Net Income Per Limited Partner Unit (Tables)

9 Months Ended

Sep. 30, 2013

Net Income Per Limited Partner Unit

Computation of basic and diluted earnings per limited partner unit

The following table sets forth the computation of basic and diluted earnings per limited partner unit for the three and nine months ended September 30, 2013 and 2012 (in millions, except per unit data):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Basic Net Income per Limited Partner Unit
Net income attributable to Plains	$	231		$	165		$	1,052		$	774
General partner’s incentive distribution (1)	(95		)	(74		)	(272		)	(208		)
General partner 2% ownership (1)	(3		)	(2		)	(16		)	(12		)
Net income available to limited partners	133			89			764			554
Undistributed earnings allocated and distributions to participating securities (1)	(1		)	(1		)	(5		)	(3		)
Net income available to limited partners in accordance with application of the two-class method for MLPs	$	132		$	88		$	759		$	551
Basic weighted average number of limited partner units outstanding	343			329			340			322
Basic net income per limited partner unit	$	0.38		$	0.27		$	2.23		$	1.71
Diluted Net Income per Limited Partner Unit
Net income attributable to Plains	$	231		$	165		$	1,052		$	774
General partner’s incentive distribution (1)	(95		)	(74		)	(272		)	(208		)
General partner 2% ownership (1)	(3		)	(2		)	(16		)	(12		)
Net income available to limited partners	133			89			764			554
Undistributed earnings allocated and distributions to participating securities (1)	(1		)	(1		)	(4		)	(3		)
Net income available to limited partners in accordance with application of the two-class method for MLPs	$	132		$	88		$	760		$	551
Basic weighted average number of limited partner units outstanding	343			329			340			322
Effect of dilutive securities: Weighted average LTIP units	2			2			2			3
Diluted weighted average number of limited partner units outstanding	345			331			342			325
Diluted net income per limited partner unit	$	0.38		$	0.27		$	2.22		$	1.70

(1) We calculate net income available to limited partners based on the distributions pertaining to the current period’s net income.  After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the general partner, limited partners and participating securities in accordance with the contractual terms of the partnership agreement and as further prescribed under the two-class method.

Undistributed earnings allocation to IDRs impact on basic and diluted earnings per limited partner unit

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013			2012
Basic net income per limited partner unit impact	$	—	$	—	$	(0.23	)	$	(0.04	)
Diluted net income per limited partner unit impact	$	—	$	—	$	(0.23	)	$	(0.04	)