Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP
Holdings (Nasdaq: PAGP) today reported second-quarter 2023 results
and provided updated 2023 guidance as highlighted below. Plains
also announced a bolt-on acquisition in the Permian and provided
updates regarding its NGL segment.
Second-Quarter Results
- Reported Net income attributable to PAA of $293 million &
Net cash provided by operating activities of $888 million.
- Delivered strong results with Adjusted EBITDA attributable to
PAA of $597 million.
Permian Bolt-on Acquisition
- A subsidiary of Plains Oryx Permian Basin LLC acquired
Diamondback Energy’s 43% interest in OMOG JV LLC for approximately
$225 million ($145 million net to PAA’s interest), which closed on
July 28th.
NGL Segment Updates
- Sanctioned Plains Fort Saskatchewan (PFS) Train 1
debottlenecking project (~30 Mb/d of additional capacity) and
additional connectivity projects to both Co-Ed Pipeline & Fort
Sask complex. Substantially increased weighted average contract
tenor to approximately 10-years across Fort Sask fractionation
capacity and Co-Ed Pipeline.
- Expect sanctioned projects and new contracts on existing assets
to largely offset a third-party NGL supply agreement expiring
year-end 2024, that reduces frac spread exposed volumes by ~15
Mb/d.
2023 Guidance Update
- Expect to be at the high end of our guidance range of $2.45 -
$2.55 billion Adjusted EBITDA attributable to PAA for full-year
2023; year-end 2023 leverage now expected to be <3.5x.
- Maintaining 2023 investment and maintenance capital guidance of
$325 million and $195 million respectively, net to PAA (inclusive
of sanctioned NGL project); demonstrating a continued focus on
capital discipline.
- Free cash flow generation remains robust with approximately
$1.6 billion of Free Cash Flow expected in 2023, while meaningfully
increasing returns of capital to equity holders and further
reducing absolute debt.
“Our team remains focused on execution while continuing to
identify and progress capital efficient growth opportunities; as a
result, we expect to be at the high-end of our 2023 EBITDA guidance
range,” said Willie Chiang, Chairman & CEO of Plains. “We
announced multiple strategic actions this quarter including a
bolt-on acquisition in the Permian that will complement our
existing geographic footprint. Additionally, we took steps to
improve the long-term durability and quality of our cash flow
stream in the NGL segment by sanctioning the debottlenecking
project at our Fort Sask complex and extending the duration of our
contracts across our NGL portfolio. This will help offset commodity
exposed NGL contracts that are expiring at the end of next year and
should result in increased contribution from the more stable
fee-based part of our business. These actions align with our
ongoing goals of remaining capital disciplined, generating
multi-year Free Cash Flow, reducing leverage and increasing returns
of capital to our unitholders.”
Plains All American Pipeline
Summary Financial Information (unaudited)(in
millions, except per unit data)
|
|
Three Months EndedJune 30, |
|
% |
|
|
Six Months EndedJune 30, |
|
% |
GAAP Results |
|
2023 |
|
2022 |
|
Change |
|
|
2023 |
|
2022 |
|
Change |
Net income attributable to PAA |
|
$ |
293 |
|
|
$ |
203 |
|
|
44 |
% |
|
|
$ |
715 |
|
|
$ |
390 |
|
|
83 |
% |
Diluted net income per common
unit |
|
$ |
0.32 |
|
|
$ |
0.22 |
|
|
45 |
% |
|
|
$ |
0.84 |
|
|
$ |
0.41 |
|
|
105 |
% |
Diluted weighted average
common units outstanding |
|
|
698 |
|
|
|
702 |
|
|
(1 |
)% |
|
|
|
698 |
|
|
|
703 |
|
|
(1 |
)% |
Net cash provided by operating
activities |
|
$ |
888 |
|
|
$ |
792 |
|
|
12 |
% |
|
|
$ |
1,631 |
|
|
$ |
1,132 |
|
|
44 |
% |
Distribution per common unit
declared for the period |
|
$ |
0.2675 |
|
|
$ |
0.2175 |
|
|
23 |
% |
|
|
$ |
0.5350 |
|
|
$ |
0.4350 |
|
|
23 |
% |
|
|
Three Months EndedJune 30, |
|
% |
|
|
Six Months EndedJune 30, |
|
% |
Non-GAAP Results(1) |
|
2023 |
|
2022 |
|
Change |
|
|
2023 |
|
2022 |
|
Change |
Adjusted net income attributable to PAA |
|
$ |
243 |
|
|
$ |
260 |
|
|
(7 |
)% |
|
|
$ |
586 |
|
|
$ |
526 |
|
|
11 |
% |
Diluted adjusted net income
per common unit |
|
$ |
0.25 |
|
|
$ |
0.30 |
|
|
(17 |
)% |
|
|
$ |
0.66 |
|
|
$ |
0.60 |
|
|
10 |
% |
Adjusted EBITDA |
|
$ |
700 |
|
|
$ |
704 |
|
|
(1 |
)% |
|
|
$ |
1,513 |
|
|
$ |
1,394 |
|
|
9 |
% |
Adjusted EBITDA attributable
to PAA(2) |
|
$ |
597 |
|
|
$ |
615 |
|
|
(3 |
)% |
|
|
$ |
1,312 |
|
|
$ |
1,228 |
|
|
7 |
% |
Implied DCF per common unit
and common unit equivalent |
|
$ |
0.54 |
|
|
$ |
0.57 |
|
|
(5 |
)% |
|
|
$ |
1.16 |
|
|
$ |
1.13 |
|
|
3 |
% |
Free Cash Flow |
|
$ |
650 |
|
|
$ |
688 |
|
|
(6 |
)% |
|
|
$ |
1,474 |
|
|
$ |
888 |
|
|
66 |
% |
Free Cash Flow after
Distributions |
|
$ |
404 |
|
|
$ |
473 |
|
|
(15 |
)% |
|
|
$ |
985 |
|
|
$ |
509 |
|
|
94 |
% |
____________________________________ |
** |
|
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
(beginning November 2022) and Red River Pipeline LLC. |
|
|
|
Summary of Selected Financial Data by Segment
(unaudited)(in millions)
|
Segment Adjusted EBITDA |
|
Crude Oil |
|
NGL |
Three Months Ended June 30, 2023 |
$ |
529 |
|
|
$ |
62 |
|
Three Months Ended June 30,
2022 |
$ |
494 |
|
|
$ |
120 |
|
Percentage change in
Segment Adjusted EBITDA versus 2022 period |
|
7 |
% |
|
(48 |
)% |
|
|
|
|
|
Segment Adjusted EBITDA |
|
Crude Oil |
|
NGL |
Six Months Ended June 30,
2023 |
$ |
1,046 |
|
|
$ |
254 |
|
Six Months Ended June 30,
2022 |
$ |
946 |
|
|
$ |
281 |
|
Percentage change in
Segment Adjusted EBITDA versus 2022 period |
|
11 |
% |
|
(10 |
)% |
|
|
|
|
|
|
Second-quarter 2023 Crude Oil Segment Adjusted EBITDA increased
7% versus comparable 2022 results primarily due to higher tariff
volumes across our asset base, tariff escalations and Canadian
market-based opportunities. These items were partially offset by
the impact of increased operating expenses, minimum volume
commitment deficiency payments received in the second quarter of
2022 and lower commodity prices.
Second-quarter 2023 NGL Segment Adjusted EBITDA decreased 48%
versus comparable 2022 results primarily due to lower propane sales
volumes, impacted by turnarounds and deferring sales due to market
structure, and the absence of weather events that benefited the
2022 period.
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, August 4, 2023 to discuss second-quarter performance and
related items.
To access the internet webcast, please go to
https://edge.media-server.com/mmc/p/w4wbvvbs.
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 / Quarterly
Earnings). Following the live webcast, an audio replay in MP3
format will be available on our website within two hours after the
end of the call 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”), Free Cash Flow and Free Cash Flow after
Distributions.
Adjusted EBITDA is defined as earnings before interest, taxes,
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, goodwill
impairment losses and gains or losses on and impairments of
investments in unconsolidated entities, adjusted for certain
selected items impacting comparability. 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 Free Cash Flow and Free Cash Flow
after Distributions 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 Condensed
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
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 also uses the non-GAAP financial liquidity measures
Free Cash Flow and 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. 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.
Free Cash Flow is further reduced by cash distributions paid to our
preferred and common unitholders to arrive at Free Cash Flow after
Distributions.
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(in millions, except per unit data)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
REVENUES |
$ |
11,602 |
|
|
$ |
16,359 |
|
|
$ |
23,943 |
|
|
$ |
30,053 |
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES |
|
|
|
|
|
|
|
Purchases and related
costs |
|
10,544 |
|
|
|
15,324 |
|
|
|
21,867 |
|
|
|
28,109 |
|
Field operating costs |
|
333 |
|
|
|
307 |
|
|
|
690 |
|
|
|
653 |
|
General and administrative
expenses |
|
85 |
|
|
|
78 |
|
|
|
171 |
|
|
|
160 |
|
Depreciation and
amortization |
|
259 |
|
|
|
242 |
|
|
|
515 |
|
|
|
473 |
|
(Gains)/losses on asset sales
and asset impairments, net |
|
3 |
|
|
|
(3 |
) |
|
|
(150 |
) |
|
|
(46 |
) |
Total costs and expenses |
|
11,224 |
|
|
|
15,948 |
|
|
|
23,093 |
|
|
|
29,349 |
|
|
|
|
|
|
|
|
|
OPERATING
INCOME |
|
378 |
|
|
|
411 |
|
|
|
850 |
|
|
|
704 |
|
|
|
|
|
|
|
|
|
OTHER
INCOME/(EXPENSE) |
|
|
|
|
|
|
|
Equity earnings in
unconsolidated entities |
|
89 |
|
|
|
104 |
|
|
|
178 |
|
|
|
201 |
|
Interest expense, net |
|
(95 |
) |
|
|
(99 |
) |
|
|
(193 |
) |
|
|
(206 |
) |
Other income/(expense),
net |
|
20 |
|
|
|
(118 |
) |
|
|
85 |
|
|
|
(155 |
) |
|
|
|
|
|
|
|
|
INCOME BEFORE
TAX |
|
392 |
|
|
|
298 |
|
|
|
920 |
|
|
|
544 |
|
Current income tax
expense |
|
(20 |
) |
|
|
(30 |
) |
|
|
(81 |
) |
|
|
(48 |
) |
Deferred income tax
expense |
|
(23 |
) |
|
|
(17 |
) |
|
|
(15 |
) |
|
|
(20 |
) |
|
|
|
|
|
|
|
|
NET
INCOME |
|
349 |
|
|
|
251 |
|
|
|
824 |
|
|
|
476 |
|
Net income attributable to noncontrolling interests |
|
(56 |
) |
|
|
(48 |
) |
|
|
(109 |
) |
|
|
(86 |
) |
NET INCOME
ATTRIBUTABLE TO PAA |
$ |
293 |
|
|
$ |
203 |
|
|
$ |
715 |
|
|
$ |
390 |
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON
UNIT: |
|
|
|
|
|
|
|
Net income allocated to common unitholders — Basic and Diluted |
$ |
227 |
|
|
$ |
153 |
|
|
$ |
588 |
|
|
$ |
290 |
|
Basic and diluted weighted average common units outstanding |
|
698 |
|
|
|
702 |
|
|
|
698 |
|
|
|
703 |
|
Basic and diluted net income per common unit |
$ |
0.32 |
|
|
$ |
0.22 |
|
|
$ |
0.84 |
|
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
CONDENSED CONSOLIDATED BALANCE SHEET DATA(in
millions)
|
June 30,2023 |
|
December 31,2022 |
ASSETS |
|
|
|
Current assets (including Cash and cash equivalents of $933 and
$401, respectively) |
$ |
4,657 |
|
|
$ |
5,355 |
|
Property and equipment,
net |
|
15,221 |
|
|
|
15,250 |
|
Investments in unconsolidated
entities |
|
3,062 |
|
|
|
3,084 |
|
Intangible assets, net |
|
1,999 |
|
|
|
2,145 |
|
Linefill |
|
966 |
|
|
|
961 |
|
Long-term operating lease
right-of-use assets, net |
|
339 |
|
|
|
349 |
|
Long-term inventory |
|
270 |
|
|
|
284 |
|
Other long-term assets,
net |
|
386 |
|
|
|
464 |
|
Total assets |
$ |
26,900 |
|
|
$ |
27,892 |
|
|
|
|
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
Current liabilities |
$ |
4,652 |
|
|
$ |
5,891 |
|
Senior notes, net |
|
7,239 |
|
|
|
7,237 |
|
Other long-term debt, net |
|
49 |
|
|
|
50 |
|
Long-term operating lease
liabilities |
|
299 |
|
|
|
308 |
|
Other long-term liabilities
and deferred credits |
|
1,059 |
|
|
|
1,081 |
|
Total liabilities |
|
13,298 |
|
|
|
14,567 |
|
|
|
|
|
Partners’ capital excluding
noncontrolling interests |
|
10,379 |
|
|
|
10,057 |
|
Noncontrolling interests |
|
3,223 |
|
|
|
3,268 |
|
Total partners’ capital |
|
13,602 |
|
|
|
13,325 |
|
Total liabilities and partners’ capital |
$ |
26,900 |
|
|
$ |
27,892 |
|
|
|
|
|
|
|
|
|
DEBT CAPITALIZATION RATIOS(in millions)
|
June 30,2023 |
|
December 31,2022 |
Short-term debt |
$ |
709 |
|
|
$ |
1,159 |
|
Long-term debt |
|
7,288 |
|
|
|
7,287 |
|
Total debt |
$ |
7,997 |
|
|
$ |
8,446 |
|
|
|
|
|
Long-term debt |
$ |
7,288 |
|
|
$ |
7,287 |
|
Partners’ capital excluding
noncontrolling interests |
|
10,379 |
|
|
|
10,057 |
|
Total book capitalization excluding noncontrolling interests
(“Total book capitalization”) |
$ |
17,667 |
|
|
$ |
17,344 |
|
Total book capitalization, including short-term debt |
$ |
18,376 |
|
|
$ |
18,503 |
|
|
|
|
|
Long-term debt-to-total book
capitalization |
|
41 |
% |
|
|
42 |
% |
Total debt-to-total book
capitalization, including short-term debt |
|
44 |
% |
|
|
46 |
% |
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
COMPUTATION OF BASIC AND DILUTED NET INCOME PER COMMON
UNIT (1)(in millions, except per unit
data)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Basic and Diluted Net
Income per Common Unit |
|
|
|
|
|
|
|
Net income attributable to PAA |
$ |
293 |
|
|
$ |
203 |
|
|
$ |
715 |
|
|
$ |
390 |
|
Distributions to Series A preferred unitholders |
|
(44 |
) |
|
|
(37 |
) |
|
|
(85 |
) |
|
|
(74 |
) |
Distributions to Series B preferred unitholders |
|
(18 |
) |
|
|
(12 |
) |
|
|
(36 |
) |
|
|
(25 |
) |
Amounts allocated to participating securities |
|
(5 |
) |
|
|
(1 |
) |
|
|
(8 |
) |
|
|
(1 |
) |
Other |
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Net income allocated to common
unitholders |
$ |
227 |
|
|
$ |
153 |
|
|
$ |
588 |
|
|
$ |
290 |
|
|
|
|
|
|
|
|
|
Basic and diluted weighted
average common units outstanding(2) (3) |
|
698 |
|
|
|
702 |
|
|
|
698 |
|
|
|
703 |
|
|
|
|
|
|
|
|
|
Basic and diluted net income
per common unit |
$ |
0.32 |
|
|
$ |
0.22 |
|
|
$ |
0.84 |
|
|
$ |
0.41 |
|
___________________________________ |
(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 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) |
|
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 six months ended June 30, 2023 and 2022
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
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
CONDENSED CONSOLIDATED CASH FLOW DATA(in
millions)
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
Net income |
$ |
824 |
|
|
$ |
476 |
|
Reconciliation of net income to net cash provided by operating
activities: |
|
|
|
Depreciation and amortization |
|
515 |
|
|
|
473 |
|
Gains on asset sales and asset impairments, net |
|
(150 |
) |
|
|
(46 |
) |
Equity earnings in unconsolidated entities |
|
(178 |
) |
|
|
(201 |
) |
Distributions on earnings from unconsolidated entities |
|
219 |
|
|
|
224 |
|
Other |
|
72 |
|
|
|
174 |
|
Changes in assets and liabilities, net of acquisitions |
|
329 |
|
|
|
32 |
|
Net cash provided by operating activities |
|
1,631 |
|
|
|
1,132 |
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
|
Net cash used in investing activities |
|
(6 |
) |
|
|
(123 |
) |
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
|
Net cash used in financing activities |
|
(1,101 |
) |
|
|
(1,196 |
) |
|
|
|
|
Effect of translation adjustment |
|
8 |
|
|
|
1 |
|
|
|
|
|
Net increase/(decrease) in
cash and cash equivalents and restricted cash |
|
532 |
|
|
|
(186 |
) |
|
|
|
|
Cash and cash equivalents and
restricted cash, beginning of period |
|
401 |
|
|
|
453 |
|
Cash and cash equivalents and
restricted cash, end of period |
$ |
933 |
|
|
$ |
267 |
|
|
|
|
|
|
|
|
|
CAPITAL EXPENDITURES(in millions)
|
Net to PAA(1) |
|
Consolidated |
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Investment capital
expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil |
$ |
52 |
|
|
$ |
40 |
|
|
$ |
102 |
|
|
$ |
130 |
|
|
$ |
71 |
|
|
$ |
55 |
|
|
$ |
143 |
|
|
$ |
160 |
|
NGL |
|
31 |
|
|
|
17 |
|
|
|
39 |
|
|
|
21 |
|
|
|
31 |
|
|
|
17 |
|
|
|
39 |
|
|
|
21 |
|
Total Investment capital
expenditures |
|
83 |
|
|
|
57 |
|
|
|
141 |
|
|
|
151 |
|
|
|
102 |
|
|
|
72 |
|
|
|
182 |
|
|
|
181 |
|
Maintenance capital
expenditures |
|
58 |
|
|
|
41 |
|
|
|
103 |
|
|
|
67 |
|
|
|
62 |
|
|
|
43 |
|
|
|
109 |
|
|
|
70 |
|
|
$ |
141 |
|
|
$ |
98 |
|
|
$ |
244 |
|
|
$ |
218 |
|
|
$ |
164 |
|
|
$ |
115 |
|
|
$ |
291 |
|
|
$ |
251 |
|
________________________________ |
(1) |
|
Excludes expenditures attributable to noncontrolling
interests. |
|
|
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL 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 EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Basic and Diluted
Adjusted Net Income per Common Unit |
|
|
|
|
|
|
|
Net income attributable to PAA |
$ |
293 |
|
|
$ |
203 |
|
|
$ |
715 |
|
|
$ |
390 |
|
Selected items impacting comparability - Adjusted net income
attributable to PAA(2) |
|
(50 |
) |
|
|
57 |
|
|
|
(129 |
) |
|
|
136 |
|
Adjusted net income
attributable to PAA |
$ |
243 |
|
|
$ |
260 |
|
|
$ |
586 |
|
|
$ |
526 |
|
Distributions to Series A preferred unitholders |
|
(44 |
) |
|
|
(37 |
) |
|
|
(85 |
) |
|
|
(74 |
) |
Distributions to Series B preferred unitholders |
|
(18 |
) |
|
|
(12 |
) |
|
|
(36 |
) |
|
|
(25 |
) |
Amounts allocated to participating securities |
|
(5 |
) |
|
|
(1 |
) |
|
|
(7 |
) |
|
|
(2 |
) |
Other |
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
Adjusted net income allocated
to common unitholders |
$ |
177 |
|
|
$ |
210 |
|
|
$ |
460 |
|
|
$ |
425 |
|
|
|
|
|
|
|
|
|
Basic and diluted weighted
average common units outstanding(3) (4) |
|
698 |
|
|
|
702 |
|
|
|
698 |
|
|
|
703 |
|
|
|
|
|
|
|
|
|
Basic and diluted adjusted net
income per common unit |
$ |
0.25 |
|
|
$ |
0.30 |
|
|
$ |
0.66 |
|
|
$ |
0.60 |
|
___________________________________ |
(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 each of the three and six months ended June 30,
2023 and 2022 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 EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Basic and diluted net income per common unit |
$ |
0.32 |
|
|
$ |
0.22 |
|
|
$ |
0.84 |
|
|
$ |
0.41 |
|
Selected items impacting
comparability per common unit(1) |
|
(0.07 |
) |
|
|
0.08 |
|
|
|
(0.18 |
) |
|
|
0.19 |
|
Basic and diluted adjusted net
income per common unit |
$ |
0.25 |
|
|
$ |
0.30 |
|
|
$ |
0.66 |
|
|
$ |
0.60 |
|
________________________________________ |
(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
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
Net Income to Adjusted EBITDA attributable to PAA and
Implied DCF Reconciliation:
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income |
$ |
349 |
|
|
$ |
251 |
|
|
$ |
824 |
|
|
$ |
476 |
|
Interest expense, net |
|
95 |
|
|
|
99 |
|
|
|
193 |
|
|
|
206 |
|
Income tax expense |
|
43 |
|
|
|
47 |
|
|
|
96 |
|
|
|
68 |
|
Depreciation and amortization |
|
259 |
|
|
|
242 |
|
|
|
515 |
|
|
|
473 |
|
(Gains)/losses on asset sales and asset impairments, net |
|
3 |
|
|
|
(3 |
) |
|
|
(150 |
) |
|
|
(46 |
) |
Depreciation and amortization of unconsolidated entities(1) |
|
24 |
|
|
|
17 |
|
|
|
47 |
|
|
|
37 |
|
Selected items impacting comparability - Adjusted EBITDA(2) |
|
(73 |
) |
|
|
51 |
|
|
|
(12 |
) |
|
|
180 |
|
Adjusted EBITDA |
$ |
700 |
|
|
$ |
704 |
|
|
$ |
1,513 |
|
|
$ |
1,394 |
|
Adjusted EBITDA attributable to noncontrolling interests |
|
(103 |
) |
|
|
(89 |
) |
|
|
(201 |
) |
|
|
(166 |
) |
Adjusted EBITDA attributable
to PAA |
$ |
597 |
|
|
$ |
615 |
|
|
$ |
1,312 |
|
|
$ |
1,228 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
$ |
700 |
|
|
$ |
704 |
|
|
$ |
1,513 |
|
|
$ |
1,394 |
|
Interest expense, net of certain non-cash items(3) |
|
(90 |
) |
|
|
(97 |
) |
|
|
(183 |
) |
|
|
(199 |
) |
Maintenance capital |
|
(62 |
) |
|
|
(43 |
) |
|
|
(109 |
) |
|
|
(70 |
) |
Investment capital of noncontrolling interests(4) |
|
(17 |
) |
|
|
(15 |
) |
|
|
(40 |
) |
|
|
(30 |
) |
Current income tax expense |
|
(20 |
) |
|
|
(30 |
) |
|
|
(81 |
) |
|
|
(48 |
) |
Distributions from unconsolidated entities in excess of/(less than)
adjusted equity earnings(5) |
|
(8 |
) |
|
|
5 |
|
|
|
(20 |
) |
|
|
(26 |
) |
Distributions to noncontrolling interests(6) |
|
(73 |
) |
|
|
(62 |
) |
|
|
(151 |
) |
|
|
(121 |
) |
Implied DCF |
$ |
430 |
|
|
$ |
462 |
|
|
$ |
929 |
|
|
$ |
900 |
|
Preferred unit distributions paid(6) |
|
(59 |
) |
|
|
(62 |
) |
|
|
(115 |
) |
|
|
(99 |
) |
Implied DCF Available to
Common Unitholders |
$ |
371 |
|
|
$ |
400 |
|
|
$ |
814 |
|
|
$ |
801 |
|
|
|
|
|
|
|
|
|
Weighted Average Common Units
Outstanding |
|
698 |
|
|
|
702 |
|
|
|
698 |
|
|
|
703 |
|
Weighted Average Common Units
and Common Unit Equivalents |
|
769 |
|
|
|
773 |
|
|
|
769 |
|
|
|
774 |
|
|
|
|
|
|
|
|
|
Implied DCF per Common
Unit(7) |
$ |
0.53 |
|
|
$ |
0.57 |
|
|
$ |
1.17 |
|
|
$ |
1.14 |
|
Implied DCF per Common Unit
and Common Unit Equivalent(8) |
$ |
0.54 |
|
|
$ |
0.57 |
|
|
$ |
1.16 |
|
|
$ |
1.13 |
|
|
|
|
|
|
|
|
|
Cash Distribution Paid per
Common Unit |
$ |
0.2675 |
|
|
$ |
0.2175 |
|
|
$ |
0.5350 |
|
|
$ |
0.3975 |
|
Common Unit Cash
Distributions(6) |
$ |
187 |
|
|
$ |
153 |
|
|
$ |
374 |
|
|
$ |
280 |
|
Common Unit Distribution
Coverage Ratio |
1.98 |
x |
|
2.61 |
x |
|
2.18 |
x |
|
2.86 |
x |
|
|
|
|
|
|
|
|
Implied DCF Excess |
$ |
184 |
|
|
$ |
247 |
|
|
$ |
440 |
|
|
$ |
521 |
|
__________________________________ |
(1) |
|
Adjustment to exclude our proportionate share of depreciation and
amortization expense (including write-downs related to cancelled
projects and impairments) of unconsolidated entities. |
(2) |
|
See the “Selected Items Impacting Comparability” table for
additional information. |
(3) |
|
Excludes certain non-cash items impacting interest expense such as
amortization of debt issuance costs and terminated interest rate
swaps. |
(4) |
|
Investment capital expenditures attributable to noncontrolling
interests that reduce Implied DCF available to PAA common
unitholders. |
(5) |
|
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). |
(6) |
|
Cash distributions paid during the period presented. |
(7) |
|
Implied DCF Available to Common Unitholders for the period divided
by the weighted average common units outstanding for the
period. |
(8) |
|
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
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
Net Income Per Common Unit to Implied DCF Per Common
Unit and Common Unit Equivalent Reconciliation:
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Basic net income per common unit |
$ |
0.32 |
|
|
$ |
0.22 |
|
|
$ |
0.84 |
|
|
$ |
0.41 |
|
Reconciling items per common
unit(1) (2) |
|
0.21 |
|
|
|
0.35 |
|
|
|
0.33 |
|
|
|
0.73 |
|
Implied DCF per common
unit |
$ |
0.53 |
|
|
$ |
0.57 |
|
|
$ |
1.17 |
|
|
$ |
1.14 |
|
|
|
|
|
|
|
|
|
Basic net income per common
unit |
$ |
0.32 |
|
|
$ |
0.22 |
|
|
$ |
0.84 |
|
|
$ |
0.41 |
|
Reconciling items per common
unit and common unit equivalent(1) (3) |
|
0.22 |
|
|
|
0.35 |
|
|
|
0.32 |
|
|
|
0.72 |
|
Implied DCF per common unit
and common unit equivalent |
$ |
0.54 |
|
|
$ |
0.57 |
|
|
$ |
1.16 |
|
|
$ |
1.13 |
|
___________________________ |
(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 698 million, 702 million, 698 million and 703 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. |
|
|
|
Free Cash Flow and Free Cash Flow after Distributions
Reconciliation (1):
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net cash provided by operating activities |
$ |
888 |
|
|
$ |
792 |
|
|
$ |
1,631 |
|
|
$ |
1,132 |
|
Adjustments to reconcile Net
cash provided by operating activities to Free Cash Flow: |
|
|
|
|
|
|
|
Net cash used in investing activities |
|
(165 |
) |
|
|
(42 |
) |
|
|
(6 |
) |
|
|
(123 |
) |
Cash distributions paid to noncontrolling interests(2) |
|
(73 |
) |
|
|
(62 |
) |
|
|
(151 |
) |
|
|
(121 |
) |
Free Cash Flow |
$ |
650 |
|
|
$ |
688 |
|
|
$ |
1,474 |
|
|
$ |
888 |
|
Cash distributions(3) |
|
(246 |
) |
|
|
(215 |
) |
|
|
(489 |
) |
|
|
(379 |
) |
Free Cash Flow after
Distributions |
$ |
404 |
|
|
$ |
473 |
|
|
$ |
985 |
|
|
$ |
509 |
|
_____________________ |
(1) |
|
Management uses the Non-GAAP financial liquidity measures Free Cash
Flow and 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. |
(2) |
|
Cash distributions paid during the period presented. |
(3) |
|
Cash distributions paid to preferred and common unitholders during
the period. |
|
|
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
SELECTED ITEMS IMPACTING COMPARABILITY(in
millions)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Selected Items
Impacting Comparability:(1) |
|
|
|
|
|
|
|
Derivative activities and inventory valuation adjustments(2) |
$ |
86 |
|
|
$ |
(28 |
) |
|
$ |
52 |
|
|
$ |
(160 |
) |
Long-term inventory costing
adjustments(3) |
|
(2 |
) |
|
|
13 |
|
|
|
(31 |
) |
|
|
105 |
|
Deficiencies under minimum
volume commitments, net(4) |
|
2 |
|
|
|
(10 |
) |
|
|
9 |
|
|
|
(15 |
) |
Equity-indexed compensation
expense(5) |
|
(8 |
) |
|
|
(7 |
) |
|
|
(17 |
) |
|
|
(15 |
) |
Foreign currency
revaluation(6) |
|
(5 |
) |
|
|
(19 |
) |
|
|
(1 |
) |
|
|
(10 |
) |
Line 901 incident(7) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(85 |
) |
Selected items impacting comparability - Adjusted EBITDA |
$ |
73 |
|
|
$ |
(51 |
) |
|
$ |
12 |
|
|
$ |
(180 |
) |
Derivative activities |
|
— |
|
|
|
4 |
|
|
|
— |
|
|
|
4 |
|
Gains/(losses) on asset sales
and asset impairments, net |
|
(3 |
) |
|
|
3 |
|
|
|
150 |
|
|
|
46 |
|
Tax effect on selected items
impacting comparability |
|
(20 |
) |
|
|
(13 |
) |
|
|
(30 |
) |
|
|
(6 |
) |
Aggregate selected items
impacting noncontrolling interests |
|
— |
|
|
|
— |
|
|
|
(3 |
) |
|
|
— |
|
Selected items impacting comparability - Adjusted net income
attributable to PAA |
$ |
50 |
|
|
$ |
(57 |
) |
|
$ |
129 |
|
|
$ |
(136 |
) |
__________________________ |
(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” table 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. In addition, 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 investments, 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, or our equity method investees, 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, or our equity method investees, 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.
These gains and losses are not integral to our core operating
performance 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. |
|
|
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
SELECTED FINANCIAL DATA BY SEGMENT(in
millions)
|
Three Months EndedJune 30,
2023 |
|
|
Three Months EndedJune 30,
2022 |
|
Crude Oil |
|
NGL |
|
|
Crude Oil |
|
NGL |
Revenues(1) |
$ |
11,295 |
|
|
$ |
381 |
|
|
|
$ |
15,940 |
|
|
$ |
570 |
|
Purchases and related
costs(1) |
|
(10,490 |
) |
|
|
(128 |
) |
|
|
|
(15,163 |
) |
|
|
(312 |
) |
Field operating costs(2) |
|
(256 |
) |
|
|
(77 |
) |
|
|
|
(233 |
) |
|
|
(74 |
) |
Segment general and
administrative expenses(2) (3) |
|
(66 |
) |
|
|
(19 |
) |
|
|
|
(59 |
) |
|
|
(19 |
) |
Equity earnings in
unconsolidated entities |
|
89 |
|
|
|
— |
|
|
|
|
104 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Adjustments:(4) |
|
|
|
|
|
|
|
|
Depreciation and amortization of unconsolidated entities |
|
24 |
|
|
|
— |
|
|
|
|
17 |
|
|
|
— |
|
Derivative activities and inventory valuation adjustments |
|
5 |
|
|
|
(91 |
) |
|
|
|
(29 |
) |
|
|
(46 |
) |
Long-term inventory costing adjustments |
|
10 |
|
|
|
(8 |
) |
|
|
|
(13 |
) |
|
|
— |
|
Deficiencies under minimum volume commitments, net |
|
(2 |
) |
|
|
— |
|
|
|
|
10 |
|
|
|
— |
|
Equity-indexed compensation expense |
|
8 |
|
|
|
— |
|
|
|
|
7 |
|
|
|
— |
|
Foreign currency revaluation |
|
15 |
|
|
|
4 |
|
|
|
|
2 |
|
|
|
1 |
|
Adjusted EBITDA attributable to noncontrolling interests(5) |
|
(103 |
) |
|
|
— |
|
|
|
|
(89 |
) |
|
|
— |
|
Segment Adjusted EBITDA |
$ |
529 |
|
|
$ |
62 |
|
|
|
$ |
494 |
|
|
$ |
120 |
|
|
|
|
|
|
|
|
|
|
Maintenance capital
expenditures |
$ |
36 |
|
|
$ |
26 |
|
|
|
$ |
25 |
|
|
$ |
18 |
|
___________________ |
(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 (beginning November 2022) and
Red River Pipeline LLC. |
|
|
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
SELECTED FINANCIAL DATA BY SEGMENT(in
millions)
|
Six Months EndedJune 30,
2023 |
|
|
Six Months EndedJune 30,
2022 |
|
Crude Oil |
|
NGL |
|
|
Crude Oil |
|
NGL |
Revenues(1) |
$ |
23,053 |
|
|
$ |
1,071 |
|
|
|
$ |
29,019 |
|
|
$ |
1,304 |
|
Purchases and related
costs(1) |
|
(21,430 |
) |
|
|
(618 |
) |
|
|
|
(27,556 |
) |
|
|
(823 |
) |
Field operating costs(2) |
|
(513 |
) |
|
|
(177 |
) |
|
|
|
(515 |
) |
|
|
(138 |
) |
Segment general and
administrative expenses(2) (3) |
|
(133 |
) |
|
|
(38 |
) |
|
|
|
(122 |
) |
|
|
(38 |
) |
Equity earnings in
unconsolidated entities |
|
178 |
|
|
|
— |
|
|
|
|
201 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Adjustments:(4) |
|
|
|
|
|
|
|
|
Depreciation and amortization of unconsolidated entities |
|
47 |
|
|
|
— |
|
|
|
|
37 |
|
|
|
— |
|
Derivative activities and inventory valuation adjustments |
|
(7 |
) |
|
|
13 |
|
|
|
|
30 |
|
|
|
(17 |
) |
Long-term inventory costing adjustments |
|
31 |
|
|
|
— |
|
|
|
|
(98 |
) |
|
|
(7 |
) |
Deficiencies under minimum volume commitments, net |
|
(9 |
) |
|
|
— |
|
|
|
|
15 |
|
|
|
— |
|
Equity-indexed compensation expense |
|
17 |
|
|
|
— |
|
|
|
|
15 |
|
|
|
— |
|
Foreign currency revaluation |
|
12 |
|
|
|
3 |
|
|
|
|
1 |
|
|
|
— |
|
Line 901 incident |
|
— |
|
|
|
— |
|
|
|
|
85 |
|
|
|
— |
|
Adjusted EBITDA attributable to noncontrolling interests(5) |
|
(200 |
) |
|
|
— |
|
|
|
|
(166 |
) |
|
|
— |
|
Segment Adjusted EBITDA |
$ |
1,046 |
|
|
$ |
254 |
|
|
|
$ |
946 |
|
|
$ |
281 |
|
|
|
|
|
|
|
|
|
|
Maintenance capital
expenditures |
$ |
67 |
|
|
$ |
42 |
|
|
|
$ |
45 |
|
|
$ |
25 |
|
_______________________ |
(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 (beginning November 2022) and
Red River Pipeline LLC. |
|
|
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
OPERATING DATA BY SEGMENT
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Crude Oil Segment Volumes |
|
|
|
|
|
|
|
|
|
|
|
Crude oil pipeline tariff volumes (by region)(1) |
|
|
|
|
|
|
|
|
|
|
|
Permian Basin(2) |
6,304 |
|
|
5,434 |
|
|
6,299 |
|
|
5,324 |
|
South Texas / Eagle Ford(2) |
408 |
|
|
338 |
|
|
404 |
|
|
352 |
|
Mid-Continent(2) |
492 |
|
|
483 |
|
|
482 |
|
|
478 |
|
Gulf Coast |
260 |
|
|
200 |
|
|
259 |
|
|
198 |
|
Rocky Mountain(2) |
364 |
|
|
353 |
|
|
352 |
|
|
350 |
|
Western |
223 |
|
|
284 |
|
|
194 |
|
|
259 |
|
Canada |
341 |
|
|
325 |
|
|
346 |
|
|
328 |
|
Total crude oil pipeline tariff volumes(1) (2) |
8,392 |
|
|
7,417 |
|
|
8,336 |
|
|
7,289 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial crude oil storage capacity(2) (3) |
72 |
|
|
72 |
|
|
72 |
|
|
72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil lease gathering purchases(1) |
1,408 |
|
|
1,368 |
|
|
1,418 |
|
|
1,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NGL Segment
Volumes(1) |
|
|
|
|
|
|
|
|
|
|
|
NGL fractionation |
83 |
|
|
137 |
|
|
113 |
|
|
136 |
|
NGL pipeline tariff volumes |
147 |
|
|
187 |
|
|
170 |
|
|
182 |
|
Propane and butane sales(4) |
39 |
|
|
58 |
|
|
89 |
|
|
96 |
|
______________________ |
(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. |
(4) |
|
During the fourth quarter of 2022, we modified our reported sales
volumes to include only propane and butane sales. Prior to the
fourth quarter of 2022, our reported sales volumes included other
NGL products, primarily ethane, that represented a significant
portion of our total NGL sales volumes but did not contribute
significantly to Segment Adjusted EBITDA. Sales volumes for earlier
periods presented herein have been recast to include only propane
and butane. |
|
|
|
PLAINS ALL AMERICAN PIPELINE, L.P. AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
NON-GAAP SEGMENT RECONCILIATIONS(in
millions)
Segment Adjusted EBITDA to Adjusted EBITDA attributable
to PAA Reconciliation:
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Crude Oil Segment Adjusted EBITDA |
$ |
529 |
|
|
$ |
494 |
|
|
$ |
1,046 |
|
|
$ |
946 |
|
NGL Segment Adjusted
EBITDA |
|
62 |
|
|
|
120 |
|
|
|
254 |
|
|
|
281 |
|
Segment Adjusted EBITDA |
$ |
591 |
|
|
$ |
614 |
|
|
$ |
1,300 |
|
|
$ |
1,227 |
|
Adjusted other
income/(expense), net(1) |
|
6 |
|
|
|
1 |
|
|
|
12 |
|
|
|
1 |
|
Adjusted EBITDA attributable to PAA(2) |
$ |
597 |
|
|
$ |
615 |
|
|
$ |
1,312 |
|
|
$ |
1,228 |
|
___________________________ |
(1) |
|
Represents “Other income/(expense), net” as reported on our
Condensed Consolidated Statements of Operations, excluding other
income/(expense), net attributable to noncontrolling interests,
adjusted for selected items impacting comparability of $(14)
million and $119 million for the three months ended June 30, 2023
and 2022, respectively and $(72) million and $156 million for the
six months ended June 30, 2023 and 2022, respectively. See the
“Selected Items Impacting Comparability” table for additional
information. Other income/(expense), net attributable to
noncontrolling interests was $1 million for the six months ended
June 30, 2023 and less than $1 million for the three months ended
June 30, 2023 and the three and six months ended June 30,
2022. |
(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
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
CONDENSED CONSOLIDATING STATEMENTS OF
OPERATIONS(in millions, except per share data)
|
Three Months EndedJune 30,
2023 |
|
|
Three Months EndedJune 30,
2022 |
|
|
|
Consolidating |
|
|
|
|
|
|
Consolidating |
|
|
|
PAA |
|
Adjustments(1) |
|
PAGP |
|
|
PAA |
|
Adjustments(1) |
|
PAGP |
REVENUES |
$ |
11,602 |
|
|
$ |
— |
|
|
$ |
11,602 |
|
|
|
$ |
16,359 |
|
|
$ |
— |
|
|
$ |
16,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases and related
costs |
|
10,544 |
|
|
|
— |
|
|
|
10,544 |
|
|
|
|
15,324 |
|
|
|
— |
|
|
|
15,324 |
|
Field operating costs |
|
333 |
|
|
|
— |
|
|
|
333 |
|
|
|
|
307 |
|
|
|
— |
|
|
|
307 |
|
General and administrative
expenses |
|
85 |
|
|
|
2 |
|
|
|
87 |
|
|
|
|
78 |
|
|
|
2 |
|
|
|
80 |
|
Depreciation and
amortization |
|
259 |
|
|
|
1 |
|
|
|
260 |
|
|
|
|
242 |
|
|
|
1 |
|
|
|
243 |
|
(Gains)/losses on asset sales
and asset impairments, net |
|
3 |
|
|
|
— |
|
|
|
3 |
|
|
|
|
(3 |
) |
|
|
— |
|
|
|
(3 |
) |
Total costs and expenses |
|
11,224 |
|
|
|
3 |
|
|
|
11,227 |
|
|
|
|
15,948 |
|
|
|
3 |
|
|
|
15,951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME |
|
378 |
|
|
|
(3 |
) |
|
|
375 |
|
|
|
|
411 |
|
|
|
(3 |
) |
|
|
408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME/(EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings in
unconsolidated entities |
|
89 |
|
|
|
— |
|
|
|
89 |
|
|
|
|
104 |
|
|
|
— |
|
|
|
104 |
|
Interest expense, net |
|
(95 |
) |
|
|
— |
|
|
|
(95 |
) |
|
|
|
(99 |
) |
|
|
— |
|
|
|
(99 |
) |
Other income/(expense),
net |
|
20 |
|
|
|
— |
|
|
|
20 |
|
|
|
|
(118 |
) |
|
|
— |
|
|
|
(118 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
TAX |
|
392 |
|
|
|
(3 |
) |
|
|
389 |
|
|
|
|
298 |
|
|
|
(3 |
) |
|
|
295 |
|
Current income tax
expense |
|
(20 |
) |
|
|
— |
|
|
|
(20 |
) |
|
|
|
(30 |
) |
|
|
— |
|
|
|
(30 |
) |
Deferred income tax
expense |
|
(23 |
) |
|
|
(13 |
) |
|
|
(36 |
) |
|
|
|
(17 |
) |
|
|
(9 |
) |
|
|
(26 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME |
|
349 |
|
|
|
(16 |
) |
|
|
333 |
|
|
|
|
251 |
|
|
|
(12 |
) |
|
|
239 |
|
Net income attributable to noncontrolling interests |
|
(56 |
) |
|
|
(229 |
) |
|
|
(285 |
) |
|
|
|
(48 |
) |
|
|
(160 |
) |
|
|
(208 |
) |
NET INCOME
ATTRIBUTABLE TO PAGP |
$ |
293 |
|
|
$ |
(245 |
) |
|
$ |
48 |
|
|
|
$ |
203 |
|
|
$ |
(172 |
) |
|
$ |
31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average Class A shares outstanding |
|
|
195 |
|
|
|
|
|
|
|
|
194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
net income per Class A share |
|
$ |
0.25 |
|
|
|
|
|
|
|
$ |
0.16 |
|
___________________________ |
(1) |
|
Represents the aggregate consolidating adjustments necessary to
produce consolidated financial statements for PAGP. |
|
|
|
PLAINS GP HOLDINGS AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
CONDENSED CONSOLIDATING STATEMENTS OF
OPERATIONS(in millions, except per share data)
|
Six Months EndedJune 30,
2023 |
|
|
Six Months EndedJune 30,
2022 |
|
|
|
Consolidating |
|
|
|
|
|
|
Consolidating |
|
|
|
PAA |
|
Adjustments(1) |
|
PAGP |
|
|
PAA |
|
Adjustments(1) |
|
PAGP |
REVENUES |
$ |
23,943 |
|
|
$ |
— |
|
|
$ |
23,943 |
|
|
|
$ |
30,053 |
|
|
$ |
— |
|
|
$ |
30,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases and related
costs |
|
21,867 |
|
|
|
— |
|
|
|
21,867 |
|
|
|
|
28,109 |
|
|
|
— |
|
|
|
28,109 |
|
Field operating costs |
|
690 |
|
|
|
— |
|
|
|
690 |
|
|
|
|
653 |
|
|
|
— |
|
|
|
653 |
|
General and administrative
expenses |
|
171 |
|
|
|
3 |
|
|
|
174 |
|
|
|
|
160 |
|
|
|
3 |
|
|
|
163 |
|
Depreciation and
amortization |
|
515 |
|
|
|
2 |
|
|
|
517 |
|
|
|
|
473 |
|
|
|
2 |
|
|
|
475 |
|
(Gains)/losses on asset sales
and asset impairments, net |
|
(150 |
) |
|
|
— |
|
|
|
(150 |
) |
|
|
|
(46 |
) |
|
|
— |
|
|
|
(46 |
) |
Total costs and expenses |
|
23,093 |
|
|
|
5 |
|
|
|
23,098 |
|
|
|
|
29,349 |
|
|
|
5 |
|
|
|
29,354 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME |
|
850 |
|
|
|
(5 |
) |
|
|
845 |
|
|
|
|
704 |
|
|
|
(5 |
) |
|
|
699 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME/(EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
|
Equity earnings in
unconsolidated entities |
|
178 |
|
|
|
— |
|
|
|
178 |
|
|
|
|
201 |
|
|
|
— |
|
|
|
201 |
|
Interest expense, net |
|
(193 |
) |
|
|
— |
|
|
|
(193 |
) |
|
|
|
(206 |
) |
|
|
— |
|
|
|
(206 |
) |
Other income/(expense),
net |
|
85 |
|
|
|
— |
|
|
|
85 |
|
|
|
|
(155 |
) |
|
|
— |
|
|
|
(155 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
TAX |
|
920 |
|
|
|
(5 |
) |
|
|
915 |
|
|
|
|
544 |
|
|
|
(5 |
) |
|
|
539 |
|
Current income tax
expense |
|
(81 |
) |
|
|
— |
|
|
|
(81 |
) |
|
|
|
(48 |
) |
|
|
— |
|
|
|
(48 |
) |
Deferred income tax
expense |
|
(15 |
) |
|
|
(43 |
) |
|
|
(58 |
) |
|
|
|
(20 |
) |
|
|
(23 |
) |
|
|
(43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME |
|
824 |
|
|
|
(48 |
) |
|
|
776 |
|
|
|
|
476 |
|
|
|
(28 |
) |
|
|
448 |
|
Net income attributable to noncontrolling interests |
|
(109 |
) |
|
|
(550 |
) |
|
|
(659 |
) |
|
|
|
(86 |
) |
|
|
(309 |
) |
|
|
(395 |
) |
NET INCOME
ATTRIBUTABLE TO PAGP |
$ |
715 |
|
|
$ |
(598 |
) |
|
$ |
117 |
|
|
|
$ |
390 |
|
|
$ |
(337 |
) |
|
$ |
53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average Class A shares outstanding |
|
|
195 |
|
|
|
|
|
|
|
|
194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net
income per Class A share |
|
$ |
0.60 |
|
|
|
|
|
|
|
$ |
0.27 |
|
________________________ |
(1) |
|
Represents the aggregate consolidating adjustments necessary to
produce consolidated financial statements for PAGP. |
|
|
|
PLAINS GP HOLDINGS AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
CONDENSED CONSOLIDATING BALANCE SHEET DATA(in
millions)
|
June 30, 2023 |
|
|
December 31, 2022 |
|
|
|
Consolidating |
|
|
|
|
|
|
Consolidating |
|
|
|
PAA |
|
Adjustments(1) |
|
PAGP |
|
|
PAA |
|
Adjustments(1) |
|
PAGP |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
$ |
4,657 |
|
|
$ |
3 |
|
|
$ |
4,660 |
|
|
|
$ |
5,355 |
|
|
$ |
3 |
|
|
$ |
5,358 |
|
Property and equipment,
net |
|
15,221 |
|
|
|
1 |
|
|
|
15,222 |
|
|
|
|
15,250 |
|
|
|
3 |
|
|
|
15,253 |
|
Investments in unconsolidated
entities |
|
3,062 |
|
|
|
— |
|
|
|
3,062 |
|
|
|
|
3,084 |
|
|
|
— |
|
|
|
3,084 |
|
Intangible assets, net |
|
1,999 |
|
|
|
— |
|
|
|
1,999 |
|
|
|
|
2,145 |
|
|
|
— |
|
|
|
2,145 |
|
Deferred tax asset |
|
— |
|
|
|
1,263 |
|
|
|
1,263 |
|
|
|
|
— |
|
|
|
1,309 |
|
|
|
1,309 |
|
Linefill |
|
966 |
|
|
|
— |
|
|
|
966 |
|
|
|
|
961 |
|
|
|
— |
|
|
|
961 |
|
Long-term operating lease
right-of-use assets, net |
|
339 |
|
|
|
— |
|
|
|
339 |
|
|
|
|
349 |
|
|
|
— |
|
|
|
349 |
|
Long-term inventory |
|
270 |
|
|
|
— |
|
|
|
270 |
|
|
|
|
284 |
|
|
|
— |
|
|
|
284 |
|
Other long-term assets,
net |
|
386 |
|
|
|
— |
|
|
|
386 |
|
|
|
|
464 |
|
|
|
— |
|
|
|
464 |
|
Total assets |
$ |
26,900 |
|
|
$ |
1,267 |
|
|
$ |
28,167 |
|
|
|
$ |
27,892 |
|
|
$ |
1,315 |
|
|
$ |
29,207 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
PARTNERS’ CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
$ |
4,652 |
|
|
$ |
2 |
|
|
$ |
4,654 |
|
|
|
$ |
5,891 |
|
|
$ |
2 |
|
|
$ |
5,893 |
|
Senior notes, net |
|
7,239 |
|
|
|
— |
|
|
|
7,239 |
|
|
|
|
7,237 |
|
|
|
— |
|
|
|
7,237 |
|
Other long-term debt, net |
|
49 |
|
|
|
— |
|
|
|
49 |
|
|
|
|
50 |
|
|
|
— |
|
|
|
50 |
|
Long-term operating lease
liabilities |
|
299 |
|
|
|
— |
|
|
|
299 |
|
|
|
|
308 |
|
|
|
— |
|
|
|
308 |
|
Other long-term liabilities
and deferred credits |
|
1,059 |
|
|
|
— |
|
|
|
1,059 |
|
|
|
|
1,081 |
|
|
|
— |
|
|
|
1,081 |
|
Total liabilities |
|
13,298 |
|
|
|
2 |
|
|
|
13,300 |
|
|
|
|
14,567 |
|
|
|
2 |
|
|
|
14,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partners’ capital excluding
noncontrolling interests |
|
10,379 |
|
|
|
(8,811 |
) |
|
|
1,568 |
|
|
|
|
10,057 |
|
|
|
(8,533 |
) |
|
|
1,524 |
|
Noncontrolling interests |
|
3,223 |
|
|
|
10,076 |
|
|
|
13,299 |
|
|
|
|
3,268 |
|
|
|
9,846 |
|
|
|
13,114 |
|
Total partners’ capital |
|
13,602 |
|
|
|
1,265 |
|
|
|
14,867 |
|
|
|
|
13,325 |
|
|
|
1,313 |
|
|
|
14,638 |
|
Total liabilities and partners’ capital |
$ |
26,900 |
|
|
$ |
1,267 |
|
|
$ |
28,167 |
|
|
|
$ |
27,892 |
|
|
$ |
1,315 |
|
|
$ |
29,207 |
|
_____________________ |
(1) |
|
Represents the aggregate consolidating adjustments necessary to
produce consolidated financial statements for PAGP. |
|
|
|
PLAINS GP HOLDINGS AND
SUBSIDIARIESFINANCIAL SUMMARY
(unaudited)
COMPUTATION OF BASIC AND DILUTED NET INCOME PER CLASS A
SHARE(in millions, except per share data)
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Basic and Diluted Net
Income per Class A Share |
|
|
|
|
|
|
|
Net income attributable to PAGP |
$ |
48 |
|
|
$ |
31 |
|
|
$ |
117 |
|
|
$ |
53 |
|
Basic and diluted weighted average Class A shares
outstanding |
|
195 |
|
|
|
194 |
|
|
|
195 |
|
|
|
194 |
|
|
|
|
|
|
|
|
|
Basic and diluted net income per Class A share |
$ |
0.25 |
|
|
$ |
0.16 |
|
|
$ |
0.60 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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 crude oil prices (whether due to pandemics or other factors) 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 earn or the commercial opportunities that might
otherwise be available to us;
- fluctuations in refinery capacity in
areas supplied by our mainlines 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 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 electronic and computer
systems;
- weather interference with business
operations or project construction, including the impact of extreme
weather events or conditions;
- the impact of current and future
laws, rulings, governmental regulations, executive orders, trade
policies, accounting standards and statements, and related
interpretations, including legislation, executive orders or
regulatory initiatives that prohibit, restrict or regulate
hydraulic fracturing or that prohibit the development of oil and
gas resources and the related infrastructure on lands dedicated to
or served by our pipelines or that negatively impact our ability to
develop, operate or repair midstream assets;
- 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 rating 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, divestitures, joint ventures, acquisitions 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 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
acquisitions, investment capital projects, working capital
requirements and the repayment or refinancing of indebtedness;
- the amplification of other risks
caused by volatile 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
approximately 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 FernandezVice President, Investor Relations(866)
809-1291
Michael GladsteinDirector, Investor Relations(866) 809-1291
Grafico Azioni Plains All American Pipe... (NASDAQ:PAA)
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Grafico Azioni Plains All American Pipe... (NASDAQ:PAA)
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