Plains GP (US:PAGP)2021-05-09 16:00Financial Performance - The company reported a net income of $392 million for the first three months of 2021, a significant recovery from a net loss of $2.692 billion in the same period of 2020, representing a 115% increase [123][127]. - The net loss in 2020 was primarily due to goodwill impairment losses of $2.515 billion and non-cash impairment charges of approximately $655 million [124]. - Basic and diluted net income per Class A share improved to $0.36 from a loss of $3.18 in the same quarter of 2020, marking a 111% increase [127]. - The company’s Adjusted EBITDA for Q1 2021 was $545 million, a decrease of 31% from $794 million in Q1 2020 [134]. Segment Performance - The Transportation segment reported an Adjusted EBITDA of $388 million, down 12% from $442 million in Q1 2020 [127]. - The Facilities segment's Adjusted EBITDA decreased by 19% to $171 million compared to $210 million in the prior year [127]. - The Supply and Logistics segment experienced a significant decline, reporting an Adjusted EBITDA of -$13 million, down from $141 million in Q1 2020, a 109% decrease [127]. - Transportation segment revenues decreased by 16% to $487 million for the three months ended March 31, 2021, compared to $579 million in the same period of 2020 [139]. - Facilities segment revenues decreased by 13% to $271 million for the three months ended March 31, 2021, compared to $313 million in the same period of 2020 [150]. - Revenues from the Supply and Logistics segment increased by $175 million, reaching $8,083 million for the three months ended March 31, 2021, compared to $7,908 million in the same period of 2020, representing a 2% increase [156]. Capital Expenditures and Investments - Total capital expenditures for the three months ended March 31, 2021, were $120 million, a decrease of 83.1% compared to $711 million in the same period of 2020 [172]. - Projected total investment capital for the year ended December 31, 2021, is $375 million, primarily focused on fee-based Transportation and Facilities segments [173]. - The company is targeting $750 million in asset sales for the full year of 2021, with proceeds from divestitures in Q1 2021 amounting to $21 million compared to $104 million in Q1 2020 [174]. Liquidity and Debt - The company had a working capital deficit of $253 million as of March 31, 2021, but maintained approximately $2.8 billion in liquidity available for ongoing needs [166]. - Net cash provided by operating activities decreased to $789 million for the first three months of 2021, down from $889 million in the same period of 2020 [169]. - Long-term debt and related interest payments total approximately $13.8 billion, with significant payments due in the coming years [188]. - Net repayments on credit facilities and commercial paper program for the three months ended March 31, 2021, were $576 million, significantly higher than $4 million in the same period of 2020 [178]. Risk Management - The company is exposed to various market risks, including commodity price risk, interest rate risk, and currency exchange rate risk [201]. - The company’s risk management policies are designed to ensure that hedging activities effectively address risks associated with market volatility [201]. - The company utilized crude oil derivatives to hedge price risk in its Supply and Logistics and Transportation segments, managing exposures with futures, forwards, swaps, and options [202]. - The company has a risk management function responsible for monitoring exchange-cleared and over-the-counter positions, as well as physical volumes and delivery schedules [201]. Operational Metrics - Average daily volumes for crude oil pipelines decreased by 22% to 5,430 thousand barrels per day, down from 6,974 thousand barrels per day in the prior year [140]. - The Permian Basin region experienced a 27% decline in tariff activities volumes, dropping from 5,165 thousand barrels per day to 3,753 thousand barrels per day [140]. - Average monthly liquids storage capacity in the Facilities segment decreased by 10% to 100 million barrels [150]. - Average daily volumes for crude oil lease gathering purchases decreased by 144 thousand barrels per day, or 11%, to 1,174 thousand barrels per day for the three months ended March 31, 2021 [157]. - Total volumes for the Supply and Logistics segment decreased by 144 thousand barrels per day, or 9%, to 1,394 thousand barrels per day for the three months ended March 31, 2021 [157].