STOCK TITAN
  1. Home
  2. News
  3. PAA

Plains All American Reports Third-Quarter 2024 Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
earnings
Rhea-AI Summary

Plains All American Pipeline (PAA) reported strong Q3 2024 results with net income of $220 million, up 8% year-over-year, and operating cash flow of $692 million. The company delivered Adjusted EBITDA of $659 million and maintained a 3.0x leverage ratio. Crude Oil segment saw a 4% increase in Adjusted EBITDA due to higher tariff volumes, while the NGL segment decreased 26%. PAA expects full-year 2024 Adjusted EBITDA to reach the higher end of $2.725-$2.775 billion guidance and projects Adjusted Free Cash Flow of approximately $1.45 billion. The company received a Moody's upgrade to Baa2 and settled Line 901 claims for $120 million.

Plains All American Pipeline (PAA) ha riportato risultati solidi nel terzo trimestre del 2024, con un reddito netto di 220 milioni di dollari, in aumento dell'8% rispetto allo scorso anno, e un flusso di cassa operativo di 692 milioni di dollari. L'azienda ha registrato un EBITDA rettificato di 659 milioni di dollari e ha mantenuto un rapporto di indebitamento di 3.0x. Il settore del petrolio greggio ha visto un aumento del 4% dell'EBITDA rettificato grazie a volumi più elevati di tariffe, mentre il settore NGL ha registrato un calo del 26%. PAA prevede che l'EBITDA rettificato dell'intero anno 2024 raggiunga la parte alta della guida di 2.725-2.775 miliardi di dollari e proietta un flusso di cassa libero rettificato di circa 1.45 miliardi di dollari. L'azienda ha ricevuto un upgrade da Moody's a Baa2 e ha risolto i reclami riguardanti la Linea 901 per 120 milioni di dollari.

Plains All American Pipeline (PAA) reportó resultados fuertes en el tercer trimestre de 2024, con un ingreso neto de 220 millones de dólares, un aumento del 8% interanual, y un flujo de efectivo operativo de 692 millones de dólares. La compañía entregó un EBITDA ajustado de 659 millones de dólares y mantuvo un ratio de apalancamiento de 3.0x. El segmento de petróleo crudo experimentó un aumento del 4% en EBITDA ajustado debido a volúmenes más altos de tarifas, mientras que el segmento NGL disminuyó un 26%. PAA espera que el EBITDA ajustado del año completo 2024 alcance la parte alta de la guía de 2.725-2.775 mil millones de dólares y proyecta un flujo de efectivo libre ajustado de aproximadamente 1.45 mil millones de dólares. La compañía recibió una mejora de Moody's a Baa2 y resolvió las reclamaciones de la Línea 901 por 120 millones de dólares.

Plains All American Pipeline (PAA)는 2024년 3분기에 2억 2천만 달러의 순이익을 기록하며 지난해 대비 8% 증가한 강력한 실적을 보고했습니다. 운영 현금 흐름은 6억 9천2백만 달러였습니다. 이 회사는 조정된 EBITDA가 6억 5천9백만 달러에 달했으며, 3.0배의 부채 비율을 유지했습니다. 원유 부문은 요금량 증가로 조정된 EBITDA가 4% 상승했지만, NGL 부문은 26% 감소했습니다. PAA는 2024년 전체 조정된 EBITDA가 2,725억~2,775억 달러의 상단에 도달할 것으로 예상하며, 약 14억 5천만 달러의 조정된 자유 현금 흐름을 예상하고 있습니다. 이 회사는 Moody's로부터 Baa2로 신용 등급이 상승했으며, 901번 라인에 대한 클레임을 1억 2천만 달러에 해결했습니다.

Plains All American Pipeline (PAA) a annoncé de solides résultats pour le troisième trimestre 2024, avec un revenu net de 220 millions de dollars, en hausse de 8 % par rapport à l'année précédente, et un flux de trésorerie opérationnel de 692 millions de dollars. L'entreprise a enregistré un EBITDA ajusté de 659 millions de dollars et a maintenu un ratio d'endettement de 3,0x. Le secteur du pétrole brut a connu une augmentation de 4 % de l'EBITDA ajusté grâce à des volumes de tarifs plus élevés, tandis que le secteur NGL a diminué de 26 %. PAA s'attend à ce que l'EBITDA ajusté pour l'année entière de 2024 atteigne la fourchette haute de la prévision de 2,725 à 2,775 milliards de dollars et prévoit un flux de trésorerie libre ajusté d'environ 1,45 milliard de dollars. L'entreprise a obtenu une upgrade de Moody's à Baa2 et a réglé les réclamations de la ligne 901 pour 120 millions de dollars.

Plains All American Pipeline (PAA) meldete starke Ergebnisse für das dritte Quartal 2024 mit einem Nettogewinn von 220 Millionen US-Dollar, was einem Anstieg von 8% im Jahresvergleich entspricht, und einem operativen Cashflow von 692 Millionen US-Dollar. Das Unternehmen erzielte ein angepasstes EBITDA von 659 Millionen US-Dollar und hielt ein Verschuldungsverhältnis von 3,0x aufrecht. Der Rohölbereich verzeichnete einen Anstieg des angepassten EBITDA um 4% aufgrund höherer Tarifvolumen, während der NGL-Bereich um 26% zurückging. PAA erwartet, dass das angepasste EBITDA für das gesamte Jahr 2024 die obere Grenze der Prognose von 2,725 bis 2,775 Milliarden US-Dollar erreicht, und prognostiziert einen angepassten freien Cashflow von etwa 1,45 Milliarden US-Dollar. Das Unternehmen erhielt von Moody's ein Upgrade auf Baa2 und einigte sich über Ansprüche der Linie 901 in Höhe von 120 Millionen US-Dollar.

Positive
  • Net income increased 8% YoY to $220 million
  • Operating cash flow grew significantly to $692 million
  • Credit rating upgraded to Baa2 by Moody's
  • Leverage ratio of 3.0x below target range of 3.25x-3.75x
  • Crude Oil segment Adjusted EBITDA increased 4%
  • Distribution per unit increased 19% to $0.3175
Negative
  • NGL segment Adjusted EBITDA decreased 26% due to lower frac spreads
  • $120 million charge for Line 901 lawsuit settlements
  • Adjusted Free Cash Flow after Distributions declined 93% to $24 million
  • Nine-month net income decreased 20% compared to 2023

Insights

Plains All American delivered a solid Q3 2024 with net income of $220 million, up 8% year-over-year. Key highlights include $659 million in Adjusted EBITDA and improved leverage ratio of 3.0x, strengthening their credit profile with a Moody's upgrade to Baa2. The company's Crude Oil segment performed well with 4% EBITDA growth, though NGL segment saw a 26% decline.

Management's guidance toward the high end of $2.725-2.775 billion Adjusted EBITDA range and expected $1.45 billion in Adjusted Free Cash Flow demonstrates operational strength. The 19% distribution increase to $0.3175 per unit reflects confidence in sustainable cash generation. The $120 million Line 901 settlement charge resolves a significant liability overhang.

HOUSTON, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported third-quarter 2024 results.

Third-Quarter Results

  • Reported net income attributable to PAA of $220 million and net cash provided by operating activities of $692 million

  • Delivered solid Adjusted EBITDA attributable to PAA of $659 million

  • Progressed our efficient growth strategy with a small bolt-on acquisition of a Permian gathering system

  • Exited the quarter with 3.0x leverage ratio, below our target range of 3.25x – 3.75x

  • Received Moody’s upgrade from Baa3 to Baa2 with stable outlook; now mid-BBB at all three credit rating agencies

  • Resolved remaining material Line 901 claims against Plains with two lawsuit settlements resulting in a $120 million charge to GAAP earnings

2024 Guidance Update

  • Expect to be toward the high-end of the guidance range for full-year 2024 Adjusted EBITDA attributable to PAA of $2.725 - $2.775 billion

  • Expect 2024 Adjusted Free Cash Flow to be approximately $1.45 billion (excluding changes in Assets & Liabilities; including bolt-on acquisition capital and legal settlements)

“We delivered solid operational and financial results in the third quarter and we continue to make progress on our efficient growth strategy, which includes generating multi-year Free Cash Flow, maintaining capital discipline and returning capital to our investors while preserving financial flexibility,” said Willie Chiang, Chairman and CEO of Plains. “Our company is well positioned, and we have grown increasingly confident in both the durability and cash generating potential of the asset base. The improved outlook for the year provides more confidence in our long-term return of capital framework, which should continue creating value for our unitholders.”

Plains All American Pipeline

Summary Financial Information (unaudited)
(in millions, except per unit data)

  Three Months Ended
September 30,		 %   Nine Months Ended
September 30,		 %
GAAP Results  2024   2023  Change   2024   2023  Change
Net income attributable to PAA $220  $203  8%  $736  $918  (20)%
Diluted net income per common unit $0.22  $0.20  10%  $0.77  $1.04  (26)%
Diluted weighted average common units outstanding  702   700  —%   702   699  —%
Net cash provided by operating activities $692  $85  **  $1,763  $1,716  3%
Distribution per common unit declared for the period $0.3175  $0.2675  19%  $0.9525  $0.8025  19%


  Three Months Ended
September 30,		 %   Nine Months Ended
September 30,		 %
Non-GAAP Results (1)  2024   2023  Change   2024   2023  Change
Adjusted net income attributable to PAA $320  $308  4%  $962  $894  8%
Diluted adjusted net income per common unit $0.37  $0.35  6%  $1.09  $1.01  8%
Adjusted EBITDA $805  $779  3%  $2,459  $2,292  7%
Adjusted EBITDA attributable to PAA (2) $659  $662  —%  $2,051  $1,974  4%
Implied DCF per common unit and common unit equivalent $0.61  $0.62  (2)%  $1.86  $1.78  4%
Adjusted Free Cash Flow $401  $(386) **  $882  $1,088  (19)%
Adjusted Free Cash Flow after Distributions $114  $(636) **  $24  $350  (93)%
Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) $357  $57  **  $1,039  $1,202  (14)%
Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) $70  $(193) **  $181  $464  (61)%

________________________
**      Indicates that variance as a percentage is not meaningful.
(1)   See the section of this release entitled “Non-GAAP Financial Measures and Selected Items Impacting Comparability” and the tables attached hereto for information regarding our Non-GAAP financial measures, including their reconciliation to the most directly comparable measures as reported in accordance with GAAP, and certain selected items that PAA believes impact comparability of financial results between reporting periods.
(2)   Excludes amounts attributable to noncontrolling interests in the Plains Oryx Permian Basin LLC joint venture, Cactus II Pipeline LLC and Red River Pipeline LLC.


Summary of Selected Financial Data by Segment (unaudited)
(in millions)

 Segment Adjusted EBITDA
 Crude Oil NGL
Three Months Ended September 30, 2024$577  $73 
Three Months Ended September 30, 2023$553  $99 
Percentage change in Segment Adjusted EBITDA versus 2023 period 4%  (26)%
    
 Segment Adjusted EBITDA
 Crude Oil NGL
Nine Months Ended September 30, 2024$1,707  $326 
Nine Months Ended September 30, 2023$1,600  $352 
Percentage change in Segment Adjusted EBITDA versus 2023 period 7%  (7)%


Third-quarter 2024 Crude Oil Segment Adjusted EBITDA increased 4% versus comparable 2023 results primarily due to higher tariff volumes on our pipelines, tariff escalations and contributions from acquisitions. These items were partially offset by fewer market-based opportunities.

Third-quarter 2024 NGL Segment Adjusted EBITDA decreased 26% versus comparable 2023 results primarily due to lower weighted average frac spreads in the third quarter of 2024.

Plains GP Holdings

PAGP owns an indirect non-economic controlling interest in PAA’s general partner and an indirect limited partner interest in PAA. As the control entity of PAA, PAGP consolidates PAA’s results into its financial statements, which is reflected in the condensed consolidating balance sheet and income statement tables attached hereto.

Conference Call and Webcast Instructions

PAA and PAGP will hold a joint conference call at 9:00 a.m. CT on Friday, November 8, 2024 to discuss third-quarter performance and related items.

To access the internet webcast, please go to https://edge.media-server.com/mmc/p/cjupfudo/

Alternatively, the webcast can be accessed on our website (www.plains.com) under Investor Relations (Navigate to: Investor Relations / either “PAA” or “PAGP” / News & Events / Events & Presentations). Following the live webcast, an audio replay will be available on our website and will be accessible for a period of 365 days. Slides will be posted prior to the call at the above referenced website.

Non-GAAP Financial Measures and Selected Items Impacting Comparability

To supplement our financial information presented in accordance with GAAP, management uses additional measures known as “non-GAAP financial measures” in its evaluation of past performance and prospects for the future and to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. The primary additional measures used by management are Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied Distributable Cash Flow (“DCF”), Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions.

Our definition and calculation of certain non-GAAP financial measures may not be comparable to similarly-titled measures of other companies. Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied DCF and certain other non-GAAP financial performance measures are reconciled to Net Income, and Adjusted Free Cash Flow, Adjusted Free Cash Flow after Distributions and certain other non-GAAP financial liquidity measures are reconciled to Net Cash Provided by Operating Activities (the most directly comparable measures as reported in accordance with GAAP) for the historical periods presented in the tables attached to this release, and should be viewed in addition to, and not in lieu of, our Consolidated Financial Statements and accompanying notes. In addition, we encourage you to visit our website at www.plains.com (in particular the section under “Financial Information” entitled “Non-GAAP Reconciliations” within the Investor Relations tab), which presents a reconciliation of our commonly used non-GAAP and supplemental financial measures. We do not reconcile non-GAAP financial measures on a forward-looking basis as it is impractical to do so without unreasonable effort.

Non-GAAP Financial Performance Measures

Adjusted EBITDA is defined as earnings before interest expense, income tax (expense)/benefit, depreciation and amortization (including our proportionate share of depreciation and amortization, including write-downs related to cancelled projects and impairments, of unconsolidated entities), gains and losses on asset sales and asset impairments, gains or losses on investments in unconsolidated entities and interest income on promissory notes by and among PAA and certain Plains entities, adjusted for certain selected items impacting comparability. Adjusted EBITDA attributable to PAA excludes the portion of Adjusted EBITDA that is attributable to noncontrolling interests.

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

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

Non-GAAP Financial Liquidity Measures

Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. Adjusted Free Cash Flow is defined as Net Cash Provided by Operating Activities, less Net Cash Provided by/(Used in) Investing Activities, which primarily includes acquisition, investment and maintenance capital expenditures, investments in unconsolidated entities and the impact from the purchase and sale of linefill, net of proceeds from the sales of assets and further impacted by distributions to and contributions from noncontrolling interests and proceeds from the issuance of related party notes. Adjusted Free Cash Flow is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions.

We also present these measures and additional non-GAAP financial liquidity measures as they are measures that investors have indicated are useful. We present Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) for use in assessing our underlying business liquidity and cash flow generating capacity excluding fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is defined as Adjusted Free Cash Flow excluding the impact of “Changes in assets and liabilities, net of acquisitions” on our Condensed Consolidated Statements of Cash Flows. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities).

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per unit data)

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023 
REVENUES$12,743  $12,071  $37,671  $36,014 
        
COSTS AND EXPENSES       
Purchases and related costs 11,557   11,106   34,333   32,972 
Field operating costs 483   372   1,191   1,062 
General and administrative expenses 98   92   287   263 
Depreciation and amortization 257   260   769   776 
(Gains)/losses on asset sales, net 1   7   1   (144)
Total costs and expenses 12,396   11,837   36,581   34,929 
        
OPERATING INCOME 347   234   1,090   1,085 
        
OTHER INCOME/(EXPENSE)       
Equity earnings in unconsolidated entities 97   99   298   277 
Gain on investment in unconsolidated entities —   29   —   28 
Interest expense, net (1) (113)  (97)  (318)  (290)
Other income, net (1) 26   —   45   85 
        
INCOME BEFORE TAX 357   265   1,115   1,185 
Current income tax expense (20)  (22)  (143)  (104)
Deferred income tax (expense)/benefit (25)  36   21   22 
        
NET INCOME 312   279   993   1,103 
Net income attributable to noncontrolling interests (92)  (76)  (257)  (185)
NET INCOME ATTRIBUTABLE TO PAA$220  $203  $736  $918 
        
NET INCOME PER COMMON UNIT:       
Net income allocated to common unitholders — Basic and Diluted$157  $140  $540  $728 
Basic and diluted weighted average common units outstanding 702   700   702   699 
Basic and diluted net income per common unit$0.22  $0.20  $0.77  $1.04 

________________________
(1)   PAA and certain Plains entities have issued promissory notes by and among such entities to facilitate financing. “Interest expense, net” and “Other income, net” each include $16 million and $31 million for the three and nine months ended September 30, 2024, respectively, related to interest on such notes. These amounts offset and do not impact Net Income or Non-GAAP metrics such as Adjusted EBITDA, Implied DCF and Adjusted Free Cash Flow.



PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in millions)

 September 30,
2024		 December 31,
2023
ASSETS   
Current assets (including Cash and cash equivalents of $640 and $450, respectively)$5,169  $4,913 
Property and equipment, net 15,651   15,782 
Investments in unconsolidated entities 2,846   2,820 
Intangible assets, net 1,674   1,875 
Linefill 991   976 
Long-term operating lease right-of-use assets, net 298   313 
Long-term inventory 257   265 
Other long-term assets, net 269   411 
Total assets$27,155  $27,355 
    
LIABILITIES AND PARTNERS’ CAPITAL   
Current liabilities$5,136  $5,003 
Senior notes, net 7,140   7,242 
Other long-term debt, net 72   63 
Long-term operating lease liabilities 269   274 
Other long-term liabilities and deferred credits 1,006   1,041 
Total liabilities 13,623   13,623 
    
Partners’ capital excluding noncontrolling interests 10,235   10,422 
Noncontrolling interests 3,297   3,310 
Total partners’ capital 13,532   13,732 
Total liabilities and partners’ capital$27,155  $27,355 


DEBT CAPITALIZATION RATIOS
(in millions)

 September 30,
2024		 December 31,
2023
Short-term debt$765  $446 
Long-term debt 7,212   7,305 
Total debt$7,977  $7,751 
    
Long-term debt$7,212  $7,305 
Partners’ capital excluding noncontrolling interests 10,235   10,422 
Total book capitalization excluding noncontrolling interests (“Total book capitalization”)$17,447  $17,727 
Total book capitalization, including short-term debt$18,212  $18,173 
    
Long-term debt-to-total book capitalization 41%  41%
Total debt-to-total book capitalization, including short-term debt 44%  43%


PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

COMPUTATION OF BASIC AND DILUTED NET INCOME PER COMMON UNIT (1)
(in millions, except per unit data)

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Basic and Diluted Net Income per Common Unit       
Net income attributable to PAA$220  $203  $736  $918 
Distributions to Series A preferred unitholders (44)  (44)  (131)  (129)
Distributions to Series B preferred unitholders (19)  (19)  (59)  (56)
Amounts allocated to participating securities (1)  (1)  (9)  (8)
Other 1   1   3   3 
Net income allocated to common unitholders$157  $140  $540  $728 
        
Basic and diluted weighted average common units outstanding (2) (3) 702   700   702   699 
        
Basic and diluted net income per common unit$0.22  $0.20  $0.77  $1.04 

________________________
(1)   We calculate net income allocated to common unitholders based on the distributions pertaining to the current period’s net income. After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.
(2)   The possible conversion of our Series A preferred units was excluded from the calculation of diluted net income per common unit for each of the three and nine months ended September 30, 2024 and 2023 as the effect was antidilutive.
(3)   Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.


PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

CONDENSED CONSOLIDATED CASH FLOW DATA
(in millions)

 Nine Months Ended
September 30,
  2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES   
Net income$993  $1,103 
Reconciliation of net income to net cash provided by operating activities:   
Depreciation and amortization 769   776 
(Gains)/losses on asset sales, net 1   (144)
Deferred income tax benefit (21)  (22)
Equity earnings in unconsolidated entities (298)  (277)
Distributions on earnings from unconsolidated entities 383   351 
Other 93   43 
Changes in assets and liabilities, net of acquisitions (157)  (114)
Net cash provided by operating activities 1,763   1,716 
    
CASH FLOWS FROM INVESTING ACTIVITIES   
Net cash used in investing activities (1) (1,240)  (444)
    
CASH FLOWS FROM FINANCING ACTIVITIES   
Net cash used in financing activities (1) (330)  (1,409)
    
Effect of translation adjustment (3)  (4)
    
Net increase/(decrease) in cash and cash equivalents and restricted cash 190   (141)
    
Cash and cash equivalents and restricted cash, beginning of period 450   401 
Cash and cash equivalents and restricted cash, end of period$640  $260 

________________________
(1)   PAA and certain Plains entities have issued promissory notes by and among such entities to facilitate financing. For the nine months ended September 30, 2024, “Net cash used in investing activities” includes a cash outflow of $629 million associated with our investment in related party notes. An equal and offsetting cash inflow associated with our issuance of related party notes is included in “Net cash used in financing activities.”



CAPITAL EXPENDITURES
(in millions)

 Net to PAA (1) Consolidated
 Three Months Ended
September 30,		 Nine Months Ended
September 30,		 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023   2024   2023   2024   2023 
Investment capital expenditures:               
Crude Oil$51  $68  $158  $170  $73  $91  $221  $234 
NGL 37   12   74   51   37   12   74   51 
Total Investment capital expenditures 88   80   232   221   110   103   295   285 
Maintenance capital expenditures 65   55   174   158   69   60   188   169 
 $153  $135  $406  $379  $179  $163  $483  $454 

________________________
(1)   Excludes expenditures attributable to noncontrolling interests.

 


PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

NON-GAAP RECONCILIATIONS
(in millions, except per unit and ratio data)

Computation of Basic and Diluted Adjusted Net Income Per Common Unit (1) :

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Basic and Diluted Adjusted Net Income per Common Unit       
Net income attributable to PAA$220  $203  $736  $918 
Selected items impacting comparability - Adjusted net income attributable to PAA (2) 100   105   226   (24)
Adjusted net income attributable to PAA$320  $308  $962  $894 
Distributions to Series A preferred unitholders (44)  (44)  (131)  (129)
Distributions to Series B preferred unitholders (19)  (19)  (59)  (56)
Amounts allocated to participating securities (1)  (1)  (10)  (8)
Other 1   1   3   3 
Adjusted net income allocated to common unitholders$257  $245  $765  $704 
        
Basic and diluted weighted average common units outstanding (3) (4) 702   700   702   699 
        
Basic and diluted adjusted net income per common unit$0.37  $0.35  $1.09  $1.01 

________________________
(1)   We calculate adjusted net income allocated to common unitholders based on the distributions pertaining to the current period’s net income. After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.
(2)   See the “Selected Items Impacting Comparability” table for additional information.
(3)   The possible conversion of our Series A preferred units was excluded from the calculation of diluted adjusted net income per common unit for the three and nine months ended September 30, 2024 and 2023 as the effect was antidilutive.
(4)   Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.

Net Income Per Common Unit to Adjusted Net Income Per Common Unit Reconciliation:

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Basic and diluted net income per common unit$0.22  $0.20  $0.77  $1.04 
Selected items impacting comparability per common unit (1) 0.15   0.15   0.32   (0.03)
Basic and diluted adjusted net income per common unit$0.37  $0.35  $1.09  $1.01 

________________________
(1)   See the “Selected Items Impacting Comparability” and the “Computation of Basic and Diluted Adjusted Net Income Per Common Unit” tables for additional information.

 


PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation:

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Net income$312  $279  $993  $1,103 
Interest expense, net of certain items (1) 97   97   287   290 
Income tax expense/(benefit) 45   (14)  122   82 
Depreciation and amortization 257   260   769   776 
(Gains)/losses on asset sales, net 1   7   1   (144)
Gain on investment in unconsolidated entities —   (29)  —   (28)
Depreciation and amortization of unconsolidated entities (2) 22   21   59   67 
Selected items impacting comparability - Adjusted EBITDA (3) 71   158   228   146 
Adjusted EBITDA$805  $779  $2,459  $2,292 
Adjusted EBITDA attributable to noncontrolling interests (146)  (117)  (408)  (318)
Adjusted EBITDA attributable to PAA$659  $662  $2,051  $1,974 
        
Adjusted EBITDA$805  $779  $2,459  $2,292 
Interest expense, net of certain non-cash and other items (4) (94)  (92)  (274)  (275)
Maintenance capital (69)  (60)  (188)  (169)
Investment capital of noncontrolling interests (5) (21)  (23)  (62)  (63)
Current income tax expense (20)  (22)  (143)  (104)
Distributions from unconsolidated entities in excess of/(less than) adjusted equity earnings (6) 4   (2)  11   (21)
Distributions to noncontrolling interests (7) (113)  (86)  (310)  (237)
Implied DCF$492  $494  $1,493  $1,423 
Preferred unit distributions paid (7) (64)  (63)  (190)  (178)
Implied DCF Available to Common Unitholders$428  $431  $1,303  $1,245 
        
Weighted Average Common Units Outstanding 702   700   702   699 
Weighted Average Common Units and Common Unit Equivalents 773   771   773   770 
        
Implied DCF per Common Unit (8)$0.61  $0.62  $1.86  $1.78 
Implied DCF per Common Unit and Common Unit Equivalent (9)$0.61  $0.62  $1.86  $1.78 
        
Cash Distribution Paid per Common Unit$0.3175  $0.2675  $0.9525  $0.8025 
Common Unit Cash Distributions (7)$223  $187  $668  $560 
Common Unit Distribution Coverage Ratio1.92x 2.30x 1.95x 2.22x
        
Implied DCF Excess$205  $244  $635  $685 

________________________
(1)   Represents “Interest expense, net” as reported on our Condensed Consolidated Statements of Operations, net of interest income associated with promissory notes by and among PAA and certain Plains entities.
(2)   Adjustment to exclude our proportionate share of depreciation and amortization expense (including write-downs related to cancelled projects and impairments) of unconsolidated entities.
(3)   See the “Selected Items Impacting Comparability” table for additional information.
(4)   Amount excludes certain non-cash items impacting interest expense such as amortization of debt issuance costs and terminated interest rate swaps and is net of interest income associated with promissory notes by and among PAA and certain Plains entities.
(5)   Investment capital expenditures attributable to noncontrolling interests that reduce Implied DCF available to PAA common unitholders.
(6)   Comprised of cash distributions received from unconsolidated entities less equity earnings in unconsolidated entities (adjusted for our proportionate share of depreciation and amortization, including write-downs related to cancelled projects and impairments, and selected items impacting comparability of unconsolidated entities).
(7)   Cash distributions paid during the period presented.
(8)   Implied DCF Available to Common Unitholders for the period divided by the weighted average common units outstanding for the period.
(9)   Implied DCF Available to Common Unitholders for the period, adjusted for Series A preferred unit cash distributions paid, divided by the weighted average common units and common unit equivalents outstanding for the period. Our Series A preferred units are convertible into common units, generally on a one-for-one basis and subject to customary anti-dilution adjustments, in whole or in part, subject to certain minimum conversion amounts.


PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

Net Income Per Common Unit to Implied DCF Per Common Unit and Common Unit Equivalent Reconciliation:

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Basic net income per common unit$0.22  $0.20  $0.77  $1.04 
Reconciling items per common unit (1) (2) 0.39   0.42   1.09   0.74 
Implied DCF per common unit$0.61  $0.62  $1.86  $1.78 
        
Basic net income per common unit$0.22  $0.20  $0.77  $1.04 
Reconciling items per common unit and common unit equivalent (1) (3) 0.39   0.42   1.09   0.74 
Implied DCF per common unit and common unit equivalent$0.61  $0.62  $1.86  $1.78 

________________________
(1)   Represents adjustments to Net Income to calculate Implied DCF Available to Common Unitholders. See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” table for additional information.
(2)   Based on weighted average common units outstanding for the period of 702 million, 700 million, 702 million and 699 million, respectively.
(3)   Based on weighted average common units outstanding for the period, as well as weighted average Series A preferred units outstanding of 71 million for each of the periods presented.


PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

Net Cash Provided by Operating Activities to Non-GAAP Financial Liquidity Measures Reconciliation:

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Net cash provided by operating activities$692  $85  $1,763  $1,716 
Adjustments to reconcile Net cash provided by operating activities to Adjusted Free Cash Flow:       
Net cash used in investing activities (1) (823)  (438)  (1,240)  (444)
Cash contributions from noncontrolling interests 16   53   40   53 
Cash distributions paid to noncontrolling interests (2) (113)  (86)  (310)  (237)
Proceeds from the issuance of related party notes (1) 629   —   629   — 
Adjusted Free Cash Flow (3)$401  $(386) $882  $1,088 
Cash distributions (4) (287)  (250)  (858)  (738)
Adjusted Free Cash Flow after Distributions (3) (5)$114  $(636) $24  $350 
        
 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Adjusted Free Cash Flow (3)$401  $(386) $882  $1,088 
Changes in assets and liabilities, net of acquisitions (6) (44)  443   157   114 
Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) (7)$357  $57  $1,039  $1,202 
Cash distributions (4) (287)  (250)  (858)  (738)
Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) (7)$70  $(193) $181  $464 

________________________
(1)   PAA and certain Plains entities have issued promissory notes by and among such entities to facilitate financing. “Proceeds from the issuance of related party notes” has an equal and offsetting cash outflow associated with our investment in related party notes, which is included as a component of “Net cash used in investing activities.”
(2)   Cash distributions paid during the period presented.
(3)   Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. Adjusted Free Cash Flow after Distributions shortages, if any, may be funded from previously established reserves, cash on hand or from borrowings under our credit facilities or commercial paper program
(4)   Cash distributions paid to preferred and common unitholders during the period.
(5)   Excess Adjusted Free Cash Flow after Distributions is retained to establish reserves for future distributions, capital expenditures, debt reduction and other partnership purposes. Adjusted Free Cash Flow after Distributions shortages may be funded from previously established reserves, cash on hand or from borrowings under our credit facilities or commercial paper program.
(6)   See the “Condensed Consolidated Cash Flow Data” table.
(7)   Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) and Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) to assess the underlying business liquidity and cash flow generating capacity excluding fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period.


PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

SELECTED ITEMS IMPACTING COMPARABILITY
(in millions)

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Selected Items Impacting Comparability: (1)       
Derivative activities and inventory valuation adjustments (2)$105  $(196) $(78) $(143)
Long-term inventory costing adjustments (3) (31)  58   (8)  27 
Deficiencies under minimum volume commitments, net (4) (15)  (14)  (10)  (5)
Equity-indexed compensation expense (5) (9)  (10)  (28)  (28)
Foreign currency revaluation (6) (1)  5   16   4 
Line 901 incident (7) (120)  —   (120)  — 
Transaction-related expenses (8) —   (1)  —   (1)
Selected items impacting comparability - Adjusted EBITDA$(71) $(158) $(228) $(146)
Gain on investment in unconsolidated entities —   29   —   28 
Gains/(losses) on asset sales, net (1)  (7)  (1)  144 
Tax effect on selected items impacting comparability (28)  38   9   8 
Aggregate selected items impacting noncontrolling interests —   (7)  (6)  (10)
Selected items impacting comparability - Adjusted net income attributable to PAA$(100) $(105) $(226) $24 

________________________
(1)   Certain of our non-GAAP financial measures may not be impacted by each of the selected items impacting comparability. See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” and “Computation of Basic and Diluted Adjusted Net Income Per Common Unit” tables for additional details on how these selected items impacting comparability affect such measures.
(2)   We use derivative instruments for risk management purposes and our related processes include specific identification of hedging instruments to an underlying hedged transaction. Although we identify an underlying transaction for each derivative instrument we enter into, there may not be an accounting hedge relationship between the instrument and the underlying transaction. In the course of evaluating our results, we identify differences in the timing of earnings from the derivative instruments and the underlying transactions and exclude the related gains and losses in determining adjusted results such that the earnings from the derivative instruments and the underlying transactions impact adjusted results in the same period. In addition, we exclude gains and losses on derivatives that are related to (i) investing activities, such as the purchase of linefill, and (ii) purchases of long-term inventory. We also exclude the impact of corresponding inventory valuation adjustments, as applicable. For applicable periods, we excluded gains and losses from the mark-to-market of the embedded derivative associated with the Preferred Distribution Rate Reset Option of our Series A preferred units.
(3)   We carry crude oil and NGL inventory that is comprised of minimum working inventory requirements in third-party assets and other working inventory that is needed for our commercial operations. We consider this inventory necessary to conduct our operations and we intend to carry this inventory for the foreseeable future. Therefore, we classify this inventory as long-term on our balance sheet and do not hedge the inventory with derivative instruments (similar to linefill in our own assets). We treat the impact of changes in the average cost of the long-term inventory (that result from fluctuations in market prices) and write-downs of such inventory that result from price declines as a selected item impacting comparability.
(4)   We, and certain of our equity method investees, have certain agreements that require counterparties to deliver, transport or throughput a minimum volume over an agreed upon period. Substantially all of such agreements were entered into with counterparties to economically support the return on capital expenditure necessary to construct the related asset. Some of these agreements include make-up rights if the minimum volume is not met. We record a receivable from the counterparty in the period that services are provided or when the transaction occurs, including amounts for deficiency obligations from counterparties associated with minimum volume commitments. If a counterparty has a make-up right associated with a deficiency, we defer the revenue attributable to the counterparty’s make-up right and subsequently recognize the revenue at the earlier of when the deficiency volume is delivered or shipped, when the make-up right expires or when it is determined that the counterparty’s ability to utilize the make-up right is remote. We include the impact of amounts billed to counterparties for their deficiency obligation, net of applicable amounts subsequently recognized into revenue or equity earnings, as a selected item impacting comparability. We believe the inclusion of the contractually committed revenues associated with that period is meaningful to investors as the related asset has been constructed, is standing ready to provide the committed service and the fixed operating costs are included in the current period results.
(5)   Our total equity-indexed compensation expense includes expense associated with awards that will be settled in units and awards that will be settled in cash. The awards that will be settled in units are included in our diluted net income per unit calculation when the applicable performance criteria have been met. We consider the compensation expense associated with these awards as a selected item impacting comparability as the dilutive impact of the outstanding awards is included in our diluted net income per unit calculation, as applicable. The portion of compensation expense associated with awards that will be settled in cash is not considered a selected item impacting comparability.
(6)   During the periods presented, there were fluctuations in the value of the Canadian dollar to the U.S. dollar, resulting in the realization of foreign exchange gains and losses on the settlement of foreign currency transactions as well as the revaluation of monetary assets and liabilities denominated in a foreign currency. The associated gains and losses are not integral to our results and were thus classified as a selected item impacting comparability.
(7)   Includes costs recognized during the period related to the Line 901 incident that occurred in May 2015, net of amounts we believe are probable of recovery from insurance.
(8)   Includes expenses associated with the Rattler Permian Transaction.


PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

SELECTED FINANCIAL DATA BY SEGMENT
(in millions)

 Three Months Ended
September 30, 2024		  Three Months Ended
September 30, 2023
 Crude Oil NGL  Crude Oil NGL
Revenues (1)$12,444  $388   $11,934  $242 
Purchases and related costs (1) (11,529)  (117)   (11,069)  (142)
Field operating costs (2) (400)  (83)   (266)  (106)
Segment general and administrative expenses (2) (3) (78)  (20)   (71)  (21)
Equity earnings in unconsolidated entities 97   —    99   — 
         
Adjustments: (4)        
Depreciation and amortization of unconsolidated entities 22   —    21   — 
Derivative activities and inventory valuation adjustments (13)  (92)   76   120 
Long-term inventory costing adjustments 34   (3)   (67)  9 
Deficiencies under minimum volume commitments, net 15   —    14   — 
Equity-indexed compensation expense 9   —    10   — 
Foreign currency revaluation 2   —    (12)  (3)
Line 901 incident 120   —    —   — 
Transaction-related expenses —   —    1   — 
Segment amounts attributable to noncontrolling interests (5) (146)  —    (117)  — 
Segment Adjusted EBITDA$577  $73   $553  $99 
         
Maintenance capital expenditures$48  $21   $39  $21 

________________________
(1)   Includes intersegment amounts.
(2)   Field operating costs and Segment general and administrative expenses include equity-indexed compensation expense.
(3)   Segment general and administrative expenses reflect direct costs attributable to each segment and an allocation of other expenses to the segments. The proportional allocations by segment require judgment by management and are based on the business activities that exist during each period.
(4)   Represents adjustments utilized by our CODM in the evaluation of segment results. Many of these adjustments are also considered selected items impacting comparability when calculating consolidated non-GAAP financial measures such as Adjusted EBITDA. See the “Selected Items Impacting Comparability” table for additional discussion.
(5)   Reflects amounts attributable to noncontrolling interests in the Permian JV, Cactus II Pipeline LLC and Red River Pipeline LLC.


PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

SELECTED FINANCIAL DATA BY SEGMENT
(in millions)

 Nine Months Ended
September 30, 2024		  Nine Months Ended
September 30, 2023
 Crude Oil NGL  Crude Oil NGL
Revenues (1)$36,761  $1,189   $34,988  $1,312 
Purchases and related costs (1) (34,014)  (598)   (32,499)  (759)
Field operating costs (2) (938)  (253)   (779)  (283)
Segment general and administrative expenses (2) (3) (223)  (64)   (203)  (60)
Equity earnings in unconsolidated entities 298   —    277   — 
         
Adjustments: (4)        
Depreciation and amortization of unconsolidated entities 59   —    67   — 
Derivative activities and inventory valuation adjustments 20   58    69   132 
Long-term inventory costing adjustments 10   (2)   (36)  9 
Deficiencies under minimum volume commitments, net 10   —    5   — 
Equity-indexed compensation expense 28   —    27   1 
Foreign currency revaluation (18)  (4)   —   — 
Line 901 incident 120   —    —   — 
Transaction-related expenses —   —    1   — 
Segment amounts attributable to noncontrolling interests (5) (406)  —    (317)  — 
Segment Adjusted EBITDA$1,707  $326   $1,600  $352 
         
Maintenance capital expenditures$135  $53   $107  $62 

________________________
(1)   Includes intersegment amounts.
(2)   Field operating costs and Segment general and administrative expenses include equity-indexed compensation expense.
(3)   Segment general and administrative expenses reflect direct costs attributable to each segment and an allocation of other expenses to the segments. The proportional allocations by segment require judgment by management and are based on the business activities that exist during each period.
(4)   Represents adjustments utilized by our CODM in the evaluation of segment results. Many of these adjustments are also considered selected items impacting comparability when calculating consolidated non-GAAP financial measures such as Adjusted EBITDA. See the “Selected Items Impacting Comparability” table for additional discussion.
(5)   Reflects amounts attributable to noncontrolling interests in the Permian JV, Cactus II Pipeline LLC and Red River Pipeline LLC.


PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

OPERATING DATA BY SEGMENT

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
 2024
 2023
 2024
 2023
Crude Oil Segment Volumes           
Crude oil pipeline tariff volumes (by region) (1)           
Permian Basin (2)6,944  6,114  6,692  6,237 
South Texas / Eagle Ford (2)416  421  396  410 
Mid-Continent (2)532  561  516  508 
Gulf Coast (2)232  272  219  263 
Rocky Mountain (2)443  329  479  345 
Western261  228  255  205 
Canada338  334  345  342 
Total crude oil pipeline tariff volumes (1) (2)9,166  8,259  8,902  8,310 
            
Commercial crude oil storage capacity (2) (3)72  72  72  72 
            
Crude oil lease gathering purchases (1)1,600  1,455  1,560  1,430 
            
NGL Segment Volumes (1)           
NGL fractionation131  107  129  111 
NGL pipeline tariff volumes195  193  210  178 
Propane and butane sales59  44  80  73 

________________________
(1)   Average volumes in thousands of barrels per day calculated as the total volumes (attributable to our interest for assets owned by unconsolidated entities or through undivided joint interests) for the period divided by the number of days in the period. Volumes associated with assets acquired during the period represent total volumes for the number of days we actually owned the assets divided by the number of days in the period.  
(2)   Includes volumes (attributable to our interest) from assets owned by unconsolidated entities.
(3)   Average monthly capacity in millions of barrels calculated as total volumes for the period divided by the number of months in the period.


PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

NON-GAAP SEGMENT RECONCILIATIONS
(in millions)

Supplemental Adjusted EBITDA attributable to PAA Reconciliation:

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Crude Oil Segment Adjusted EBITDA$577  $553  $1,707  $1,600 
NGL Segment Adjusted EBITDA 73   99   326   352 
Adjusted other income, net (1) 9   10   18   22 
Adjusted EBITDA attributable to PAA (2)$659  $662  $2,051  $1,974 

________________________
(1)   Represents “Other income, net” as reported on our Condensed Consolidated Statements of Operations, excluding interest income on promissory notes by and among PAA and certain Plains entities, as well as other income, net attributable to noncontrolling interests, adjusted for selected items impacting comparability. See the “Selected Items Impacting Comparability” table for additional information.
(2)   See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” table for reconciliation to Net Income.


PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(in millions, except per share data)

 Three Months Ended
September 30, 2024		  Three Months Ended
September 30, 2023
   Consolidating      Consolidating  
 PAA Adjustments (1) PAGP  PAA Adjustments (1) PAGP
REVENUES$12,743  $—  $12,743   $12,071  $—  $12,071 
             
COSTS AND EXPENSES            
Purchases and related costs 11,557   —   11,557    11,106   —   11,106 
Field operating costs 483   —   483    372   —   372 
General and administrative expenses 98   1   99    92   1   93 
Depreciation and amortization 257   —   257    260   1   261 
(Gains)/losses on asset sales, net 1   —   1    7   —   7 
Total costs and expenses 12,396   1   12,397    11,837   2   11,839 
             
OPERATING INCOME 347   (1)  346    234   (2)  232 
             
OTHER INCOME/(EXPENSE)            
Equity earnings in unconsolidated entities 97   —   97    99   —   99 
Gain on investment in unconsolidated entities —   —   —    29   —   29 
Interest expense, net (113)  16   (97)   (97)  —   (97)
Other income, net 26   (16)  10    —   —   — 
             
INCOME BEFORE TAX 357   (1)  356    265   (2)  263 
Current income tax expense (20)  —   (20)   (22)  —   (22)
Deferred income tax (expense)/benefit (25)  (10)  (35)   36   (9)  27 
             
NET INCOME 312   (11)  301    279   (11)  268 
Net income attributable to noncontrolling interests (92)  (176)  (268)   (76)  (163)  (239)
NET INCOME ATTRIBUTABLE TO PAGP$220  $(187) $33   $203  $(174) $29 
             
Basic and diluted weighted average Class A shares outstanding  197        196 
             
Basic and diluted net income per Class A share $0.17       $0.15 

________________________
(1)   Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.


PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(in millions, except per share data)

 Nine Months Ended
September 30, 2024		  Nine Months Ended
September 30, 2023
   Consolidating      Consolidating  
 PAA Adjustments (1) PAGP  PAA Adjustments (1) PAGP
REVENUES$37,671  $—  $37,671   $36,014  $—  $36,014 
             
COSTS AND EXPENSES            
Purchases and related costs 34,333   —   34,333    32,972   —   32,972 
Field operating costs 1,191   —   1,191    1,062   —   1,062 
General and administrative expenses 287   5   292    263   5   268 
Depreciation and amortization 769   —   769    776   2   778 
(Gains)/losses on asset sales, net 1   —   1    (144)  —   (144)
Total costs and expenses 36,581   5   36,586    34,929   7   34,936 
             
OPERATING INCOME 1,090   (5)  1,085    1,085   (7)  1,078 
             
OTHER INCOME/(EXPENSE)            
Equity earnings in unconsolidated entities 298   —   298    277   —   277 
Gain on investment in unconsolidated entities —   —   —    28   —   28 
Interest expense, net (318)  31   (287)   (290)  —   (290)
Other income, net 45   (31)  14    85   —   85 
             
INCOME BEFORE TAX 1,115   (5)  1,110    1,185   (7)  1,178 
Current income tax expense (143)  —   (143)   (104)  —   (104)
Deferred income tax (expense)/benefit 21   (35)  (14)   22   (52)  (30)
             
NET INCOME 993   (40)  953    1,103   (59)  1,044 
Net income attributable to noncontrolling interests (257)  (582)  (839)   (185)  (713)  (898)
NET INCOME ATTRIBUTABLE TO PAGP$736  $(622) $114   $918  $(772) $146 
             
Basic and diluted weighted average Class A shares outstanding  197        195 
             
Basic and diluted net income per Class A share $0.58       $0.75 

________________________
(1)   Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.


PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

CONDENSED CONSOLIDATING BALANCE SHEET DATA
(in millions)

 September 30, 2024  December 31, 2023
   Consolidating      Consolidating  
 PAA Adjustments (1) PAGP  PAA Adjustments (1) PAGP
ASSETS            
Current assets$5,169  $(9) $5,160   $4,913  $3  $4,916 
Property and equipment, net 15,651   —   15,651    15,782   —   15,782 
Investments in unconsolidated entities 2,846   —   2,846    2,820   —   2,820 
Intangible assets, net 1,674   —   1,674    1,875   —   1,875 
Deferred tax asset —   1,211   1,211    —   1,239   1,239 
Linefill 991   —   991    976   —   976 
Long-term operating lease right-of-use assets, net 298   —   298    313   —   313 
Long-term inventory 257   —   257    265   —   265 
Other long-term assets, net 269   —   269    411   —   411 
Total assets$27,155  $1,202  $28,357   $27,355  $1,242  $28,597 
             
LIABILITIES AND PARTNERS’ CAPITAL            
Current liabilities$5,136  $(10) $5,126   $5,003  $2  $5,005 
Senior notes, net 7,140   —   7,140    7,242   —   7,242 
Other long-term debt, net 72   —   72    63   —   63 
Long-term operating lease liabilities 269   —   269    274   —   274 
Other long-term liabilities and deferred credits 1,006   —   1,006    1,041   —   1,041 
Total liabilities 13,623   (10)  13,613    13,623   2   13,625 
             
Partners’ capital excluding noncontrolling interests 10,235   (8,773)  1,462    10,422   (8,874)  1,548 
Noncontrolling interests 3,297   9,985   13,282    3,310   10,114   13,424 
Total partners’ capital 13,532   1,212   14,744    13,732   1,240   14,972 
Total liabilities and partners’ capital$27,155  $1,202  $28,357   $27,355  $1,242  $28,597 

________________________
(1)   Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.


PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)

     

COMPUTATION OF BASIC AND DILUTED NET INCOME PER CLASS A SHARE
(in millions, except per share data)

 Three Months Ended
September 30,		 Nine Months Ended
September 30,
  2024   2023   2024   2023 
Basic and Diluted Net Income per Class A Share       
Net income attributable to PAGP$33  $29  $114  $146 
Basic and diluted weighted average Class A shares outstanding 197   196   197   195 
        
Basic and diluted net income per Class A share$0.17  $0.15  $0.58  $0.75 


Forward-Looking Statements

Except for the historical information contained herein, the matters discussed in this release consist of forward-looking statements that involve certain risks and uncertainties that could cause actual results or outcomes to differ materially from results or outcomes anticipated in the forward-looking statements. These risks and uncertainties include, among other things, the following:

  • general economic, market or business conditions in the United States and elsewhere (including the potential for a recession or significant slowdown in economic activity levels, the risk of persistently high inflation and continued supply chain issues, the impact of global public health events, such as pandemics, on demand and growth, and the timing, pace and extent of economic recovery) that impact (i) demand for crude oil, drilling and production activities and therefore the demand for the midstream services we provide and (ii) commercial opportunities available to us;
  • declines in global crude oil demand and/or crude oil prices or other factors that correspondingly lead to a significant reduction of North American crude oil and NGL production (whether due to reduced producer cash flow to fund drilling activities or the inability of producers to access capital, or both, the unavailability of pipeline and/or storage capacity, the shutting-in of production by producers, government-mandated pro-ration orders, or other factors), which in turn could result in significant declines in the actual or expected volume of crude oil and NGL shipped, processed, purchased, stored, fractionated and/or gathered at or through the use of our assets and/or the reduction of the margins we can earn or the commercial opportunities that might otherwise be available to us;
  • fluctuations in refinery capacity and other factors affecting demand for various grades of crude oil and NGL and resulting changes in pricing conditions or transportation throughput requirements;
  • unanticipated changes in crude oil and NGL market structure, grade differentials and volatility (or lack thereof);
  • the effects of competition and capacity overbuild in areas where we operate, including downward pressure on rates, volumes and margins, contract renewal risk and the risk of loss of business to other midstream operators who are willing or under pressure to aggressively reduce transportation rates in order to capture or preserve customers;
  • negative societal sentiment regarding the hydrocarbon energy industry and the continued development and consumption of hydrocarbons, which could influence consumer preferences and governmental or regulatory actions that adversely impact our business;
  • environmental liabilities, litigation or other events that are not covered by an indemnity, insurance or existing reserves;
  • the occurrence of a natural disaster, catastrophe, terrorist attack (including eco-terrorist attacks) or other event that materially impacts our operations, including cyber or other attacks on our or our service providers’ electronic and computer systems;
  • weather interference with business operations or project construction, including the impact of extreme weather events or conditions (including wildfires and drought);
  • the impact of current and future laws, rulings, legislation, governmental regulations, executive orders, trade policies, accounting standards and statements, and related interpretations that (i) prohibit, restrict or regulate the development of oil and gas resources and the related infrastructure on lands dedicated to or served by our pipelines or (ii) negatively impact our ability to develop, operate or repair midstream assets;
  • negative impacts on production levels in the Permian Basin or elsewhere due to issues associated with (or laws, rules or regulations relating to) hydraulic fracturing and related activities (including wastewater injection or disposal), including earthquakes, subsidence, expansion or other issues;
  • the pace of development of natural gas or other infrastructure and its impact on expected crude oil production growth in the Permian Basin;
  • loss of key personnel and inability to attract and retain new talent;
  • disruptions to futures markets for crude oil, NGL and other petroleum products, which may impair our ability to execute our commercial or hedging strategies;
  • the effectiveness of our risk management activities;
  • shortages or cost increases of supplies, materials or labor;
  • maintenance of our credit ratings and ability to receive open credit from our suppliers and trade counterparties;
  • the successful operation of joint ventures and joint operating arrangements we enter into from time to time, whether relating to assets operated by us or by third parties, and the successful integration and future performance of acquired assets or businesses;
  • the availability of, and our ability to consummate, acquisitions, divestitures, joint ventures or other strategic opportunities;
  • the refusal or inability of our customers or counterparties to perform their obligations under their contracts with us (including commercial contracts, asset sale agreements and other agreements), whether justified or not and whether due to financial constraints (such as reduced creditworthiness, liquidity issues or insolvency), market constraints, legal constraints (including governmental orders or guidance), the exercise of contractual or common law rights that allegedly excuse their performance (such as force majeure or similar claims) or other factors;
  • our inability to perform our obligations under our contracts, whether due to non-performance by third parties, including our customers or counterparties, market constraints, third-party constraints, supply chain issues, legal constraints (including governmental orders or guidance), or other factors or events;
  • the incurrence of costs and expenses related to unexpected or unplanned capital or maintenance expenditures, third-party claims or other factors;
  • failure to implement or capitalize, or delays in implementing or capitalizing, on investment capital projects, whether due to permitting delays, permitting withdrawals or other factors;
  • tightened capital markets or other factors that increase our cost of capital or limit our ability to obtain debt or equity financing on satisfactory terms to fund additional acquisitions, investment capital projects, working capital requirements and the repayment or refinancing of indebtedness;
  • the amplification of other risks caused by volatile or closed financial markets, capital constraints, liquidity concerns and inflation;
  • the use or availability of third-party assets upon which our operations depend and over which we have little or no control;
  • the currency exchange rate of the Canadian dollar to the United States dollar;
  • inability to recognize current revenue attributable to deficiency payments received from customers who fail to ship or move more than minimum contracted volumes until the related credits expire or are used;
  • significant under-utilization of our assets and facilities;
  • increased costs, or lack of availability, of insurance;
  • fluctuations in the debt and equity markets, including the price of our units at the time of vesting under our long-term incentive plans;
  • risks related to the development and operation of our assets; and
  • other factors and uncertainties inherent in the transportation, storage, terminalling and marketing of crude oil, as well as in the processing, transportation, fractionation, storage and marketing of NGL as discussed in the Partnerships’ filings with the Securities and Exchange Commission.

About Plains:

PAA is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil and natural gas liquids (“NGL”). PAA owns an extensive network of pipeline gathering and transportation systems, in addition to terminalling, storage, processing, fractionation and other infrastructure assets serving key producing basins, transportation corridors and major market hubs and export outlets in the United States and Canada. On average, PAA handles over 8 million barrels per day of crude oil and NGL.

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

PAA and PAGP are headquartered in Houston, Texas. For more information, please visit www.plains.com.

Contacts:

Blake Fernandez
Vice President, Investor Relations
(866) 809-1291
 
Michael Gladstein
Director, Investor Relations
(866) 809-1291

FAQ

What was Plains All American's (PAA) net income in Q3 2024?

Plains All American reported net income of $220 million in Q3 2024, an 8% increase from Q3 2023.

What is PAA's expected Adjusted EBITDA guidance for 2024?

PAA expects to reach the higher end of its full-year 2024 Adjusted EBITDA guidance range of $2.725-$2.775 billion.

How much did PAA's quarterly distribution increase in Q3 2024?

PAA's distribution per common unit increased 19% to $0.3175 compared to Q3 2023.

What was the impact of the Line 901 settlement on PAA's earnings?

The Line 901 lawsuit settlements resulted in a $120 million charge to GAAP earnings.

Stock PAA logo
Plains All American Pipeline, L.P. Common Units representing Limited Partner Interests

NASDAQ:PAA

PAA Rankings

#762 Ranked by Market Cap
#345 Ranked by Dividends

PAA Latest News

Oct 2, 2024
Plains All American Pipeline and Plains GP Holdings Announce Quarterly Distributions and Timing of Third Quarter 2024 Earnings
Aug 6, 2024
Plains All American Releases 2023 Sustainability Report
Aug 2, 2024
Plains All American Reports Second-Quarter 2024 Results & Raises 2024 Guidance
Jul 3, 2024
Plains All American Pipeline and Plains GP Holdings Announce Quarterly Distributions and Timing of Second-Quarter 2024 Earnings
Jul 1, 2024
Plains All American’s 2023 Schedule K-3 Now Available

PAA Stock Data

12.47B
701.08M
34.12%
42.32%
1.37%
Oil & Gas Midstream
Pipe Lines (no Natural Gas)
Link
United States of America
HOUSTON