Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today announced their financial results for the third quarter of 2024.
Key Third-Quarter Highlights:
- Net income attributable to PAA: $220 million
- Operating cash flow: $692 million
- Adjusted EBITDA attributable to PAA: $659 million
- Leverage ratio: 3.0x, below the targeted range of 3.25x – 3.75x
- Moody’s Credit Rating: Upgraded from Baa3 to Baa2, with a stable outlook, placing Plains at mid-BBB across all major credit agencies
- Acquisitions: Executed a small bolt-on acquisition of a Permian gathering system
- Legal Settlements: Resolved remaining material Line 901 claims with a $120 million charge to GAAP earnings
2024 Guidance Update:
- Adjusted EBITDA is expected to be at the higher end of the $2.725 billion to $2.775 billion range for the full year.
- Adjusted Free Cash Flow is projected to be approximately $1.45 billion, excluding changes in assets and liabilities but including bolt-on acquisition costs and legal settlements.
“We achieved solid operational and financial performance in the third quarter, continuing to advance our efficient growth strategy,” said Willie Chiang, Chairman and CEO of Plains. “We are well-positioned with a strong asset base and a growing outlook for the year, which supports our commitment to returning capital to investors while maintaining financial flexibility.”
Financial Performance Overview:
- Net Income for Q3 2024 was $220 million, an 8% increase from $203 million in the same period last year.
- Adjusted Net Income attributable to PAA: $320 million, reflecting a 4% increase year-over-year.
- Adjusted EBITDA: $805 million, up 3% from Q3 2023, with Adjusted EBITDA attributable to PAA steady at $659 million.
- Distributions: Declared a distribution of $0.3175 per common unit for the quarter, a 19% increase from last year.
Segment Performance:
- Crude Oil Segment: Adjusted EBITDA for Q3 2024 increased 4% to $577 million, driven by higher tariff volumes and tariff escalations, despite fewer market-based opportunities.
- NGL Segment: Adjusted EBITDA fell 26% to $73 million, mainly due to lower frac spreads in the quarter.
Non-GAAP Financial Measures: The company uses several non-GAAP metrics, including Adjusted EBITDA and Adjusted Free Cash Flow, to assess operational performance. These measures provide a clearer view of the company’s cash flow and ability to return capital to investors. For more details on non-GAAP measures, please refer to the “Non-GAAP Financial Measures” section of this release.
Conference Call Details: Plains will hold a joint conference call on Friday, November 8, 2024, at 9:00 a.m. CT to discuss third-quarter results. The webcast can be accessed at under “Investor Relations” and will remain available for 365 days following the event.