Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) 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.”
