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Plains All American Reports Second-Quarter 2023 Results and Provides Updated 2023 Guidance

Published: 2023-08-04 12:00:00 ET

Announces Permian Bolt-On Acquisition and NGL Segment Updates

HOUSTON, Aug. 04, 2023 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported second-quarter 2023 results and provided updated 2023 guidance as highlighted below. Plains also announced a bolt-on acquisition in the Permian and provided updates regarding its NGL segment.

Second-Quarter Results

Reported Net income attributable to PAA of $293 million & Net cash provided by operating activities of $888 million.
Delivered strong results with Adjusted EBITDA attributable to PAA of $597 million.

Permian Bolt-on Acquisition

A subsidiary of Plains Oryx Permian Basin LLC acquired Diamondback Energy’s 43% interest in OMOG JV LLC for approximately $225 million ($145 million net to PAA’s interest), which closed on July 28th.

NGL Segment Updates

Sanctioned Plains Fort Saskatchewan (PFS) Train 1 debottlenecking project (~30 Mb/d of additional capacity) and additional connectivity projects to both Co-Ed Pipeline & Fort Sask complex. Substantially increased weighted average contract tenor to approximately 10-years across Fort Sask fractionation capacity and Co-Ed Pipeline.
Expect sanctioned projects and new contracts on existing assets to largely offset a third-party NGL supply agreement expiring year-end 2024, that reduces frac spread exposed volumes by ~15 Mb/d.

2023 Guidance Update

Expect to be at the high end of our guidance range of $2.45 - $2.55 billion Adjusted EBITDA attributable to PAA for full-year 2023; year-end 2023 leverage now expected to be

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All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.