Plains GP (PAGP) - 2021 Q3 - Quarterly Report

Financial Performance - As of September 30, 2021, the company recognized a net income of $130 million, a significant recovery from a net loss of $2.417 billion during the same period in 2020[140]. - The company incurred a net loss on asset sales and impairments of $592 million during the first nine months of 2021[140]. - Net income for the three months ended September 30, 2021, was $(50) million, a decrease of 136% compared to $139 million in 2020[150]. - Adjusted EBITDA for the three months ended September 30, 2021, was $518 million, down 24% from $681 million in the same period of 2020[150]. - The company’s basic and diluted net income per Class A share was $(0.12) for the nine months ended September 30, 2021, compared to $(2.97) in the same period of 2020, reflecting a 96% improvement[144]. - The company reported a net gain on early repayment of senior notes, which is classified as a selected item impacting comparability[156]. Segment Performance - The Transportation segment's adjusted EBITDA for the first nine months of 2021 was $1.248 billion, a slight increase of 1% compared to $1.233 billion in 2020[144]. - The Facilities segment's adjusted EBITDA decreased by 24% to $425 million in the first nine months of 2021 from $560 million in 2020[144]. - The Supply and Logistics segment reported an adjusted EBITDA loss of $31 million for the first nine months of 2021, compared to a profit of $205 million in the same period of 2020, marking a 115% decline[144]. - Revenues for the Transportation segment increased to $529 million in Q3 2021, up 7% from $494 million in Q3 2020, and for the nine months ended September 30, 2021, revenues were $1,568 million, a 2% increase from $1,530 million in 2020[157]. - Revenues from the Facilities segment decreased by 17% to $226 million for the three months ended September 30, 2021, and by 14% to $741 million for the nine months ended September 30, 2021 compared to the same periods in 2020[167]. - Revenues from the Supply and Logistics segment increased by 90% to $10,515 million for the three months ended September 30, 2021, and by 72% to $28,222 million for the nine months ended September 30, 2021 compared to the same periods in 2020[172]. Capital Expenditures and Investments - Total capital expenditures for the nine months ended September 30, 2021, were $330 million, a significant decrease from $1.252 billion in the same period in 2020[191]. - The company plans to invest $275 million in capital expenditures for the year ended December 31, 2021, primarily in its Transportation and Facilities segments[191]. - Maintenance capital expenditures decreased by 35% to $22 million in Q3 2021 from $34 million in Q3 2020, and for the nine months, it decreased by 31% to $68 million from $98 million in 2020[165]. Liquidity and Debt - The company had approximately $2.8 billion in liquidity available as of September 30, 2021, despite a working capital deficit of $522 million[186]. - During the nine months ended September 30, 2021, the company had net repayments of $713 million on credit facilities and commercial paper, primarily from operating cash flow and asset sales[197]. - Interest expense decreased for the three and nine months ended September 30, 2021, due to a lower weighted average debt balance and lower average rates[180]. - The company has outstanding letters of credit of approximately $64 million as of September 30, 2021, down from $129 million at the end of 2020[208]. Asset Management and Impairments - Goodwill impairment losses were recorded at $2,515 million in the nine months ended September 30, 2021, reflecting a 100% decrease from the previous period[150]. - The company recognized a goodwill impairment charge of $2.515 billion in Q1 2020, representing the entire balance of goodwill[178]. - The company reported a net loss of approximately $220 million related to a non-cash impairment charge for crude oil storage terminal assets in Q3 2021, and a $475 million impairment charge for natural gas storage facilities classified as held for sale[177]. Risk Management - The company is exposed to commodity price risk, interest rate risk, and currency exchange rate risk, utilizing various derivative instruments to manage these risks[218]. - The company has a risk management function responsible for monitoring and approving risk management strategies[218]. - The company did not have any variable rate debt outstanding as of September 30, 2021, mitigating interest rate risk exposure[221]. Shareholder Returns - The company distributes all available cash to Class A shareholders within 55 days following each quarter's end[203]. - The company repurchased 11,917,303 common units for a total of $117 million during the nine months ended September 30, 2021, with $333 million remaining under the repurchase program[200].