Plains All American Pipeline (PAA) Q2 2024 earnings summary

Executive summary

• Second quarter 2024 Adjusted EBITDA attributable to PAA was $674 million, exceeding expectations and driven by strong segment performance and bolt-on acquisitions.

• Full-year 2024 Adjusted EBITDA guidance was raised by $75 million to $2.725–$2.775 billion, reflecting robust operational execution and M&A contributions.

• Adjusted EBITDA for the first six months of 2024 was $1.654 billion, up 9% from 2023.

• Strategy emphasizes disciplined growth, cost containment, and a shift toward more stable, fee-based cash flows.

• Net income attributable to PAA was $515 million for the first six months of 2024, down from $715 million in 2023, mainly due to prior-year gains on asset sales and derivative adjustments.

Financial highlights

• Q2 2024 Adjusted EBITDA was $674 million; Crude Oil segment contributed $576 million and NGL segment $94 million.

• Adjusted EBITDA rose 13% year-over-year in Q2 2024; Adjusted net income attributable to PAA was $288 million, up 19%.

• Total revenues for the first half of 2024 were $24.93 billion, up 4% from 2023.

• Net cash provided by operating activities was $1.072 billion for the first six months of 2024.

• Distribution per common unit declared for Q2 2024 was $0.3175, up 19% year-over-year.

Outlook and guidance

• 2024 Adjusted EBITDA guidance raised to $2.725–$2.775 billion; Adjusted Free Cash Flow guidance is $1.55 billion.

• Production growth guidance of 200,000–300,000 barrels per day maintained, with growth weighted to the back half of the year.

• Maintenance capital for 2024 is projected at $270 million ($250 million net), with investment capital at $465 million ($375 million net).

• Targeting $0.20/unit annual distribution increase in 2024 to $1.27/unit, with ~15% annual growth thereafter until 160% coverage.

• Long-term leverage ratio target range maintained at 3.25x–3.75x.