Q3 2024 Plains All American Pipeline LP and Plains GP Holdings LP combined Earnings Call Transcript
Key Points
- Plains GP Holdings LP (PAGP) delivered a solid operational quarter, expecting to reach the top end of their 2024 adjusted EBITDA guidance range of $2.725 billion to $2.775 billion.
- Permian volume growth remains on track with the original forecast of 200,000 to 300,000 barrels a day for 2024, driven primarily by organic growth.
- The company is on schedule and on budget to complete the Fort Saskatchewan Fractionation expansion project in the first half of 2025.
- Plains GP Holdings LP (PAGP) recently acquired the Fivestones Permian gathering system, enhancing their portfolio and creating incremental growth opportunities.
- Moody's upgraded Plains GP Holdings LP (PAGP) to Baa2 with a stable outlook, achieving their target of a mid BBB rating at all three credit rating agencies.
- Plains GP Holdings LP (PAGP) booked a charge of $120 million related to settlements from the 2015 oil spill in California.
- The company faces geopolitical unrest, potential OPEC supply changes, and uncertainty around China, which could impact their operations.
- Despite strong performance, the company does not intend to lower their leverage range, which remains at 3.25x to 3.75x.
- The company has deferred spending for several projects, impacting their capital expenditure guidance for 2024.
- New Mexico gas evacuation remains a constraint, although industry efforts are underway to address bottlenecks.
Hello, and welcome to PAA and PAGP third-quarter 2024 earnings call. (Operator Instructions) I would now like to hand the conference over to Blake Fernandez, Vice President of Investor Relations. You may begin.
Thank you, Towanda. Good morning, and welcome to Plains All American's Third Quarter 2024 Earnings Call. Today's slide presentation is posted on the Investor Relations website under the News and Events section at plains.com. An audio replay will also be available following today's call. Important disclosures regarding forward-looking statements and non-GAAP financial measures are provided on slide 2.
An overview of today's call is provided on slide 3. A condensed consolidating balance sheet for PAGP and other reference materials are in the appendix. Today's call will be hosted by our Chairman and CEO, Willie Chiang; Executive Vice President and CFO, Al Swanson, as well as other management team members.
With that, I will turn the call over to Willie.
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