Plains GP (PAGP) - 2024 Q4 - Annual Results

Financial Performance - Fourth-quarter 2024 net income attributable to Plains All American was $36 million, a decrease of 88% compared to $312 million in Q4 2023[4] - Full-year 2024 net income attributable to Plains All American was $772 million, down 37% from $1.23 billion in 2023[4] - Fourth-quarter 2024 adjusted EBITDA attributable to Plains All American was $729 million, slightly below the $737 million in Q4 2023, representing a 1% decrease[5] - Full-year 2024 adjusted EBITDA attributable to Plains All American was $2.78 billion, a 3% increase from $2.71 billion in 2023[5] - The company generated approximately $1.17 billion in adjusted free cash flow for the full year 2024, a decrease of 31% compared to $1.8 billion in 2023[5] - Revenues for Q4 2024 were $12,402 million, a decrease of 2.3% from $12,698 million in Q4 2023; total revenues for the year increased by 2.8% to $50,073 million from $48,712 million[23] - Operating income for Q4 2024 was $87 million, down 79.6% from $426 million in Q4 2023; total operating income for the year decreased by 22.0% to $1,178 million from $1,510 million[23] - Net income attributable to Plains All American Pipeline (PAA) for Q4 2024 was $36 million, a significant drop of 88.5% compared to $312 million in Q4 2023; total net income for the year decreased by 37.1% to $772 million from $1,230 million[23] Cash Flow and Distributions - Adjusted Free Cash Flow after Distributions for the year was impacted by cash distributions paid to preferred and common unitholders, which totaled $175 million for Series A and $78 million for Series B preferred unitholders[28] - Cash and cash equivalents at the end of 2024 were $348 million, down from $450 million at the end of 2023, reflecting a net decrease in cash flow[30] - The company reported net cash provided by operating activities of $2,490 million for the year, a decrease from $2,727 million in 2023[30] - The company experienced a net cash outflow of $1,504 million from investing activities, significantly higher than the $702 million outflow in 2023, indicating increased capital expenditures or investments[30] - Cash distribution paid per common unit increased to $0.3175 in Q4 2024 from $0.2675 in Q4 2023, marking a rise of 18.7%[36] - Total cash distributions for the year were $1,145 million, an increase from $989 million in 2023[40] Assets and Liabilities - Total assets decreased to $26,562 million in 2024 from $27,355 million in 2023, primarily due to reductions in property and equipment and intangible assets[24] - Total liabilities decreased slightly to $13,466 million in 2024 from $13,623 million in 2023, with total debt also decreasing to $7,621 million from $7,751 million[25] - Long-term debt-to-total book capitalization increased to 42% in 2024 from 41% in 2023, indicating a slight increase in leverage[25] - Total adjusted net income for the twelve months ended December 31, 2024, was $1.318 billion, compared to $1.250 billion in 2023, reflecting a growth of 5.4%[33] Segment Performance - Revenues from crude oil segment for Q4 2024 were $11,959 million, while NGL segment revenues were $535 million, compared to $12,187 million and $623 million respectively in Q4 2023[44] - Segment Adjusted EBITDA for crude oil was $569 million in Q4 2024, slightly up from $563 million in Q4 2023, while NGL segment Adjusted EBITDA decreased to $154 million from $169 million[44] - Crude Oil segment revenues for the twelve months ended December 31, 2024, were $48,720 million, an increase from $47,174 million in 2023, representing a growth of 3.3%[46] - NGL segment revenues decreased to $1,724 million in 2024 from $1,935 million in 2023, a decline of 10.9%[46] - Segment Adjusted EBITDA for the Crude Oil segment was $2,276 million in 2024, up from $2,163 million in 2023, reflecting a growth of 5.2%[46] Strategic Initiatives and Future Outlook - Plains All American expects full-year 2025 adjusted EBITDA attributable to be in the range of $2.80 billion to $2.95 billion[4] - The company announced a distribution increase of $0.25 per unit, representing a 20% increase in annualized distribution compared to 2024 levels[4] - The company plans to retain excess Adjusted Free Cash Flow after distributions for future capital expenditures and debt reduction[40] - The company is focused on strategic opportunities including acquisitions and joint ventures to enhance operational capabilities and market presence[57] Risks and Challenges - The company highlighted potential risks including fluctuations in crude oil prices and competition in the midstream services market, which could impact future performance[57] - PAA is impacted by various risks including weather interference, regulatory changes, and production level fluctuations in the Permian Basin[59] - The company faces challenges related to customer performance under contracts, which may affect revenue recognition[59] - The effectiveness of risk management activities is crucial for PAA's operational stability[59] - The company is exposed to fluctuations in debt and equity markets, which can affect its long-term incentive plans[59] - PAA's ability to attract and retain key personnel is essential for maintaining operational efficiency[59] Company Overview - The company is headquartered in Houston, Texas, and is publicly traded as a master limited partnership[61] - Plains All American Pipeline (PAA) and Plains GP Holdings (PAGP) are significant players in the North American energy infrastructure and logistics sector[61]