Plains GP (US:PAGP)2025-08-08 12:40Financial Performance - Reported net income attributable to Plains All American of $210 million, a decrease of 16% compared to $250 million in Q2 2024[6] - Adjusted EBITDA attributable to Plains All American was $672 million, remaining stable compared to $674 million in Q2 2024[6] - Net cash provided by operating activities increased by 6% to $694 million from $653 million in Q2 2024[6] - Total revenues for the three months ended June 30, 2025, were $10,642 million, a decrease of 16.6% compared to $12,757 million for the same period in 2024[26] - Operating income for the six months ended June 30, 2025, was $594 million, down 13.7% from $688 million in 2024[26] - Net income attributable to PAA for the three months ended June 30, 2025, was $210 million, a decrease of 16% from $250 million in 2024[26] - Basic and diluted net income per common unit for continuing operations was $0.11 for the three months ended June 30, 2025, compared to $0.21 in 2024[29] - Net income for the six months ended June 30, 2025, increased to $813 million, compared to $681 million in the same period of 2024, representing a growth of approximately 19.4%[30] - Adjusted EBITDA attributable to Plains All American Pipeline for the six months ended June 30, 2025, was $1,426 million, compared to $1,391 million in 2024, showing a growth of 2.5%[37] - Basic net income per Class A share for continuing operations was $0.05 for the three months ended June 30, 2025, compared to $0.15 in the same quarter of 2024[59] - Diluted net income per Class A share for the six months ended June 30, 2025, was $0.57, compared to $0.41 for the same period in 2024[60] Cash Flow and Distributions - Adjusted Free Cash Flow after distributions decreased by 78% to $28 million from $125 million in Q2 2024[7] - Cash distribution paid per common unit increased to $0.7600 for the six months ended June 30, 2025, compared to $0.6350 in 2024, marking a rise of 19.7%[37] - Cash distributions paid during Q2 2025 totaled $320 million, an increase from $286 million in Q2 2024[44] - Adjusted Free Cash Flow for Q2 2025 was $348 million, down from $411 million in Q2 2024, while Adjusted Free Cash Flow after distributions was $28 million, compared to $125 million in Q2 2024[44] Assets and Liabilities - Total assets increased to $27,155 million as of June 30, 2025, compared to $26,562 million as of December 31, 2024[27] - Total debt rose to $8,682 million as of June 30, 2025, up from $7,621 million as of December 31, 2024, resulting in a long-term debt-to-total book capitalization ratio of 46%[28] - Current liabilities decreased to $4,679 million as of June 30, 2025, from $4,950 million as of December 31, 2024[27] - Total partners' capital increased to $14,125 million as of June 30, 2025, from $14,316 million on December 31, 2024, reflecting a slight decrease of 1.4%[61] Operational Highlights - The company executed agreements to divest substantially all of its NGL business for approximately $5.15 billion CAD ($3.75 billion USD), expected to close in Q1 2026[6] - Acquired an additional 20% interest in BridgeTex Pipeline Company, increasing total interest to 40%[6] - The company handled over 9 million barrels per day of crude oil and NGL on average, showcasing its extensive operational capacity[72] - Total crude oil pipeline tariff volumes increased to 9,659 thousand barrels per day in Q2 2025, up from 8,938 thousand barrels per day in Q2 2024, a growth of 8.1%[55] Segment Performance - Adjusted EBITDA from Crude Oil was $580 million, a 1% increase from $576 million in Q2 2024[9] - Adjusted EBITDA from NGL decreased by 7% to $87 million compared to $94 million in Q2 2024[11] - Revenues for the Crude Oil segment were $10,622 million for Q2 2025, a decrease of 16.6% from $12,735 million in Q2 2024[48] - NGL segment revenues were $26 million in Q2 2025, a 4% increase from $25 million in Q2 2024[49] Strategic Initiatives and Risks - The potential sale of the Canadian NGL Business is not expected to close until the first quarter of 2026, impacting overall company performance and distribution funding[24] - The company faces risks including fluctuations in crude oil prices and potential declines in global crude oil demand, which could impact its operational performance[66] - The company is actively pursuing strategic opportunities, including potential acquisitions and divestitures, to enhance its market position[66]