (113 | ) | (21 | ) | (19 | )% | (390 | ) | (339 | ) | (51 | ) | (15 | )% | ||||||||||||||
Other income/(expense), net | (1 | ) | 17 | (18 | ) | (106 | )% | (6 | ) | 46 | (52 | ) | (113 | )% | ||||||||||||||||
Income tax benefit/(expense) | 45 | (1 | ) | 46 | ** | (30 | ) | (15 | ) | (15 | ) | (100 | )% | |||||||||||||||||
Net income | 34 | 298 | (264 | ) | (89 | )% | 667 | 602 | 65 | 11 | % | |||||||||||||||||||
Net income attributable to noncontrolling interests | (1 | ) | (1 | ) | — | — | % | (2 | ) | (3 | ) | 1 | 33 | % | ||||||||||||||||
Net income attributable to PAA | $ | 33 | $ | 297 | $ | (264 | ) | (89 | )% | $ | 665 | $ | 599 | $ | 66 | 11 | % | |||||||||||||
Basic net income/(loss) per common unit | $ | (0.01 | ) | $ | 0.40 | $ | (0.41 | ) | ** | $ | 0.77 | $ | 0.27 | $ | 0.50 | ** | ||||||||||||||
Diluted net income/(loss) per common unit | $ | (0.01 | ) | $ | 0.40 | $ | (0.41 | ) | ** | $ | 0.76 | $ | 0.27 | $ | 0.49 | ** | ||||||||||||||
Basic weighted average common units outstanding | 725 | 401 | 324 | ** | 714 | 399 | 315 | ** | ||||||||||||||||||||||
Diluted weighted average common units outstanding | 725 | 402 | 323 | ** | 715 | 400 | 315 | ** |
(1) | Segment adjusted EBITDA is the measure of segment performance that is utilized by our Chief Operating Decision Maker (“CODM”) to assess performance and allocate resources among our operating segments. This measure is adjusted for certain items, including those that our CODM believes impact comparability of results across periods. See Note 13 to our Condensed Consolidated Financial Statements for additional discussion of such adjustments. |
Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||
2017 | 2016 | $ | % | 2017 | 2016 | $ | % | |||||||||||||||||||||||
Net income | $ | 34 | $ | 298 | $ | (264 | ) | (89 | )% | $ | 667 | $ | 602 | $ | 65 | 11 | % | |||||||||||||
Add/(Subtract): | ||||||||||||||||||||||||||||||
Interest expense, net | 134 | 113 | 21 | 19 | % | 390 | 339 | 51 | 15 | % | ||||||||||||||||||||
Income tax expense/(benefit) | (45 | ) | 1 | (46 | ) | ** | 30 | 15 | 15 | 100 | % | |||||||||||||||||||
Depreciation and amortization | 151 | 33 | 118 | 358 | % | 401 | 351 | 50 | 14 | % | ||||||||||||||||||||
Depreciation and amortization of unconsolidated entities (1) | 13 | 13 | — | — | % | 31 | 38 | (7 | ) | (18 | )% | |||||||||||||||||||
Selected Items Impacting Comparability - Adjusted EBITDA: | ||||||||||||||||||||||||||||||
(Gains)/losses from derivative activities net of inventory valuation adjustments (2) | 216 | (52 | ) | 268 | ** | (86 | ) | 189 | (275 | ) | ** | |||||||||||||||||||
Long-term inventory costing adjustments (3) | (16 | ) | 38 | (54 | ) | ** | (2 | ) | (6 | ) | 4 | ** | ||||||||||||||||||
Deficiencies under minimum volume commitments, net (4) | 8 | 25 | (17 | ) | ** | 5 | 59 | (54 | ) | ** | ||||||||||||||||||||
Equity-indexed compensation expense (5) | 7 | 8 | (1 | ) | ** | 18 | 23 | (5 | ) | ** | ||||||||||||||||||||
Net (gain)/loss on foreign currency revaluation (6) | (14 | ) | 2 | (16 | ) | ** | (27 | ) | 4 | (31 | ) | ** | ||||||||||||||||||
Line 901 incident (7) | — | — | — | ** | 12 | — | 12 | ** | ||||||||||||||||||||||
Significant acquisition-related expenses (8) | — | — | — | ** | 6 | — | 6 | ** | ||||||||||||||||||||||
Selected Items Impacting Comparability - segment adjusted EBITDA | 201 | 21 | 180 | ** | (74 | ) | 269 | (343 | ) | ** | ||||||||||||||||||||
Losses from derivative activities (2) | (2 | ) | (17 | ) | 15 | ** | — | (42 | ) | 42 | ** | |||||||||||||||||||
Net (gain)/loss on foreign currency revaluation (6) | 3 | 1 | 2 | ** | 7 | (3 | ) | 10 | ** | |||||||||||||||||||||
Selected Items Impacting Comparability - Adjusted EBITDA (9) | $ | 202 | $ | 5 | $ | 197 | ** | $ | (67 | ) | $ | 224 | $ | (291 | ) | ** | ||||||||||||||
Adjusted EBITDA (9) | 489 | 463 | 26 | 6 | % | 1,452 | 1,569 | (117 | ) | (7 | )% | |||||||||||||||||||
Interest expense, net (10) | (121 | ) | (109 | ) | (12 | ) | (11 | )% | (367 | ) | (327 | ) | (40 | ) | (12 | )% | ||||||||||||||
Maintenance capital (11) | (63 | ) | (47 | ) | (16 | ) | (34 | )% | (194 | ) | (128 | ) | (66 | ) | (52 | )% | ||||||||||||||
Current income tax benefit/(expense) | 1 | (4 | ) | 5 | 125 | % | (9 | ) | (45 | ) | 36 | 80 | % | |||||||||||||||||
Adjusted equity earnings in unconsolidated entities, net of distributions (12) | (7 | ) | (9 | ) | 2 | ** | 11 | (20 | ) | 31 | ** | |||||||||||||||||||
Distributions to noncontrolling interests (13) | — | (1 | ) | 1 | 100 | % | (1 | ) | (3 | ) | 2 | 67 | % | |||||||||||||||||
Implied DCF (14) | $ | 299 | $ | 293 | $ | 6 | 2 | % | $ | 892 | $ | 1,046 | $ | (154 | ) | (15 | )% | |||||||||||||
Distributions paid (13) | (218 | ) | (328 | ) | (1,016 | ) | (1,194 | ) | ||||||||||||||||||||||
DCF Excess/(Shortage) (15) | $ | 81 | $ | (35 | ) | $ | (124 | ) | $ | (148 | ) |
(1) | Over the past several years, we have increased our participation in pipeline strategic joint ventures, which are accounted for under the equity method of accounting. We exclude our proportionate share of the depreciation and |
(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 EBITDA. 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. See Note 10 to our Condensed Consolidated Financial Statements for a comprehensive discussion regarding our derivatives and risk management activities and 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. See Note 4 to our Consolidated Financial Statements included in Part IV of our 2016 Annual Report on Form 10-K for additional inventory disclosures. |
(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, as applicable, 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. See Note 16 to our Consolidated Financial Statements included in Part IV of our 2016 Annual Report on Form 10-K for a comprehensive discussion regarding our equity-indexed compensation plans. |
(6) | During the periods presented, there were fluctuations in the value of CAD to USD, 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. See Note 10 to our Condensed Consolidated Financial Statements for discussion regarding our currency exchange rate risk hedging activities. |
(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. See Note 12 to our Condensed Consolidated Financial Statements for additional information. |
(8) | Includes acquisition-related expenses associated with the ACC Acquisition. See Note 6 to our Condensed Consolidated Financial Statements for additional information. |
(9) | Adjusted EBITDA includes Other income/(expense), net adjusted for selected items impacting comparability. Segment adjusted EBITDA is exclusive of such amounts. |
(10) | Excludes certain non-cash items impacting interest expense such as amortization of debt issuance costs and terminated interest rate swaps. |
(11) | Maintenance capital expenditures are defined as capital expenditures for the replacement of partially or fully depreciated assets in order to maintain the operating and/or earnings capacity of our existing assets. |
(12) | Represents the difference between non-cash equity earnings in unconsolidated entities (adjusted for our proportionate share of depreciation and amortization) and cash distributions received from such entities. |
(13) | Includes cash distributions that pertain to the current period’s net income and are paid in the subsequent period. |
(14) | Including net costs recognized during the periods related to the Line 901 incident that occurred in May 2015, Implied DCF would have been $880 million for the nine months ended September 30, 2017, respectively. See Note 12 to our Condensed Consolidated Financial Statements for additional information regarding the Line 901 incident. |
(15) | Excess DCF is retained to establish reserves for future distributions, capital expenditures and other partnership purposes. DCF shortages are funded from previously established reserves, cash on hand or from borrowings under our credit facilities or commercial paper program. |
Operating Results (1) | Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||
(in millions, except per barrel data) | 2017 | 2016 | $ | % | 2017 | 2016 | $ | % | |||||||||||||||||||||||
Revenues | $ | 446 | $ | 401 | $ | 45 | 11 | % | $ | 1,260 | $ | 1,188 | $ | 72 | 6 | % | |||||||||||||||
Purchases and related costs | (29 | ) | (24 | ) | (5 | ) | (21 | )% | (74 | ) | (69 | ) | (5 | ) | (7 | )% | |||||||||||||||
Field operating costs (2) | (134 | ) | (133 | ) | (1 | ) | (1 | )% | (427 | ) | (406 | ) | (21 | ) | (5 | )% | |||||||||||||||
Equity-indexed compensation expense - field operating costs | (2 | ) | (3 | ) | 1 | ** | (9 | ) | (9 | ) | — | ** | |||||||||||||||||||
Segment general and administrative expenses (2) (3) | (22 | ) | (22 | ) | — | — | % | (70 | ) | (67 | ) | (3 | ) | (4 | )% | ||||||||||||||||
Equity-indexed compensation expense - general and administrative | (3 | ) | (4 | ) | 1 | ** | (8 | ) | (10 | ) | 2 | ** | |||||||||||||||||||
Equity earnings in unconsolidated entities | 80 | 46 | 34 | 74 | % | 201 | 133 | 68 | 51 | % | |||||||||||||||||||||
Adjustments (4): | |||||||||||||||||||||||||||||||
Depreciation and amortization of unconsolidated entities | 13 | 13 | — | — | % | 31 | 38 | (7 | ) | (18 | )% | ||||||||||||||||||||
Deficiencies under minimum volume commitments, net | 11 | 30 | (19 | ) | ** | 2 | 54 | (52 | ) | ** | |||||||||||||||||||||
Equity-indexed compensation expense | 3 | 4 | (1 | ) | ** | 9 | 11 | (2 | ) | ** | |||||||||||||||||||||
Line 901 incident | — | — | — | ** | 12 | — | 12 | ** | |||||||||||||||||||||||
Significant acquisition-related expenses | — | — | — | ** | 6 | — | 6 | ** | |||||||||||||||||||||||
Segment adjusted EBITDA | $ | 363 | $ | 308 | $ | 55 | 18 | % | $ | 933 | $ | 863 | $ | 70 | 8 | % | |||||||||||||||
Maintenance capital | $ | 32 | $ | 29 | $ | 3 | 10 | % | $ | 89 | $ | 86 | $ | 3 | 3 | % | |||||||||||||||
Segment adjusted EBITDA per barrel | $ | 0.74 | $ | 0.73 | $ | 0.01 | 1 | % | $ | 0.67 | $ | 0.68 | $ | (0.01 | ) | (1 | )% | ||||||||||||||
Average Daily Volumes | Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||
(in thousands of barrels per day) (5) | 2017 | 2016 | Volumes | % | 2017 | 2016 | Volumes | % | |||||||||||||||||||||||
Tariff activities volumes | |||||||||||||||||||||||||||||||
Crude oil pipelines (by region): | |||||||||||||||||||||||||||||||
Permian Basin (6) | 2,963 | 2,162 | 801 | 37 | % | 2,732 | 2,129 | 603 | 28 | % | |||||||||||||||||||||
South Texas / Eagle Ford (6) | 362 | 263 | 99 | 38 | % | 341 | 283 | 58 | 20 | % | |||||||||||||||||||||
Western | 190 | 194 | (4 | ) | (2 | )% | 186 | 193 | (7 | ) | (4 | )% | |||||||||||||||||||
Rocky Mountain (6) | 426 | 475 | (49 | ) | (10 | )% | 418 | 448 | (30 | ) | (7 | )% | |||||||||||||||||||
Gulf Coast | 359 | 423 | (64 | ) | (15 | )% | 362 | 538 | (176 | ) | (33 | )% | |||||||||||||||||||
Central (6) | 424 | 403 | 21 | 5 | % | 419 | 393 | 26 | 7 | % | |||||||||||||||||||||
Canada | 351 | 379 | (28 | ) | (7 | )% | 359 | 384 | (25 | ) | (7 | )% | |||||||||||||||||||
Crude oil pipelines | 5,075 | 4,299 | 776 | 18 | % | 4,817 | 4,368 | 449 | 10 | % | |||||||||||||||||||||
NGL pipelines | 172 | 185 | (13 | ) | (7 | )% | 169 | 182 | (13 | ) | (7 | )% | |||||||||||||||||||
Tariff activities total volumes | 5,247 | 4,484 | 763 | 17 | % | 4,986 | 4,550 | 436 | 10 | % | |||||||||||||||||||||
Trucking volumes | 94 | 118 | (24 | ) | (20 | )% | 102 | 113 | (11 | ) | (10 | )% | |||||||||||||||||||
Transportation segment total volumes | 5,341 | 4,602 | 739 | 16 | % | 5,088 | 4,663 | 425 | 9 | % |
(1) | Revenues and costs and expenses include intersegment amounts. |
(2) | Field operating costs and Segment general and administrative expenses exclude equity-indexed compensation expense, which is presented separately in the table above. |
(3) | 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. |
(4) | Represents adjustments included in the performance measure utilized by our CODM in the evaluation of segment results. See Note 13 to our Condensed Consolidated Financial Statements for additional discussion of such adjustments. |
(5) | Average daily volumes are calculated as the total volumes (attributable to our interest) for the period divided by the number of days in the period. |
(6) | Region includes volumes (attributable to our interest) from pipelines owned by unconsolidated entities. |
Favorable/(Unfavorable) Variance Three Months Ended September 30, 2017-2016 | Favorable/(Unfavorable) Variance Nine Months Ended September 30, 2017-2016 | ||||||||||||||||
(in millions) | Revenues | Equity Earnings | Revenues | Equity Earnings | |||||||||||||
Tariff and trucking activities: | |||||||||||||||||
Permian Basin region | $ | 60 | $ | 9 | $ | 129 | $ | 17 | |||||||||
South Texas / Eagle Ford region | — | 20 | (6 | ) | 31 | ||||||||||||
Rocky Mountain region | — | 4 | (13 | ) | 10 | ||||||||||||
Gulf Coast region | (3 | ) | — | (20 | ) | — | |||||||||||
Other (including trucking and pipeline loss allowance revenue) | (12 | ) | 1 | (18 | ) | 10 | |||||||||||
Total variance | $ | 45 | $ | 34 | $ | 72 | $ | 68 |
• | Permian Basin region — The increase in revenues for the comparative 2017 periods presented was largely driven by (i) higher volumes on our Cactus pipeline due to stronger demand in the Corpus Christi market and to third-party terminals, which also favorably impacted volumes on our McCamey pipeline system, (ii) results from the ACC System, which we acquired in February 2017, and (iii) increased production and new lease connections to our gathering systems in the Permian Basin. |
• | South Texas / Eagle Ford region — Equity earnings from our 50% interest in Eagle Ford Pipeline LLC increased over the periods presented primarily due to higher volumes from our Cactus pipeline related to stronger demand in the Corpus Christi market and to third-party terminals. |
• | Rocky Mountain region — The decrease in revenues for the nine-month comparative period was largely driven by (i) lower volumes due to downtime on our Wahsatch pipeline, which we proactively shut down for approximately 30 days during the first quarter of 2017 as a precautionary measure in response to indications of soil movement identified by our monitoring systems, and (ii) the sale of 50% of our investment in Cheyenne Pipeline in June 2016, subsequent to which it was accounted for under the equity method of accounting. |
• | Gulf Coast region — Revenues and volumes decreased for the comparative three-month period primarily due to lower refinery demand on our Pascagoula pipeline and fewer spot shippers on Capline pipeline for the 2017 period. The nine-month comparative period was further impacted by the sale of certain of our Gulf Coast pipelines in March 2016 and July 2016. |
Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | ||||||||||||||||||||||
Operating Segment | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||||||
Transportation | $ | 5 | $ | 7 | $ | (2 | ) | $ | 17 | $ | 19 | $ | (2 | ) | |||||||||||
Facilities | 3 | 3 | — | 7 | 10 | (3 | ) | ||||||||||||||||||
Supply and Logistics | 2 | 4 | (2 | ) | 9 | 11 | (2 | ) | |||||||||||||||||
$ | 10 | $ | 14 | $ | (4 | ) | $ | 33 | $ | 40 | $ | (7 | ) |
Operating Results (1) | Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||
(in millions, except per barrel data) | 2017 | 2016 | $ | % | 2017 | 2016 | $ | % | |||||||||||||||||||||||
Revenues | $ | 291 | $ | 282 | $ | 9 | 3 | % | $ | 873 | $ | 817 | $ | 56 | 7 | % | |||||||||||||||
Natural gas related costs | (3 | ) | (6 | ) | 3 | 50 | % | (19 | ) | (17 | ) | (2 | ) | (12 | )% | ||||||||||||||||
Field operating costs (2) | (88 | ) | (85 | ) | (3 | ) | (4 | )% | (256 | ) | (258 | ) | 2 | 1 | % | ||||||||||||||||
Equity-indexed compensation expense - field operating costs | (1 | ) | (1 | ) | — | ** | (2 | ) | (3 | ) | 1 | ** | |||||||||||||||||||
Segment general and administrative expenses (2) (3) | (16 | ) | (15 | ) | (1 | ) | (7 | )% | (50 | ) | (44 | ) | (6 | ) | (14 | )% | |||||||||||||||
Equity-indexed compensation expense - general and administrative | (2 | ) | (2 | ) | — | ** | (5 | ) | (7 | ) | 2 | ** | |||||||||||||||||||
Adjustments (4): | |||||||||||||||||||||||||||||||
Deficiencies under minimum volume commitments, net | (3 | ) | (5 | ) | 2 | ** | 3 | 5 | (2 | ) | ** | ||||||||||||||||||||
(Gains)/losses from derivative activities net of inventory valuation adjustments | 2 | 1 | 1 | ** | 3 | — | 3 | ** | |||||||||||||||||||||||
Net (gain)/loss on foreign currency revaluation | — | — | — | ** | — | (1 | ) | 1 | ** | ||||||||||||||||||||||
Equity-indexed compensation expense | 2 | 2 | — | ** | 3 | 5 | (2 | ) | ** | ||||||||||||||||||||||
Segment adjusted EBITDA | $ | 182 | $ | 171 | $ | 11 | 6 | % | $ | 550 | $ | 497 | $ | 53 | 11 | % | |||||||||||||||
Maintenance capital | $ | 28 | $ | 15 | $ | 13 | 87 | % | $ | 94 | $ | 32 | $ | 62 | 194 | % | |||||||||||||||
Segment adjusted EBITDA per barrel | $ | 0.47 | $ | 0.43 | $ | 0.04 | 9 | % | $ | 0.47 | $ | 0.43 | $ | 0.04 | 9 | % | |||||||||||||||
Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | ||||||||||||||||||||||||||||
Volumes (5) | 2017 | 2016 | Volumes | % | 2017 | 2016 | Volumes | % | |||||||||||||||||||||||
Crude oil, refined products and NGL terminalling and storage (average monthly capacity in millions of barrels) | 112 | 109 | 3 | 3 | % | 112 | 106 | 6 | 6 | % | |||||||||||||||||||||
Rail load / unload volumes (average volumes in thousands of barrels per day) | 30 | 73 | (43 | ) | (59 | )% | 38 | 97 | (59 | ) | (61 | )% | |||||||||||||||||||
Natural gas storage (average monthly working capacity in billions of cubic feet) (6) | 67 | 97 | (30 | ) | (31 | )% | 87 | 97 | (10 | ) | (10 | )% | |||||||||||||||||||
NGL fractionation (average volumes in thousands of barrels per day) | 131 | 119 | 12 | 10 | % | 125 | 113 | 12 | 11 | % | |||||||||||||||||||||
Facilities segment total volumes (average monthly volumes in millions of barrels) (7) | 128 | 131 | (3 | ) | (2 | )% | 131 | 129 | 2 | 2 | % |
(1) | Revenues and costs and expenses include intersegment amounts. |
(2) | Field operating costs and Segment general and administrative expenses exclude equity-indexed compensation expense, which is presented separately in the table above. |
(3) | 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. |
(4) | Represents adjustments included in the performance measure utilized by our CODM in the evaluation of segment results. See Note 13 to our Condensed Consolidated Financial Statements for additional discussion of such adjustments. |
(5) | Average monthly volumes are calculated as total volumes for the period divided by the number of months in the period. |
(6) | The decrease in average monthly working capacity of natural gas storage facilities was driven by adjustments for (i) the sale of our Bluewater facility in June 2017, (ii) changes in base gas and (iii) the net capacity change between capacity additions from fill and dewater operations and capacity losses from salt creep. |
(7) | Facilities segment total volumes 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. |
• | NGL Storage, NGL Fractionation and Canadian Natural Gas Processing — Revenues increased by $23 million and $82 million for the three and nine months ended September 30, 2017, respectively, compared to the same periods in 2016 primarily due to contributions from the Western Canada NGL assets we acquired in August 2016 and increased storage capacity at our Fort Saskatchewan facility, as well as higher fees at certain of our NGL storage and fractionation facilities, which were largely incurred in our Supply and Logistics segment results. |
• | Rail Terminals — Revenues decreased by $9 million and $25 million for the three and nine months ended September 30, 2017, respectively, compared to the three and nine months ended September 30, 2016 primarily due to lower volumes at our U.S. terminals resulting from less favorable market conditions. The decrease for the nine-month period was partially offset by revenues and volumes from our Fort Saskatchewan rail terminal that came on line in April 2016. |
• | Crude Oil Storage — Revenues increased by $1 million for the three months ended September 30, 2017 compared to the three months ended September 30, 2016 and decreased by $3 million for the nine months ended September 30, 2017 compared to the same 2016 period. Both of the 2017 periods were positively impacted by increased revenues from our Cushing terminal due to capacity expansions of approximately 2 million barrels and increased terminal throughput. These positive results were offset (i) for the three-month comparative period, by decreased marine activity and (ii) for the nine-month comparative period, by decreased utilization at certain of our West Coast terminals and the sale of certain of our East Coast terminals in April 2016. |
Operating Results (1) | Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||
(in millions, except per barrel data) | 2017 | 2016 | $ | % | 2017 | 2016 | $ | % | |||||||||||||||||||||||
Revenues | $ | 5,574 | $ | 4,879 | $ | 695 | 14 | % | $ | 17,757 | $ | 13,353 | $ | 4,404 | 33 | % | |||||||||||||||
Purchases and related costs | (5,729 | ) | (4,788 | ) | (941 | ) | (20 | )% | (17,407 | ) | (13,031 | ) | (4,376 | ) | (34 | )% | |||||||||||||||
Field operating costs (2) | (62 | ) | (70 | ) | 8 | 11 | % | (193 | ) | (226 | ) | 33 | 15 | % | |||||||||||||||||
Equity-indexed compensation expense - field operating costs | — | — | — | ** | — | (1 | ) | 1 | ** | ||||||||||||||||||||||
Segment general and administrative expenses (2) (3) | (23 | ) | (23 | ) | — | — | % | (68 | ) | (72 | ) | 4 | 6 | % | |||||||||||||||||
Equity-indexed compensation expense - general and administrative | (2 | ) | (4 | ) | 2 | ** | (9 | ) | (10 | ) | 1 | ** | |||||||||||||||||||
Adjustments (4): | |||||||||||||||||||||||||||||||
(Gains)/losses from derivative activities net of inventory valuation adjustments | 214 | (53 | ) | 267 | ** | (89 | ) | 189 | (278 | ) | ** | ||||||||||||||||||||
Long-term inventory costing adjustments | (16 | ) | 38 | (54 | ) | ** | (2 | ) | (6 | ) | 4 | ** | |||||||||||||||||||
Net (gain)/loss on foreign currency revaluation | (14 | ) | 2 | (16 | ) | ** | (27 | ) | 5 | (32 | ) | ** | |||||||||||||||||||
Equity-indexed compensation expense | 2 | 2 | — | ** | 6 | 7 | (1 | ) | ** | ||||||||||||||||||||||
Segment adjusted EBITDA | $ | (56 | ) | $ | (17 | ) | $ | (39 | ) | (229 | )% | $ | (32 | ) | $ | 208 | $ | (240 | ) | (115 | )% | ||||||||||
Maintenance capital | $ | 3 | $ | 3 | $ | — | — | % | $ | 11 | $ | 10 | $ | 1 | 10 | % | |||||||||||||||
Segment adjusted EBITDA per barrel | $ | (0.54 | ) | $ | (0.16 | ) | $ | (0.38 | ) | (238 | )% | $ | (0.10 | ) | $ | 0.67 | $ | (0.77 | ) | (115 | )% | ||||||||||
Average Daily Volumes | Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||
(in thousands of barrels per day) | 2017 | 2016 | Volumes | % | 2017 | 2016 | Volumes | % | |||||||||||||||||||||||
Crude oil lease gathering purchases | 929 | 883 | 46 | 5 | % | 929 | 894 | 35 | 4 | % | |||||||||||||||||||||
NGL sales | 202 | 207 | (5 | ) | (2 | )% | 254 | 230 | 24 | 10 | % | ||||||||||||||||||||
Waterborne cargos | — | 8 | (8 | ) | ** | 2 | 7 | (5 | ) | ** | |||||||||||||||||||||
Supply and Logistics segment total | 1,131 | 1,098 | 33 | 3 | % | 1,185 | 1,131 | 54 | 5 | % |
(1) | Revenues and costs include intersegment amounts. |
(2) | Field operating costs and Segment general and administrative expenses exclude equity-indexed compensation expense, which is presented separately in the table above. |
(3) | 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. |
(4) | Represents adjustments included in the performance measure utilized by our CODM in the evaluation of segment results. See Note 13 to our Condensed Consolidated Financial Statements for additional discussion of such adjustments. |
NYMEX WTI Crude Oil Price | |||||||
Low | High | ||||||
Three months ended September 30, 2017 | $ | 44 | $ | 52 | |||
Three months ended September 30, 2016 | $ | 40 | $ | 49 | |||
Nine months ended September 30, 2017 | $ | 43 | $ | 54 | |||
Nine months ended September 30, 2016 | $ | 26 | $ | 51 |
• | Crude Oil Operations — Net revenues from our crude oil supply and logistics activities decreased for the three and nine months ended September 30, 2017 as compared to the same periods in 2016, primarily due to lower unit margins from continued and intensifying competition, largely due to overbuilt infrastructure underwritten with volume commitments, and the effect of such on differentials, which reduced arbitrage opportunities. See the “Outlook” section below for additional discussion of recent market conditions. |
• | NGL Operations — Net revenues from our NGL operations increased slightly for the three months ended September 30, 2017 compared to the same period in 2016 due to higher propane sales margins, which are primarily timing-related within the 2017-2018 heating season, partially offset by higher storage and processing fees for the 2017 period, which were largely offset in our Facilities segment results. |
• | Impact from Certain Derivative Activities Net of Inventory Valuation Adjustments — The impact from certain derivative activities on our net revenues includes mark-to-market and other gains and losses resulting from certain derivative instruments that are related to underlying activities in another period (or the reversal of mark-to-market gains and losses from a prior period) and inventory valuation adjustments, as applicable. See Note 10 to our Condensed Consolidated Financial Statements for a comprehensive discussion regarding our derivatives and risk management activities. These gains and losses impact our net revenues but are excluded from segment adjusted EBITDA and thus are reflected as an “Adjustment” in the table above. |
• | Long-Term Inventory Costing Adjustments — Our net revenues are impacted by changes in the weighted average cost of our crude oil and NGL inventory pools that result from price movements during the periods. These costing adjustments related to long-term inventory necessary to meet our minimum inventory requirements in third-party assets and other working inventory that was 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. These costing adjustments impact our net revenues but are excluded from segment adjusted EBITDA and thus are reflected as an “Adjustment” in the table above. |
• | Foreign Exchange Impacts — Our net revenues are impacted by fluctuations in the value of CAD to USD, resulting in foreign exchange gains and losses on U.S. denominated net assets within our Canadian operations. These gains and losses impact our net revenues but are excluded from segment adjusted EBITDA and thus are reflected as an “Adjustment” in the table above. |
As of September 30, 2017 | |||
Availability under senior unsecured revolving credit facility (1) (2) | $ | 1,584 | |
Availability under senior secured hedged inventory facility (1) (2) | 568 | ||
Availability under senior unsecured 364-day revolving credit facility | 1,000 | ||
Amounts outstanding under commercial paper program | (698 | ) | |
Subtotal | 2,454 | ||
Cash and cash equivalents | 33 | ||
Total | $ | 2,487 |
(1) | Represents availability prior to giving effect to amounts outstanding under our commercial paper program, which reduce available capacity under the facilities. |
(2) | Available capacity was reduced by outstanding letters of credit of $95 million, comprised of $16 million under the senior unsecured revolving credit facility and $79 million under the senior secured hedged inventory facility. |
Type of Offering | Common Units Issued | Net Proceeds (1) | ||||||||
Continuous Offering Program | 4,033,567 | $ | 129 | (2 | ) | |||||
Omnibus Agreement (3) | 50,086,326 | (4 | ) | 1,535 | ||||||
54,119,893 | $ | 1,664 |
(1) | Amounts are net of costs associated with the offerings. |
(2) | We pay commissions to our sales agents in connection with common units issuances under our Continuous Offering Program. We paid $1 million of such commissions during the nine months ended September 30, 2017. |
(3) | Pursuant to the Omnibus Agreement entered into by the Plains Entities in connection with the Simplification Transactions, PAGP has agreed to use the net proceeds from any public or private offering and sale of Class A shares, after deducting the sales agents’ commissions and offering expenses, to purchase from AAP a number of AAP units equal to the number of Class A shares sold in such offering at a price equal to the net proceeds from such offering. The Omnibus Agreement also provides that immediately following such purchase and sale, AAP will use the net proceeds it receives from such sale of AAP units to purchase from us an equivalent number of our common units. |
(4) | Includes (i) approximately 1.8 million common units issued to AAP in connection with PAGP’s issuance of Class A shares under its Continuous Offering Program and (ii) 48.3 million common units issued to AAP in connection with PAGP’s March 2017 underwritten offering. |
Remainder of 2017 | 2018 | 2019 | 2020 | 2021 | 2022 and Thereafter | Total | |||||||||||||||||||||
Long-term debt, including current maturities and related interest payments (1) | $ | 725 | $ | 1,054 | $ | 1,271 | $ | 870 | $ | 941 | $ | 11,056 | $ | 15,917 | |||||||||||||
Leases and rights-of-way easements (2) | 48 | 173 | 143 | 120 | 102 | 433 | 1,019 | ||||||||||||||||||||
Other obligations (3) | 105 | 230 | 168 | 136 | 132 | 564 | 1,335 | ||||||||||||||||||||
Subtotal | 878 | 1,457 | 1,582 | 1,126 | 1,175 | 12,053 | 18,271 | ||||||||||||||||||||
Crude oil, NGL and other purchases (4) | 2,688 | 4,682 | 3,950 | 3,236 | 2,968 | 9,224 | 26,748 | ||||||||||||||||||||
Total | $ | 3,566 | $ | 6,139 | $ | 5,532 | $ | 4,362 | $ | 4,143 | $ | 21,277 | $ | 45,019 |
(1) | Includes debt service payments, interest payments due on senior notes and the commitment fee on assumed available capacity under our credit facilities and long-term borrowings under our commercial paper program. Although there may be short-term borrowings under our credit facilities and commercial paper program, we historically repay and borrow at varying amounts. As such, we have included only the maximum commitment fee (as if no short-term borrowings were outstanding on the facilities or commercial paper program) in the amounts above. |
(2) | Leases are primarily for (i) surface rentals, (ii) office rent, (iii) pipeline assets and (iv) trucks, trailers and railcars. Includes capital and operating leases as defined by FASB guidance, as well as obligations for rights-of-way easements. |
(3) | Includes (i) other long-term liabilities, (ii) storage, processing and transportation agreements and (iii) non-cancelable commitments related to our capital expansion projects, including projected contributions for our share of the capital spending of our equity method investments. The transportation agreements include approximately $780 million associated with an agreement to transport crude oil on a pipeline that is owned by an equity method investee, in which we own a 50% interest. Our commitment to transport is supported by crude oil buy/sell agreements with third parties (including Oxy) with commensurate quantities. |
(4) | Amounts are primarily based on estimated volumes and market prices based on average activity during September 2017. The actual physical volume purchased and actual settlement prices will vary from the assumptions used in the table. Uncertainties involved in these estimates include levels of production at the wellhead, weather conditions, changes in market prices and other conditions beyond our control. |
• | declines in the actual or expected volume of crude oil 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 infrastructure projects, which impacts volumes, margins, returns and overall earnings; |
• | unanticipated changes in crude oil and NGL market structure, grade differentials and volatility (or lack thereof); |
• | maintenance of our credit rating and ability to receive open credit from our suppliers and trade counterparties; |
• | environmental liabilities or events that are not covered by an indemnity, insurance or existing reserves; |
• | 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 failure to consummate, or significant delay in consummating, sales of assets or interests as a part of our strategic divestiture program; |
• | 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. |
Fair Value | Effect of 10% Price Increase | Effect of 10% Price Decrease | |||||||||
Crude oil | $ | 3 | $ | 5 | $ | (3 | ) | ||||
Natural gas | (22 | ) | $ | 11 | $ | (11 | ) | ||||
NGL and other | (191 | ) | $ | (84 | ) | $ | 84 | ||||
Total fair value | $ | (210 | ) |
PLAINS ALL AMERICAN PIPELINE, L.P. | ||
By: | PAA GP LLC, | |
its general partner | ||
By: | Plains AAP, L.P., | |
its sole member | ||
By: | PLAINS ALL AMERICAN GP LLC, | |
its general partner | ||
By: | /s/ Greg L. Armstrong | |
Greg L. Armstrong, | ||
Chief Executive Officer of Plains All American GP LLC | ||
(Principal Executive Officer) | ||
November 8, 2017 | ||
By: | /s/ Al Swanson | |
Al Swanson, | ||
Executive Vice President and Chief Financial Officer of Plains All American GP LLC | ||
(Principal Financial Officer) | ||
November 8, 2017 | ||
By: | /s/ Chris Herbold | |
Chris Herbold, | ||
Vice President —Accounting and Chief Accounting Officer of Plains All American GP LLC | ||
(Principal Accounting Officer) | ||
November 8, 2017 |
2.1 * | — | |
2.2 * | — | |
3.1 | — | |
3.2 | — | |
3.3 | — | |
3.4 | — | |
3.5 | — | |
3.6 | — | |
3.7 | — | |
3.8 | — | |
3.9 | — | |
3.10 | — | |
3.11 | — | |
3.12 | — | |
3.13 | — | |
3.14 | — | |
3.15 | — | |
3.16 | — | |
3.17 | — | |
4.1 | — | |
4.2 | — | |
4.3 | — | |
4.4 | — | |
4.5 | — | |
4.6 | — | |
4.7 | — | |
4.8 | — | |
4.9 | — | |
4.10 | — | |
4.11 | — | |
4.12 | — | |
4.13 | — | |
4.14 | — | |
4.15 | — | |
4.16 | — | |
4.17 | — | |
4.18 | — | |
4.19 | — | |
4.20 | — | |
4.21 | — | |
10.1 ** | — | |
10.2 ** | — | |
10.3 ** | — | |
10.4 ** | — | |
10.5 † | — | |
10.6 † | — | |
12.1 † | — | |
31.1 † | — | |
31.2 † | — | |
32.1 †† | — | |
32.2 †† | — | |
101.INS† | — | XBRL Instance Document |
101.SCH† | — | XBRL Taxonomy Extension Schema Document |
101.CAL† | — | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF† | — | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB† | — | XBRL Taxonomy Extension Label Linkbase Document |
101.PRE† | — | XBRL Taxonomy Extension Presentation Linkbase Document |
† | Filed herewith. |
†† | Furnished herewith. |
* | Certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule will be furnished supplementally to the SEC upon request. |
** | Management compensatory plan or arrangement. |
Lender | Commitment | Applicable Percentage | |||
Bank of America, N.A. | $58,437,500.00 | 5.843750000 | % | ||
Citibank, N.A. | $58,437,500.00 | 5.843750000 | % | ||
DNB Capital LLC | $58,437,500.00 | 5.843750000 | % | ||
Deutsche Bank AG New York Branch | $58,437,500.00 | 5.843750000 | % | ||
JPMorgan Chase Bank, N.A. | $58,437,500.00 | 5.843750000 | % | ||
Mizuho Bank, Ltd. | $58,437,500.00 | 5.843750000 | % | ||
Wells Fargo Bank, National Association | $58,437,500.00 | 5.843750000 | % | ||
Morgan Stanley Bank, N.A. | $52,500,000.00 | 5.250000000 | % | ||
Branch Banking and Trust Company | $52,500,000.00 | 5.250000000 | % | ||
The Bank of Nova Scotia | $43,000,000.00 | 4.300000000 | % | ||
The Bank of Tokyo-Mitsubishi UFJ, Ltd. | $43,000,000.00 | 4.300000000 | % | ||
Barclays Bank PLC | $43,000,000.00 | 4.300000000 | % | ||
PNC Bank, National Association | $43,000,000.00 | 4.300000000 | % | ||
BNP Paribas | $37,500,000.00 | 3.750000000 | % | ||
Compass Bank | $37,500,000.00 | 3.750000000 | % | ||
Canadian Imperial Bank of Commerce, New York Branch | $37,500,000.00 | 3.750000000 | % | ||
Sumitomo Mitsui Banking Corporation | $37,500,000.00 | 3.750000000 | % | ||
SunTrust Bank | $37,500,000.00 | 3.750000000 | % | ||
BMO Harris Bank N.A. | $26,500,000.00 | 2.650000000 | % | ||
ING Capital LLC | $26,500,000.00 | 2.650000000 | % | ||
Regions Bank | $26,500,000.00 | 2.650000000 | % | ||
U.S. Bank National Association | $26,500,000.00 | 2.650000000 | % | ||
Royal Bank of Canada | $14,500,000.00 | 1.450000000 | % | ||
Morgan Stanley Senior Funding, Inc. | $5,937,500.00 | 0.593750000 | % | ||
Total | $1,000,000,000.00 | 100.000000000 | % |
BORROWERS: | PLAINS MARKETING, L.P., |
PAA: | PLAINS ALL AMERICAN PIPELINE, L.P. |
LENDER PARTIES: | BANK OF AMERICA, N.A., |
Nine Months Ended September 30, | Year Ended December 31, | ||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||||
EARNINGS (1) | |||||||||||||||||||||||
Pre-tax income from continuing operations before noncontrolling interests and income from equity investees | $ | 496 | $ | 560 | $ | 823 | $ | 1,449 | $ | 1,426 | $ | 1,143 | |||||||||||
add: Fixed charges | 465 | 588 | 548 | 457 | 424 | 380 | |||||||||||||||||
add: Distributed income of equity investees | 222 | 216 | 214 | 105 | 55 | 40 | |||||||||||||||||
add: Amortization of capitalized interest | 6 | 7 | 6 | 4 | 3 | 2 | |||||||||||||||||
less: Capitalized interest | (26 | ) | (47 | ) | (57 | ) | (48 | ) | (38 | ) | (36 | ) | |||||||||||
Total Earnings | $ | 1,163 | $ | 1,324 | $ | 1,534 | $ | 1,967 | $ | 1,870 | $ | 1,529 | |||||||||||
FIXED CHARGES (1) | |||||||||||||||||||||||
Interest expensed and capitalized | $ | 416 | $ | 524 | $ | 495 | $ | 410 | $ | 381 | $ | 346 | |||||||||||
Portion of rent expense related to interest (33.33%) | 49 | 64 | 53 | 47 | 43 | 34 | |||||||||||||||||
Total Fixed Charges | $ | 465 | $ | 588 | $ | 548 | $ | 457 | $ | 424 | $ | 380 | |||||||||||
Preferred unit distributions (2)(3) | 105 | 122 | — | — | — | — | |||||||||||||||||
Total Combined Fixed Charges and Preferred Unit Distributions | $ | 570 | $ | 710 | $ | 548 | $ | 457 | $ | 424 | $ | 380 | |||||||||||
RATIO OF EARNINGS TO FIXED CHARGES (4) | 2.50x | 2.25x | 2.80x | 4.30x | 4.41x | 4.03x | |||||||||||||||||
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTIONS (2)(3)(4) | 2.04x | 1.86x | — | — | — | — |
(1) | For purposes of computing the ratio of earnings to fixed charges and the ratio of earnings to combined fixed charges and preferred unit distributions, “earnings” consists of pre-tax income from continuing operations before income from equity investees plus fixed charges (excluding capitalized interest), distributed income of equity investees and amortization of capitalized interest. “Fixed charges” represents interest incurred (whether expensed or capitalized), amortization of debt expense (including discounts and premiums relating to indebtedness) and the portion of rental expense on leases deemed to be the equivalent of interest. |
(2) | As no preferred units were outstanding for any of the years ended December 31, 2015, 2014, 2013 and 2012, no historical ratio of earnings to combined fixed charges and preferred unit distributions are presented for those years. |
(3) | The distribution requirement of our Series A convertible preferred units (the “Series A Preferred Units”) was paid in additional Series A Preferred Units for the year ended December 31, 2016 and the nine months ended September 30, 2017. We issued 4,019,916 additional Series A Preferred Units in lieu of cash distributions of $105 million for the distributions pertaining to the nine months ended September 30, 2017, and we issued 4,646,499 additional Series A Preferred Units in lieu of cash distributions of $122 million for the distributions pertaining to the year ended December 31, 2016. |
(4) | Ratios may not recalculate due to rounding. |
/s/ Greg L. Armstrong |
Greg L. Armstrong |
Chief Executive Officer |
/s/ Al Swanson |
Al Swanson |
Chief Financial Officer |
/s/ Greg L. Armstrong |
Name: Greg L. Armstrong |
Date: November 8, 2017 |
/s/ Al Swanson |
Name: Al Swanson |
Date: November 8, 2017 |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Oct. 31, 2017 |
|
Document and Entity Information | ||
Entity Registrant Name | PLAINS ALL AMERICAN PIPELINE LP | |
Entity Central Index Key | 0001070423 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (units) | 725,189,138 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Series A Preferred Units | ||
Units outstanding (units) | 68,329,949 | 64,388,853 |
Common Units | ||
Units outstanding (units) | 725,189,138 | 669,194,419 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Income Statement [Abstract] | ||||
Interest expense, capitalized interest | $ 11 | $ 11 | $ 26 | $ 37 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 34 | $ 298 | $ 667 | $ 602 |
Other comprehensive income/(loss) | 145 | (45) | 256 | 0 |
Comprehensive income | 179 | 253 | 923 | 602 |
Comprehensive income attributable to noncontrolling interests | (1) | (1) | (2) | (3) |
Comprehensive income attributable to PAA | $ 178 | $ 252 | $ 921 | $ 599 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Millions |
Total |
Partners’ Capital Excluding Noncontrolling Interests |
Noncontrolling Interests |
Common Units |
Limited Partners
Series A Preferred Units
Partners’ Capital Excluding Noncontrolling Interests
|
Limited Partners
Common Units
Partners’ Capital Excluding Noncontrolling Interests
|
General Partner
Partners’ Capital Excluding Noncontrolling Interests
|
---|---|---|---|---|---|---|---|
Balance, beginning of period at Dec. 31, 2015 | $ 7,939 | $ 7,881 | $ 58 | $ 7,580 | $ 301 | ||
Increase (Decrease) in Partners' Capital | |||||||
Net income | 602 | 599 | 3 | 209 | 390 | ||
Cash distributions to partners | (1,302) | (1,299) | (3) | (835) | (464) | ||
Sale of Series A preferred units | 1,542 | 1,542 | $ 1,509 | 33 | |||
Sales of common units | 289 | 289 | 283 | 6 | |||
Other comprehensive income | 0 | ||||||
Other | 4 | 4 | (1) | 3 | 2 | ||
Balance, end of period at Sep. 30, 2016 | 9,074 | 9,016 | 58 | 1,508 | 7,240 | $ 268 | |
Balance, beginning of period at Dec. 31, 2016 | 8,816 | 8,759 | 57 | 1,508 | 7,251 | ||
Increase (Decrease) in Partners' Capital | |||||||
Net income | 667 | 665 | 2 | 665 | |||
Cash distributions to partners | (1,170) | (1,168) | (2) | (1,168) | |||
Sales of common units | 1,664 | 1,664 | $ 1,664 | 1,664 | |||
Acquisition of interest in Advantage Joint Venture (Note 6) | 40 | 40 | 40 | ||||
Other comprehensive income | 256 | 256 | 256 | ||||
Other | 7 | 7 | (2) | 9 | |||
Balance, end of period at Sep. 30, 2017 | $ 10,280 | $ 10,223 | $ 57 | $ 1,506 | $ 8,717 |
Organization and Basis of Consolidation and Presentation |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Basis of Consolidation and Presentation | Organization and Basis of Consolidation and Presentation Organization Plains All American Pipeline, L.P. (“PAA”) is a Delaware limited partnership formed in 1998. Our operations are conducted directly and indirectly through our primary operating subsidiaries. As used in this Form 10-Q and unless the context indicates otherwise, the terms “Partnership,” “we,” “us,” “our,” “ours” and similar terms refer to PAA and its subsidiaries. We own and operate midstream energy infrastructure and provide logistics services for crude oil, natural gas liquids (“NGL”), natural gas and refined products. We own 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. Our business activities are conducted through three operating segments: Transportation, Facilities and Supply and Logistics. See Note 13 for further discussion of our operating segments. Our non-economic general partner interest is held by PAA GP LLC (“PAA GP”), a Delaware limited liability company, whose sole member is Plains AAP, L.P. (“AAP”), a Delaware limited partnership. In addition to its ownership of PAA GP, as of September 30, 2017, AAP also owned an approximate 36% limited partner interest in us represented by approximately 286.8 million of our common units. Plains All American GP LLC (“GP LLC”), a Delaware limited liability company, is AAP’s general partner. Plains GP Holdings, L.P. (“PAGP”) is the sole and managing member of GP LLC, and, at September 30, 2017, owned, directly and indirectly, an approximate 54% limited partner interest in AAP. PAA GP Holdings LLC (“PAGP GP”) is the general partner of PAGP. As the sole member of GP LLC, PAGP has responsibility for conducting our business and managing our operations; however, the board of directors of PAGP GP has ultimate responsibility for managing the business and affairs of PAGP, AAP and us. GP LLC employs our domestic officers and personnel; our Canadian officers and personnel are employed by our subsidiary, Plains Midstream Canada ULC (“PMC”). References to the “PAGP Entities” include PAGP GP, PAGP, GP LLC, AAP and PAA GP. References to our “general partner,” as the context requires, include any or all of the PAGP Entities. References to the “Plains Entities” include us, our subsidiaries and the PAGP Entities. Simplification Transactions On November 15, 2016, the Plains Entities closed a series of transactions and executed several organizational and ancillary documents (the “Simplification Transactions”) intended to simplify our capital structure, better align the interests of our stakeholders and improve our overall credit profile. The Simplification Transactions included, among other things:
The Simplification Transactions were between and among consolidated subsidiaries of PAGP that are considered entities under common control. These equity transactions did not result in a change in the carrying value of the underlying assets and liabilities. Definitions Additional defined terms are used in this Form 10-Q and shall have the meanings indicated below:
Basis of Consolidation and Presentation The accompanying unaudited condensed consolidated interim financial statements and related notes thereto should be read in conjunction with our 2016 Annual Report on Form 10-K. The accompanying condensed consolidated financial statements include the accounts of PAA and all of its wholly owned subsidiaries and those entities that it controls. Investments in entities over which we have significant influence but not control are accounted for by the equity method. We apply proportionate consolidation for pipelines and other assets in which we own undivided joint interests. The financial statements have been prepared in accordance with the instructions for interim reporting as set forth by the SEC. All adjustments (consisting only of normal recurring adjustments) that in the opinion of management were necessary for a fair statement of the results for the interim periods have been reflected. All significant intercompany transactions have been eliminated in consolidation, and certain reclassifications have been made to information from previous years to conform to the current presentation. The condensed consolidated balance sheet data as of December 31, 2016 was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for the three and nine months ended September 30, 2017 should not be taken as indicative of results to be expected for the entire year. Subsequent events have been evaluated through the financial statements issuance date and have been included in the following footnotes where applicable. |
Recent Accounting Pronouncements |
9 Months Ended |
---|---|
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Accounting Standards Updates Issued During the Period In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which improves the guidance for determining whether a transaction involves the purchase or disposal of a business or an asset. This guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted, and prospective application required. We plan to adopt this guidance on January 1, 2018 and will apply the new guidance to applicable transactions occurring after that date. In February 2017, the FASB issued ASU 2017-05, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The update includes the following clarifications: (i) nonfinancial assets within the scope of Subtopic 610-20 may include nonfinancial assets transferred within a legal entity to a counterparty, (ii) an entity should allocate consideration to each distinct asset by applying the guidance in Topic 606 on allocating the transaction price to performance obligations and (iii) requires entities to derecognize a distinct nonfinancial asset or distinct in substance nonfinancial asset in a partial sale transaction when it (1) does not have (or ceases to have) a controlling financial interest in the legal entity that holds the asset in accordance with Subtopic 810-10 and (2) transfers control of the asset in accordance with Topic 606. This guidance is effective for interim and annual periods beginning after December 15, 2017, and must be adopted at the same time as Topic 606. We will adopt this guidance on January 1, 2018 and are currently evaluating the impact of the adoption on our financial position, results of operations and cash flows. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. Under the new guidance, modification accounting is required only if the fair value (or calculated value or intrinsic value, if such alternative method is used), the vesting conditions, or the classification of the award (equity or liability) changes as a result of the change in terms or conditions. This guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted, and prospective application required. We expect to adopt this guidance on January 1, 2018, and we do not currently anticipate that our adoption will have a material impact on our financial position, results of operations and cash flows. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Under the new guidance, (i) more financial and nonfinancial hedging strategies will be eligible for hedge accounting, (ii) presentation and disclosure requirements are amended and (iii) companies will change the way they assess effectiveness. This guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. We expect to adopt this guidance on January 1, 2019 and are currently evaluating the impact of the adoption on our financial position, results of operations and cash flows. Other Accounting Standards Updates In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) with the underlying principle that an entity will recognize revenue to reflect amounts expected to be received in exchange for the provision of goods and services to customers upon the transfer of those goods or services. This ASU also requires additional disclosures. This ASU can be adopted either with a full retrospective approach or a modified retrospective approach with a cumulative-effect adjustment as of the date of adoption and is effective for interim and annual periods beginning after December 15, 2017. We implemented a process to evaluate the impact of adopting this ASU on each type of revenue contract entered into with customers and our implementation team is in the process of determining appropriate changes to our business processes, systems and controls to support recognition and disclosure under the new standard. We have not identified any significant revenue recognition timing differences for types of revenue streams assessed to date; however, our evaluation is not complete. In addition, we are assessing the impact of changes to disclosures and expect an increase in disclosures about the nature, amount, timing and uncertainty of revenue and the related cash flows. We will adopt this guidance on January 1, 2018, and currently anticipate that we will apply the modified retrospective approach. |
Accounting Standards Updates Adopted During the Period | Recent Accounting Pronouncements Except as discussed below and in our 2016 Annual Report on Form 10-K, there have been no new accounting pronouncements that have become effective or have been issued during the nine months ended September 30, 2017 that are of significance or potential significance to us. Accounting Standards Updates Adopted During the Period In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplified several aspects of the accounting for share-based payment transactions, including the income tax consequences, forfeitures, classification of awards as either equity or liabilities and classification of certain related payments on the statement of cash flows. This guidance was effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. We adopted the applicable provisions of the ASU on January 1, 2017 and (i) elected to account for forfeitures as they occur, utilizing the modified retrospective approach of adoption, and (ii) will classify cash paid for taxes when directly withholding units from an employee’s award for tax-withholding purposes as a financing activity on our Condensed Consolidated Statement of Cash Flows. Our adoption did not have a material impact on our financial position or results of operations for the periods presented. We reclassified approximately $6 million of cash outflows from operating activities to financing activities for the nine months ended September 30, 2016 related to cash paid for minimum statutory withholding requirements for which we withheld units from employees’ awards. In January 2017, the FASB issued ASU 2017-04, Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments within this ASU eliminate Step 2 from the goodwill impairment test, which currently requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under the amended standard, goodwill impairment will instead be measured using Step 1 of the goodwill impairment test with goodwill impairment being equal to the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This guidance is effective for interim and annual periods beginning after December 15, 2019, with early adoption permitted. We early adopted this ASU in the first quarter of 2017 and applied the amendments therein to our 2017 annual goodwill impairment test. |
Net Income/(Loss) Per Common Unit |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income/(Loss) Per Common Unit | Net Income/(Loss) Per Common Unit We calculate basic and diluted net income/(loss) per common unit by dividing net income attributable to PAA (after deducting amounts allocated to the preferred unitholders and participating securities, and for periods prior to the closing of the Simplification Transactions, the 2% general partner’s interest and IDRs) by the basic and diluted weighted-average number of common units outstanding during the period. Participating securities include LTIP awards that have vested DERs, which entitle the grantee to a cash payment equal to the cash distribution paid on our outstanding common units. Diluted net income/(loss) per common unit is computed based on the weighted-average number of common units plus the effect of potentially dilutive securities outstanding during the period, which include (i) our Series A preferred units, (ii) our LTIP awards and (iii) common units that are issuable to AAP when certain AAP Management Units become earned. When applying the if-converted method prescribed by FASB guidance, the possible conversion of our Series A preferred units was excluded from the calculation of diluted net income/(loss) per common unit for the three and nine months ended September 30, 2017 and 2016 as the effect was antidilutive. Our LTIP awards that contemplate the issuance of common units and certain AAP Management Units that contemplate the issuance of common units to AAP when such AAP Management Units become earned are considered dilutive unless (i) they become vested or earned only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. LTIP awards that were deemed to be dilutive were reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB. LTIP awards were excluded from the computation of diluted net loss per common unit for the three months ended September 30, 2017 as the effect was antidilutive. As none of the necessary conditions for the remaining AAP Management Units to become earned had been satisfied by September 30, 2017, no common units issuable to AAP were contemplated in the calculation of diluted net income/(loss) per common unit for any period presented. See Note 16 to our Consolidated Financial Statements included in Part IV of our 2016 Annual Report on Form 10-K for a complete discussion of our LTIP awards including specific discussion regarding DERs. The following table sets forth the computation of basic and diluted net income/(loss) per common unit (in millions, except per unit data):
|
Accounts Receivable, Net |
9 Months Ended |
---|---|
Sep. 30, 2017 | |
Receivables [Abstract] | |
Accounts Receivable, Net | Accounts Receivable, Net Our accounts receivable are primarily from purchasers and shippers of crude oil and, to a lesser extent, purchasers of NGL and natural gas. To mitigate credit risk related to our accounts receivable, we utilize a rigorous credit review process. We closely monitor market conditions to make a determination with respect to the amount, if any, of open credit to be extended to any given customer and the form and amount of financial performance assurances we require. Such financial assurances are commonly provided to us in the form of advance cash payments, standby letters of credit or parental guarantees. As of September 30, 2017 and December 31, 2016, we had received $120 million and $89 million, respectively, of advance cash payments from third parties to mitigate credit risk. We also received $60 million and $66 million as of September 30, 2017 and December 31, 2016, respectively, of standby letters of credit to support obligations due from third parties, a portion of which applies to future business. Additionally, in an effort to mitigate credit risk, a significant portion of our transactions with counterparties are settled on a net-cash basis. Furthermore, we also enter into netting agreements (contractual agreements that allow us to offset receivables and payables with those counterparties against each other on our balance sheet) for a majority of net-cash settled arrangements. We review all outstanding accounts receivable balances on a monthly basis and record a reserve for amounts that we expect will not be fully recovered. We do not apply actual balances against the reserve until we have exhausted substantially all collection efforts. At September 30, 2017 and December 31, 2016, substantially all of our trade accounts receivable (net of allowance for doubtful accounts) were less than 30 days past their scheduled invoice date. Our allowance for doubtful accounts receivable totaled $3 million at both September 30, 2017 and December 31, 2016. Although we consider our allowance for doubtful accounts receivable to be adequate, actual amounts could vary significantly from estimated amounts. |
Inventory, Linefill and Base Gas and Long-term Inventory |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Linefill and Base Gas and Long-term Inventory | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Linefill and Base Gas and Long-term Inventory | Inventory, Linefill and Base Gas and Long-term Inventory Inventory, linefill and base gas and long-term inventory consisted of the following (barrels and natural gas volumes in thousands and carrying value in millions):
At the end of each reporting period, we assess the carrying value of our inventory and make any adjustments necessary to reduce the carrying value to the applicable net realizable value. Any resulting adjustments are a component of “Purchases and related costs” on our accompanying Condensed Consolidated Statements of Operations. We recorded a charge of $35 million during the nine months ended September 30, 2017 primarily related to the writedown of our crude oil inventory due to a decline in prices. Substantially all of this inventory valuation adjustment was offset by the recognition of gains on derivative instruments being utilized to hedge future sales of our crude oil inventory. Such gains were recorded to “Supply and Logistics segment revenues” in our accompanying Condensed Consolidated Statements of Operations. See Note 10 for discussion of our derivative and risk management activities. We recorded an inventory valuation adjustment of $3 million during the nine months ended September 30, 2016. |
Acquisitions and Dispositions |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions The following acquisitions were accounted for using the acquisition method of accounting and the determination of the fair value of the assets and liabilities acquired has been estimated in accordance with the applicable accounting guidance. Alpha Crude Connector Acquisition On February 14, 2017, we acquired all of the issued and outstanding membership interests in Alpha Holding Company, LLC for cash consideration of approximately $1.217 billion, subject to working capital and other adjustments (the “ACC Acquisition”). The ACC Acquisition was initially funded through borrowings under our senior unsecured revolving credit facility. Such borrowings were subsequently repaid with proceeds from our March 2017 issuance of common units to AAP pursuant to the Omnibus Agreement and in connection with a PAGP underwritten equity offering. See Note 9 for additional information. Upon completion of the ACC Acquisition, we became the owner of a crude oil gathering system known as the “Alpha Crude Connector” (the “ACC System”) located in the Northern Delaware Basin in Southeastern New Mexico and West Texas. The ACC System comprises approximately 515 miles of gathering and transmission lines and five market interconnects, including to our Basin Pipeline at Wink. We intend to make additional interconnects to our existing Northern Delaware Basin systems as well as additional enhancements intended to increase the ACC System capacity to approximately 350,000 barrels per day, depending on the level of volume at each delivery point. The ACC System is supported by acreage dedications covering approximately 315,000 gross acres, including a significant acreage dedication from one of the largest producers in the region. The ACC System complements our other Permian Basin assets and enhances the services available to the producers in the Northern Delaware Basin. The determination of the acquisition-date fair value of the assets acquired and liabilities assumed is preliminary. We expect to finalize our fair value determination in 2017. The following table reflects the preliminary fair value determination (in millions):
Intangible assets are included in “Other long-term assets, net” on our Condensed Consolidated Balance Sheets. The preliminary determination of fair value to intangible assets above is comprised of five acreage dedication contracts and associated customer relationships that will be amortized over a remaining weighted average useful life of approximately 20 years. The value assigned to such intangible assets will be amortized to earnings using methods that closely resemble the pattern in which the economic benefits will be consumed. Amortization expense was approximately $7 million for the period from February 14, 2017 through September 30, 2017, and the future amortization expense is estimated as follows for the next five years (in millions):
Goodwill is an intangible asset representing the future economic benefits expected to be derived from other assets acquired that are not individually identified and separately recognized. The goodwill arising from the ACC Acquisition, which is tax deductible, represents the anticipated opportunities to generate future cash flows from undedicated acreage and the synergies created between the ACC System and our existing assets. The assets acquired in the ACC Acquisition, as well as the associated goodwill, are primarily included in our Transportation segment. During the nine months ended September 30, 2017, we incurred approximately $6 million of acquisition-related costs associated with the ACC Acquisition. Such costs are reflected as a component of general and administrative expenses in our Condensed Consolidated Statements of Operations. Pro forma financial information assuming the ACC Acquisition had occurred as of the beginning of the calendar year prior to the year of acquisition, as well as the revenues and earnings generated during the period since the acquisition date, were not material for disclosure purposes. Other Acquisitions In February 2017, we acquired a propane marine terminal for cash consideration of approximately $41 million. The assets acquired are included in our Facilities segment. We did not recognize any goodwill related to this acquisition. Investment Acquisition On April 3, 2017, we and an affiliate of Noble Midstream Partners LP (“Noble”) completed the acquisition of Advantage Pipeline, L.L.C. (“Advantage”) for a purchase price of $133 million through a newly formed 50/50 joint venture (the “Advantage Joint Venture”). For our 50% share ($66.5 million), we contributed approximately 1.3 million common units with a value of approximately $40 million and approximately $26 million in cash. We account for our interest in the Advantage Joint Venture under the equity method of accounting. Advantage owns a 70-mile, 16-inch crude oil pipeline located in the southern Delaware Basin (the “Advantage Pipeline”), which is contractually supported by a third-party acreage dedication and a volume commitment from our wholly-owned marketing subsidiary. Noble serves as operator of Advantage Pipeline. During the third quarter of 2017, Noble completed construction of a pipeline to deliver crude oil to the Advantage Pipeline from its central gathering facility in the southern Delaware Basin, and we completed construction of a pipeline to connect our Wolfbone Ranch facility to the Advantage Pipeline near Highway 285 in Reeves County, Texas. Dispositions, Divestitures and Assets Held for Sale During the nine months ended September 30, 2017, we received proceeds of approximately $407 million from the sale of certain non-core assets, including:
Our Bluewater natural gas storage facility was reported in our Facilities segment, and the pipeline segments were reported in our Transportation segment. As of September 30, 2017, we classified approximately $630 million of assets as held for sale on our Condensed Consolidated Balance Sheet (in “Other current assets”). The assets held for sale are primarily property and equipment, are included in our Facilities and Transportation segments and are related to transactions to sell our interests in:
In the aggregate, including non-cash impairment losses recognized upon reclassification to assets held for sale, we recognized net losses related to pending or completed asset sales of approximately $15 million and $15 million for the three and nine months ended September 30, 2017, respectively, which are included in “Depreciation and amortization” on our Condensed Consolidated Statements of Operations. For the three-month period, such amount is comprised of gains of $5 million and losses of $20 million. For the nine-month 2017 period, such amount is comprised of gains of $42 million, primarily related to the sale of the non-core pipeline segments, including the write-off of a portion of the remaining book value, and losses of $57 million. During the fourth quarter of 2017, we and an affiliate of CVR Refining, LP (“CVR Refining”) formed a 50/50 joint venture, Midway Pipeline LLC, which acquired from us the Cushing to Broome crude oil pipeline system. The Cushing to Broome pipeline system connects CVR Refining’s Coffeyville, Kansas refinery to the Cushing, Oklahoma oil hub. We will continue to serve as operator of the pipeline. |
Goodwill |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill Goodwill by segment and changes in goodwill are reflected in the following table (in millions):
We completed our goodwill impairment test as of June 30, 2017 using a qualitative assessment. We determined that it was more likely than not that the fair value of each reporting unit was greater than its respective book value; therefore, additional impairment testing was not necessary and goodwill was not considered impaired. |
Debt |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt consisted of the following (in millions):
Credit Facilities In August 2017, we extended the maturity dates of our senior unsecured revolving credit facility, senior secured hedged inventory facility and senior unsecured 364-day revolving credit facility to August 2022, August 2020 and August 2018, respectively, for each extending lender. Additionally, a provision was added to the 364-day revolving credit facility agreement whereby we may elect to have the entire principal balance of any loans outstanding on the maturity date of the 364-day revolving credit facility converted into a non-revolving term loan with a maturity date of August 2019. Borrowings and Repayments Total borrowings under our credit facilities and commercial paper program for the nine months ended September 30, 2017 and 2016 were approximately $52.6 billion and $41.4 billion, respectively. Total repayments under our credit facilities and commercial paper program were approximately $52.7 billion and $41.6 billion for the nine months ended September 30, 2017 and 2016, respectively. The variance in total gross borrowings and repayments is impacted by various business and financial factors including, but not limited to, the timing, average term and method of general partnership borrowing activities. Letters of Credit In connection with our supply and logistics activities, we provide certain suppliers with irrevocable standby letters of credit to secure our obligation for the purchase and transportation of crude oil, NGL and natural gas. Additionally, we issue letters of credit to support insurance programs, derivative transactions and construction activities. At September 30, 2017 and December 31, 2016, we had outstanding letters of credit of $95 million and $73 million, respectively. Senior Notes Repayments Our $400 million, 6.13% senior notes were repaid in January 2017. We utilized cash on hand and available capacity under our commercial paper program and credit facilities to repay these notes. |
Partners' Capital and Distributions |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partners' Capital Notes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partners' Capital and Distributions | Partners’ Capital and Distributions Units Outstanding The following tables present the activity for our Series A preferred units and common units:
Sales of Common Units The following table summarizes our sales of common units during the nine months ended September 30, 2017, all of which occurred in the first four months of the year (net proceeds in millions):
Distributions Common Unit Distributions. During the third quarter of 2017, we engaged in discussions with the PAGP GP Board regarding a reassessment of our approach to distributions, with a focus on resetting our common unit distribution to a level supported by the distributable cash flow from our fee-based Transportation and Facilities segments. On August 25, 2017, we announced our intention to reset our annualized distribution to $1.20 per common unit, beginning with the third-quarter distribution payable November 14, 2017. On October 10, 2017, the PAGP GP Board declared a distribution of $1.20 (annualized) per common unit payable on November 14, 2017 to common unitholders of record as of October 31, 2017. The following table details the distributions paid in cash during or pertaining to the first nine months of 2017 (in millions, except per unit data):
Series A Preferred Unit Distributions. With respect to any quarter ending on or prior to December 31, 2017 (the “Initial Distribution Period”), we may elect to pay distributions on the Series A preferred units in additional preferred units, in cash or a combination of both. With respect to any quarter ending after the Initial Distribution Period, we must pay distributions on the Series A preferred units in cash. On February 14, 2017, we issued 1,287,773 Series A preferred units in lieu of a cash distribution of $34 million on our Series A preferred units outstanding as of the record date for such distribution. On May 15, 2017, we issued 1,313,527 Series A preferred units in lieu of a cash distribution of $34 million on our Series A preferred units outstanding as of the record date for such distribution. On August 14, 2017, we issued 1,339,796 Series A preferred units in lieu of a cash distribution of $35 million on our Series A preferred units outstanding as of the record date for such distribution. On November 14, 2017, we will issue 1,366,593 Series A preferred units in lieu of a cash distribution of $36 million on our Series A preferred units outstanding as of October 31, 2017, the record date for such distribution. Since the November 14, 2017 Series A preferred unit distribution was declared as payment-in-kind, this distribution payable was accrued to partners’ capital as of September 30, 2017 and thus had no net impact on the Series A preferred unitholders’ capital account. Issuance of Series B Preferred Units On October 10, 2017, we issued 800,000 Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units representing limited partner interests in us (the “Series B preferred units”) at a price to the public of $1,000 per unit. We used the net proceeds of $788 million, after deducting the underwriters’ discounts and offering expenses, from the issuance of the Series B preferred units to repay amounts outstanding under our credit facilities and commercial paper program and for general partnership purposes. The Series B preferred units represent perpetual equity interests in us, and they have no stated maturity or mandatory redemption date and are not redeemable at the option of the holders under any circumstances. Holders of the Series B preferred units generally have no voting rights, except for limited voting rights with respect to (i) potential amendments to our partnership agreement that would have a material adverse effect on the existing preferences, rights, powers or duties of the Series B preferred units, (ii) the creation or issuance of any parity securities if the cumulative distributions payable on then outstanding Series B preferred units are in arrears, (iii) the creation or issuance of any senior securities and (iv) the payment of distributions to our common unitholders out of capital surplus. The Series B preferred units rank, as to the payment of distributions and amounts payable on a liquidation event, on par with our outstanding Series A preferred units. The Series B preferred units have a liquidation preference of $1,000 per unit. Holders of our Series B preferred units are entitled to receive, when, as and if declared by our general partner out of legally available funds for such purpose, cumulative semiannual or quarterly cash distributions, as applicable. Distributions on the Series B preferred units accrue and are cumulative from October 10, 2017, the date of original issue, and are payable semiannually in arrears on the 15th day of May and November through and including November 15, 2022, and after November 15, 2022, quarterly in arrears on the 15th day of February, May, August and November of each year. The initial distribution rate for the Series B preferred units from and including October 10, 2017 to, but not including, November 15, 2022 is 6.125% per year of the liquidation preference per unit (equal to $61.25 per unit per year). On and after November 15, 2022, distributions on the Series B preferred units will accumulate for each distribution period at a percentage of the liquidation preference equal to the then-current three-month LIBOR plus a spread of 4.11%. We will pay a pro-rated initial distribution on the Series B preferred units on November 15, 2017 to holders of record at the close of business on November 1, 2017 in an amount equal to approximately $5.9549 per unit (a total distribution of approximately $5 million). Upon the occurrence of certain rating agency events, we may redeem the Series B preferred units, in whole but not in part, at a price of $1,020 (102% of the liquidation preference) per Series B preferred unit plus an amount equal to all accumulated and unpaid distributions thereon to, but not including, the date of redemption, whether or not declared. In addition, at any time on or after November 15, 2022, we may redeem the Series B preferred units, at our option, in whole or in part, at a redemption price of $1,000 per Series B preferred unit plus an amount equal to all accumulated and unpaid distributions thereon to, but not including, the date of redemption, whether or not declared. |
Derivatives and Risk Management Activities |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Risk Management Activities | Derivatives and Risk Management Activities We identify the risks that underlie our core business activities and use risk management strategies to mitigate those risks when we determine that there is value in doing so. Our policy is to use derivative instruments for risk management purposes and not for the purpose of speculating on hydrocarbon commodity (referred to herein as “commodity”) price changes. We use various derivative instruments to manage our exposure to (i) commodity price risk, as well as to optimize our profits, (ii) interest rate risk and (iii) currency exchange rate risk. Our commodity price risk management policies and procedures are designed to help ensure that our hedging activities address our risks by monitoring our derivative positions, as well as physical volumes, grades, locations, delivery schedules and storage capacity. Our interest rate and currency exchange rate risk management policies and procedures are designed to monitor our derivative positions and ensure that those positions are consistent with our objectives and approved strategies. When we apply hedge accounting, our policy is to formally document all relationships between hedging instruments and hedged items, as well as our risk management objectives for undertaking the hedge. This process includes specific identification of the hedging instrument and the hedged transaction, the nature of the risk being hedged and how the hedging instrument’s effectiveness will be assessed. Both at the inception of the hedge and throughout the hedging relationship, we assess whether the derivatives employed are highly effective in offsetting changes in cash flows of anticipated hedged transactions. Commodity Price Risk Hedging Our core business activities involve certain commodity price-related risks that we manage in various ways, including through the use of derivative instruments. Our policy is to (i) only purchase inventory for which we have a market, (ii) structure our sales contracts so that price fluctuations do not materially affect our operating income and (iii) not acquire and hold physical inventory or derivatives for the purpose of speculating on commodity price changes. The material commodity-related risks inherent in our business activities can be divided into the following general categories: Commodity Purchases and Sales — In the normal course of our operations, we purchase and sell commodities. We use derivatives to manage the associated risks and to optimize profits. As of September 30, 2017, net derivative positions related to these activities included:
Pipeline Loss Allowance Oil — As is common in the pipeline transportation industry, our tariffs incorporate a loss allowance factor that is intended to, among other things, offset losses due to evaporation, measurement and other losses in transit. We utilize derivative instruments to hedge a portion of the anticipated sales of the loss allowance oil that is to be collected under our tariffs. As of September 30, 2017, our PLA hedges included a long call option position of 1.0 million barrels through December 2019. Natural Gas Processing/NGL Fractionation — We purchase natural gas for processing and operational needs. Additionally, we purchase NGL mix for fractionation and sell the resulting individual specification products (including ethane, propane, butane and condensate). In conjunction with these activities, we hedge the price risk associated with the purchase of the natural gas and the subsequent sale of the individual specification products. As of September 30, 2017, we had a long natural gas position of 63.9 Bcf which hedges our natural gas processing and operational needs through December 2020. We also had a short propane position of 10.0 million barrels through December 2018, a short butane position of 3.0 million barrels through December 2018 and a short WTI position of 1.0 million barrels through December 2018. In addition, we had a long power position of 0.4 million megawatt hours, which hedges a portion of our power supply requirements at our Canadian natural gas processing and fractionation plants through December 2019. Physical commodity contracts that meet the definition of a derivative but are ineligible, or not designated, for the normal purchases and normal sales scope exception are recorded on the balance sheet at fair value, with changes in fair value recognized in earnings. We have determined that substantially all of our physical commodity contracts qualify for the normal purchases and normal sales scope exception. Interest Rate Risk Hedging We use interest rate derivatives to hedge the benchmark interest rate risk associated with interest payments occurring as a result of debt issuances. The derivative instruments we use to manage this risk consist of forward starting interest rate swaps and treasury locks. These derivatives are designated as cash flow hedges. As such, changes in fair value are deferred in AOCI and are reclassified to interest expense as we incur the interest expense associated with the underlying debt. The following table summarizes the terms of our outstanding interest derivatives as of September 30, 2017 (notional amounts in millions):
Currency Exchange Rate Risk Hedging Because a significant portion of our Canadian business is conducted in CAD and, at times, a portion of our debt is denominated in CAD, we use foreign currency derivatives to minimize the risk of unfavorable changes in exchange rates. These instruments include foreign currency exchange contracts, forwards and options. As of September 30, 2017, our outstanding foreign currency derivatives include derivatives we use to hedge currency exchange risk (i) associated with USD-denominated commodity purchases and sales in Canada and (ii) created by the use of USD-denominated commodity derivatives to hedge commodity price risk associated with CAD-denominated commodity purchases and sales. The following table summarizes our open forward exchange contracts as of September 30, 2017 (in millions):
Preferred Distribution Rate Reset Option A derivative feature embedded in a contract that does not meet the definition of a derivative in its entirety must be bifurcated and accounted for separately if the economic characteristics and risks of the embedded derivative are not clearly and closely related to those of the host contract. The Preferred Distribution Rate Reset Option of our Series A preferred units is an embedded derivative that must be bifurcated from the related host contract, our partnership agreement, and recorded at fair value on our Condensed Consolidated Balance Sheets. Corresponding changes in fair value are recognized in “Other income/(expense), net” in our Condensed Consolidated Statement of Operations. At September 30, 2017 and December 31, 2016, the fair value of this embedded derivative was a liability of approximately $33 million and $32 million, respectively. We recognized a gain of approximately $2 million during the three months ended September 30, 2017 and a net gain of less than $1 million during the nine months ended September 30, 2017. We recognized gains of approximately $17 million and $42 million during the three and nine months ended September 30, 2016. See Note 11 to our Consolidated Financial Statements included in Part IV of our 2016 Annual Report on Form 10-K for additional information regarding the Preferred Distribution Rate Reset Option. Summary of Financial Impact We record all open derivatives on the balance sheet as either assets or liabilities measured at fair value. Changes in the fair value of derivatives are recognized currently in earnings unless specific hedge accounting criteria are met. For derivatives that qualify as cash flow hedges, changes in fair value of the effective portion of the hedges are deferred in AOCI and recognized in earnings in the periods during which the underlying physical transactions are recognized in earnings. Derivatives that do not qualify for hedge accounting and the portion of cash flow hedges that are not highly effective in offsetting changes in cash flows of the hedged items are recognized in earnings each period. Cash settlements associated with our derivative activities are classified within the same category as the related hedged item in our Condensed Consolidated Statements of Cash Flows. A summary of the impact of our derivative activities recognized in earnings is as follows (in millions):
The following table summarizes the derivative assets and liabilities on our Condensed Consolidated Balance Sheet on a gross basis as of September 30, 2017 (in millions):
The following table summarizes the derivative assets and liabilities on our Condensed Consolidated Balance Sheet on a gross basis as of December 31, 2016 (in millions):
Our derivative transactions are governed through ISDA (International Swaps and Derivatives Association) master agreements and clearing brokerage agreements. These agreements include stipulations regarding the right of set off in the event that we or our counterparty default on performance obligations. If a default were to occur, both parties have the right to net amounts payable and receivable into a single net settlement between parties. Our accounting policy is to offset derivative assets and liabilities executed with the same counterparty when a master netting arrangement exists. Accordingly, we also offset derivative assets and liabilities with amounts associated with cash margin. Our exchange-traded derivatives are transacted through clearing brokerage accounts and are subject to margin requirements as established by the respective exchange. On a daily basis, our account equity (consisting of the sum of our cash balance and the fair value of our open derivatives) is compared to our initial margin requirement resulting in the payment or return of variation margin. The following table provides the components of our net broker receivable:
The following table presents information about derivative financial assets and liabilities that are subject to offsetting, including enforceable master netting arrangements (in millions):
As of September 30, 2017, there was a net loss of $224 million deferred in AOCI. The deferred net loss recorded in AOCI is expected to be reclassified to future earnings contemporaneously with (i) the earnings recognition of the underlying hedged commodity transaction or (ii) interest expense accruals associated with underlying debt instruments. Of the total net loss deferred in AOCI at September 30, 2017, we expect to reclassify a net loss of $8 million to earnings in the next twelve months. The remaining deferred loss of $216 million is expected to be reclassified to earnings through 2049. A portion of these amounts is based on market prices as of September 30, 2017; thus, actual amounts to be reclassified will differ and could vary materially as a result of changes in market conditions. The following table summarizes the net deferred loss recognized in AOCI for derivatives (in millions):
At September 30, 2017 and December 31, 2016, none of our outstanding derivatives contained credit-risk related contingent features that would result in a material adverse impact to us upon any change in our credit ratings. Although we may be required to post margin on our cleared derivatives as described above, we do not require our non-cleared derivative counterparties to post collateral with us. Recurring Fair Value Measurements Derivative Financial Assets and Liabilities The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis (in millions):
Level 1 Level 1 of the fair value hierarchy includes exchange-traded commodity derivatives such as futures and options. The fair value of exchange-traded commodity derivatives is based on unadjusted quoted prices in active markets. Level 2 Level 2 of the fair value hierarchy includes exchange-cleared commodity derivatives and over-the-counter commodity, interest rate and foreign currency derivatives that are traded in active markets. In addition, it includes certain physical commodity contracts. The fair value of these derivatives is based on broker price quotations which are corroborated with market observable inputs. Level 3 Level 3 of the fair value hierarchy includes certain physical commodity contracts and the Preferred Distribution Rate Reset Option contained in our partnership agreement which is classified as an embedded derivative. The fair value of our Level 3 physical commodity contracts is based on a valuation model utilizing timing estimates, which involve management judgment. Significant changes in timing could result in a material change in fair value to our physical commodity contracts. We report unrealized gains and losses associated with these physical commodity contracts in our Condensed Consolidated Statements of Operations as Supply and Logistics segment revenues. The fair value of the embedded derivative feature contained in our partnership agreement is based on a valuation model that estimates the fair value of the Series A preferred units with and without the Preferred Distribution Rate Reset Option. This model contains inputs, including our common unit price, ten-year U.S. treasury rates, default probabilities and timing estimates which involve management judgment. A significant increase or decrease in the value of these inputs could result in a material change in fair value to this embedded derivative feature. We report unrealized gains and losses associated with this embedded derivative in our Condensed Consolidated Statements of Operations as “Other income/(expense), net.” To the extent any transfers between levels of the fair value hierarchy occur, our policy is to reflect these transfers as of the beginning of the reporting period in which they occur. Rollforward of Level 3 Net Asset/(Liability) The following table provides a reconciliation of changes in fair value of the beginning and ending balances for our derivatives classified as Level 3 (in millions):
|
Related Party Transactions |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | Related Party Transactions See Note 15 to our Consolidated Financial Statements included in Part IV of our 2016 Annual Report on Form 10-K for a complete discussion of our related party transactions. Omnibus Agreement Pursuant to the Omnibus Agreement entered into by the Plains Entities in connection with the Simplification Transactions, we issued approximately 1.8 million units to AAP in connection with PAGP’s issuance of Class A shares under its Continuous Offering Program and 48.3 million units to AAP in connection with PAGP’s March 2017 underwritten offering. See Note 9 for additional information. Transactions with Oxy As of September 30, 2017, Oxy had a representative on the board of directors of PAGP GP and owned approximately 10% of the limited partner interests in AAP. During the three and nine months ended September 30, 2017 and 2016, we recognized sales and transportation revenues and purchased petroleum products from Oxy. These transactions were conducted at posted tariff rates or prices that we believe approximate market. Included in these transactions was a crude oil buy/sell agreement that includes a multi-year minimum volume commitment. The impact to our Condensed Consolidated Statements of Operations from those transactions is included below (in millions):
We currently have a netting arrangement with Oxy. Our gross receivable and payable amounts with Oxy were as follows (in millions):
|
Commitments and Contingencies |
9 Months Ended |
---|---|
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Loss Contingencies — General To the extent we are able to assess the likelihood of a negative outcome for a contingency, our assessments of such likelihood range from remote to probable. If we determine that a negative outcome is probable and the amount of loss is reasonably estimable, we accrue an undiscounted liability equal to the estimated amount. If a range of probable loss amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then we accrue an undiscounted liability equal to the minimum amount in the range. In addition, we estimate legal fees that we expect to incur associated with loss contingencies and accrue those costs when they are material and probable of being incurred. We do not record a contingent liability when the likelihood of loss is probable but the amount cannot be reasonably estimated or when the likelihood of loss is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and the impact would be material to our consolidated financial statements, we disclose the nature of the contingency and, where feasible, an estimate of the possible loss or range of loss. Legal Proceedings — General In the ordinary course of business, we are involved in various legal proceedings, including those arising from regulatory and environmental matters. Although we are insured against various risks to the extent we believe it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to fully protect us from losses arising from current or future legal proceedings. Taking into account what we believe to be all relevant known facts and circumstances, and based on what we believe to be reasonable assumptions regarding the application of those facts and circumstances to existing laws and regulations, we do not believe that the outcome of the legal proceedings in which we are currently involved (including those described below) will, individually or in the aggregate, have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Environmental — General Although over the course of the last several years we have made significant investments in our maintenance and integrity programs, and have hired additional personnel in those areas, we have experienced (and likely will experience future) releases of hydrocarbon products into the environment from our pipeline, rail, storage and other facility operations. These releases can result from accidents or from unpredictable man-made or natural forces and may reach surface water bodies, groundwater aquifers or other sensitive environments. Damages and liabilities associated with any such releases from our existing or future assets could be significant and could have a material adverse effect on our consolidated financial condition, results of operations or cash flows. We record environmental liabilities when environmental assessments and/or remedial efforts are probable and the amounts can be reasonably estimated. Generally, our recording of these accruals coincides with our completion of a feasibility study or our commitment to a formal plan of action. We do not discount our environmental remediation liabilities to present value. We also record environmental liabilities assumed in business combinations based on the estimated fair value of the environmental obligations caused by past operations of the acquired company. We record receivables for amounts recoverable from insurance or from third parties under indemnification agreements in the period that we determine the costs are probable of recovery. Environmental expenditures that pertain to current operations or to future revenues are expensed or capitalized consistent with our capitalization policy for property and equipment. Expenditures that result from the remediation of an existing condition caused by past operations and that do not contribute to current or future profitability are expensed. At September 30, 2017, our estimated undiscounted reserve for environmental liabilities (including liabilities related to the Line 901 incident, as discussed further below) totaled $134 million, of which $47 million was classified as short-term and $87 million was classified as long-term. At December 31, 2016, our estimated undiscounted reserve for environmental liabilities (including liabilities related to the Line 901 incident) totaled $147 million, of which $61 million was classified as short-term and $86 million was classified as long-term. The short- and long-term environmental liabilities referenced above are reflected in “Accounts payable and accrued liabilities” and “Other long-term liabilities and deferred credits,” respectively, on our Condensed Consolidated Balance Sheets. At September 30, 2017, we had recorded receivables totaling $47 million for amounts probable of recovery under insurance and from third parties under indemnification agreements, of which $26 million was reflected in “Trade accounts receivable and other receivables, net” and $21 million was reflected in “Other long-term assets, net” on our Condensed Consolidated Balance Sheet. At December 31, 2016, we had recorded $56 million of such receivables, of which $39 million was reflected in “Trade accounts receivable and other receivables, net” and $17 million was reflected in “Other long-term assets, net” on our Condensed Consolidated Balance Sheet. In some cases, the actual cash expenditures associated with these liabilities may not occur for three years or longer. Our estimates used in determining these reserves are based on information currently available to us and our assessment of the ultimate outcome. Among the many uncertainties that impact our estimates are the necessary regulatory approvals for, and potential modification of, our remediation plans, the limited amount of data available upon initial assessment of the impact of soil or water contamination, changes in costs associated with environmental remediation services and equipment and the possibility of existing or future legal claims giving rise to additional liabilities. Therefore, although we believe that the reserve is adequate, actual costs incurred (which may ultimately include costs for contingencies that are currently not reasonably estimable or costs for contingencies where the likelihood of loss is currently believed to be only reasonably possible or remote) may be in excess of the reserve and may potentially have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Specific Legal, Environmental or Regulatory Matters Line 901 Incident. In May 2015, we experienced a crude oil release from our Las Flores to Gaviota Pipeline (Line 901) in Santa Barbara County, California. A portion of the released crude oil reached the Pacific Ocean at Refugio State Beach through a drainage culvert. Following the release, we shut down the pipeline and initiated our emergency response plan. A Unified Command, which included the United States Coast Guard, the EPA, the California Office of Spill Prevention and Response and the Santa Barbara Office of Emergency Management, was established for the response effort. Clean-up and remediation operations with respect to impacted shoreline and other areas has been determined by the Unified Command to be complete, and the Unified Command has been dissolved. Our estimate of the amount of oil spilled, based on relevant facts, data and information, is approximately 2,934 barrels; of this amount, we estimate that 598 barrels reached the Pacific Ocean. As a result of the Line 901 incident, several governmental agencies and regulators initiated investigations into the Line 901 incident, various claims have been made against us and a number of lawsuits have been filed against us. We may be subject to additional claims, investigations and lawsuits, which could materially impact the liabilities and costs we currently expect to incur as a result of the Line 901 incident. Set forth below is a brief summary of actions and matters that are currently pending: On May 21, 2015, we received a corrective action order from the United States Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (“PHMSA”), the governmental agency with jurisdiction over the operation of Line 901 as well as over a second stretch of pipeline extending from Gaviota Pump Station in Santa Barbara County to Emidio Pump Station in Kern County, California (Line 903), requiring us to shut down, purge, review, remediate and test Line 901. The corrective action order was subsequently amended on June 3, 2015; November 13, 2015; and June 16, 2016 to require us to take additional corrective actions with respect to both Lines 901 and 903 (as amended, the “CAO”). Among other requirements, the CAO obligated us to conduct a root cause failure analysis with respect to Line 901 and present remedial work plans and restart plans to PHMSA prior to returning Line 901 and 903 to service; the CAO also imposed a pressure restriction on the section of Line 903 between Pentland Pump Station and Emidio Pump Station and required us to take other specified actions with respect to both Lines 901 and 903. We intend to continue to comply with the CAO and to cooperate with any other governmental investigations relating to or arising out of the release. Excavation and removal of the affected section of the pipeline was completed on May 28, 2015. Line 901 and Line 903 have been purged and are not currently operational, with the exception of the Pentland to Emidio segment of Line 903, which remains in service under a pressure restriction. No timeline has been established for the restart of Line 901 or Line 903. On February 17, 2016, PHMSA issued a Preliminary Factual Report of the Line 901 failure, which contains PHMSA’s preliminary findings regarding factual information about the events leading up to the accident and the technical analysis that has been conducted to date. On May 19, 2016, PHMSA issued its final Failure Investigation Report regarding the Line 901 incident. PHMSA’s findings indicate that the direct cause of the Line 901 incident was external corrosion that thinned the pipe wall to a level where it ruptured suddenly and released crude oil. PHMSA also concluded that there were numerous contributory causes of the Line 901 incident, including ineffective protection against external corrosion, failure to detect and mitigate the corrosion and a lack of timely detection and response to the rupture. The report also included copies of various engineering and technical reports regarding the incident. By virtue of its statutory authority, PHMSA has the power and authority to impose fines and penalties on us and cause civil or criminal charges to be brought against us. While to date PHMSA has not imposed any such fines or penalties or any such civil or criminal charges with respect to the Line 901 release, their investigation is still open and we may have fines or penalties imposed upon us, or civil or criminal charges brought against us, in the future. On September 11, 2015, we received a Notice of Probable Violation and Proposed Compliance Order from PHMSA arising out of its inspection of Lines 901 and 903 in August, September and October of 2013 (the “2013 Audit NOPV”). The 2013 Audit NOPV alleges that the Partnership committed probable violations of various federal pipeline safety regulations by failing to document, or inadequately documenting, certain activities. On October 12, 2015, the Partnership filed a response to the 2013 Audit NOPV. By letter dated September 21, 2017, PHMSA issued a Final Order in this matter withdrawing one alleged violation and affirming a second. With regard to the second violation, PHMSA further determined that compliance had been achieved and included no compliance terms related to it in the Final Order. We therefore consider this matter closed. In late May of 2015, the California Attorney General’s Office and the District Attorney’s office for the County of Santa Barbara began investigating the Line 901 incident to determine whether any applicable state or local laws had been violated. On May 16, 2016, PAA and one of its employees were charged by a California state grand jury, pursuant to an indictment filed in California Superior Court, Santa Barbara County (the “May 2016 Indictment”), with alleged violations of California law in connection with the Line 901 incident. The May 2016 Indictment included a total of 46 counts, 36 of which were misdemeanor charges relating to wildlife allegedly taken as a result of the accidental release. The remaining 10 counts relate to the release of crude oil or reporting of the release. PAA believes that the criminal charges (including the three felony charges) are unwarranted and that neither PAA nor any of its employees engaged in any criminal behavior at any time in connection with this accident. PAA intends to continue to vigorously defend itself against the charges. On July 28, 2016, at an arraignment hearing held in California Superior Court in Santa Barbara County, PAA pled not guilty to all counts. Also in late May of 2015, the United States Attorney for the Department of Justice, Central District of California, Environmental Crimes Section (“DOJ”) began an investigation into whether there were any violations of federal criminal statutes in connection with the Line 901 incident, including potential violations of the federal Clean Water Act. We are cooperating with the DOJ’s investigation by responding to their requests for documents and access to our employees. The DOJ has already spoken to several of our employees and has expressed an interest in talking to other employees; consistent with the terms of our governing organizational documents, we are funding our employees’ defense costs, including the costs of separate counsel engaged to represent such individuals. On August 26, 2015, we received a Request for Information from the EPA relating to Line 901. We have provided various responsive materials to date and we will continue to do so in the future in cooperation with the EPA. While to date no civil or criminal charges with respect to the Line 901 release, other than those brought pursuant to the May 2016 Indictment, have been brought against PAA or any of its affiliates, officers or employees by PHMSA, DOJ, EPA, the California Attorney General, the Santa Barbara District Attorney or the California Department of Fish and Wildlife, and no fines or penalties have been imposed by such governmental agencies, the investigations being conducted by such agencies are still open and we may have fines or penalties imposed upon us, our officers or our employees, or civil or criminal charges brought against us, our officers or our employees in the future, whether by those or other governmental agencies. Shortly following the Line 901 incident, we established a claims line and encouraged any parties that were damaged by the release to contact us to discuss their damage claims. We have received a number of claims through the claims line and we are processing those claims for payment as we receive them. In addition, we have also had nine class action lawsuits filed against us, six of which have been administratively consolidated into a single proceeding in the United States District Court for the Central District of California. In general, the plaintiffs are seeking to establish different classes of claimants that have allegedly been damaged by the release, including potential classes such as commercial fishermen who landed fish in certain specified fishing blocks in the waters adjacent to Santa Barbara County or from persons or businesses who resold commercial seafood landed in such areas, certain owners of oceanfront and/or beachfront property on the Pacific Coast of California, and other classes of individuals and businesses that were allegedly impacted by the release. To date, only the commercial fisherman and seafood reseller class has been certified by the court. We are also defending a separate class action lawsuit proceeding in the United States District Court for the Central District of California brought on behalf of the Line 901 and Line 903 easement holders seeking injunctive relief as well as compensatory damages. There have also been two securities law class action lawsuits filed on behalf of certain purported investors in the Partnership and/or PAGP against the Partnership, PAGP and/or certain of their respective officers, directors and underwriters. Both of these lawsuits have been consolidated into a single proceeding in the United States District Court for the Southern District of Texas. In general, these lawsuits allege that the various defendants violated securities laws by misleading investors regarding the integrity of the Partnership’s pipelines and related facilities through false and misleading statements, omission of material facts and concealing of the true extent of the spill. The plaintiffs claim unspecified damages as a result of the reduction in value of their investments in the Partnership and PAGP, which they attribute to the alleged wrongful acts of the defendants. The Partnership and PAGP, and the other defendants, denied the allegations in, and moved to dismiss these lawsuits. On March 29, 2017, the Court ruled in our favor dismissing all claims against all defendants. Plaintiffs have refiled their complaint and we are opposing their claims. Consistent with and subject to the terms of our governing organizational documents (and to the extent applicable, insurance policies), we are indemnifying and funding the defense costs of our officers and directors in connection with these lawsuits; we are also indemnifying and funding the defense costs of our underwriters pursuant to the terms of the underwriting agreements we previously entered into with such underwriters. In addition, four unitholder derivative lawsuits have been filed by certain purported investors in the Partnership against the Partnership, certain of its affiliates and certain officers and directors. Two of these lawsuits were filed in the United States District Court for the Southern District of Texas and were administratively consolidated into one action and later dismissed on the basis that Plains Partnership agreements require that derivative suits be filed in Delaware Chancery Court. Following the order dismissing the Texas Federal Court suits, a new derivative suit brought by different plaintiffs was filed in Delaware Chancery Court. The other remaining lawsuit was filed in State District Court in Harris County, Texas. In general, these lawsuits allege that the various defendants breached their fiduciary duties, engaged in gross mismanagement and made false and misleading statements, among other similar allegations, in connection with their management and oversight of the Partnership during the period of time leading up to and following the Line 901 release. The plaintiffs in the two remaining lawsuits claim that the Partnership suffered unspecified damages as a result of the actions of the various defendants and seek to hold the defendants liable for such damages, in addition to other remedies. The defendants deny the allegations in these lawsuits and have responded accordingly. Consistent with and subject to the terms of our governing organizational documents (and to the extent applicable, insurance policies), we are indemnifying and funding the defense costs of our officers and directors in connection with these lawsuits. We have also received several other individual lawsuits and complaints from companies and individuals alleging damages arising out of the Line 901 incident. These lawsuits and claims generally seek compensatory and punitive damages, and in some cases permanent injunctive relief. In addition to the foregoing, as the “responsible party” for the Line 901 incident we are liable for various costs and for certain natural resource damages under the Oil Pollution Act, and we also have exposure to the payment of additional fines, penalties and costs under other applicable federal, state and local laws, statutes and regulations. To the extent any such costs are reasonably estimable, we have included an estimate of such costs in the loss accrual described below. Taking the foregoing into account, as of September 30, 2017, we estimate that the aggregate total costs we have incurred or will incur with respect to the Line 901 incident will be approximately $300 million, which estimate includes actual and projected emergency response and clean-up costs, natural resource damage assessments and certain third party claims settlements, as well as estimates for fines, penalties and certain legal fees. We accrued such estimate of aggregate total costs to “Field operating costs” primarily during 2015. This estimate considers our prior experience in environmental investigation and remediation matters and available data from, and in consultation with, our environmental and other specialists, as well as currently available facts and presently enacted laws and regulations. We have made assumptions for (i) the duration of the natural resource damage assessment process and the ultimate amount of damages determined, (ii) the resolution of certain third party claims and lawsuits, but excluding claims and lawsuits with respect to which losses are not probable and reasonably estimable, and excluding future claims and lawsuits, (iii) the determination and calculation of fines and penalties, but excluding fines and penalties that are not probable and reasonably estimable and (iv) the nature, extent and cost of legal services that will be required in connection with all lawsuits, claims and other matters requiring legal or expert advice associated with the Line 901 incident. Our estimate does not include any lost revenue associated with the shutdown of Line 901 or 903 and does not include any liabilities or costs that are not reasonably estimable at this time or that relate to contingencies where we currently regard the likelihood of loss as being only reasonably possible or remote. We believe we have accrued adequate amounts for all probable and reasonably estimable costs; however, this estimate is subject to uncertainties associated with the assumptions that we have made. For example, the amount of time it takes for us to resolve all of the current and future lawsuits, claims and investigations that relate to the Line 901 incident could turn out to be significantly longer than we have assumed, and as a result the costs we incur for legal services could be significantly higher than we have estimated. In addition, with respect to fines and penalties, the ultimate amount of any fines and penalties assessed against us depends on a wide variety of factors, many of which are not estimable at this time. Where fines and penalties are probable and estimable, we have included them in our estimate, although such estimates could turn out to be wrong. Accordingly, our assumptions and estimates may turn out to be inaccurate and our total costs could turn out to be materially higher; therefore, we can provide no assurance that we will not have to accrue significant additional costs in the future with respect to the Line 901 incident. As of September 30, 2017, we had a remaining undiscounted gross liability of $64 million related to this event, of which approximately $36 million is presented as a current liability in “Accounts payable and accrued liabilities” on our Condensed Consolidated Balance Sheet, with the remainder presented in “Other long-term liabilities and deferred credits”. We maintain insurance coverage, which is subject to certain exclusions and deductibles, in the event of such environmental liabilities. Subject to such exclusions and deductibles, we believe that our coverage is adequate to cover the current estimated total emergency response and clean-up costs, claims settlement costs and remediation costs and we believe that this coverage is also adequate to cover any potential increase in the estimates for these costs that exceed the amounts currently identified. Through September 30, 2017, we had collected, subject to customary reservations, $166 million out of the approximate $205 million of release costs that we believe are probable of recovery from insurance carriers, net of deductibles. Therefore, as of September 30, 2017, we have recognized a receivable of approximately $39 million for the portion of the release costs that we believe is probable of recovery from insurance, net of deductibles and amounts already collected. Of this amount, approximately $18 million is recognized as a current asset in “Trade accounts receivable and other receivables, net” on our Condensed Consolidated Balance Sheet, with the remainder in “Other long-term assets, net”. We have completed the required clean-up and remediation work as determined by the Unified Command and the Unified Command has been dissolved; however, we expect to make payments for additional costs associated with restoration of the impacted areas, as well as natural resource damage assessment and compensation, legal, professional and regulatory costs, in addition to fines and penalties, during future periods. |
Operating Segments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segments | Operating Segments We manage our operations through three operating segments: Transportation, Facilities and Supply and Logistics. Our CODM (our Chief Executive Officer) evaluates segment performance based on measures including segment adjusted EBITDA (as defined below) and maintenance capital investment. We define segment adjusted EBITDA as revenues and equity earnings in unconsolidated entities less (a) purchases and related costs, (b) field operating costs and (c) segment general and administrative expenses, plus our proportionate share of the depreciation and amortization expense and gains or losses on significant asset sales of unconsolidated entities, and further adjusted for certain selected items including (i) gains or losses on derivative instruments that are related to underlying activities in another period (or the reversal of such adjustments from a prior period), gains and losses on derivatives that are related to investing activities (such as the purchase of linefill) and inventory valuation adjustments, as applicable, (ii) long-term inventory costing adjustments, (iii) charges for obligations that are expected to be settled with the issuance of equity instruments, (iv) amounts related to deficiencies associated with minimum volume commitments, net of the applicable amounts subsequently recognized into revenue and (v) other items that our CODM believes are integral to understanding our core segment operating performance. Segment adjusted EBITDA excludes depreciation and amortization. Maintenance capital consists of capital expenditures for the replacement of partially or fully depreciated assets in order to maintain the operating and/or earnings capacity of our existing assets. The following tables reflect certain financial data for each segment (in millions):
Segment Adjusted EBITDA Reconciliation The following table reconciles segment adjusted EBITDA to net income attributable to PAA (in millions):
|
Net Income/(Loss) Per Common Unit (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of basic and diluted net income (loss) per common unit | The following table sets forth the computation of basic and diluted net income/(loss) per common unit (in millions, except per unit data):
|
Inventory, Linefill and Base Gas and Long-term Inventory (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory, Linefill and Base Gas and Long-term Inventory | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventory, linefill and base gas and long-term inventory | Inventory, linefill and base gas and long-term inventory consisted of the following (barrels and natural gas volumes in thousands and carrying value in millions):
|
Acquisitions and Dispositions (Tables) - ACC Acquisition |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets acquired and liabilities assumed | The following table reflects the preliminary fair value determination (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of finite lived intangible assets amortization expense | Amortization expense was approximately $7 million for the period from February 14, 2017 through September 30, 2017, and the future amortization expense is estimated as follows for the next five years (in millions):
|
Goodwill (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill by segment and changes during the period | Goodwill by segment and changes in goodwill are reflected in the following table (in millions):
|
Debt (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debt | Debt consisted of the following (in millions):
|
Partners' Capital and Distributions (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limited Partners' Capital Account [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of activity for Series A preferred units and common units | The following tables present the activity for our Series A preferred units and common units:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of sale of common units | The following table summarizes our sales of common units during the nine months ended September 30, 2017, all of which occurred in the first four months of the year (net proceeds in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Limited Partners' Capital Account [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of cash distributions to common unitholders | The following table details the distributions paid in cash during or pertaining to the first nine months of 2017 (in millions, except per unit data):
|
Derivatives and Risk Management Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Risk Management Activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of derivative activities recognized in earnings | A summary of the impact of our derivative activities recognized in earnings is as follows (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of derivative assets and liabilities on Condensed Consolidated Balance Sheets on a gross basis | The following table summarizes the derivative assets and liabilities on our Condensed Consolidated Balance Sheet on a gross basis as of September 30, 2017 (in millions):
The following table summarizes the derivative assets and liabilities on our Condensed Consolidated Balance Sheet on a gross basis as of December 31, 2016 (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of broker receivables and payables | The following table provides the components of our net broker receivable:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative financial assets that are subject to offsetting, including enforceable master netting arrangements | The following table presents information about derivative financial assets and liabilities that are subject to offsetting, including enforceable master netting arrangements (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative financial liabilities that are subject to offsetting, including enforceable master netting arrangements | The following table presents information about derivative financial assets and liabilities that are subject to offsetting, including enforceable master netting arrangements (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net deferred gain/(loss) recognized in AOCI for derivatives | The following table summarizes the net deferred loss recognized in AOCI for derivatives (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative financial assets and liabilities accounted for at fair value on a recurring basis, by level within the fair value hierarchy | The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of changes in fair value of derivatives classified as Level 3 | The following table provides a reconciliation of changes in fair value of the beginning and ending balances for our derivatives classified as Level 3 (in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Risk Management Activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of terms of outstanding interest rate derivatives | The following table summarizes the terms of our outstanding interest derivatives as of September 30, 2017 (notional amounts in millions):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Derivatives | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Risk Management Activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of open forward exchange contracts | The following table summarizes our open forward exchange contracts as of September 30, 2017 (in millions):
|
Related Party Transactions (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oxy | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of related party transactions | The impact to our Condensed Consolidated Statements of Operations from those transactions is included below (in millions):
We currently have a netting arrangement with Oxy. Our gross receivable and payable amounts with Oxy were as follows (in millions):
|
Operating Segments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment financial data | The following tables reflect certain financial data for each segment (in millions):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of segment adjusted EBITDA to net income attributable to PAA | The following table reconciles segment adjusted EBITDA to net income attributable to PAA (in millions):
|
Organization and Basis of Consolidation and Presentation - Segments and Ownership (Details) shares in Millions |
9 Months Ended |
---|---|
Sep. 30, 2017
segment
shares
| |
Organization | |
Operating segments number | segment | 3 |
AAP | |
Organization | |
Limited partner interest | 36.00% |
Ownership interest (in units) | shares | 286.8 |
AAP | PAGP | |
Organization | |
Limited partner interest | 54.00% |
Organization and Basis of Consolidation and Presentation - Simplification Transactions (Details) - Simplification Transactions shares in Millions, $ in Millions |
Nov. 15, 2016
USD ($)
shares
|
---|---|
PAA GP | |
Related Party Transaction [Line Items] | |
Economic general partner interest converted into non-economic interest | 2.00% |
AAP | |
Related Party Transaction [Line Items] | |
Units agreed to be issued in connection with the Simplification Transactions | 245.5 |
Units to be issued in the future | 0.8 |
AAP Senior Secured Credit Agreement | AAP | |
Related Party Transaction [Line Items] | |
Debt assumed | $ | $ 642 |
Recent Accounting Pronouncements - Additional Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cash outflow reclassed from operating activities | $ 1,918 | $ 648 |
Cash outflow reclassed to financing activities | $ (29) | (206) |
Accounting Standards Update 2016-09, Statutory Tax Withholding Component | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cash outflow reclassed from operating activities | 6 | |
Cash outflow reclassed to financing activities | $ 6 |
Accounts Receivable, Net (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2017 |
Dec. 31, 2016 |
|
Accounts Receivable, Net | ||
Advance cash payments received from third parties to mitigate credit risk | $ 120 | $ 89 |
Standby letters of credit | $ 60 | $ 66 |
Substantially all trade accounts receivable, net, maximum age of balances past their scheduled invoice date | 30 days | 30 days |
Allowance for doubtful accounts receivable | $ 3 | $ 3 |
Inventory, Linefill and Base Gas and Long-term Inventory - Additional Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Inventory [Line Items] | ||
Inventory write-down | $ 35 | $ 3 |
Crude oil | ||
Inventory [Line Items] | ||
Inventory write-down | $ 35 |
Acquisitions and Dispositions - Acquisitions (Details) $ in Millions |
1 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Feb. 14, 2017
USD ($)
a
bbl / d
market_interconnect
mi
|
Feb. 28, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
|
Business Acquisition [Line Items] | ||||
Cash paid in connection with acquisitions | $ 1,282 | $ 282 | ||
Acquisition related costs | 6 | |||
ACC Acquisition | ||||
Business Acquisition [Line Items] | ||||
Cash paid in connection with acquisitions | $ 1,217 | |||
Length of gathering and transmission lines (in miles) | mi | 515 | |||
Number of market interconnects | market_interconnect | 5 | |||
Additional volume enhancements to gathering system (in bbl per day) | bbl / d | 350,000 | |||
Area of acreage dedications (in acres) | a | 315,000 | |||
Acquisition related costs | $ 6 | |||
Propane marine terminal | ||||
Business Acquisition [Line Items] | ||||
Cash paid in connection with acquisitions | $ 41 |
Acquisitions and Dispositions - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions |
Feb. 14, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 2,598 | $ 2,344 | |
ACC Acquisition | |||
Business Acquisition [Line Items] | |||
Property and equipment | $ 299 | ||
Intangible assets | 646 | ||
Goodwill | 271 | ||
Other assets and liabilities, net (including $4 million of cash acquired) | 1 | ||
Total | $ 1,217 | ||
Finite lived intangible assets, useful life | 20 years | ||
Cash acquired | $ 4 | ||
Minimum | ACC Acquisition | |||
Business Acquisition [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Maximum | ACC Acquisition | |||
Business Acquisition [Line Items] | |||
Property and equipment, useful life | 70 years |
Acquisitions and Dispositions - Amortization Expense (Details) - ACC Acquisition $ in Millions |
8 Months Ended | |
---|---|---|
Feb. 14, 2017
contract
|
Sep. 30, 2017
USD ($)
|
|
Business Acquisition [Line Items] | ||
Finite lived intangible assets, useful life | 20 years | |
Acreage dedication contracts | ||
Business Acquisition [Line Items] | ||
Number of acreage dedication contracts | contract | 5 | |
Finite lived intangible assets, useful life | 20 years | |
Amortization of finite lived intangible assets | $ 7 | |
Remainder of 2017 | 3 | |
2018 | 25 | |
2019 | 34 | |
2020 | 42 | |
2021 | $ 48 |
Acquisitions and Dispositions - Investment Acquisition (Details) - USD ($) shares in Millions, $ in Millions |
9 Months Ended | |||
---|---|---|---|---|
Apr. 03, 2017 |
Sep. 30, 2017 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investment | $ 2,671.0 | $ 2,343.0 | ||
Value of common units | $ 40.0 | |||
Advantage | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% | |||
Equity method investment | $ 66.5 | |||
Cash consideration | $ 26.0 | |||
Common Units | Advantage | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Contribution of common units (units) | 1.3 | |||
Value of common units | $ 40.0 | |||
Advantage Joint Venture | Advantage | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Consideration transferred | $ 133.0 | |||
Forecast | Midway Pipeline, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50.00% |
Acquisitions and Dispositions - Dispositions and Divestitures (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Dispositions | |||
Proceeds from sales of assets | $ 407 | $ 638 | |
Disposed of by sale | |||
Dispositions | |||
Proceeds from sales of assets | 407 | ||
Disposed of by sale | Depreciation and amortization | |||
Dispositions | |||
Recognized losses related to sales of assets, net | $ 15 | 15 | |
Gain on sale of assets | 5 | 42 | |
Losses on sale of assets | 20 | 57 | |
Held for sale | Other current assets | |||
Dispositions | |||
Assets classified as held for sale | $ 630 | $ 630 | |
Red River Pipeline | |||
Dispositions | |||
Interest percentage disposed of | 40.00% | ||
Red River Pipeline Hewitt Segment | |||
Dispositions | |||
Interest percentage retained after disposal | 60.00% | ||
Red River Pipeline from Ardmore to Longview | |||
Dispositions | |||
Interest percentage retained after disposal | 100.00% |
Goodwill (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
| |
Changes in goodwill | |
Beginning balance | $ 2,344 |
Acquisitions | 271 |
Foreign currency translation adjustments | 29 |
Dispositions and reclassifications to assets held for sale | (46) |
Ending balance | 2,598 |
Operating Segments | Transportation | |
Changes in goodwill | |
Beginning balance | 806 |
Acquisitions | 271 |
Foreign currency translation adjustments | 17 |
Dispositions and reclassifications to assets held for sale | (13) |
Ending balance | 1,081 |
Operating Segments | Facilities | |
Changes in goodwill | |
Beginning balance | 1,034 |
Foreign currency translation adjustments | 8 |
Dispositions and reclassifications to assets held for sale | (33) |
Ending balance | 1,009 |
Operating Segments | Supply and Logistics | |
Changes in goodwill | |
Beginning balance | 504 |
Foreign currency translation adjustments | 4 |
Ending balance | $ 508 |
Debt - Letters of Credit, Borrowings and Repayments (Details) - USD ($) $ in Millions |
1 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jan. 31, 2017 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Debt | ||||
Outstanding letters of credit | $ 95 | $ 73 | ||
Repayments of senior notes | 400 | $ 175 | ||
Credit facilities and commercial paper program | ||||
Debt | ||||
Total borrowings | 52,600 | 41,400 | ||
Total repayments | $ 52,700 | $ 41,600 | ||
Senior notes | 6.13% senior notes due January 2016 | ||||
Debt | ||||
Repayments of senior notes | $ 400 | |||
Debt instrument, interest rate | 6.13% |
Partners' Capital and Distributions - Issuance of Series B Preferred Units (Details) - Series B Preferred Units - USD ($) $ / shares in Units, $ in Millions |
Nov. 15, 2017 |
Oct. 10, 2017 |
Nov. 15, 2022 |
---|---|---|---|
Forecast | |||
Class of Stock [Line Items] | |||
Percentage spread on top of LIBOR for distribution | 4.11% | ||
Initial prorated distribution per unit (in dollars per unit) | $ 5.9549 | ||
Total distribution amount | $ 5 | ||
Redemption price per unit | $ 1,000 | ||
Subsequent event | |||
Class of Stock [Line Items] | |||
Units issued (in units) | 800,000 | ||
Price per unit issued (in dollars per unit) | $ 1,000 | ||
Proceeds from issuance of units | $ 788 | ||
Liquidation preference (in dollars per unit) | $ 1,000 | ||
Distribution rate percentage | 6.125% | ||
Distribution rate per unit | $ 61.25 | ||
Redemption price per unit | $ 1,020 | ||
Redemption price percentage | 102.00% |
Derivatives and Risk Management Activities - Interest Rate Risk Hedging (Details) - Cash flow hedge $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2017
USD ($)
contract
| |
16 forward starting interest rate swaps (30-year), 2.86% | |
Interest Rate Risk Hedging | |
Number of interest rate derivatives | contract | 16 |
Term of derivative contract | 30 years |
Notional amount of derivatives | $ | $ 400 |
Average rate locked (percent) | 2.86% |
8 forward starting interest rate swaps (30-year), 2.83% | |
Interest Rate Risk Hedging | |
Number of interest rate derivatives | contract | 8 |
Term of derivative contract | 30 years |
Notional amount of derivatives | $ | $ 200 |
Average rate locked (percent) | 2.83% |
Derivatives and Risk Management Activities - Currency Exchange Rate Risk Hedging (Details) CAD in Millions, $ in Millions |
Sep. 30, 2017
USD ($)
CAD / $
|
Sep. 30, 2017
CAD
CAD / $
|
---|---|---|
Forward exchange contracts that exchange CAD for USD maturing in 2017 | ||
Currency Exchange Rate Risk Hedging: | ||
Notional amount of derivatives | $ 174 | CAD 215 |
Average exchange rate (cad per usd) | 1.24 | 1.24 |
Forward exchange contracts that exchange CAD for USD maturing in 2018 | ||
Currency Exchange Rate Risk Hedging: | ||
Notional amount of derivatives | $ 12 | CAD 15 |
Average exchange rate (cad per usd) | 1.22 | 1.22 |
Forward exchange contracts that exchange USD for CAD maturing in 2017 | ||
Currency Exchange Rate Risk Hedging: | ||
Notional amount of derivatives | $ 307 | CAD 385 |
Average exchange rate (cad per usd) | 1.26 | 1.26 |
Forward exchange contracts that exchange USD for CAD maturing in 2018 | ||
Currency Exchange Rate Risk Hedging: | ||
Notional amount of derivatives | $ 118 | CAD 147 |
Average exchange rate (cad per usd) | 1.25 | 1.25 |
Derivatives and Risk Management Activities - Embedded Derivatives (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Embedded Derivatives | |||||
Gain/(loss) recognized due to changes in fair value | $ 0 | $ 42 | |||
Preferred Distribution Rate Reset Option | Series A Preferred Units | |||||
Embedded Derivatives | |||||
Fair value of derivative liability | $ 33 | 33 | $ 32 | ||
Gain/(loss) recognized due to changes in fair value | $ 2 | $ 17 | $ 42 | ||
Maximum | Preferred Distribution Rate Reset Option | Series A Preferred Units | |||||
Embedded Derivatives | |||||
Gain/(loss) recognized due to changes in fair value | $ 1 |
Derivatives and Risk Management Activities - Broker Receivable/Payable (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Initial margin | $ 51 | $ 119 |
Variation margin posted | 143 | 291 |
Net broker receivable | $ 194 | $ 410 |
Derivatives and Risk Management Activities - Offsetting (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivative Asset Positions | ||
Gross Position - Asset | $ 98 | $ 108 |
Netting adjustment | (203) | (350) |
Cash collateral paid | 194 | 410 |
Net Position - Asset | 89 | 168 |
Derivative Liability Positions | ||
Gross Position - Liability | (373) | (481) |
Netting adjustment | 203 | 350 |
Net Position - Liability | (170) | (131) |
Other current assets | ||
Derivative Asset Positions | ||
Net Position - Asset | 88 | 167 |
Other long-term assets, net | ||
Derivative Asset Positions | ||
Net Position - Asset | 1 | 1 |
Other current liabilities | ||
Derivative Liability Positions | ||
Net Position - Liability | (113) | (40) |
Other long-term liabilities and deferred credits | ||
Derivative Liability Positions | ||
Net Position - Liability | $ (57) | $ (91) |
Related Party Transactions - Additional Information (Details) - Common Units - shares |
1 Months Ended | 9 Months Ended |
---|---|---|
Mar. 31, 2017 |
Sep. 30, 2017 |
|
Related Party Transaction [Line Items] | ||
Sale of common units (units) | 54,119,893 | |
Continuous Offering Program | ||
Related Party Transaction [Line Items] | ||
Sale of common units (units) | 4,033,567 | |
Omnibus Agreement | AAP | Continuous Offering Program | ||
Related Party Transaction [Line Items] | ||
Sale of common units (units) | 1,800,000 | |
Omnibus Agreement | AAP | Underwritten Offering | ||
Related Party Transaction [Line Items] | ||
Sale of common units (units) | 48,300,000 |
Related Party Transactions (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
AAP | |||||
Related Party Transaction [Line Items] | |||||
Limited partner interest | 36.00% | ||||
Oxy | |||||
Related Party Transaction [Line Items] | |||||
Revenues | $ 204 | $ 171 | $ 657 | $ 424 | |
Purchases and related costs | (68) | $ 4 | (169) | $ (46) | |
Trade accounts receivable and other receivables | 877 | 877 | $ 789 | ||
Accounts payable | $ 833 | $ 833 | $ 836 | ||
Oxy | AAP | |||||
Related Party Transaction [Line Items] | |||||
Limited partner interest | 10.00% |
U2"*?<;5%>E!9]5
MC!5.WZ>QZ]TX3BLIGFE^0CP3XH40)?\DX)F -P0T.7-17ZBF92'%&,CISQJH
MO1/1'IO#K&S3G9U;,VF5Z=[*-"[0S>K,D.<)$J\@&\31@R +!)G]%Q.QUT3L
M^,F*3W(_'WOY^(Z?XDV("4()UE-P[BOQ\
MXN63_R82S3:1[9)KF49XDT?:4T>K:V,_X&Y67KE?!66AS ]T]
M:8308%1W#T:P-2_'4C!HM)T^FKF >ZYXT@'-"^V 7#D34EM,]HXUQT9LT4#2M@;[$#[FPJ-$LZ;IF:V,R#*
M"%*2\ .>3M]Y[R3>WMRF[!*$) &)IX%PC" # HF>W&!=#S,L0P>0R0)WUK")/'
M;B"/8?(8($\Z[U3N5N@9>QA&C@'DI,TW 6J[U>K19,[2]RE!O3:1F5R0-Q^2(!0KINH2X@7)8H\;!8_-KCG^*I8LNK
M(Q-^=7U[>G4K%_3L/Z\1YHWM7*^+Z2,P",;+(F&&UTJ"/J7) ICX"@4K/-[6
MASXG@-M2, 1I?OV#,&LU90VK?U!1-$C5EM&A%D6?W
M,ABV!M$VE6XT2\W:I-*.5L76YP8SUZ1Z$R//)F8P, T@)JM5 'C8-UM-/""[
M5WW,8# W27.3Y6@3P"9'8GIF2&427SZ%T4D G2QW-0)43!(YW$AE0M^N0IB>
M!.C)2Q@X'' 'A6ICNL46:BV#/)&9.,
&PO=V]R:W-H965T
-B6*RC\*+XK,FI'8J?>]"$^<'CGV
MI@S.V(IXA^(=>J\%3PX9NP:B.>8TQ?!53+I$,&1?4O"M%"?^"LZWX;M-A;L(
MW_VC\':;8+])L(\$^S=+W(A)D_^2L%5/-=@F3I,CI1FZ.,DK[S*P=SR^R=_P
M:=J_"=O(SI&+\?BRL?^U,1Y02G*#(]3B!UL,!;4/QP]XMM.8388W_?R#V/*-
MBS]02P,$% @ ;YEH2VCUZT&W 0 T@, !D !X;"]W;W)K
COU>L)0P("724;W,L4P8L4Y@N'H9^#R;N:XUJ)NK812V
M &).M!W N"C#.L& 3DB'8V6X>-F(=0##Q
;Q@XC@BSM/$N.?%]8:MBF-2."+%R=4EQ><%D\(1*Y_33RKYNG[(HK#>?#>&AJ8QYZ1EXRY1E8<$62)D,5=
M748_7Y[?"4,;[O[0O=;W.XN\+'>C>+'(IX0:L-XI4]^UI\\1D?S!C]&'N$RG
M?]QP']/%NFJ2.)HE>D[2AT<<(WZ"R_F0V(&V(MD\3-98W0J%*S\6O%[.Z$/\
MJXDGO,;?OQP=Z/
B[XUXE0/NJD5M&)