Plains GP (US:PAGP)2025-11-07 21:47Financial Performance - Net income for the nine months ended September 30, 2025, was $1,279 million, a 34% increase from $953 million in the same period of 2024[136] - Net income for the three months ended September 30, 2025, was $504 million, a 67% increase from $301 million in 2024[160] - Basic net income per Class A share for continuing operations increased by 67% to $0.60 for the nine months ended September 30, 2025, compared to $0.36 in 2024[137] - Adjusted EBITDA for the three months ended September 30, 2025, was $806 million, slightly up by 1% from $805 million in 2024[160] - Adjusted EBITDA attributable to PAA for the nine months ended September 30, 2025, was $2,095 million, a 2% increase from $2,051 million in 2024[160] Revenue Changes - Product sales revenues decreased by 9% to $32,389 million for the nine months ended September 30, 2025, compared to $35,606 million in 2024[137] - Services revenues increased by 5% to $1,309 million for the nine months ended September 30, 2025, compared to $1,248 million in 2024[137] - Crude Oil segment revenues for Q3 2025 were $11,559 million, a decrease of 7% compared to $12,444 million in Q3 2024[165] - NGL segment revenues for Q3 2025 were $24 million, an increase of 20% from $20 million in Q3 2024[173] Operating Costs and Expenses - Field operating costs decreased by 9% to $873 million for the nine months ended September 30, 2025, compared to $962 million in 2024[137] - General and administrative expenses increased by 2% to $255 million for the nine months ended September 30, 2025, compared to $251 million in 2024[137] - Field operating costs decreased by 30% in Q3 2025 compared to Q3 2024, primarily due to prior year settlements related to the Line 901 incident[169] - Depreciation and amortization from continuing operations for the three months ended September 30, 2025, was $230 million, a 2% increase from $226 million in 2024[160] Capital Expenditures and Investments - Total capital expenditures for the nine months ended September 30, 2025, amounted to $1.382 billion, significantly higher than $547 million for the same period in 2024[181] - The company projected total investment capital for the year ending December 31, 2025, to be approximately $600 million, with about half allocated to Permian JV assets[182] - Maintenance capital expenditures for Q3 2025 were $36 million, down 25% from $48 million in Q3 2024[165] Debt and Interest Expenses - Interest expense for the three months ended September 30, 2025, increased to $112 million from $97 million in 2024, a rise of 15%[149] - The company issued $1.0 billion in senior notes at 5.95% in January 2025 and $650 million at 5.70% in June 2024, contributing to the increase in interest expense[149] - In January 2025, the company completed the offering of $1.0 billion in senior notes at a 5.95% interest rate, with net proceeds of approximately $988 million used for acquisitions and debt repayment[188] - In September 2025, the company issued $1.25 billion in senior notes, with net proceeds of approximately $1.2 billion used to redeem existing senior notes and fund the EPIC Pipeline acquisition[189] Strategic Changes and Acquisitions - The pending sale of the Canadian NGL Business is expected to close in the first quarter of 2026, representing a strategic shift for the company[133] - A net gain of $31 million was recognized related to the acquisition of the remaining 50% interest in Cheyenne in the first quarter of 2025[148] - PAA acquired 100% of the EPIC Pipeline for approximately $2.9 billion, including $1.1 billion of debt assumed[204] Cash Flow and Liquidity - Net cash provided by operating activities for the first nine months of 2025 was $1.833 billion, compared to $1.592 billion for the same period in 2024, reflecting a year-over-year increase of 15.1%[180] - As of September 30, 2025, the company had a working capital surplus of $218 million and approximately $3.9 billion in liquidity available for ongoing needs[177] Shareholder Distributions - A quarterly cash distribution of $0.38 per Class A share will be paid on November 14, 2025, amounting to an annualized distribution of $1.52 per share[195] - PAA plans to pay a quarterly cash distribution of approximately $0.615 per unit to Series A preferred unitholders on November 14, 2025[197] - PAA will pay a quarterly cash distribution of approximately $21.93 per unit to Series B preferred unitholders on November 17, 2025[198] Risk Management - PAA's risk management policies include the use of derivative instruments to hedge commodity price risks associated with crude oil and power[212] - The company anticipates potential impacts from economic conditions, including inflation and supply chain issues, on demand for midstream services[210] Other Financial Metrics - The average NYMEX Price for crude oil was $67 per barrel for the nine months ended September 30, 2025, down from $78 per barrel in 2024[141] - The overall impact of lower commodity prices and fewer market-based opportunities partially offset the benefits from higher tariff volumes and recent acquisitions[168] - As of September 30, 2025, PAA had outstanding letters of credit of approximately $70 million[205] - PAA has approximately $939 million of unsold securities available under its shelf registration statement as of September 30, 2025[192] - PAA has approximately $1.1 billion of unsold securities available under its PAA Traditional Shelf as of September 30, 2025[193]