Q4 2024 Plains All American Pipeline LP and Plains GP Holdings LP combined Earnings Call Transcript
Key Points
- Plains All American Pipeline LP (PAA) exceeded its expectations for the fourth quarter and full year 2024, reporting adjusted EBITDA of $729 million and $2.78 billion respectively.
- The company provided a positive outlook for 2025 with an adjusted EBITDA guidance of $2.950 billion, indicating approximately 3% growth year over year.
- PAA completed strategic acquisitions, including Ironwood Midstream and the remaining interest in Midway pipeline, which are expected to enhance its integrated asset base and generate attractive returns.
- The company announced a 20% increase in its quarterly distribution, reflecting its commitment to returning capital to unit holders.
- PAA's Permian gathering joint venture continues to benefit from operational synergies and consistent producer activity, supporting high utilization rates and volume growth.
- PAA reported a $140 million non-cash impairment related to two US NGL terminal assets, impacting its GAAP results.
- The company faced a $225 million write-off related to an insurance claim from a 2015 incident, which was not reimbursed by insurers.
- Certain long-haul contract tariffs are expected to reset and step down in the second half of 2025, potentially impacting revenue.
- The NGL segment's adjusted EBITDA is expected to be slightly lower year over year, with a shift to approximately 45% fee-based in 2025.
- PAA's capital investments for 2025 include $400 million in growth capital and $240 million in maintenance capital, which could strain financial resources if not managed effectively.
Good day. And thank you for standing by. Welcome to the PA A&P A GP fourth quarter, 2024 earnings call. (Operator Instructions) Please be advised that today's conference call is being recorded.
I would now like to hand the conference over to your speaker today. Blake Fernandez. Please go ahead.
Thank you, Tanya. Good morning and welcome to Plains All American fourth quarter, 24 earnings call. Today's slide presentation is posted on the investor relations website under the news and events section at Ir dot plains dotcom. An audio replay will also be available following today's call, important disclosures regarding forward-looking statements and non-GAAP financial measures are provided on slide 2, an overview of 24 results and recent announcements are highlighted on slide three, a condensed consolidating balance sheet for PA GP and other reference materials are in the appendix. Today's call will be hosted by Willie Chiang, Chairman and CEO and Al Swanson, Executive
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