Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | PLAINS ALL AMERICAN PIPELINE LP | |
Entity Central Index Key | 1070423 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 397,241,697 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $458 | $403 |
Trade accounts receivable and other receivables, net | 1,817 | 2,615 |
Inventory | 929 | 891 |
Other current assets | 249 | 270 |
Total current assets | 3,453 | 4,179 |
PROPERTY AND EQUIPMENT | 14,436 | 14,178 |
Accumulated depreciation | -1,952 | -1,906 |
Property and equipment, net | 12,484 | 12,272 |
OTHER ASSETS | ||
Goodwill | 2,435 | 2,465 |
Investments in unconsolidated entities | 1,784 | 1,735 |
Linefill and base gas | 960 | 930 |
Long-term inventory | 149 | 186 |
Other long-term assets, net | 459 | 489 |
Total assets | 21,724 | 22,256 |
CURRENT LIABILITIES | ||
Accounts payable and accrued liabilities | 2,491 | 2,986 |
Short-term debt | 553 | 1,287 |
Other current liabilities | 487 | 482 |
Total current liabilities | 3,531 | 4,755 |
LONG-TERM LIABILITIES | ||
Senior notes, net of unamortized discount of $17 and $18, respectively | 8,758 | 8,757 |
Other long-term debt | 5 | 5 |
Other long-term liabilities and deferred credits | 594 | 548 |
Total long-term liabilities | 9,357 | 9,310 |
COMMITMENTS AND CONTINGENCIES (NOTE 10) | ||
PARTNERS' CAPITAL | ||
Common unitholders (397,241,697 and 375,107,793 units outstanding, respectively) | 8,413 | 7,793 |
General partner | 365 | 340 |
Total partners' capital excluding noncontrolling interests | 8,778 | 8,133 |
Noncontrolling interests | 58 | 58 |
Total partners' capital | 8,836 | 8,191 |
Total liabilities and partners' capital | $21,724 | $22,256 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Senior notes, unamortized discount | $17 | $18 |
Common unitholders, units outstanding (in units) | 397,241,697 | 375,107,793 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
REVENUES | ||
Supply and Logistics segment revenues | $5,632 | $11,346 |
Transportation segment revenues | 185 | 181 |
Facilities segment revenues | 125 | 157 |
Total revenues | 5,942 | 11,684 |
COSTS AND EXPENSES | ||
Purchases and related costs | 5,042 | 10,670 |
Field operating costs | 346 | 336 |
General and administrative expenses | 78 | 89 |
Depreciation and amortization | 107 | 96 |
Total costs and expenses | 5,573 | 11,191 |
OPERATING INCOME | 369 | 493 |
OTHER INCOME/(EXPENSE) | ||
Equity earnings in unconsolidated entities | 37 | 20 |
Interest expense (net of capitalized interest of $14 and $11, respectively) | -102 | -78 |
Other expense, net | -4 | -2 |
INCOME BEFORE TAX | 300 | 433 |
Current income tax expense | -42 | -36 |
Deferred income tax benefit/(expense) | 26 | -12 |
NET INCOME | 284 | 385 |
Net income attributable to noncontrolling interests | -1 | -1 |
NET INCOME ATTRIBUTABLE TO PAA | 283 | 384 |
NET INCOME ATTRIBUTABLE TO PAA: | ||
LIMITED PARTNERS | 138 | 268 |
GENERAL PARTNER | $145 | $116 |
BASIC NET INCOME PER LIMITED PARTNER UNIT | $0.36 | $0.74 |
DILUTED NET INCOME PER LIMITED PARTNER UNIT | $0.35 | $0.73 |
BASIC WEIGHTED AVERAGE LIMITED PARTNER UNITS OUTSTANDING | 383 | 360 |
DILUTED WEIGHTED AVERAGE LIMITED PARTNER UNITS OUTSTANDING | 385 | 363 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Interest expense, Capitalized interest | $14 | $11 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) | ||
Net income | $284 | $385 |
Other comprehensive loss | -376 | -136 |
Comprehensive income/(loss) | -92 | 249 |
Comprehensive income attributable to noncontrolling interests | -1 | -1 |
Comprehensive income/(loss) attributable to PAA | ($93) | $248 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME / (LOSS) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Increase (Decrease) in Accumulated Other Comprehensive Income | ||
Balance at beginning of period | ($467) | ($97) |
Reclassification adjustments | -6 | 20 |
Deferred loss on cash flow hedges, net of tax | -72 | -32 |
Currency translation adjustments | -298 | -124 |
Total period activity | -376 | -136 |
Balance at end of period | -843 | -233 |
Derivative Instruments | ||
Increase (Decrease) in Accumulated Other Comprehensive Income | ||
Balance at beginning of period | -159 | -77 |
Reclassification adjustments | -6 | 20 |
Deferred loss on cash flow hedges, net of tax | -72 | -32 |
Total period activity | -78 | -12 |
Balance at end of period | -237 | -89 |
Translation Adjustments | ||
Increase (Decrease) in Accumulated Other Comprehensive Income | ||
Balance at beginning of period | -308 | -20 |
Currency translation adjustments | -298 | -124 |
Total period activity | -298 | -124 |
Balance at end of period | ($606) | ($144) |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $284 | $385 |
Reconciliation of net income to net cash provided by operating activities: | ||
Depreciation and amortization | 107 | 96 |
Equity-indexed compensation expense | 19 | 34 |
Inventory valuation adjustments | 24 | 37 |
Deferred income tax (benefit)/expense | -26 | 12 |
(Gain)/loss on foreign currency revaluation | -27 | 5 |
Equity earnings in unconsolidated entities | -37 | -20 |
Distributions from unconsolidated entities | 54 | 25 |
Other | -9 | -6 |
Changes in assets and liabilities, net of acquisitions | 343 | 254 |
Net cash provided by operating activities | 732 | 822 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash paid in connection with acquisitions, net of cash acquired | -64 | |
Additions to property, equipment and other | -441 | -468 |
Investment in unconsolidated entities | -65 | -26 |
Cash received for sales of linefill and base gas | 11 | |
Cash paid for purchases of linefill and base gas | -96 | -44 |
Proceeds from sales of assets | 1 | 2 |
Other investing activities | -1 | 1 |
Net cash used in investing activities | -666 | -524 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net repayments under commercial paper program (Note 6) | -734 | -128 |
Net proceeds from the issuance of common units (Note 7) | 1,099 | 148 |
Contributions from general partner | 22 | 3 |
Distributions paid to common unitholders (Note 7) | -254 | -221 |
Distributions paid to general partner (Note 7) | -136 | -107 |
Distributions paid to noncontrolling interests | -1 | -1 |
Other financing activities | -2 | -1 |
Net cash used in financing activities | -6 | -307 |
Effect of translation adjustment on cash | -5 | -2 |
Net increase/(decrease) in cash and cash equivalents | 55 | -11 |
Cash and cash equivalents, beginning of period | 403 | 41 |
Cash and cash equivalents, end of period | 458 | 30 |
Cash paid for: | ||
Interest, net of amounts capitalized | 74 | 78 |
Income taxes, net of amounts refunded | $11 | $66 |
CONDENSED_CONSOLIDATED_STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (USD $) | Common Units | General Partner | Partners' Capital Excluding Noncontrolling Interests | Noncontrolling Interests | Total |
In Millions, except Share data, unless otherwise specified | |||||
Balance, beginning of period at Dec. 31, 2013 | $7,349 | $295 | $7,644 | $59 | $7,703 |
Balance, beginning of period (in units) at Dec. 31, 2013 | 359,100,000 | ||||
Increase (Decrease) in Partners' Capital | |||||
Net income | 268 | 116 | 384 | 1 | 385 |
Distributions | -221 | -107 | -328 | -1 | -329 |
Issuance of common units | 148 | 3 | 151 | 151 | |
Issuance of common units (in units) | 2,800,000 | ||||
Issuance of common units under LTIP, net of units tendered by employees to satisfy tax withholding obligations | -2 | -2 | -2 | ||
Issuance of common units under LTIP, net of units tendered by employees to satisfy tax withholding obligations (in units) | 100,000 | ||||
Equity-indexed compensation expense | 11 | 1 | 12 | 12 | |
Distribution equivalent right payments | -1 | -1 | -1 | ||
Other comprehensive loss | -133 | -3 | -136 | -136 | |
Balance, end of period at Mar. 31, 2014 | 7,419 | 305 | 7,724 | 59 | 7,783 |
Balance, end of period (in units) at Mar. 31, 2014 | 362,000,000 | ||||
Balance, beginning of period at Dec. 31, 2014 | 7,793 | 340 | 8,133 | 58 | 8,191 |
Balance, beginning of period (in units) at Dec. 31, 2014 | 375,100,000 | 375,107,793 | |||
Increase (Decrease) in Partners' Capital | |||||
Net income | 138 | 145 | 283 | 1 | 284 |
Distributions | -254 | -136 | -390 | -1 | -391 |
Issuance of common units | 1,099 | 22 | 1,121 | 1,121 | |
Issuance of common units (in units) | 22,100,000 | ||||
Equity-indexed compensation expense | 8 | 1 | 9 | 9 | |
Distribution equivalent right payments | -2 | -2 | -2 | ||
Other comprehensive loss | -369 | -7 | -376 | -376 | |
Balance, end of period at Mar. 31, 2015 | $8,413 | $365 | $8,778 | $58 | $8,836 |
Balance, end of period (in units) at Mar. 31, 2015 | 397,200,000 | 397,241,697 |
Organization_and_Basis_of_Cons
Organization and Basis of Consolidation and Presentation | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Organization and Basis of Consolidation and Presentation | |||||
Organization and Basis of Consolidation and Presentation | |||||
Note 1—Organization and Basis of Consolidation and Presentation | |||||
Organization | |||||
Plains All American Pipeline, L.P. 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,” “Plains,” “PAA,” “we,” “us,” “our,” “ours” and similar terms refer to Plains All American Pipeline, L.P. 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 11 for further discussion of our operating segments. | |||||
Our 2% general partner interest is held by PAA GP LLC, 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 LLC, AAP also owns all of our incentive distribution rights (“IDRs”). 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 member of GP LLC, and at March 31, 2015, owned an approximate 37% limited partner interest in AAP. | |||||
GP LLC manages our operations and activities and employs our domestic officers and personnel. Our Canadian officers and personnel are employed by our subsidiary, Plains Midstream Canada ULC (“PMC”). References to our “general partner,” as the context requires, include any or all of PAA GP LLC, AAP and GP LLC. | |||||
Definitions | |||||
Additional defined terms are used in this Form 10-Q and shall have the meanings indicated below: | |||||
AOCI | =font> | Accumulated other comprehensive income / (loss) | |||
Bcf | =font> | Billion cubic feet | |||
Btu | =font> | British thermal unit | |||
CAD | =font> | Canadian dollar | |||
DERs | =font> | Distribution equivalent rights | |||
EPA | =font> | United States Environmental Protection Agency | |||
FASB | =font> | Financial Accounting Standards Board | |||
GAAP | =font> | Generally accepted accounting principles in the United States | |||
ICE | =font> | Intercontinental Exchange | |||
LIBOR | =font> | London Interbank Offered Rate | |||
LTIP | =font> | Long-term incentive plan | |||
Mcf | =font> | Thousand cubic feet | |||
MLP | =font> | Master limited partnership | |||
NGL | =font> | Natural gas liquids, including ethane, propane and butane | |||
NYMEX | =font> | New York Mercantile Exchange | |||
Oxy | =font> | Occidental Petroleum Corporation or its subsidiaries | |||
PLA | =font> | Pipeline loss allowance | |||
USD | =font> | United States dollar | |||
WTI | =font> | West Texas Intermediate | |||
Basis of Consolidation and Presentation | |||||
The accompanying unaudited condensed consolidated interim financial statements and related notes thereto should be read in conjunction with our 2014 Annual Report on Form 10-K. The accompanying 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. 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. These reclassifications do not affect net income attributable to PAA. The condensed consolidated balance sheet data as of December 31, 2014 was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for the three months ended March 31, 2015 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_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | |
Note 2—Recent Accounting Pronouncements | |
In April 2015, the FASB issued guidance to simplify the presentation of debt issuance costs in entities’ financial statements. Under this revised guidance, an entity will present such costs as a direct reduction from the related debt liability (rather than as an asset under current guidance). Additionally, amortization of the debt issuance costs will be reported as interest expense. This guidance will become effective for interim and annual periods beginning after December 15, 2015 and will be adopted retrospectively to all prior periods. Early adoption is permitted for financial statements that have not been previously issued. We expect to adopt this guidance on January 1, 2016, and we are currently evaluating the effect that adopting this guidance will have on our financial position, results of operations and cash flows. | |
In February 2015, the FASB issued guidance that revises the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Among other things, this guidance (i) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, (ii) eliminates the presumption that a general partner should consolidate a limited partnership and (iii) affects the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships. This guidance will become effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We expect to adopt this guidance on January 1, 2016, and we are currently evaluating the effect that adopting this guidance will have on our financial position, results of operations and cash flows. | |
In January 2015, as part of its initiative to reduce complexity in accounting standards, the FASB issued guidance to eliminate the concept of extraordinary items from GAAP. This guidance will become effective for interim and annual periods beginning after December 15, 2015. We expect to adopt this guidance on January 1, 2016. We do not believe our adoption will have a material impact on our financial position, results of operations or cash flows. | |
In May 2014, the FASB issued guidance regarding the recognition of revenue from contracts with customers 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. The guidance also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and the related cash flows. This guidance becomes effective for interim and annual periods beginning after December 15, 2016 and 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. We currently expect to adopt this guidance on January 1, 2017, and we are evaluating which transition approach to apply and the effect that adopting this guidance will have on our financial position, results of operations and cash flows. In April 2015, the FASB proposed a one year deferral of the effective date of this standard. | |
In April 2014, the FASB issued guidance that modifies the criteria under which assets to be disposed of are evaluated to determine if such assets qualify as a discontinued operation and requires new disclosures for both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. This guidance is effective prospectively for annual and interim reporting periods beginning after December 15, 2014. We adopted this guidance on January 1, 2015. Our adoption did not have a material impact on our financial position, results of operations or cash flows. | |
Net_Income_Per_Limited_Partner
Net Income Per Limited Partner Unit | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Net Income Per Limited Partner Unit | ||||||||
Net Income Per Limited Partner Unit | ||||||||
Note 3—Net Income Per Limited Partner Unit | ||||||||
Basic and diluted net income per limited partner unit is determined pursuant to the two-class method for MLPs as prescribed in FASB guidance. The two-class method is an earnings allocation formula that is used to determine earnings to our general partner, common unitholders and participating securities according to distributions pertaining to the current period’s net income and participation rights in undistributed earnings. Under this method, all earnings are allocated to our general partner, common unitholders and participating securities based on their respective rights to receive distributions, regardless of whether those earnings would actually be distributed during a particular period from an economic or practical perspective. | ||||||||
We calculate basic and diluted net income per limited partner unit by dividing net income attributable to PAA (after deducting the amount allocated to the general partner’s interest, IDRs and participating securities) by the basic and diluted weighted-average number of limited partner 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 per limited partner unit is computed based on the weighted average number of limited partner units plus the effect of dilutive potential limited partner units outstanding during the period using the two-class method. Our LTIP awards that contemplate the issuance of common units are considered dilutive unless (i) vesting occurs only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. LTIP awards that are deemed to be dilutive are reduced by a hypothetical limited partner unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB. See Note 16 to our Consolidated Financial Statements included in Part IV of our 2014 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 per limited partner unit for the three months ended March 31, 2015 and 2014 (in millions, except per unit data): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Basic Net Income per Limited Partner Unit | ||||||||
Net income attributable to PAA | $ | 283 | $ | 384 | ||||
Less: General partner’s incentive distribution (1) | (142 | ) | (110 | ) | ||||
Less: General partner 2% ownership (1) | (3 | ) | (6 | ) | ||||
Net income available to limited partners | 138 | 268 | ||||||
Less: Undistributed earnings allocated and distributions to participating securities (1) | (2 | ) | (2 | ) | ||||
Net income available to limited partners in accordance with application of the two-class method for MLPs | $ | 136 | $ | 266 | ||||
Basic weighted average limited partner units outstanding | 383 | 360 | ||||||
Basic net income per limited partner unit | $ | 0.36 | $ | 0.74 | ||||
Diluted Net Income per Limited Partner Unit | ||||||||
Net income attributable to PAA | $ | 283 | $ | 384 | ||||
Less: General partner’s incentive distribution (1) | (142 | ) | (110 | ) | ||||
Less: General partner 2% ownership (1) | (3 | ) | (6 | ) | ||||
Net income available to limited partners | 138 | 268 | ||||||
Less: Undistributed earnings allocated and distributions to participating securities (1) | (2 | ) | (2 | ) | ||||
Net income available to limited partners in accordance with application of the two-class method for MLPs | $ | 136 | $ | 266 | ||||
Basic weighted average limited partner units outstanding | 383 | 360 | ||||||
Effect of dilutive securities: Weighted average LTIP units | 2 | 3 | ||||||
Diluted weighted average limited partner units outstanding | 385 | 363 | ||||||
Diluted net income per limited partner unit | $ | 0.35 | $ | 0.73 | ||||
-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. | |||||||
Pursuant to the terms of our partnership agreement, the general partner’s incentive distribution is limited to a percentage of available cash, which, as defined in the partnership agreement, is net of reserves deemed appropriate. As such, IDRs are not allocated undistributed earnings or distributions in excess of earnings in the calculation of net income per limited partner unit. If, however, undistributed earnings were allocated to our IDRs beyond amounts distributed to them under the terms of the partnership agreement, basic and diluted net income per limited partner unit as reflected in the table above would be impacted as follows: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Basic net income per limited partner unit impact | $ | — | $ | (0.05 | ) | |||
Diluted net income per limited partner unit impact | $ | — | $ | (0.05 | ) | |||
Accounts_Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2015 | |
Accounts Receivable | |
Accounts Receivable | |
Note 4—Accounts Receivable | |
Our accounts receivable are primarily from purchasers and shippers of crude oil and, to a lesser extent, purchasers of NGL and natural gas storage. These purchasers include, but are not limited to, refiners, producers, marketing and trading companies and financial institutions that are active in the physical and financial commodity markets. The majority of our accounts receivable relate to our crude oil supply and logistics activities that can generally be described as high volume and low margin activities, in many cases involving exchanges of crude oil volumes. | |
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 March 31, 2015 and December 31, 2014, we had received $130 million and $180 million, respectively, of advance cash payments from third parties to mitigate credit risk. Furthermore, as of March 31, 2015 and December 31, 2014, we had received $12 million and $198 million, respectively, of standby letters of credit to support obligations due from third parties, a portion of which applies to future business. The decrease in standby letters of credit and advance cash payments from third parties as of March 31, 2015 compared to December 31, 2014 is largely due to a decrease in exposure to various customers requiring letters of credit. Furthermore, in an effort to mitigate credit risk, a significant portion of our transactions with counterparties are settled on a net-cash basis. Further, we 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 such 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 March 31, 2015 and December 31, 2014, substantially all of our 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 $4 million as of both March 31, 2015 and December 31, 2014. Although we consider our allowance for doubtful accounts receivable to be adequate, actual amounts could vary significantly from estimated amounts. | |
Inventory_Linefill_and_Base_Ga
Inventory, Linefill and Base Gas and Long-term Inventory | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
Inventory, Linefill and Base Gas and Long-term Inventory | |||||||||||||||||||||||
Inventory, Linefill and Base Gas and Long-term Inventory | |||||||||||||||||||||||
Note 5—Inventory, Linefill and Base Gas and Long-term Inventory | |||||||||||||||||||||||
Inventory, linefill and base gas and long-term inventory consisted of the following as of the dates indicated (barrels and natural gas volumes in thousands and carrying value in millions): | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Volumes | Unit of | Carrying | Price/ | Volumes | Unit of | Carrying | Price/ | ||||||||||||||||
Measure | Value | Unit (1) | Measure | Value | Unit (1) | ||||||||||||||||||
Inventory | |||||||||||||||||||||||
Crude oil | 15,351 | barrels | $ | 686 | $ | 44.69 | 6,465 | barrels | $ | 304 | $ | 47.02 | |||||||||||
NGL | 7,277 | barrels | 154 | $ | 21.16 | 13,553 | barrels | 454 | $ | 33.50 | |||||||||||||
Natural gas | 10,965 | Mcf | 31 | $ | 2.83 | 32,317 | Mcf | 102 | $ | 3.16 | |||||||||||||
Other | N/A | 58 | N/A | N/A | 31 | N/A | |||||||||||||||||
Inventory subtotal | 929 | 891 | |||||||||||||||||||||
Linefill and base gas | |||||||||||||||||||||||
Crude oil | 12,970 | barrels | 777 | $ | 59.91 | 11,810 | barrels | 744 | $ | 63.00 | |||||||||||||
NGL | 1,215 | barrels | 48 | $ | 39.51 | 1,212 | barrels | 52 | $ | 42.90 | |||||||||||||
Natural gas | 28,612 | Mcf | 135 | $ | 4.72 | 28,612 | Mcf | 134 | $ | 4.68 | |||||||||||||
Linefill and base gas subtotal | 960 | 930 | |||||||||||||||||||||
Long-term inventory | |||||||||||||||||||||||
Crude oil | 2,646 | barrels | 117 | $ | 44.22 | 2,582 | barrels | 136 | $ | 52.67 | |||||||||||||
NGL | 1,681 | barrels | 32 | $ | 19.04 | 1,681 | barrels | 50 | $ | 29.74 | |||||||||||||
Long-term inventory subtotal | 149 | 186 | |||||||||||||||||||||
Total | $ | 2,038 | $ | 2,007 | |||||||||||||||||||
-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. | ||||||||||||||||||||||
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 $24 million during the three months ended March 31, 2015 primarily related to the writedown of our NGL inventory due to declines in prices. The loss was substantially offset by a portion of the derivative mark-to-market gain that was recognized in the fourth quarter of 2014 for which the related derivatives were still open as of March 31, 2015. See Note 8 for discussion of our derivative and risk management activities. During the three months ended March 31, 2014, we recorded a charge of $37 million related to the writedown of our natural gas inventory that was purchased in conjunction with managing natural gas storage deliverability requirements during the extended period of severe cold weather in the first quarter of 2014. | |||||||||||||||||||||||
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt | ||||||||
Debt | ||||||||
Note 6—Debt | ||||||||
Debt consisted of the following as of the dates indicated (in millions): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
SHORT-TERM DEBT | ||||||||
Commercial paper notes, bearing a weighted-average interest rate of 0.46% at December 31, 2014 (1) | $ | — | $ | 734 | ||||
Senior notes: | ||||||||
5.25% senior notes due June 2015 | 150 | 150 | ||||||
3.95% senior notes due September 2015 | 400 | 400 | ||||||
Other | 3 | 3 | ||||||
Total short-term debt | 553 | 1,287 | ||||||
LONG-TERM DEBT | ||||||||
Senior notes, net of unamortized discount of $17 and $18, respectively | 8,758 | 8,757 | ||||||
Other | 5 | 5 | ||||||
Total long-term debt | 8,763 | 8,762 | ||||||
Total debt (2) | $ | 9,316 | $ | 10,049 | ||||
-1 | At December 31, 2014, we classified all of the borrowings under our commercial paper program as short-term as these borrowings were primarily designated as working capital borrowings, must be repaid within one year and were primarily for hedged NGL and crude oil inventory and NYMEX and ICE margin deposits. | |||||||
-2 | Our fixed-rate senior notes (including current maturities) had a face value of approximately $9.3 billion as of both March 31, 2015 and December 31, 2014. We estimated the aggregate fair value of these notes as of March 31, 2015 and December 31, 2014 to be approximately $10.0 billion and $9.9 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 quarter end. 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. | |||||||
Credit Facilities | ||||||||
PAA senior unsecured 364-day revolving credit facility. In January 2015, we entered into a 364-day senior unsecured credit agreement with a borrowing capacity of $1.0 billion. Borrowings will accrue interest based, at our election, on either the Eurocurrency Rate or the Base Rate, as defined in the agreement, in each case plus a margin based on our credit rating at the applicable time. | ||||||||
Borrowings and Repayments | ||||||||
Total borrowings under our credit agreements and commercial paper program for the three months ended March 31, 2015 and 2014 were approximately $7.0 billion and $19.2 billion, respectively. Total repayments under our credit agreements and commercial paper program were approximately $7.7 billion and $19.3 billion for the three months ended March 31, 2015 and 2014, 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 of crude oil, NGL and natural gas. Additionally, we issue letters of credit to support insurance programs and construction activities. At March 31, 2015 and December 31, 2014, we had outstanding letters of credit of $83 million and $87 million, respectively. | ||||||||
Partners_Capital_and_Distribut
Partners' Capital and Distributions | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Partners' Capital and Distributions | ||||||||||||||||||||
Partners' Capital and Distributions | ||||||||||||||||||||
Note 7—Partners’ Capital and Distributions | ||||||||||||||||||||
Distributions | ||||||||||||||||||||
The following table details the distributions paid during or pertaining to the first three months of 2015, net of reductions to the general partner’s incentive distributions (in millions, except per unit data): | ||||||||||||||||||||
Distributions Paid | Distributions | |||||||||||||||||||
Limited | General Partner | per limited | ||||||||||||||||||
Date Declared | Distribution Date | Partners | 2% | Incentive | Total | partner unit | ||||||||||||||
April 7, 2015 | May 15, 2015(1) | $ | 272 | $ | 6 | $ | 142 | $ | 420 | $ | 0.6850 | |||||||||
January 8, 2015 | February 13, 2015 | $ | 254 | $ | 5 | $ | 131 | $ | 390 | $ | 0.6750 | |||||||||
-1 | Payable to unitholders of record at the close of business on May 1, 2015 for the period January 1, 2015 through March 31, 2015. | |||||||||||||||||||
PAA Equity Offerings | ||||||||||||||||||||
Continuous Offering Program. During the three months ended March 31, 2015, we issued an aggregate of approximately 1.1 million common units under our continuous offering program, generating proceeds of $59 million, including our general partner’s proportionate capital contribution of $1 million, net of $1 million of commissions to our sales agents. | ||||||||||||||||||||
Underwritten Offering. In March 2015, we completed an underwritten public offering of 21.0 million common units, generating proceeds of approximately $1.1 billion, including our general partner’s proportionate capital contribution of $21 million, net of costs associated with the offering. | ||||||||||||||||||||
Noncontrolling Interests in Subsidiaries | ||||||||||||||||||||
As of March 31, 2015, noncontrolling interests in our subsidiaries consisted of a 25% interest in SLC Pipeline LLC. | ||||||||||||||||||||
Derivatives_and_Risk_Managemen
Derivatives and Risk Management Activities | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Derivatives and Risk Management Activities | |||||||||||||||||||||||||||
Derivatives and Risk Management Activities | |||||||||||||||||||||||||||
Note 8—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 (i) manage our exposure to commodity price risk, as well as to optimize our profits, (ii) manage our exposure to interest rate risk and (iii) manage our exposure to currency exchange rate risk. Our commodity 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 on an ongoing basis, we assess whether the derivatives used in a transaction are highly effective in offsetting changes in cash flows or the fair value of hedged items. | |||||||||||||||||||||||||||
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 March 31, 2015, net derivative positions related to these activities included: | |||||||||||||||||||||||||||
· | An average of 233,600 barrels per day net long position (total of 7.0 million barrels) associated with our crude oil purchases, which was unwound ratably during April 2015 to match monthly average pricing. | ||||||||||||||||||||||||||
· | A net short time spread position averaging 18,200 barrels per day (total of 7.2 million barrels), which hedges a portion of our anticipated crude oil lease gathering purchases through June 2016. | ||||||||||||||||||||||||||
· | An average of 37,500 barrels per day (total of 9.1 million barrels) of crude oil grade spread positions through December 2015. These derivatives allow us to lock in grade basis differentials. | ||||||||||||||||||||||||||
· | A net short position of 6.8 Bcf through April 2016 related to anticipated sales of natural gas inventory and base gas requirements. | ||||||||||||||||||||||||||
· | A net short position of 16.8 million barrels through March 2017 related to anticipated purchases and sales of our crude oil, NGL and refined products inventory. | ||||||||||||||||||||||||||
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 March 31, 2015, we had a long natural gas position of 18.1 Bcf through December 2016, a short propane position of 3.5 million barrels through December 2016, a short butane position of 1.0 million barrels through December 2016 and a short WTI position of 0.4 million barrels through December 2016. 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 natural gas processing and fractionation plants through December 2016. | |||||||||||||||||||||||||||
To the extent they qualify and we decide to make the election, all of our commodity derivatives for which we elect hedge accounting are designated as cash flow hedges. 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 purchase and sale agreements qualify for the normal purchases and normal sales scope exception. | |||||||||||||||||||||||||||
Interest Rate Risk Hedging | |||||||||||||||||||||||||||
We use interest rate derivatives to hedge interest rate risk associated with anticipated debt issuances and outstanding debt instruments. The derivative instruments we use to manage this risk consist primarily of interest rate swaps and treasury locks. As of March 31, 2015, AOCI includes deferred losses of $234 million that relate to open and terminated interest rate derivatives that were designated as cash flow hedges. The terminated interest rate derivatives were cash-settled in connection with the issuance or refinancing of debt agreements. The deferred loss related to these instruments is being amortized to interest expense over the terms of the hedged debt instruments. | |||||||||||||||||||||||||||
We have entered into forward starting interest rate swaps to hedge the underlying benchmark interest rate related to forecasted debt issuances through 2019. The following table summarizes the terms of our forward starting interest rate swaps as of March 31, 2015 (notional amounts in millions): | |||||||||||||||||||||||||||
Hedged Transaction | Number and Types of | Notional | Expected | Average Rate | Accounting | ||||||||||||||||||||||
Derivatives Employed | Amount | Termination Date | Locked | Treatment | |||||||||||||||||||||||
Anticipated debt offering | 10 forward starting swaps (30-year) | $ | 250 | 6/15/15 | 3.60% | Cash flow hedge | |||||||||||||||||||||
Anticipated debt offering | 8 forward starting swaps (30-year) | $ | 200 | 6/15/16 | 3.06% | Cash flow hedge | |||||||||||||||||||||
Anticipated debt offering | 8 forward starting swaps (30-year) | $ | 200 | 6/15/17 | 3.14% | Cash flow hedge | |||||||||||||||||||||
Anticipated debt offering | 8 forward starting swaps (30-year) | $ | 200 | 6/15/18 | 3.20% | Cash flow hedge | |||||||||||||||||||||
Anticipated debt offering | 8 forward starting swaps (30-year) | $ | 200 | 6/14/19 | 2.83% | Cash flow hedge | |||||||||||||||||||||
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 and forwards. | |||||||||||||||||||||||||||
As of March 31, 2015, our outstanding foreign currency derivatives include derivatives we use to (i) hedge currency exchange risk associated with USD-denominated commodity purchases and sales in Canada and (ii) hedge currency exchange risk 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 March 31, 2015 (in millions): | |||||||||||||||||||||||||||
USD | CAD | Average Exchange Rate | |||||||||||||||||||||||||
USD to CAD | |||||||||||||||||||||||||||
Forward exchange contracts that exchange CAD for USD: | |||||||||||||||||||||||||||
2015 | $ | 147 | $ | 187 | $1.00 - $1.27 | ||||||||||||||||||||||
2016 | 5 | 7 | $1.00 - $1.27 | ||||||||||||||||||||||||
$ | 152 | $ | 194 | ||||||||||||||||||||||||
Forward exchange contracts that exchange USD for CAD: | |||||||||||||||||||||||||||
2015 | $ | 181 | $ | 225 | $1.00 - $1.24 | ||||||||||||||||||||||
2016 | 5 | 7 | $1.00 - $1.27 | ||||||||||||||||||||||||
$ | 186 | $ | 232 | ||||||||||||||||||||||||
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 for the three months ended March 31, 2015 and 2014 is as follows (in millions): | |||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||
Location of gain/(loss) | Derivatives in | Derivatives | Total | Derivatives in | Derivatives | Total | |||||||||||||||||||||
Hedging | Not Designated | Hedging | Not Designated | ||||||||||||||||||||||||
Relationships (1) | as a Hedge | Relationships (1) | as a Hedge | ||||||||||||||||||||||||
Commodity Derivatives | |||||||||||||||||||||||||||
Supply and Logistics segment revenues | $ | 7 | $ | (34 | ) | $ | (27 | ) | $ | (19 | ) | $ | — | $ | (19 | ) | |||||||||||
Transportation segment revenues | — | 2 | 2 | — | — | — | |||||||||||||||||||||
Field operating costs | — | (4 | ) | (4 | ) | — | (1 | ) | (1 | ) | |||||||||||||||||
Interest Rate Derivatives | |||||||||||||||||||||||||||
Interest expense | (1 | ) | — | (1 | ) | (1 | ) | — | (1 | ) | |||||||||||||||||
Foreign Currency Derivatives | |||||||||||||||||||||||||||
Supply and Logistics segment revenues | — | (17 | ) | (17 | ) | — | (9 | ) | (9 | ) | |||||||||||||||||
Total Gain/(Loss) on Derivatives Recognized in Net Income | $ | 6 | $ | (53 | ) | $ | (47 | ) | $ | (20 | ) | $ | (10 | ) | $ | (30 | ) | ||||||||||
-1 | Represents gains/(losses) on cash flow hedges reclassified from AOCI to income during the period. | ||||||||||||||||||||||||||
The following table summarizes the derivative assets and liabilities on our Condensed Consolidated Balance Sheet on a gross basis as of March 31, 2015 (in millions): | |||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||
Balance Sheet | Balance Sheet | ||||||||||||||||||||||||||
Location | Fair Value | Location | Fair Value | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||
Commodity derivatives | Other current assets | $ | 18 | Other long-term liabilities and deferred credits | $ | (2 | ) | ||||||||||||||||||||
Other long-term liabilities and deferred credits | 3 | ||||||||||||||||||||||||||
Interest rate derivatives | Other current liabilities | (64 | ) | ||||||||||||||||||||||||
Other long-term liabilities and deferred credits | (80 | ) | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 21 | $ | (146 | ) | ||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||
Commodity derivatives | Other current assets | $ | 205 | Other current assets | $ | (47 | ) | ||||||||||||||||||||
Other long-term assets, net | 18 | Other current liabilities | (40 | ) | |||||||||||||||||||||||
Other long-term liabilities and deferred credits | 2 | Other long-term liabilities and deferred credits | (13 | ) | |||||||||||||||||||||||
Foreign currency derivatives | Other current liabilities | (4 | ) | ||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 225 | $ | (104 | ) | ||||||||||||||||||||||
Total derivatives | $ | 246 | $ | (250 | ) | ||||||||||||||||||||||
The following table summarizes the derivative assets and liabilities on our Condensed Consolidated Balance Sheet on a gross basis as of December 31, 2014 (in millions): | |||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||||||||||||||||
Location | Value | Location | Value | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||
Commodity derivatives | Other current assets | $ | 23 | Other current assets | $ | (12 | ) | ||||||||||||||||||||
Other long-term assets, net | 8 | Other long-term assets, net | (1 | ) | |||||||||||||||||||||||
Interest rate derivatives | Other current liabilities | (44 | ) | ||||||||||||||||||||||||
Other long-term liabilities and deferred credits | (26 | ) | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 31 | $ | (83 | ) | ||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||
Commodity derivatives | Other current assets | $ | 439 | Other current assets | $ | (246 | ) | ||||||||||||||||||||
Other long-term assets, net | 23 | Other long-term assets, net | (3 | ) | |||||||||||||||||||||||
Other current liabilities | (35 | ) | |||||||||||||||||||||||||
Other long-term liabilities and deferred credits | (5 | ) | |||||||||||||||||||||||||
Foreign currency derivatives | Other current liabilities | (12 | ) | ||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 462 | $ | (301 | ) | ||||||||||||||||||||||
Total derivatives | $ | 493 | $ | (384 | ) | ||||||||||||||||||||||
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 our 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. As of March 31, 2015, we had a net broker payable of $112 million (consisting of initial margin of $61 million reduced by $173 million of variation margin that had been returned to us). As of December 31, 2014, we had a net broker payable of $133 million (consisting of initial margin of $126 million reduced by $259 million of variation margin that had been returned to us). | |||||||||||||||||||||||||||
The following tables present information about derivatives and financial assets and liabilities that are subject to offsetting, including enforceable master netting arrangements as of the dates indicated (in millions): | |||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
Derivative | Derivative | Derivative | Derivative | ||||||||||||||||||||||||
Asset Positions | Liability Positions | Asset Positions | Liability Positions | ||||||||||||||||||||||||
Netting Adjustments: | |||||||||||||||||||||||||||
Gross position - asset/(liability) | $ | 246 | $ | (250 | ) | $ | 493 | $ | (384 | ) | |||||||||||||||||
Netting adjustment | (52 | ) | 52 | (262 | ) | 262 | |||||||||||||||||||||
Cash collateral paid/(received) | (112 | ) | — | (133 | ) | — | |||||||||||||||||||||
Net position - asset/(liability) | $ | 82 | $ | (198 | ) | $ | 98 | $ | (122 | ) | |||||||||||||||||
Balance Sheet Location After Netting Adjustments: | |||||||||||||||||||||||||||
Other current assets | $ | 64 | $ | — | $ | 71 | $ | — | |||||||||||||||||||
Other long-term assets, net | 18 | — | 27 | — | |||||||||||||||||||||||
Other current liabilities | — | (108 | ) | — | (91 | ) | |||||||||||||||||||||
Other long-term liabilities and deferred credits | — | (90 | ) | — | (31 | ) | |||||||||||||||||||||
$ | 82 | $ | (198 | ) | $ | 98 | $ | (122 | ) | ||||||||||||||||||
As of March 31, 2015, there was a net loss of $237 million deferred in AOCI including tax effects. 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 March 31, 2015, we expect to reclassify a net gain of $9 million to earnings in the next twelve months. The remaining deferred loss of $246 million is expected to be reclassified to earnings through 2049. A portion of these amounts are based on market prices as of March 31, 2015; thus, actual amounts to be reclassified will differ and could vary materially as a result of changes in market conditions. | |||||||||||||||||||||||||||
The net deferred gain/(loss), including tax effects, recognized in AOCI for derivatives for the three months ended March 31, 2015 and 2014 was as follows (in millions): | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
Commodity derivatives, net | $ | 3 | $ | (12 | ) | ||||||||||||||||||||||
Interest rate derivatives, net | (75 | ) | (20 | ) | |||||||||||||||||||||||
Total | $ | (72 | ) | $ | (32 | ) | |||||||||||||||||||||
At March 31, 2015 and December 31, 2014, 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 as of March 31, 2015 and December 31, 2014 (in millions): | |||||||||||||||||||||||||||
Fair Value as of March 31, 2015 | Fair Value as of December 31, 2014 | ||||||||||||||||||||||||||
Recurring Fair Value Measures (1) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Commodity derivatives | $ | 16 | $ | 123 | $ | 5 | $ | 144 | $ | (85 | ) | $ | 261 | $ | 15 | $ | 191 | ||||||||||
Interest rate derivatives | — | (144 | ) | — | (144 | ) | — | (70 | ) | — | (70 | ) | |||||||||||||||
Foreign currency derivatives | — | (4 | ) | — | (4 | ) | — | (12 | ) | — | (12 | ) | |||||||||||||||
Total net derivative asset/(liability) | $ | 16 | $ | (25 | ) | $ | 5 | $ | (4 | ) | $ | (85 | ) | $ | 179 | $ | 15 | $ | 109 | ||||||||
-1 | Derivative assets and liabilities are presented above on a net basis but do not include related cash margin deposits. | ||||||||||||||||||||||||||
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. The fair value of our Level 3 physical commodity contracts is based on a valuation model utilizing broker-quoted forward commodity prices, and timing estimates, which involve management judgment. The significant unobservable inputs used in the fair value measurement of our Level 3 derivatives are forward prices obtained from brokers. A significant increase or decrease in these forward prices could result in a material change in fair value to our Level 3 derivatives. We reported unrealized gains and losses associated with Level 3 commodity derivatives in our Condensed Consolidated Statements of Operations as Supply and Logistics segment revenues. | |||||||||||||||||||||||||||
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 for the three months ended March 31, 2015 and 2014 (in millions): | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
Beginning Balance | $ | 15 | $ | (3 | ) | ||||||||||||||||||||||
Total gains/(losses) for the period: | |||||||||||||||||||||||||||
Settlements | (12 | ) | 3 | ||||||||||||||||||||||||
Derivatives entered into during the period | 2 | 1 | |||||||||||||||||||||||||
Ending Balance | $ | 5 | $ | 1 | |||||||||||||||||||||||
Change in unrealized gains/(losses) included in earnings relating to Level 3 derivatives still held at the end of the period | $ | 2 | $ | 1 | |||||||||||||||||||||||
EquityIndexed_Compensation_Pla
Equity-Indexed Compensation Plans | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Equity-Indexed Compensation Plans | ||||||||||||
Equity-Indexed Compensation Plans | ||||||||||||
Note 9—Equity-Indexed Compensation Plans | ||||||||||||
We refer to the PAA LTIPs and AAP Management Units collectively as our “equity-indexed compensation plans.” For additional discussion of our equity-indexed compensation plans and awards, see Note 16 to our Consolidated Financial Statements included in Part IV of our 2014 Annual Report on Form 10-K. | ||||||||||||
PAA LTIP Awards | ||||||||||||
Activity for LTIP awards under our equity-indexed compensation plans denominated in PAA units is summarized in the following table (units in millions): | ||||||||||||
Weighted Average | ||||||||||||
Grant Date | ||||||||||||
Units (1) | Fair Value per Unit | |||||||||||
Outstanding at December 31, 2014 | 7.3 | $ | 41.45 | |||||||||
Granted | 1.1 | $ | 39.99 | |||||||||
Vested (2) | — | $ | 40.23 | |||||||||
Cancelled or forfeited | (0.1 | ) | $ | 39.69 | ||||||||
Outstanding at March 31, 2015 | 8.3 | $ | 41.26 | |||||||||
-1 | Amounts do not include AAP Management Units. | |||||||||||
-2 | During the three months ended March 31, 2015, less than 0.1 million PAA LTIP awards were settled in cash. | |||||||||||
AAP Management Units | ||||||||||||
Activity for AAP Management Units is summarized in the following table (in millions): | ||||||||||||
Reserved for | Outstanding | Outstanding | Grant Date | |||||||||
Future Grants | Units Earned | Fair Value of Outstanding | ||||||||||
AAP Management Units (1) | ||||||||||||
Balance at December 31, 2014 | 3.0 | 49.1 | 47.8 | $ | 64 | |||||||
Earned | N/A | N/A | 0.3 | N/A | ||||||||
Balance at March 31, 2015 | 3.0 | 49.1 | 48.1 | $ | 64 | |||||||
-1 | Of the $64 million grant date fair value, $56 million had been recognized through March 31, 2015 on a cumulative basis. Of this amount, $1 million was recognized as expense during the three months ended March 31, 2015. | |||||||||||
Other Consolidated Equity-Indexed Compensation Plan Information | ||||||||||||
The table below summarizes the expense recognized and the value of vested LTIP awards (settled both in common units and cash) under our equity-indexed compensation plans and includes both liability-classified and equity-classified awards (in millions): | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Equity-indexed compensation expense | $ | 19 | $ | 34 | ||||||||
LTIP unit-settled vestings | $ | — | $ | 5 | ||||||||
LTIP cash-settled vestings (1) | $ | — | $ | 1 | ||||||||
DER cash payments | $ | 2 | $ | 2 | ||||||||
-1 | For the three months ended March 31, 2015, the value of PAA LTIP awards that were settled in cash was less than $1 million. | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies. | |
Commitments and Contingencies | |
Note 10—Commitments and Contingencies | |
Litigation | |
In the ordinary course of business, we are involved in various legal proceedings. To the extent we are able to assess the likelihood of a negative outcome for these proceedings, 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 the estimated amount. We do not believe that the outcome of these legal proceedings, individually or in the aggregate, will have a material adverse effect on our financial condition, results of operations or cash flows. Although we believe that our operations are presently in material compliance with applicable requirements, as we acquire and incorporate additional assets it is possible that the EPA or other governmental entities may seek to impose fines, penalties or performance obligations on us (or on a portion of our operations) as a result of any past noncompliance whether such noncompliance initially developed before or after our acquisition. | |
Environmental | |
General. Although we believe that our efforts to enhance our leak prevention and detection capabilities have produced positive results, we have experienced (and likely will experience future) releases of hydrocarbon products into the environment from our pipeline, rail and storage operations. These releases can result from unpredictable man-made or natural forces and may reach surface water bodies, groundwater aquifers or other sensitive environments. Whether current or past, damages and liabilities associated with any such releases from our assets may substantially affect our business. | |
At March 31, 2015, our estimated undiscounted reserve for environmental liabilities totaled $75 million, of which $11 million was classified as short-term and $64 million was classified as long-term. At December 31, 2014, our estimated undiscounted reserve for environmental liabilities totaled $82 million, of which $13 million was classified as short-term and $69 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 March 31, 2015 and December 31, 2014, we had recorded receivables totaling $7 million and $8 million, respectively, for amounts probable of recovery under insurance and from third parties under indemnification agreements, which are predominantly reflected in “Trade accounts receivable and other receivables, net” on our Condensed Consolidated Balance Sheets. | |
In some cases, the actual cash expenditures may not occur for three years or longer. Our estimates used in 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 legal claims giving rise to additional liabilities. Therefore, although we believe that the reserve is adequate, costs incurred may be in excess of the reserve and may potentially have a material adverse effect on our financial condition, results of operations or cash flows. | |
Bay Springs Pipeline Release. During February 2013, we experienced a crude oil release of approximately 120 barrels on a portion of one of our pipelines near Bay Springs, Mississippi. Most of the released crude oil was contained within our pipeline right of way, but some of the released crude oil entered a nearby waterway where it was contained with booms. The EPA has issued an administrative order requiring us to take various actions in response to the release, including remediation, reporting and other actions. We have satisfied the requirements of the administrative order; however, we may be subjected to a civil penalty. The aggregate cost to clean up and remediate the site was $6 million. | |
Kemp River Pipeline Releases. During May and June 2013, two separate releases were discovered on our Kemp River pipeline in Northern Alberta, Canada that, in the aggregate, resulted in the release of approximately 700 barrels of condensate and light crude oil. Clean-up and remediation activities are being conducted in cooperation with the applicable regulatory agencies. Final investigation by the Alberta Energy Regulator is not complete. To date, no charges, fines or penalties have been assessed against PMC with respect to these releases; however, it is possible that fines or penalties may be assessed against PMC in the future. We estimate that the aggregate clean-up and remediation costs associated with these releases will be $15 million. Through March 31, 2015, we spent $9 million in connection with clean-up and remediation activities. | |
National Energy Board Audit. In the third quarter of 2014, the National Energy Board (“NEB”) of Canada notified PMC that various corrective actions from a 2010 audit had not been completed to the satisfaction of the NEB. The NEB initiated a process to assess PMC’s approach to compliance with the NEB’s Onshore Pipeline Regulations, which process resulted in the issuance by the NEB of an order on January 15, 2015 that imposed six conditions on PMC designed to enhance PMC’s ability to operate its pipelines in a manner that protects the public and the environment. The conditions include the filing of certain safety critical tasks, controls and programs with the NEB, external audits of certain PMC programs and systems, and periodic update meetings with NEB staff regarding the status and progress of corrective actions. In early February 2015, the NEB imposed a penalty on PMC of $76,000 CAD related to these issues. It is possible that additional fines and penalties may be assessed against PMC in the future related to this matter. | |
In the Matter of Bakersfield Crude Terminal LLC et al. On April 30, 2015, the EPA issued a Finding and Notice of Violation (“NOV”) to PAA’s Bakersfield Crude Terminal LLC for alleged violations of the Clean Air Act, as amended. The NOV, which cites 10 separate rule violations, questions the validity of construction and operating permits issued to our Bakersfield rail unloading facility in 2012 and 2014 by the San Joaquin Valley Air Pollution Control District (the “SJV District”). We believe we fully complied with all applicable regulatory requirements and that the permits issued to us by the SJV District are valid. To date, no fines or penalties have been assessed in this matter; however, it is possible that fines and penalties could be assessed in the future. | |
Operating_Segments
Operating Segments | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Operating Segments | ||||||||||||||
Operating Segments | ||||||||||||||
Note 11—Operating Segments | ||||||||||||||
We manage our operations through three operating segments: Transportation, Facilities and Supply and Logistics. Our Chief Operating Decision Maker (our Chief Executive Officer) evaluates segment performance based on measures including segment profit and maintenance capital investment. We define segment profit 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. Each of the items above 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 table reflects certain financial data for each segment for the periods indicated (in millions): | ||||||||||||||
Transportation | Facilities | Supply and | Total | |||||||||||
Logistics | ||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||
Revenues: | ||||||||||||||
External Customers | $ | 185 | $ | 125 | $ | 5,632 | $ | 5,942 | ||||||
Intersegment (1) | 215 | 132 | 2 | 349 | ||||||||||
Total revenues of reportable segments | $ | 400 | $ | 257 | $ | 5,634 | $ | 6,291 | ||||||
Equity earnings in unconsolidated entities | $ | 37 | $ | — | $ | — | $ | 37 | ||||||
Segment profit (2) (3) | $ | 241 | $ | 142 | $ | 130 | $ | 513 | ||||||
Maintenance capital | $ | 33 | $ | 15 | $ | 2 | $ | 50 | ||||||
Transportation | Facilities | Supply and | Total | |||||||||||
Logistics | ||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||
Revenues: | ||||||||||||||
External Customers | $ | 181 | $ | 157 | $ | 11,346 | $ | 11,684 | ||||||
Intersegment (1) | 206 | 142 | 22 | 370 | ||||||||||
Total revenues of reportable segments | $ | 387 | $ | 299 | $ | 11,368 | $ | 12,054 | ||||||
Equity earnings in unconsolidated entities | $ | 20 | $ | — | $ | — | $ | 20 | ||||||
Segment profit (2) (3) | $ | 206 | $ | 154 | $ | 249 | $ | 609 | ||||||
Maintenance capital | $ | 34 | $ | 10 | $ | 2 | $ | 46 | ||||||
-1 | Segment revenues and purchases and related costs include intersegment amounts. Intersegment sales are conducted at posted tariff rates, rates similar to those charged to third parties or rates that we believe approximate market. For further discussion, see “Analysis of Operating Segments” under Item 7 of our 2014 Annual Report on Form 10-K. | |||||||||||||
-2 | Supply and Logistics segment profit includes interest expense (related to hedged inventory purchases) of $1 million and $2 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||
-3 | The following table reconciles segment profit to net income attributable to PAA (in millions): | |||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Segment profit | $ | 513 | $ | 609 | ||||||||||
Depreciation and amortization | (107 | ) | (96 | ) | ||||||||||
Interest expense, net | (102 | ) | (78 | ) | ||||||||||
Other expense, net | (4 | ) | (2 | ) | ||||||||||
Income before tax | 300 | 433 | ||||||||||||
Income tax expense | (16 | ) | (48 | ) | ||||||||||
Net income | 284 | 385 | ||||||||||||
Net income attributable to noncontrolling interests | (1 | ) | (1 | ) | ||||||||||
Net income attributable to PAA | $ | 283 | $ | 384 | ||||||||||
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Related Party Transactions | ||||||||
Related Party Transactions | ||||||||
Note 12—Related Party Transactions | ||||||||
See Note 15 to our Consolidated Financial Statements included in Part IV of our 2014 Annual Report on Form 10-K for a complete discussion of our related party transactions. | ||||||||
Transactions with Oxy | ||||||||
As of March 31, 2015, Oxy owned approximately 13% of the limited partner interests in our general partner and had a representative on the board of directors of GP LLC. During the three months ended March 31, 2015 and 2014, 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. See detail below (in millions): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenues | $ | 176 | $ | 92 | ||||
Purchases and related costs | $ | 104 | $ | 259 | ||||
We currently have a netting arrangement with Oxy. Our gross receivable and payable amounts with Oxy were as follows (in millions): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Trade accounts receivable and other receivables | $ | 465 | $ | 489 | ||||
Accounts payable | $ | 410 | $ | 441 | ||||
Net_Income_Per_Limited_Partner1
Net Income Per Limited Partner Unit (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Net Income Per Limited Partner Unit | ||||||||
Computation of basic and diluted net income per limited partner unit | ||||||||
The following table sets forth the computation of basic and diluted net income per limited partner unit for the three months ended March 31, 2015 and 2014 (in millions, except per unit data): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Basic Net Income per Limited Partner Unit | ||||||||
Net income attributable to PAA | $ | 283 | $ | 384 | ||||
Less: General partner’s incentive distribution (1) | (142 | ) | (110 | ) | ||||
Less: General partner 2% ownership (1) | (3 | ) | (6 | ) | ||||
Net income available to limited partners | 138 | 268 | ||||||
Less: Undistributed earnings allocated and distributions to participating securities (1) | (2 | ) | (2 | ) | ||||
Net income available to limited partners in accordance with application of the two-class method for MLPs | $ | 136 | $ | 266 | ||||
Basic weighted average limited partner units outstanding | 383 | 360 | ||||||
Basic net income per limited partner unit | $ | 0.36 | $ | 0.74 | ||||
Diluted Net Income per Limited Partner Unit | ||||||||
Net income attributable to PAA | $ | 283 | $ | 384 | ||||
Less: General partner’s incentive distribution (1) | (142 | ) | (110 | ) | ||||
Less: General partner 2% ownership (1) | (3 | ) | (6 | ) | ||||
Net income available to limited partners | 138 | 268 | ||||||
Less: Undistributed earnings allocated and distributions to participating securities (1) | (2 | ) | (2 | ) | ||||
Net income available to limited partners in accordance with application of the two-class method for MLPs | $ | 136 | $ | 266 | ||||
Basic weighted average limited partner units outstanding | 383 | 360 | ||||||
Effect of dilutive securities: Weighted average LTIP units | 2 | 3 | ||||||
Diluted weighted average limited partner units outstanding | 385 | 363 | ||||||
Diluted net income per limited partner unit | $ | 0.35 | $ | 0.73 | ||||
-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 net income per limited partner unit | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Basic net income per limited partner unit impact | $ | — | $ | (0.05 | ) | |||
Diluted net income per limited partner unit impact | $ | — | $ | (0.05 | ) | |||
Inventory_Linefill_and_Base_Ga1
Inventory, Linefill and Base Gas and Long-term Inventory (Tables) | 3 Months Ended | ||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||
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 as of the dates indicated (barrels and natural gas volumes in thousands and carrying value in millions): | |||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Volumes | Unit of | Carrying | Price/ | Volumes | Unit of | Carrying | Price/ | ||||||||||||||||
Measure | Value | Unit (1) | Measure | Value | Unit (1) | ||||||||||||||||||
Inventory | |||||||||||||||||||||||
Crude oil | 15,351 | barrels | $ | 686 | $ | 44.69 | 6,465 | barrels | $ | 304 | $ | 47.02 | |||||||||||
NGL | 7,277 | barrels | 154 | $ | 21.16 | 13,553 | barrels | 454 | $ | 33.50 | |||||||||||||
Natural gas | 10,965 | Mcf | 31 | $ | 2.83 | 32,317 | Mcf | 102 | $ | 3.16 | |||||||||||||
Other | N/A | 58 | N/A | N/A | 31 | N/A | |||||||||||||||||
Inventory subtotal | 929 | 891 | |||||||||||||||||||||
Linefill and base gas | |||||||||||||||||||||||
Crude oil | 12,970 | barrels | 777 | $ | 59.91 | 11,810 | barrels | 744 | $ | 63.00 | |||||||||||||
NGL | 1,215 | barrels | 48 | $ | 39.51 | 1,212 | barrels | 52 | $ | 42.90 | |||||||||||||
Natural gas | 28,612 | Mcf | 135 | $ | 4.72 | 28,612 | Mcf | 134 | $ | 4.68 | |||||||||||||
Linefill and base gas subtotal | 960 | 930 | |||||||||||||||||||||
Long-term inventory | |||||||||||||||||||||||
Crude oil | 2,646 | barrels | 117 | $ | 44.22 | 2,582 | barrels | 136 | $ | 52.67 | |||||||||||||
NGL | 1,681 | barrels | 32 | $ | 19.04 | 1,681 | barrels | 50 | $ | 29.74 | |||||||||||||
Long-term inventory subtotal | 149 | 186 | |||||||||||||||||||||
Total | $ | 2,038 | $ | 2,007 | |||||||||||||||||||
-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. | ||||||||||||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt | ||||||||
Schedule of debt | ||||||||
Debt consisted of the following as of the dates indicated (in millions): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
SHORT-TERM DEBT | ||||||||
Commercial paper notes, bearing a weighted-average interest rate of 0.46% at December 31, 2014 (1) | $ | — | $ | 734 | ||||
Senior notes: | ||||||||
5.25% senior notes due June 2015 | 150 | 150 | ||||||
3.95% senior notes due September 2015 | 400 | 400 | ||||||
Other | 3 | 3 | ||||||
Total short-term debt | 553 | 1,287 | ||||||
LONG-TERM DEBT | ||||||||
Senior notes, net of unamortized discount of $17 and $18, respectively | 8,758 | 8,757 | ||||||
Other | 5 | 5 | ||||||
Total long-term debt | 8,763 | 8,762 | ||||||
Total debt (2) | $ | 9,316 | $ | 10,049 | ||||
-1 | At December 31, 2014, we classified all of the borrowings under our commercial paper program as short-term as these borrowings were primarily designated as working capital borrowings, must be repaid within one year and were primarily for hedged NGL and crude oil inventory and NYMEX and ICE margin deposits. | |||||||
-2 | Our fixed-rate senior notes (including current maturities) had a face value of approximately $9.3 billion as of both March 31, 2015 and December 31, 2014. We estimated the aggregate fair value of these notes as of March 31, 2015 and December 31, 2014 to be approximately $10.0 billion and $9.9 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 quarter end. 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. | |||||||
Partners_Capital_and_Distribut1
Partners' Capital and Distributions (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Partners' Capital and Distributions | ||||||||||||||||||||
Schedule of distributions paid, net of reductions in the general partner's incentive distributions | ||||||||||||||||||||
The following table details the distributions paid during or pertaining to the first three months of 2015, net of reductions to the general partner’s incentive distributions (in millions, except per unit data): | ||||||||||||||||||||
Distributions Paid | Distributions | |||||||||||||||||||
Limited | General Partner | per limited | ||||||||||||||||||
Date Declared | Distribution Date | Partners | 2% | Incentive | Total | partner unit | ||||||||||||||
April 7, 2015 | May 15, 2015(1) | $ | 272 | $ | 6 | $ | 142 | $ | 420 | $ | 0.6850 | |||||||||
January 8, 2015 | February 13, 2015 | $ | 254 | $ | 5 | $ | 131 | $ | 390 | $ | 0.6750 | |||||||||
-1 | Payable to unitholders of record at the close of business on May 1, 2015 for the period January 1, 2015 through March 31, 2015. | |||||||||||||||||||
Derivatives_and_Risk_Managemen1
Derivatives and Risk Management Activities (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Derivative disclosures | |||||||||||||||||||||||||||
Impact of derivative activities recognized in earnings | |||||||||||||||||||||||||||
A summary of the impact of our derivative activities recognized in earnings for the three months ended March 31, 2015 and 2014 is as follows (in millions): | |||||||||||||||||||||||||||
Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||
Location of gain/(loss) | Derivatives in | Derivatives | Total | Derivatives in | Derivatives | Total | |||||||||||||||||||||
Hedging | Not Designated | Hedging | Not Designated | ||||||||||||||||||||||||
Relationships (1) | as a Hedge | Relationships (1) | as a Hedge | ||||||||||||||||||||||||
Commodity Derivatives | |||||||||||||||||||||||||||
Supply and Logistics segment revenues | $ | 7 | $ | (34 | ) | $ | (27 | ) | $ | (19 | ) | $ | — | $ | (19 | ) | |||||||||||
Transportation segment revenues | — | 2 | 2 | — | — | — | |||||||||||||||||||||
Field operating costs | — | (4 | ) | (4 | ) | — | (1 | ) | (1 | ) | |||||||||||||||||
Interest Rate Derivatives | |||||||||||||||||||||||||||
Interest expense | (1 | ) | — | (1 | ) | (1 | ) | — | (1 | ) | |||||||||||||||||
Foreign Currency Derivatives | |||||||||||||||||||||||||||
Supply and Logistics segment revenues | — | (17 | ) | (17 | ) | — | (9 | ) | (9 | ) | |||||||||||||||||
Total Gain/(Loss) on Derivatives Recognized in Net Income | $ | 6 | $ | (53 | ) | $ | (47 | ) | $ | (20 | ) | $ | (10 | ) | $ | (30 | ) | ||||||||||
-1 | Represents gains/(losses) on cash flow hedges reclassified from AOCI to income during the period. | ||||||||||||||||||||||||||
Summary of derivative assets and liabilities on condensed consolidated balance sheet 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 March 31, 2015 (in millions): | |||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||
Balance Sheet | Balance Sheet | ||||||||||||||||||||||||||
Location | Fair Value | Location | Fair Value | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||
Commodity derivatives | Other current assets | $ | 18 | Other long-term liabilities and deferred credits | $ | (2 | ) | ||||||||||||||||||||
Other long-term liabilities and deferred credits | 3 | ||||||||||||||||||||||||||
Interest rate derivatives | Other current liabilities | (64 | ) | ||||||||||||||||||||||||
Other long-term liabilities and deferred credits | (80 | ) | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 21 | $ | (146 | ) | ||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||
Commodity derivatives | Other current assets | $ | 205 | Other current assets | $ | (47 | ) | ||||||||||||||||||||
Other long-term assets, net | 18 | Other current liabilities | (40 | ) | |||||||||||||||||||||||
Other long-term liabilities and deferred credits | 2 | Other long-term liabilities and deferred credits | (13 | ) | |||||||||||||||||||||||
Foreign currency derivatives | Other current liabilities | (4 | ) | ||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 225 | $ | (104 | ) | ||||||||||||||||||||||
Total derivatives | $ | 246 | $ | (250 | ) | ||||||||||||||||||||||
The following table summarizes the derivative assets and liabilities on our Condensed Consolidated Balance Sheet on a gross basis as of December 31, 2014 (in millions): | |||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||
Balance Sheet | Fair | Balance Sheet | Fair | ||||||||||||||||||||||||
Location | Value | Location | Value | ||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||
Commodity derivatives | Other current assets | $ | 23 | Other current assets | $ | (12 | ) | ||||||||||||||||||||
Other long-term assets, net | 8 | Other long-term assets, net | (1 | ) | |||||||||||||||||||||||
Interest rate derivatives | Other current liabilities | (44 | ) | ||||||||||||||||||||||||
Other long-term liabilities and deferred credits | (26 | ) | |||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | 31 | $ | (83 | ) | ||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||
Commodity derivatives | Other current assets | $ | 439 | Other current assets | $ | (246 | ) | ||||||||||||||||||||
Other long-term assets, net | 23 | Other long-term assets, net | (3 | ) | |||||||||||||||||||||||
Other current liabilities | (35 | ) | |||||||||||||||||||||||||
Other long-term liabilities and deferred credits | (5 | ) | |||||||||||||||||||||||||
Foreign currency derivatives | Other current liabilities | (12 | ) | ||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 462 | $ | (301 | ) | ||||||||||||||||||||||
Total derivatives | $ | 493 | $ | (384 | ) | ||||||||||||||||||||||
Schedule of derivative financial assets and liabilities that are subject to offsetting, including enforceable master netting arrangements | |||||||||||||||||||||||||||
The following tables present information about derivatives and financial assets and liabilities that are subject to offsetting, including enforceable master netting arrangements as of the dates indicated (in millions): | |||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||||
Derivative | Derivative | Derivative | Derivative | ||||||||||||||||||||||||
Asset Positions | Liability Positions | Asset Positions | Liability Positions | ||||||||||||||||||||||||
Netting Adjustments: | |||||||||||||||||||||||||||
Gross position - asset/(liability) | $ | 246 | $ | (250 | ) | $ | 493 | $ | (384 | ) | |||||||||||||||||
Netting adjustment | (52 | ) | 52 | (262 | ) | 262 | |||||||||||||||||||||
Cash collateral paid/(received) | (112 | ) | — | (133 | ) | — | |||||||||||||||||||||
Net position - asset/(liability) | $ | 82 | $ | (198 | ) | $ | 98 | $ | (122 | ) | |||||||||||||||||
Balance Sheet Location After Netting Adjustments: | |||||||||||||||||||||||||||
Other current assets | $ | 64 | $ | — | $ | 71 | $ | — | |||||||||||||||||||
Other long-term assets, net | 18 | — | 27 | — | |||||||||||||||||||||||
Other current liabilities | — | (108 | ) | — | (91 | ) | |||||||||||||||||||||
Other long-term liabilities and deferred credits | — | (90 | ) | — | (31 | ) | |||||||||||||||||||||
$ | 82 | $ | (198 | ) | $ | 98 | $ | (122 | ) | ||||||||||||||||||
Net deferred gain/(loss), including tax effects, recognized in AOCI for derivatives | |||||||||||||||||||||||||||
The net deferred gain/(loss), including tax effects, recognized in AOCI for derivatives for the three months ended March 31, 2015 and 2014 was as follows (in millions): | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
Commodity derivatives, net | $ | 3 | $ | (12 | ) | ||||||||||||||||||||||
Interest rate derivatives, net | (75 | ) | (20 | ) | |||||||||||||||||||||||
Total | $ | (72 | ) | $ | (32 | ) | |||||||||||||||||||||
Schedule of derivative financial assets and liabilities by level within the fair value hierarchy accounted for at fair value on a recurring basis | |||||||||||||||||||||||||||
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 as of March 31, 2015 and December 31, 2014 (in millions): | |||||||||||||||||||||||||||
Fair Value as of March 31, 2015 | Fair Value as of December 31, 2014 | ||||||||||||||||||||||||||
Recurring Fair Value Measures (1) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Commodity derivatives | $ | 16 | $ | 123 | $ | 5 | $ | 144 | $ | (85 | ) | $ | 261 | $ | 15 | $ | 191 | ||||||||||
Interest rate derivatives | — | (144 | ) | — | (144 | ) | — | (70 | ) | — | (70 | ) | |||||||||||||||
Foreign currency derivatives | — | (4 | ) | — | (4 | ) | — | (12 | ) | — | (12 | ) | |||||||||||||||
Total net derivative asset/(liability) | $ | 16 | $ | (25 | ) | $ | 5 | $ | (4 | ) | $ | (85 | ) | $ | 179 | $ | 15 | $ | 109 | ||||||||
-1 | Derivative assets and liabilities are presented above on a net basis but do not include related cash margin deposits. | ||||||||||||||||||||||||||
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 for the three months ended March 31, 2015 and 2014 (in millions): | |||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||
Beginning Balance | $ | 15 | $ | (3 | ) | ||||||||||||||||||||||
Total gains/(losses) for the period: | |||||||||||||||||||||||||||
Settlements | (12 | ) | 3 | ||||||||||||||||||||||||
Derivatives entered into during the period | 2 | 1 | |||||||||||||||||||||||||
Ending Balance | $ | 5 | $ | 1 | |||||||||||||||||||||||
Change in unrealized gains/(losses) included in earnings relating to Level 3 derivatives still held at the end of the period | $ | 2 | $ | 1 | |||||||||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||||||||
Derivative disclosures | |||||||||||||||||||||||||||
Schedule of terms of forward starting interest rate swaps | |||||||||||||||||||||||||||
The following table summarizes the terms of our forward starting interest rate swaps as of March 31, 2015 (notional amounts in millions): | |||||||||||||||||||||||||||
Hedged Transaction | Number and Types of | Notional | Expected | Average Rate | Accounting | ||||||||||||||||||||||
Derivatives Employed | Amount | Termination Date | Locked | Treatment | |||||||||||||||||||||||
Anticipated debt offering | 10 forward starting swaps (30-year) | $ | 250 | 6/15/15 | 3.60% | Cash flow hedge | |||||||||||||||||||||
Anticipated debt offering | 8 forward starting swaps (30-year) | $ | 200 | 6/15/16 | 3.06% | Cash flow hedge | |||||||||||||||||||||
Anticipated debt offering | 8 forward starting swaps (30-year) | $ | 200 | 6/15/17 | 3.14% | Cash flow hedge | |||||||||||||||||||||
Anticipated debt offering | 8 forward starting swaps (30-year) | $ | 200 | 6/15/18 | 3.20% | Cash flow hedge | |||||||||||||||||||||
Anticipated debt offering | 8 forward starting swaps (30-year) | $ | 200 | 6/14/19 | 2.83% | Cash flow hedge | |||||||||||||||||||||
Foreign Currency Derivatives | |||||||||||||||||||||||||||
Derivative disclosures | |||||||||||||||||||||||||||
Open forward exchange contracts | |||||||||||||||||||||||||||
The following table summarizes our open forward exchange contracts as of March 31, 2015 (in millions): | |||||||||||||||||||||||||||
USD | CAD | Average Exchange Rate | |||||||||||||||||||||||||
USD to CAD | |||||||||||||||||||||||||||
Forward exchange contracts that exchange CAD for USD: | |||||||||||||||||||||||||||
2015 | $ | 147 | $ | 187 | $1.00 - $1.27 | ||||||||||||||||||||||
2016 | 5 | 7 | $1.00 - $1.27 | ||||||||||||||||||||||||
$ | 152 | $ | 194 | ||||||||||||||||||||||||
Forward exchange contracts that exchange USD for CAD: | |||||||||||||||||||||||||||
2015 | $ | 181 | $ | 225 | $1.00 - $1.24 | ||||||||||||||||||||||
2016 | 5 | 7 | $1.00 - $1.27 | ||||||||||||||||||||||||
$ | 186 | $ | 232 | ||||||||||||||||||||||||
EquityIndexed_Compensation_Pla1
Equity-Indexed Compensation Plans (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Summary of expense recognized and the value of vested LTIP awards under equity-indexed compensation plans | ||||||||||||
The table below summarizes the expense recognized and the value of vested LTIP awards (settled both in common units and cash) under our equity-indexed compensation plans and includes both liability-classified and equity-classified awards (in millions): | ||||||||||||
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2015 | 2014 | |||||||||||
Equity-indexed compensation expense | $ | 19 | $ | 34 | ||||||||
LTIP unit-settled vestings | $ | — | $ | 5 | ||||||||
LTIP cash-settled vestings (1) | $ | — | $ | 1 | ||||||||
DER cash payments | $ | 2 | $ | 2 | ||||||||
-1 | For the three months ended March 31, 2015, the value of PAA LTIP awards that were settled in cash was less than $1 million. | |||||||||||
Long-Term Incentive Plan Awards | ||||||||||||
Summary of activity for equity-indexed compensation plans | ||||||||||||
Activity for LTIP awards under our equity-indexed compensation plans denominated in PAA units is summarized in the following table (units in millions): | ||||||||||||
Weighted Average | ||||||||||||
Grant Date | ||||||||||||
Units (1) | Fair Value per Unit | |||||||||||
Outstanding at December 31, 2014 | 7.3 | $ | 41.45 | |||||||||
Granted | 1.1 | $ | 39.99 | |||||||||
Vested (2) | — | $ | 40.23 | |||||||||
Cancelled or forfeited | (0.1 | ) | $ | 39.69 | ||||||||
Outstanding at March 31, 2015 | 8.3 | $ | 41.26 | |||||||||
-1 | Amounts do not include AAP Management Units. | |||||||||||
-2 | During the three months ended March 31, 2015, less than 0.1 million PAA LTIP awards were settled in cash. | |||||||||||
AAP Management Units | ||||||||||||
Summary of activity for equity-indexed compensation plans | ||||||||||||
Activity for AAP Management Units is summarized in the following table (in millions): | ||||||||||||
Reserved for | Outstanding | Outstanding | Grant Date | |||||||||
Future Grants | Units Earned | Fair Value of Outstanding | ||||||||||
AAP Management Units (1) | ||||||||||||
Balance at December 31, 2014 | 3.0 | 49.1 | 47.8 | $ | 64 | |||||||
Earned | N/A | N/A | 0.3 | N/A | ||||||||
Balance at March 31, 2015 | 3.0 | 49.1 | 48.1 | $ | 64 | |||||||
-1 | Of the $64 million grant date fair value, $56 million had been recognized through March 31, 2015 on a cumulative basis. Of this amount, $1 million was recognized as expense during the three months ended March 31, 2015. | |||||||||||
Operating_Segments_Tables
Operating Segments (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Operating Segments | ||||||||||||||
Segment financial data | ||||||||||||||
The following table reflects certain financial data for each segment for the periods indicated (in millions): | ||||||||||||||
Transportation | Facilities | Supply and | Total | |||||||||||
Logistics | ||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||
Revenues: | ||||||||||||||
External Customers | $ | 185 | $ | 125 | $ | 5,632 | $ | 5,942 | ||||||
Intersegment (1) | 215 | 132 | 2 | 349 | ||||||||||
Total revenues of reportable segments | $ | 400 | $ | 257 | $ | 5,634 | $ | 6,291 | ||||||
Equity earnings in unconsolidated entities | $ | 37 | $ | — | $ | — | $ | 37 | ||||||
Segment profit (2) (3) | $ | 241 | $ | 142 | $ | 130 | $ | 513 | ||||||
Maintenance capital | $ | 33 | $ | 15 | $ | 2 | $ | 50 | ||||||
Transportation | Facilities | Supply and | Total | |||||||||||
Logistics | ||||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||||
Revenues: | ||||||||||||||
External Customers | $ | 181 | $ | 157 | $ | 11,346 | $ | 11,684 | ||||||
Intersegment (1) | 206 | 142 | 22 | 370 | ||||||||||
Total revenues of reportable segments | $ | 387 | $ | 299 | $ | 11,368 | $ | 12,054 | ||||||
Equity earnings in unconsolidated entities | $ | 20 | $ | — | $ | — | $ | 20 | ||||||
Segment profit (2) (3) | $ | 206 | $ | 154 | $ | 249 | $ | 609 | ||||||
Maintenance capital | $ | 34 | $ | 10 | $ | 2 | $ | 46 | ||||||
-1 | Segment revenues and purchases and related costs include intersegment amounts. Intersegment sales are conducted at posted tariff rates, rates similar to those charged to third parties or rates that we believe approximate market. For further discussion, see “Analysis of Operating Segments” under Item 7 of our 2014 Annual Report on Form 10-K. | |||||||||||||
-2 | Supply and Logistics segment profit includes interest expense (related to hedged inventory purchases) of $1 million and $2 million for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||
-3 | The following table reconciles segment profit to net income attributable to PAA (in millions): | |||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Segment profit | $ | 513 | $ | 609 | ||||||||||
Depreciation and amortization | (107 | ) | (96 | ) | ||||||||||
Interest expense, net | (102 | ) | (78 | ) | ||||||||||
Other expense, net | (4 | ) | (2 | ) | ||||||||||
Income before tax | 300 | 433 | ||||||||||||
Income tax expense | (16 | ) | (48 | ) | ||||||||||
Net income | 284 | 385 | ||||||||||||
Net income attributable to noncontrolling interests | (1 | ) | (1 | ) | ||||||||||
Net income attributable to PAA | $ | 283 | $ | 384 | ||||||||||
Reconciliation of segment profit to net income attributable to PAA | The following table reconciles segment profit to net income attributable to PAA (in millions): | |||||||||||||
Three Months Ended | ||||||||||||||
March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Segment profit | $ | 513 | $ | 609 | ||||||||||
Depreciation and amortization | (107 | ) | (96 | ) | ||||||||||
Interest expense, net | (102 | ) | (78 | ) | ||||||||||
Other expense, net | (4 | ) | (2 | ) | ||||||||||
Income before tax | 300 | 433 | ||||||||||||
Income tax expense | (16 | ) | (48 | ) | ||||||||||
Net income | 284 | 385 | ||||||||||||
Net income attributable to noncontrolling interests | (1 | ) | (1 | ) | ||||||||||
Net income attributable to PAA | $ | 283 | $ | 384 | ||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) (Oxy) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Oxy | ||||||||
Related party transaction | ||||||||
Schedule of related party transactions | ||||||||
These transactions were conducted at posted tariff rates or prices that we believe approximate market. See detail below (in millions): | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
Revenues | $ | 176 | $ | 92 | ||||
Purchases and related costs | $ | 104 | $ | 259 | ||||
We currently have a netting arrangement with Oxy. Our gross receivable and payable amounts with Oxy were as follows (in millions): | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
Trade accounts receivable and other receivables | $ | 465 | $ | 489 | ||||
Accounts payable | $ | 410 | $ | 441 | ||||
Organization_and_Basis_of_Pres
Organization and Basis of Presentation (Details) | 3 Months Ended |
Mar. 31, 2015 | |
segment | |
Organization | |
Operating segments number | 3 |
General partner ownership interest (as a percent) | 2.00% |
PAGP | AAP | |
Organization | |
PAGP limited partner interest in AAP (as a percent) | 37.00% |
Net_Income_Per_Limited_Partner2
Net Income Per Limited Partner Unit (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Income Per Limited Partner Unit | ||
General partner ownership interest (as a percent) | 2.00% | |
Basic Net Income per Limited Partner Unit | ||
Net income attributable to PAA | $283 | $384 |
Less: General partner's incentive distribution | -142 | -110 |
Less: General partner 2% ownership | -3 | -6 |
Net income available to limited partners | 138 | 268 |
Less: Undistributed earnings allocated and distributions to participating securities | -2 | -2 |
Net income available to limited partners in accordance with application of the two-class method for MLPs | 136 | 266 |
Basic weighted average limited partner units outstanding | 383 | 360 |
Basic net income per limited partner unit | $0.36 | $0.74 |
Diluted Net Income per Limited Partner Unit | ||
Net income attributable to PAA | 283 | 384 |
Less: General partner's incentive distribution | -142 | -110 |
Less: General partner 2% ownership | -3 | -6 |
Net income available to limited partners | 138 | 268 |
Less: Undistributed earnings allocated and distributions to participating securities | -2 | -2 |
Net income available to limited partners in accordance with application of the two-class method for MLPs | $136 | $266 |
Basic weighted average limited partner units outstanding | 383 | 360 |
Effect of dilutive securities: | ||
Weighted average LTIP units | 2 | 3 |
Diluted weighted average limited partner units outstanding | 385 | 363 |
Diluted net income per limited partner unit | $0.35 | $0.73 |
Net_Income_Per_Limited_Partner3
Net Income Per Limited Partner Unit (Details 2) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Basic and Diluted Net Income per Limited Partner Unit | |
Basic net income per limited partner unit impact | ($0.05) |
Diluted net income per limited partner unit impact | ($0.05) |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts Receivable | ||
Advance cash payments received from third parties to mitigate credit risk | $130 | $180 |
Standby letters of credit | 12 | 198 |
Substantially all accounts receivable, net, maximum age of balances past their scheduled invoice date | 30 days | 30 days |
Allowance for doubtful accounts receivable | $4 | $4 |
Inventory_Linefill_and_Base_Ga2
Inventory, Linefill and Base Gas and Long-term Inventory (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Inventory-related disclosures | |||
Charge related to the write-down of inventory | $24 | $37 | |
Inventory by category | |||
Inventory | 929 | 891 | |
Linefill and base gas | 960 | 930 | |
Long-term inventory | 149 | 186 | |
Total | 2,038 | 2,007 | |
Crude oil | |||
Inventory by category | |||
Inventory | 686 | 304 | |
Linefill and base gas | 777 | 744 | |
Long-term inventory | 117 | 136 | |
Inventory, Volumes (in barrels or in Mcf) | 15,351,000 | 6,465,000 | |
Linefill and base gas, Volumes (in barrels or in Mcf) | 12,970,000 | 11,810,000 | |
Long-term inventory, Volumes (in barrels or in Mcf) | 2,646,000 | 2,582,000 | |
Inventory, Price/Unit of measure (in dollars per unit) | 44.69 | 47.02 | |
Linefill and base gas, Price/Unit of measure (in dollars per unit) | 59.91 | 63 | |
Long-term inventory, Price/Unit of measure (in dollars per unit) | 44.22 | 52.67 | |
NGL | |||
Inventory by category | |||
Inventory | 154 | 454 | |
Linefill and base gas | 48 | 52 | |
Long-term inventory | 32 | 50 | |
Inventory, Volumes (in barrels or in Mcf) | 7,277,000 | 13,553,000 | |
Linefill and base gas, Volumes (in barrels or in Mcf) | 1,215,000 | 1,212,000 | |
Long-term inventory, Volumes (in barrels or in Mcf) | 1,681,000 | 1,681,000 | |
Inventory, Price/Unit of measure (in dollars per unit) | 21.16 | 33.5 | |
Linefill and base gas, Price/Unit of measure (in dollars per unit) | 39.51 | 42.9 | |
Long-term inventory, Price/Unit of measure (in dollars per unit) | 19.04 | 29.74 | |
Natural gas | |||
Inventory by category | |||
Inventory | 31 | 102 | |
Linefill and base gas | 135 | 134 | |
Inventory, Volumes (in barrels or in Mcf) | 10,965,000 | 32,317,000 | |
Linefill and base gas, Volumes (in barrels or in Mcf) | 28,612,000 | 28,612,000 | |
Inventory, Price/Unit of measure (in dollars per unit) | 2.83 | 3.16 | |
Linefill and base gas, Price/Unit of measure (in dollars per unit) | 4.72 | 4.68 | |
Other | |||
Inventory by category | |||
Inventory | $58 | $31 |
Debt_Details
Debt (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2015 |
Short-term debt: | ||
Other short-term debt | $3 | $3 |
Total short-term debt | 1,287 | 553 |
Long-term debt: | ||
Senior notes, net of unamortized discount of $17 and $18, respectively | 8,757 | 8,758 |
Unamortized discount | 18 | 17 |
Long-term debt, other | 5 | 5 |
Total long-term debt | 8,762 | 8,763 |
Total debt | 10,049 | 9,316 |
Commercial paper program | ||
Short-term debt: | ||
Commercial paper notes, bearing a weighted-average interest rate of 0.46% at December 31, 2014 | 734 | |
Repayment period | 1 year | |
Weighted average interest rate, short-term (as a percent) | 0.46% | |
5.25% senior notes due June 2015 | ||
Short-term debt: | ||
Senior Notes, Current | 150 | 150 |
Long-term debt: | ||
Debt instrument, interest rate (as a percent) | 5.25% | 5.25% |
3.95% senior notes due September 2015 | ||
Short-term debt: | ||
Senior Notes, Current | $400 | $400 |
Long-term debt: | ||
Debt instrument, interest rate (as a percent) | 3.95% | 3.95% |
Debt_Details_2
Debt (Details 2) (USD $) | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Letters of credit | ||||
Debt | ||||
Outstanding letters of credit | $83,000,000 | $87,000,000 | ||
PAA senior unsecured 364-day revolving credit facility | ||||
Debt | ||||
Expiration period for credit facility | 364 days | |||
Borrowing capacity | 1,000,000,000 | 1,000,000,000 | ||
Basis Variable interest rate used | Eurocurrency Rate or the Base Rate | |||
Credit agreements and commercial paper program | ||||
Debt | ||||
Total borrowings | 7,000,000,000 | 19,200,000,000 | ||
Total repayments | 7,700,000,000 | 19,300,000,000 | ||
Senior notes | ||||
Debt | ||||
Debt instrument face value | 9,300,000,000 | 9,300,000,000 | ||
Senior notes | Level 2 | ||||
Debt | ||||
Debt instrument fair value | $10,000,000,000 | $9,900,000,000 |
Partners_Capital_and_Distribut2
Partners' Capital and Distributions (Details) (USD $) | 3 Months Ended | 0 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 13, 2015 | 15-May-15 |
Partners Capital and Distribution | ||||
Total distributions paid during the period | $391 | $329 | ||
Fourth Quarter Distribution | ||||
Partners Capital and Distribution | ||||
Distributions paid to Limited Partners | 254 | |||
Distributions paid to General Partner - 2% | 5 | |||
Distributions paid to General Partner - Incentive | 131 | |||
Total distributions paid during the period | 390 | |||
Distributions per limited partner unit | $0.68 | |||
Distribution declared, date | 8-Jan-15 | |||
Distribution Date | 13-Feb-15 | |||
Subsequent Event | First Quarter Distribution | ||||
Partners Capital and Distribution | ||||
Distributions paid to Limited Partners | 272 | |||
Distributions paid to General Partner - 2% | 6 | |||
Distributions paid to General Partner - Incentive | 142 | |||
Total distributions paid during the period | $420 | |||
Distributions per limited partner unit | $0.69 | |||
Distribution declared, date | 7-Apr-15 | |||
Distribution Date | 15-May-15 | |||
Unitholders of record, date | 1-May-15 |
Partners_Capital_and_Distribut3
Partners' Capital and Distributions (Details 2) (USD $) | 3 Months Ended | 1 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 |
Partners Capital and Distribution | |||
Issuance of common units, net proceeds | $1,121 | $151 | |
SLC Pipeline LLC | |||
Partners Capital and Distribution | |||
Noncontrolling interests in subsidiaries (as a percent) | 25.00% | 25.00% | |
Continuous Offering Program | |||
Partners Capital and Distribution | |||
Issuance of common units (in units) | 1.1 | ||
Issuance of common units, net proceeds | 59 | ||
Contribution from general partner | 1 | 1 | |
Commissions paid | 1 | ||
Underwritten Offering | |||
Partners Capital and Distribution | |||
Issuance of common units (in units) | 21 | ||
Issuance of common units, net proceeds | 1,100 | ||
Contribution from general partner | $21 | $21 |
Derivatives_and_Risk_Managemen2
Derivatives and Risk Management Activities (Details) | 3 Months Ended |
Mar. 31, 2015 | |
bbl | |
Net long position associated with crude oil purchases | |
Commodity Price Risk Hedging: | |
Average derivative positions notional amount per day (in barrels) | 233,600 |
Derivative position notional amount (in barrels or Mcf) | 7,000,000 |
Net short time spread position hedging anticipated crude oil lease gathering purchases | |
Commodity Price Risk Hedging: | |
Average derivative positions notional amount per day (in barrels) | 18,200 |
Derivative position notional amount (in barrels or Mcf) | 7,200,000 |
Crude oil grade spread positions | |
Commodity Price Risk Hedging: | |
Average derivative positions notional amount per day (in barrels) | 37,500 |
Derivative position notional amount (in barrels or Mcf) | 9,100,000 |
Net short position related to anticipated sales of natural gas inventory and base gas requirements | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels or Mcf) | 6,800,000 |
Net short position related to anticipated purchases and sales of crude oil, NGL and refined products inventory | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels or Mcf) | 16,800,000 |
Long natural gas position for natural gas purchases | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels or Mcf) | 18,100,000 |
Short propane position related to subsequent sale of products | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels or Mcf) | 3,500,000 |
Short butane position related to subsequent sale of products | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels or Mcf) | 1,000,000 |
Short WTI position related to subsequent sale of products | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels or Mcf) | 400,000 |
Long power position for power supply requirements | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in megawatt hours) | 400,000 |
Derivatives_and_Risk_Managemen3
Derivatives and Risk Management Activities (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Interest Rate Risk Hedging | ||||
Net deferred gains (losses) from interest rate risk hedging included in AOCI | ($843) | ($467) | ($233) | ($97) |
Interest Rate Derivatives | ||||
Interest Rate Risk Hedging | ||||
Net deferred gains (losses) from interest rate risk hedging included in AOCI | -234 | |||
10 forward starting interest rate swaps (30-year) | Cash flow hedge | ||||
Interest Rate Risk Hedging | ||||
Number of interest rate derivatives (in contracts) | 10 | |||
Notional amount of derivatives | 250 | |||
Rate of fixed interest to be received on interest rate swap (as a percent) | 3.60% | |||
8 forward starting interest rate swaps (30-year), one | Cash flow hedge | ||||
Interest Rate Risk Hedging | ||||
Number of interest rate derivatives (in contracts) | 8 | |||
Notional amount of derivatives | 200 | |||
Rate of fixed interest to be received on interest rate swap (as a percent) | 3.06% | |||
8 forward starting interest rate swaps (30-year), two | Cash flow hedge | ||||
Interest Rate Risk Hedging | ||||
Number of interest rate derivatives (in contracts) | 8 | |||
Notional amount of derivatives | 200 | |||
Rate of fixed interest to be received on interest rate swap (as a percent) | 3.14% | |||
8 forward starting interest rate swaps (30-year), three | Cash flow hedge | ||||
Interest Rate Risk Hedging | ||||
Number of interest rate derivatives (in contracts) | 8 | |||
Notional amount of derivatives | 200 | |||
Rate of fixed interest to be received on interest rate swap (as a percent) | 3.20% | |||
8 forward starting interest rate swaps (30-year), four | Cash flow hedge | ||||
Interest Rate Risk Hedging | ||||
Number of interest rate derivatives (in contracts) | 8 | |||
Notional amount of derivatives | $200 | |||
Rate of fixed interest to be received on interest rate swap (as a percent) | 2.83% |
Derivatives_and_Risk_Managemen4
Derivatives and Risk Management Activities (Details 3) | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 |
In Millions, unless otherwise specified | Forward exchange contracts that exchange CAD for USD at the rate USD 1.00 to CAD 1.27 maturing in 2015 | Forward exchange contracts that exchange CAD for USD at the rate USD 1.00 to CAD 1.27 maturing in 2015 | Forward exchange contracts that exchange CAD for USD at the rate USD 1.00 to CAD 1.27 maturing in 2016 | Forward exchange contracts that exchange CAD for USD at the rate USD 1.00 to CAD 1.27 maturing in 2016 | Forward exchange contracts that exchange CAD for USD | Forward exchange contracts that exchange CAD for USD | Forward exchange contracts that exchange USD for CAD at the rate USD 1.00 to CAD 1.24 maturing in 2015 | Forward exchange contracts that exchange USD for CAD at the rate USD 1.00 to CAD 1.24 maturing in 2015 | Forward exchange contracts that exchange USD for CAD at the rate USD 1.00 to CAD 1.27 maturing in 2016 | Forward exchange contracts that exchange USD for CAD at the rate USD 1.00 to CAD 1.27 maturing in 2016 | Forward exchange contracts that exchange USD for CAD | Forward exchange contracts that exchange USD for CAD |
USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | USD ($) | CAD | |
Currency Exchange Rate Risk Hedging: | ||||||||||||
Notional amount of derivatives | $147 | 187 | $5 | 7 | $152 | 194 | $181 | 225 | $5 | 7 | $186 | 232 |
Average exchange rate | 1.27 | 1.27 | 1.24 | 1.27 |
Derivatives_and_Risk_Managemen5
Derivatives and Risk Management Activities (Details 4) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Impact of derivative activities recognized in earnings | ||
Total | ($47) | ($30) |
Commodity Derivatives | Supply and Logistics segment revenues | ||
Impact of derivative activities recognized in earnings | ||
Total | -27 | -19 |
Commodity Derivatives | Transportation segment revenues | ||
Impact of derivative activities recognized in earnings | ||
Total | 2 | |
Commodity Derivatives | Field operating costs | ||
Impact of derivative activities recognized in earnings | ||
Total | -4 | -1 |
Interest Rate Derivatives | Interest expense | ||
Impact of derivative activities recognized in earnings | ||
Total | -1 | -1 |
Foreign Currency Derivatives | Supply and Logistics segment revenues | ||
Impact of derivative activities recognized in earnings | ||
Total | -17 | -9 |
Derivatives in Hedging Relationships | Cash flow hedge | ||
Impact of derivative activities recognized in earnings | ||
Gain/(loss) reclassified from AOCI into income | 6 | -20 |
Derivatives in Hedging Relationships | Cash flow hedge | Commodity Derivatives | Supply and Logistics segment revenues | ||
Impact of derivative activities recognized in earnings | ||
Gain/(loss) reclassified from AOCI into income | 7 | -19 |
Derivatives in Hedging Relationships | Cash flow hedge | Interest Rate Derivatives | Interest expense | ||
Impact of derivative activities recognized in earnings | ||
Gain/(loss) reclassified from AOCI into income | -1 | -1 |
Derivatives Not Designated as a Hedge | ||
Impact of derivative activities recognized in earnings | ||
Total | -53 | -10 |
Derivatives Not Designated as a Hedge | Commodity Derivatives | Supply and Logistics segment revenues | ||
Impact of derivative activities recognized in earnings | ||
Total | -34 | |
Derivatives Not Designated as a Hedge | Commodity Derivatives | Transportation segment revenues | ||
Impact of derivative activities recognized in earnings | ||
Total | 2 | |
Derivatives Not Designated as a Hedge | Commodity Derivatives | Field operating costs | ||
Impact of derivative activities recognized in earnings | ||
Total | -4 | -1 |
Derivatives Not Designated as a Hedge | Foreign Currency Derivatives | Supply and Logistics segment revenues | ||
Impact of derivative activities recognized in earnings | ||
Total | ($17) | ($9) |
Derivatives_and_Risk_Managemen6
Derivatives and Risk Management Activities (Details 5) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
contract | contract | ||
Derivatives disclosures | |||
Asset Derivatives Fair Value | $246 | $493 | |
Liability Derivatives Fair Value | -250 | -384 | |
Broker payable | 112 | 133 | |
Initial margin | 61 | 126 | |
Variation margin posted/(returned) | -173 | -259 | |
Net gain/(loss) deferred in AOCI | -237 | ||
Net gain/(loss) expected to be reclassified to earnings in next 12 months | 9 | ||
Gain/(loss) expected to be reclassified to earnings through 2049 | -246 | ||
Net deferred gain/(loss) recognized in AOCI on derivatives | -72 | -32 | |
Number of outstanding derivatives containing credit-risk related contingent features | 0 | 0 | |
Derivative credit-risk related contingent features | 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 | ||
Commodity Derivatives | |||
Derivatives disclosures | |||
Net deferred gain/(loss) recognized in AOCI on derivatives | 3 | -12 | |
Interest Rate Derivatives | |||
Derivatives disclosures | |||
Net deferred gain/(loss) recognized in AOCI on derivatives | -75 | -20 | |
Derivatives in Hedging Relationships | |||
Derivatives disclosures | |||
Asset Derivatives Fair Value | 21 | 31 | |
Liability Derivatives Fair Value | -146 | -83 | |
Derivatives in Hedging Relationships | Commodity Derivatives | Other current assets | |||
Derivatives disclosures | |||
Asset Derivatives Fair Value | 18 | 23 | |
Liability Derivatives Fair Value | -12 | ||
Derivatives in Hedging Relationships | Commodity Derivatives | Other long-term assets, net | |||
Derivatives disclosures | |||
Asset Derivatives Fair Value | 8 | ||
Liability Derivatives Fair Value | -1 | ||
Derivatives in Hedging Relationships | Commodity Derivatives | Other long-term liabilities and deferred credits | |||
Derivatives disclosures | |||
Asset Derivatives Fair Value | 3 | ||
Liability Derivatives Fair Value | -2 | ||
Derivatives in Hedging Relationships | Interest Rate Derivatives | Other current liabilities | |||
Derivatives disclosures | |||
Liability Derivatives Fair Value | -64 | -44 | |
Derivatives in Hedging Relationships | Interest Rate Derivatives | Other long-term liabilities and deferred credits | |||
Derivatives disclosures | |||
Liability Derivatives Fair Value | -80 | -26 | |
Derivatives Not Designated as a Hedge | |||
Derivatives disclosures | |||
Asset Derivatives Fair Value | 225 | 462 | |
Liability Derivatives Fair Value | -104 | -301 | |
Derivatives Not Designated as a Hedge | Commodity Derivatives | Other current assets | |||
Derivatives disclosures | |||
Asset Derivatives Fair Value | 205 | 439 | |
Liability Derivatives Fair Value | -47 | -246 | |
Derivatives Not Designated as a Hedge | Commodity Derivatives | Other long-term assets, net | |||
Derivatives disclosures | |||
Asset Derivatives Fair Value | 18 | 23 | |
Liability Derivatives Fair Value | -3 | ||
Derivatives Not Designated as a Hedge | Commodity Derivatives | Other current liabilities | |||
Derivatives disclosures | |||
Liability Derivatives Fair Value | -40 | -35 | |
Derivatives Not Designated as a Hedge | Commodity Derivatives | Other long-term liabilities and deferred credits | |||
Derivatives disclosures | |||
Asset Derivatives Fair Value | 2 | ||
Liability Derivatives Fair Value | -13 | -5 | |
Derivatives Not Designated as a Hedge | Foreign Currency Derivatives | Other current liabilities | |||
Derivatives disclosures | |||
Liability Derivatives Fair Value | ($4) | ($12) |
Derivatives_and_Risk_Managemen7
Derivatives and Risk Management Activities (Details 6) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Derivative Asset Positions | ||
Gross Position - Asset | $246 | $493 |
Netting Adjustment | -52 | -262 |
Cash collateral received | -112 | -133 |
Net Position - Asset | 82 | 98 |
Derivative Liability Positions | ||
Gross Position - Liability | -250 | -384 |
Netting Adjustment | 52 | 262 |
Net Position - Liability | -198 | -122 |
Other current assets | ||
Derivative Asset Positions | ||
Net Position - Asset | 64 | 71 |
Other long-term assets, net | ||
Derivative Asset Positions | ||
Net Position - Asset | 18 | 27 |
Other current liabilities | ||
Derivative Liability Positions | ||
Net Position - Liability | -108 | -91 |
Other long-term liabilities and deferred credits | ||
Derivative Liability Positions | ||
Net Position - Liability | ($90) | ($31) |
Derivatives_and_Risk_Managemen8
Derivatives and Risk Management Activities (Details 7) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Level 3 | |||
Rollforward of Level 3 Net Asset/(Liability) | |||
Beginning Balance | $15 | ($3) | |
Total gains/(losses) for the period: | |||
Settlements | -12 | 3 | |
Derivatives entered into during the period | 2 | 1 | |
Ending Balance | 5 | 1 | |
Change in unrealized gains/(losses) included in earnings relating to Level 3 derivatives still held at the end of the period | 2 | 1 | |
Recurring Fair Value Measures | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | -4 | 109 | |
Recurring Fair Value Measures | Commodity Derivatives | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | 144 | 191 | |
Recurring Fair Value Measures | Interest Rate Derivatives | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | -144 | -70 | |
Recurring Fair Value Measures | Foreign Currency Derivatives | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | -4 | -12 | |
Recurring Fair Value Measures | Level 1 | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | 16 | -85 | |
Recurring Fair Value Measures | Level 1 | Commodity Derivatives | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | 16 | -85 | |
Recurring Fair Value Measures | Level 2 | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | -25 | 179 | |
Recurring Fair Value Measures | Level 2 | Commodity Derivatives | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | 123 | 261 | |
Recurring Fair Value Measures | Level 2 | Interest Rate Derivatives | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | -144 | -70 | |
Recurring Fair Value Measures | Level 2 | Foreign Currency Derivatives | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | -4 | -12 | |
Recurring Fair Value Measures | Level 3 | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | 5 | 15 | |
Recurring Fair Value Measures | Level 3 | Commodity Derivatives | |||
Recurring Fair Value Measures | |||
Net derivative asset/(liability) | $5 | $15 |
EquityIndexed_Compensation_Pla2
Equity-Indexed Compensation Plans (Details) (Long-Term Incentive Plan Awards, USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Outstanding (in units) | |
Outstanding at beginning of period (in units) | 7.3 |
Granted (in units) | 1.1 |
Cancelled or forfeited (in units) | -0.1 |
Outstanding at end of period (in units) | 8.3 |
Weighted Average Grant Date Fair Value per Unit | |
Outstanding at beginning of period (in dollars per unit) | $41.45 |
Granted (in dollars per unit) | $39.99 |
Vested (in dollars per unit) | $40.23 |
Cancelled or forfeited (in dollars per unit) | $39.69 |
Outstanding at end of period (in dollars per unit) | $41.26 |
Maximum | |
Weighted Average Grant Date Fair Value per Unit | |
Vested awards settled in cash (in units) | 0.1 |
EquityIndexed_Compensation_Pla3
Equity-Indexed Compensation Plans (Details 2) (USD $) | 3 Months Ended | 92 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 |
Grant Date Fair Value of Outstanding AAP Management Units | |||
Equity-indexed compensation expense | $19 | $34 | |
AAP Management Units | |||
Reserved for Future Grants | |||
Reserved for future grants, beginning balance (in units) | 3 | ||
Reserved for future grants, ending balance (in units) | 3 | 3 | |
Outstanding | |||
Outstanding, beginning balance (in units) | 49.1 | ||
Outstanding, ending balance (in units) | 49.1 | 49.1 | |
Outstanding Units Earned | |||
Outstanding Units Earned, beginning balance (in units) | 47.8 | ||
Earned (in units) | 0.3 | ||
Outstanding Units Earned, ending balance (in units) | 48.1 | 48.1 | |
Grant Date Fair Value of Outstanding AAP Management Units | |||
Grant Date Fair Value of Outstanding AAP Management Units, beginning balance | 64 | ||
Grant Date Fair Value of Outstanding AAP Management Units, ending balance | 64 | 64 | |
Equity-indexed compensation expense | $1 | $56 |
EquityIndexed_Compensation_Pla4
Equity-Indexed Compensation Plans (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Consolidated Equity-Indexed Compensation Plan Information | ||
Equity-indexed compensation expense | $19 | $34 |
LTIP unit-settled vestings | 5 | |
LTIP cash-settled vestings | 1 | |
DER cash payments | 2 | 2 |
Maximum | ||
Other Consolidated Equity-Indexed Compensation Plan Information | ||
LTIP cash-settled vestings | $1 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Feb. 28, 2013 | Mar. 31, 2015 | Jun. 30, 2013 | Mar. 31, 2015 | Apr. 30, 2015 | Jan. 15, 2015 | Feb. 28, 2015 | Mar. 31, 2015 |
USD ($) | USD ($) | Minimum | Bay Springs Pipeline Release | Bay Springs Pipeline Release | Kemp River Pipeline Release | Kemp River Pipeline Release | In the Matter of Bakersfield Crude Terminal LLC et al | PMC | PMC | PMC | |
bbl | USD ($) | item | USD ($) | Subsequent Event | National Energy Board Audit | National Energy Board Audit | Kemp River Pipeline Release | ||||
bbl | USD ($) | item | CAD | USD ($) | |||||||
item | |||||||||||
Environmental | |||||||||||
Estimated undiscounted reserve for environmental liabilities | $75,000,000 | $82,000,000 | |||||||||
Estimated undiscounted reserve for environmental liabilities, short-term | 11,000,000 | 13,000,000 | |||||||||
Estimated undiscounted reserve for environmental liabilities, long-term | 64,000,000 | 69,000,000 | |||||||||
Amounts probable of recovery under insurance and from third parties under indemnification agreements | 7,000,000 | 8,000,000 | |||||||||
Actual cash expenditures for environmental liabilities, period paid | 3 years | ||||||||||
Number of events occurred | 2 | ||||||||||
Estimated size of release (in barrels) | 120 | 700 | |||||||||
Number of conditions imposed related to regulatory compliance | 6 | ||||||||||
Number of alleged rule violations | 10 | ||||||||||
Charges, fines or penalties assessed | 0 | 76,000 | 0 | ||||||||
Total estimated cost to clean up and remediate the site | 15,000,000 | ||||||||||
Total cost to clean up and remediate the site | 6,000,000 | ||||||||||
Cost incurred, to date, to clean up and remediate the site | $9,000,000 |
Operating_Segments_Details
Operating Segments (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segment | ||
Operating Segments | ||
Operating segments number | 3 | |
Revenues: | ||
Revenues | $5,942 | $11,684 |
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments | ||
Equity earnings in unconsolidated entities | 37 | 20 |
Segment profit | 513 | 609 |
Maintenance capital | 50 | 46 |
Transportation | ||
Revenues: | ||
Revenues | 185 | 181 |
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments | ||
Equity earnings in unconsolidated entities | 37 | 20 |
Segment profit | 241 | 206 |
Maintenance capital | 33 | 34 |
Facilities | ||
Revenues: | ||
Revenues | 125 | 157 |
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments | ||
Segment profit | 142 | 154 |
Maintenance capital | 15 | 10 |
Supply and Logistics | ||
Revenues: | ||
Revenues | 5,632 | 11,346 |
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments | ||
Segment profit | 130 | 249 |
Maintenance capital | 2 | 2 |
Interest expense related to hedged inventory purchases | 1 | 2 |
Operating Segments | ||
Revenues: | ||
Revenues | 6,291 | 12,054 |
Operating Segments | Transportation | ||
Revenues: | ||
Revenues | 400 | 387 |
Operating Segments | Facilities | ||
Revenues: | ||
Revenues | 257 | 299 |
Operating Segments | Supply and Logistics | ||
Revenues: | ||
Revenues | 5,634 | 11,368 |
Intersegment | ||
Revenues: | ||
Revenues | -349 | -370 |
Intersegment | Transportation | ||
Revenues: | ||
Revenues | -215 | -206 |
Intersegment | Facilities | ||
Revenues: | ||
Revenues | -132 | -142 |
Intersegment | Supply and Logistics | ||
Revenues: | ||
Revenues | ($2) | ($22) |
Operating_Segments_Details_2
Operating Segments (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reconciliation of segment profit to net income attributable to PAA | ||
Segment profit | $513 | $609 |
Depreciation and amortization | -107 | -96 |
Interest expense, net | -102 | -78 |
Other expense, net | -4 | -2 |
INCOME BEFORE TAX | 300 | 433 |
Income tax expense | -16 | -48 |
NET INCOME | 284 | 385 |
Net income attributable to noncontrolling interests | -1 | -1 |
NET INCOME ATTRIBUTABLE TO PAA | $283 | $384 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Oxy, USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Oxy | |||
Related party transaction | |||
Related party ownership of general partner interest (as a percent) | 13.00% | ||
Revenues | $176 | $92 | |
Purchases and related costs | 104 | 259 | |
Trade accounts receivable and other receivables, gross | 465 | 489 | |
Accounts payable, gross | $410 | $441 |