PLAINS ALL AMERICAN PIPELINE LP Q4 FY2024 earnings call

Key Sections

• 2024 Results: Exceeded expectations with adjusted EBITDA of $729 million for Q4 and $2.78 billion for the full year, above the high end of guidance.
• 2025 Guidance: Adjusted EBITDA guidance of $2.8 billion to $2.95 billion, ~3% growth y/y at midpoint. Permian crude production expected to grow 200,000-300,000 bbl/day by end-2025, basin volumes to ~6.7 million bbl/day.
• Recent Announcements: Completed acquisition of Ironwood Midstream Energy, acquired remaining 50% interest in Midway Pipeline, subsidiary of Permian joint venture acquired Medallion Delaware Basin gathering business. Closed purchase of ~12.7 million units of Series A preferred units. Accelerated return of capital framework with 20% increase in quarterly distribution.
• Asset Growth: Selectively acquired complementary assets like Midway Pipeline and Ironwood Gathering System, exploring additional bolt-on opportunities.

In the fourth quarter, adjusted EBITDA attributable to Plains was $729 million. The crude oil segment benefited from higher volumes and pipeline tariff escalation. The NGL segment benefited from higher-than-expected border flows leading to increased C3 plus FEC product sales. For the full year 2024, adjusted EBITDA attributable to Plains was $2.78 billion, which was above the high end of the guidance range and exceeded initial 2024 guidance by approximately $105 million. The crude oil segment contributed significantly to the overall results, and the NGL segment also played a role in the financial performance.

Forward-Looking Statements

• Adjusted EBITDA guidance for 2025: $2.8 billion to $2.95 billion, ~3% growth y/y at midpoint.
• Permian crude production expected to grow 200,000-300,000 bbl/day by year-end 2025, overall basin volumes to ~6.7 million bbl/day by end-2025.
• Continued high utilization on Corpus Christi-bound assets, increased volumes on basin pipeline, modest MVC increase on Wink to Webster.

Risk Discussions

• Insurance claim: An arbitration panel ruled Plains not entitled to $175 million claim against insurers, and remaining $15 million claim now regarded as less than probable, requiring write-down of $225 million receivable.
• Potential impacts of Canadian crude tariffs: Scenario planning ongoing to mitigate potential effects, with impact expected to be within guidance range.

Q: Timing of potential eastern Eagle Ford opportunities and opportunistic buybacks?

A: Eastern Eagle Ford opportunities more in next year as part of integration. Buybacks opportunistic, preference is to return cash via distributions as seen with $0.25 distribution increase in 2025