PAA NATURAL GAS STORAGE LP

CIK:0001481506|SEC Filings

Condensed Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified

3 Months Ended

9 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

REVENUES

Firm storage services

$ 35,463

$ 36,364

$ 107,020

$ 105,646

Hub services

1,926

2,175

5,928

7,647

Natural gas sales

17,420

26,001

182,362

158,621

Other

658

1,587

4,648

3,076

Total revenues

55,467

66,127

299,958

274,990

COSTS AND EXPENSES

Storage-related costs

3,312

4,448

11,449

15,468

Natural gas sales costs

19,363

24,736

178,535

152,081

Field operating costs

3,372

2,974

10,625

9,030

General and administrative expenses

4,959

4,641

15,713

14,304

Depreciation, depletion and amortization

9,693

9,461

29,177

27,855

Total costs and expenses

40,699

46,260

245,499

218,738

OPERATING INCOME

14,768

19,867

54,459

56,252

OTHER INCOME/(EXPENSE)

Interest expense (net of capitalized interest of $971, $1,573, $3,126 and $6,094, respectively)

(2,624)

(1,973)

(7,752)

(5,350)

Other income/(expense), net

(8)

(5)

(23)

NET INCOME

12,136

17,889

46,684

50,914

NET INCOME AVAILABLE TO LIMITED PARTNERS

$ 11,670

$ 17,314

$ 45,082

$ 49,243

NET INCOME PER LIMITED PARTNER UNIT

Common and Series A subordinated units (Basic) (in dollars per share)

$ 0.16

^[1]

$ 0.24

^[1]

$ 0.62

^[1]

$ 0.69

^[1]

Common and Series A subordinated units (Diluted) (in dollars per share)

$ 0.16

^[1]

$ 0.24

^[1]

$ 0.62

^[1]

$ 0.69

^[1]

WEIGHTED AVERAGE LIMITED PARTNER UNITS OUTSTANDING

Common and Series A subordinated units (Basic) (in shares)

73,086

^[1]

71,136

^[1]

72,223

^[1]

71,131

^[1]

Common and Series A subordinated units (Diluted) (in shares)

73,401

^[1]

71,253

^[1]

72,499

^[1]

71,248

^[1]

[1]	Excludes Series B subordinated units. See Note 8, "Net Income per Limited Partner Unit."

Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 46,684	$ 50,914
Reconciliation of net income to net cash provided by operating activities:
Depreciation, depletion and amortization	29,177	27,855
Equity-indexed compensation expense	4,040	3,601
Change in assets and liabilities:
Trade accounts receivable and other	17,202	(5,535)
Natural gas inventory	9,568	6,047
Accounts payable and other liabilities	1,925	(13,969)
Net cash provided by operating activities	108,596	68,913
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property and equipment	(27,860)	(43,444)
Net cash received/(paid) for sales and purchases of base gas	(8,542)	(280)
Other investing activities		1
Net cash used in investing activities	(36,402)	(43,723)
CASH FLOWS FROM FINANCING ACTIVITIES
Net short-term borrowings/(repayments) under credit agreement	(30,277)	12,146
Net long-term borrowings/(repayments) under credit agreement	(2,123)	41,754
Net proceeds from the issuance of common units	40,525
Costs incurred in connection with financing arrangements	(416)	(386)
Contributions from general partner	842	4
Distributions paid to unitholders	(77,447)	(76,285)
Distributions paid to general partner	(2,257)	(2,223)
Distribution equivalent right payments	(589)	(248)
Net cash provided by/(used in) financing activities	(71,742)	(25,238)
Net increase/(decrease) in cash and cash equivalents	452	(48)
Cash and cash equivalents, beginning of period	650	496
Cash and cash equivalents, end of period	1,102	448
Cash paid for:
Interest, net of amounts capitalized	7,149	5,169
Income taxes, net of amounts refunded	190
Non-cash items
Increase/(decrease) in accrued capital expenditures	$ 1,070	$ (463)

Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS
Cash and cash equivalents	$ 1,102	$ 650
Trade accounts receivable and other receivables, net	16,850	25,993
Natural gas inventory	54,358	59,685
Other current assets	9,923	8,065
Total current assets	82,233	94,393
PROPERTY AND EQUIPMENT	1,392,455	1,363,525
Accumulated depreciation, depletion and amortization	(65,214)	(49,607)
PROPERTY AND EQUIPMENT, NET	1,327,241	1,313,918
OTHER ASSETS
Base gas	60,912	54,091
Goodwill	325,470	325,470
Intangibles and other assets, net	67,692	81,197
Total other assets, net	454,074	460,758
Total assets	1,863,548	1,869,069
CURRENT LIABILITIES
Accounts payable and accrued liabilities	31,502	27,621
Short-term debt	46,437	76,715
Total current liabilities	77,939	104,336
LONG-TERM LIABILITIES
Note payable to PAA	200,000	200,000
Long-term debt under credit agreement	303,263	305,385
Other long-term liabilities	9,351	8,406
Total long-term liabilities	512,614	513,791
Total liabilities	590,553	618,127
COMMITMENTS AND CONTINGENCIES (NOTE 12)
PARTNERS' CAPITAL
Common unitholders (61,158,699 units issued and outstanding at September 30, 2013)	1,028,905	1,013,848
Subordinated unitholders (25,434,351 units issued and outstanding at September 30, 2013)	219,696	225,123
General partner	29,871	28,737
Accumulated other comprehensive income/(loss)	(5,477)	(16,766)
Total partners' capital	1,272,995	1,250,942
Total liabilities and partners' capital	$ 1,863,548	$ 1,869,069