Plains All American Q4 Earnings Miss Estimates, Sales Decline Y/Y

Core Insights - Plains All American Pipeline, L.P. (PAA) reported fourth-quarter 2024 adjusted earnings of 42 cents per unit, missing the Zacks Consensus Estimate of 44 cents by 4.5% [1] - The company experienced a GAAP loss of 4 cents per unit compared to GAAP earnings of 35 cents in the same quarter last year [1] - Full-year 2024 adjusted earnings increased by 6.3% to $1.51 per share from $1.42 in the previous year [1] Revenue Performance - PAA's net sales for the fourth quarter were $12.4 billion, falling short of the Zacks Consensus Estimate of $12.8 billion by 3.1% and down 2.3% from $12.7 billion in the year-ago quarter [3] - Total revenues for the full year 2024 reached $50.07 billion, reflecting a 2.8% increase from $48.71 billion in 2023 [3] Cost and Expense Analysis - Total costs and expenses for the fourth quarter amounted to $12.32 billion, up 0.4% year over year, driven by increased field operating costs and general and administrative expenses [4] - Net interest expenses were reported at $112 million, marking a 15.5% increase from the prior-year quarter [4] Segment Performance - The Crude Oil segment's adjusted EBITDA was $569 million, up 1% from the previous year, attributed to higher tariff volumes and contributions from acquisitions [5] - The NGL segment's adjusted EBITDA decreased by 9% to $154 million due to lower weighted average frac spreads [5] Financial Position - As of December 31, 2024, cash and cash equivalents were $348 million, down from $450 million a year earlier [6] - Long-term debt decreased to $7.21 billion from $7.31 billion as of December 31, 2023, with a long-term debt-to-total book capitalization ratio of 42% compared to 41% a year prior [6] 2025 Guidance - For 2025, PAA anticipates adjusted EBITDA in the range of $2.80 billion to $2.95 billion and adjusted free cash flow of $1.15 billion, excluding changes in assets and liabilities [8] - The company plans disciplined capital investments, with growth capital and maintenance capital projected at $400 million and $240 million, respectively [8] Zacks Rank - PAA currently holds a Zacks Rank 1 (Strong Buy) [9]