Plains GP (US:PAGP)2024-11-08 13:28Financial Performance - Reported net income attributable to Plains All American of $220 million for Q3 2024, an 8% increase from $203 million in Q3 2023[2] - Adjusted EBITDA attributable to Plains All American was $659 million for Q3 2024, remaining stable compared to $662 million in Q3 2023[2] - Revenues for the three months ended September 30, 2024, increased to $12,743 million, up 5.6% from $12,071 million in the same period of 2023[13] - Operating income rose to $347 million for the three months ended September 30, 2024, compared to $234 million in the prior year, reflecting a 48.3% increase[13] - Net income for the three months ended September 30, 2024, was $312 million, compared to $279 million for the same period in 2023, representing an increase of 11.8%[20] - For the nine months ended September 30, 2024, revenues were $37,671 million, up from $36,014 million in the same period of 2023, marking a growth of 4.6%[33] - Operating income for the nine months ended September 30, 2024, was $1,090 million, consistent with the previous year's figure of $1,085 million[33] - Net income attributable to PAGP for the nine months ended September 30, 2024, was $736 million, compared to $918 million for the same period in 2023, indicating a decrease of 19.8%[33] Cash Flow and Liquidity - Net cash provided by operating activities was $692 million in Q3 2024, compared to $85 million in Q3 2023[2] - Adjusted Free Cash Flow for 2024 is anticipated to be approximately $1.45 billion, excluding changes in Assets & Liabilities[1] - Adjusted Free Cash Flow for the three months ended September 30, 2024, was $401 million, compared to a negative $386 million in the same period of 2023[23] - Cash and cash equivalents increased to $640 million as of September 30, 2024, from $450 million at the end of 2023[14] - The company reported a net cash used in financing activities of $330 million for the nine months ended September 30, 2024, a decrease from $1,409 million in the same period of 2023, indicating improved cash management[16] Segment Performance - The Crude Oil Segment Adjusted EBITDA increased by 4% to $577 million in Q3 2024, driven by higher tariff volumes and contributions from acquisitions[3] - The NGL Segment Adjusted EBITDA decreased by 26% to $73 million in Q3 2024, primarily due to lower weighted average frac spreads[4] - Revenues for Crude Oil segment reached $12,444 million for the three months ended September 30, 2024, up from $11,934 million in the same period of 2023, indicating a year-over-year increase of approximately 4.3%[26] - Adjusted EBITDA for the crude oil segment was $1,707 million for the nine months ended September 30, 2024, compared to $1,600 million for the same period in 2023, reflecting a growth of 6.7%[29] Capital Expenditures and Investments - Total investment capital expenditures for the nine months ended September 30, 2024, were $232 million, up from $221 million in the same period of 2023, indicating an increase of approximately 5%[17] - Maintenance capital expenditures for the nine months ended September 30, 2024, were $135 million, compared to $107 million for the same period in 2023, indicating a 26.2% increase[27] - Maintenance capital expenditures for the three months ended September 30, 2024, were $69 million, compared to $60 million in the same period of 2023, indicating a rise of 15%[20] Debt and Leverage - Plains All American exited Q3 2024 with a leverage ratio of 3.0x, below the target range of 3.25x – 3.75x[1] - The company reported a total debt of $7,977 million as of September 30, 2024, up from $7,751 million at the end of 2023[14] - Long-term debt-to-total book capitalization ratio was 41% as of September 30, 2024, consistent with the ratio from December 31, 2023[14] Market and Economic Outlook - The company faces risks including fluctuations in crude oil prices, which could significantly impact its operational margins and commercial opportunities[36] - Future outlook includes potential impacts from economic conditions, supply chain issues, and regulatory changes affecting the energy sector[36] - The company is focused on maintaining its competitive position amidst market pressures and potential declines in crude oil demand[37] Credit Rating and Financial Stability - Moody's upgraded Plains All American's credit rating from Baa3 to Baa2 with a stable outlook, reflecting improved financial stability[1]