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Perplexity Finance

PAGP

Plains GP Holdings, L.P.

PAGP

NASDAQ

Market Closed

Saturday, May 24, 2025

$17.81

+$0.10

0.56%

At close: May 23, 4:00:00 PM EDT

$17.82

+$0.01

0.06%

After hours: 5:40:34 PM EDT

Change

+$0.10

0.56%

Financial Profile

Prev Close

$17.71

Market Cap

$3.52B

Day Range

$17.57 - $17.88

Open

$17.57

P/E Ratio

24.4

52W Range

$16.61 - $22.31

24H Volume

$14.33M

Dividend Yield

7.83%

EPS

0.73

Earnings

Report Date

May 9, 2025

Reported Revenue

12B

Miss -7.54%

Avg 1d Change

2.65%

Report Period

Q1 2025

Reported EPS

0.42

Beat +2.44%

Implied Move 1d

3.26%

Transcript

10m 11s

Today's call will be hosted by Willie Chang, Chairman and CEO Al Swanson, Executive Vice President and CFO along with other members of the management team. With that, I will turn the call over to Willie. Thank you, Blake. Good morning, everyone, and thank you for joining us. This morning, we reported solid first quarter performance with an adjusted EBITDA attributable to Plains up $754,000,000 which Al will cover in more detail. Before providing an update on our efficient growth initiatives, I'd like to offer some thoughts on the current market and policy environment. The ongoing uncertainty on trade tariffs, is weighing on economic forecasts and creating significant volatility. Additionally, the dissension among OPEC members and the prospects of incremental supply coming to market has resulted in a lower price commodity than anticipated at the beginning of the year. Nevertheless, we believe a lower price environment will ultimately reinforce the cyclical nature of the commodity markets. Leading to a constructive medium, to long term outlook. Slide four outlines several supply and demand dynamics that we believe contribute to a supportive backdrop over time. Despite the given the current market volatility, our business remains resilient. Assuming a $60 to $65 WTI environment persists, for the remainder of the year, we would expect both our 2025 EBITDA guidance and Permian growth outlook could be in the lower half of the respective ranges.

11m 41s

Our NGL segment remains largely insulated from lower commodity prices with approximately 80% of our estimated C3 plus spec products sales hedged for 2025. In this environment, we believe it's important more important than ever, to remain focused on what we can control. As a result, we continue to execute on our efficient growth strategy, generating significant free cash flow, maintaining a highly flexible flexible balance sheet where our leverage ratio remains towards the low end of our target range, and returning capital to our unitholders. Turning to a few highlights, In our NGL segment, our transition to more fee based earnings continues, with our 30,000 barrel a day fractionation bottleneck project at Fort Sask, having been placed into service during the second quarter along with other expansions of our NGL and condensate gathering systems being completed throughout the year. These projects are supported by long term customer commitments and enhance our integrated NGL value chain. In our Crude segment, had two small strategic transactions acquired the remaining 50% equity in the Cheyenne Pipeline in the Rockies This asset serves as a vital connection between Guernsey and downstream crude oil pipelines, Saddlehorn and White's Cliffs, which Plains owns an equity interest in.

13m 3s

In May, we acquired Black Knight Midstream, a Midland Basin crude gathering system approximately 55,000,000 Both transactions complement our existing asset base and build upon our track record of successful bolt on transactions. As shown on slide five, over the last several years, we've successfully deployed a approximately 1,300,000,000.0 into bolt on acquisitions. We continue to believe these opportunities present attractive risk adjusted returns, and our balance sheet flexibility provides financial capacity to continue to progressing the opportunity set. Before turning the call over to Al, I do want to say thank you and acknowledge our colleague Harry Pofonis. Our President and Co Founder of the company. Harry's played an integral part in building Plains since its inception decades ago. Very thankful for his relentless focus on developing lasting relationships, customer service, and operational excellence, together with an unwavering commitment to integrity, accountability and teamwork. We wish Harry the very, very best in his retirement. With that, I'll turn the call over to you Al. Thanks, Willy. We reported first quarter crude oil segment adjusted EBITDA of $559,000,000 which was impacted by winter weather and higher than expected refinery downtime. These events drove volumes below expectations in the quarter. However, we have seen a recovery in April and May with a healthy ramp in our gathering volumes across our system.

14m 34s

Moving to our NGL segment, we reported segment adjusted EBITDA of $189,000,000 which benefited from higher frac spreads and NGL sales volumes driven by stronger border flows. Slide six and seven in today's presentation contains segment adjusted EBITDA walks that provide additional details on our first quarter performance. With regard to trade tariff, I would like to provide an update since our last earnings call. Currently, the energy products imported into The United States from our Canadian operations are exempt under the USMCA. Limiting the direct impact of tariffs on our business While there is a fair amount of uncertainty in the market today, you will see on slide eight, eight, left our key assumptions unchanged for the year. Including a $75 per barrel WTI price and 200,000 to 300,000 barrels per day of year over year Permian growth.

15m 36s

Key sensitivities are provided within the slide allowing investors to analyze various scenarios. As illustrated on slide nine, we expect to generate strong cash flow this year with adjusted free cash flow of about $1,100,000,000 which excludes changes in assets and liabilities and is reduced by approximately $635,000,000 for acquisitions. With that, I'll turn the call back to Willie. Thank you, Al. We're off to a solid start for the year. Albeit in a more volatile and uncertain market. As shown on Slide 10, we continue to make progress on our key financial objectives, and are well positioned to execute our strategy in a highly volatile environment. In summary, our strong balance sheet offers financial capacity and flexibility. We continue to demonstrate capital discipline while executing on our efficient growth strategy including our focus on bolt on acquisitions, and we remain committed to returning cash to our unitholders. Before we hand back to Blake, Harry, would you like to make a few comments? Yes, thank you, Willie. Appreciate that. And before we go to Q and A, first I'd like to thank Willie for his kind remarks and his leadership. I've enjoyed working with him over these last ten years.

16m 52s

Has a great team and I can tell you the team is as strong as it's ever been. I'd also like to thank all of you for joining us on our quarterly earnings call and your continued interest in Plains. And with that, I'll turn it over to Blake. To lead us into Q and A. Thanks, Harry, and again congrats. As we enter the Q and A session, please limit yourself to two questions. For those with additional questions, please feel free to return to the queue. This will allow us to address questions from as many participants as possible in our available time this morning. The IR team will also be available after the call to address additional questions. Michelle, I think we're ready to go to the Q and A session please.

17m 29s

Thank you. Our first question is gonna come from the line of Gabriel Marine with Mizuho. Your line is open. Please go ahead.

17m 48s

Hey, good morning, everyone, and congrats to Harry on the retirement and an excellent career at Plains.

17m 55s

Wanted to ask first about capital allocation in the current environment. It seems like you're still committed to the growth in 2026. But given volatility in the unit price and the like, I was wondering if there's any thoughts in the shift shifting of mindset to maybe spend more on buybacks versus distribution growth again, given all the volatility out there?

18m 18s

Gabe, this is Al. I'll take a at it. No really change in our view with regard. Focus will be continue to be on distribution growth. As the primary method for returning cash to shareholders. Unit repurchases are a component of our of our capital allocation. No change there, opportunistic and market dislocation. We did buy a small amount in in April just as we're going into blackout. It was only about $7,500,000 worth. I think it was about 475,000 units. It's a component, but I want to say there's been no change in our thinking around opportunistic and market dislocation. So we'll see what the future brings.

19m 8s

Got it. Thanks, Al. Appreciate that. And then maybe if I could ask sort of on the M and A landscape, you've clearly been have continued success here with these tuck in deals. Just with all the volatility out there, the latest you're seeing in terms of whether that volatility kind of a catalyst to do more deals? Do you think it's kind of been an impediment to price discovery in the current environment?

19m 31s

Yes. Gabe, this is Willie. I'll take that one. Clearly, more volatile markets create a little more questions and And what I would tell you is that good deals always take time to get to win win. And I think we're positioned very well to be able to do that because of the nature of where we sit in the value chain. We think we still have a pretty ample supply of opportunities out there and we continue to chase them. And we'll maybe the only other thing to mention is in an environment this, capital discipline is absolutely critical and we've taken a real hard look at risk adjusted returns we expect to be able to get to more win win deals throughout the year.

20m 9s

Appreciate it. Thanks, Willie.

20m 12s

Thank you. One moment for our next question. Our next question will come from the line of Manav Gupta UBS. Your line is open. Please go ahead. Good morning. Looks like you were able bring up your fractionation complex in Canada. So help us understand the the cadence of earnings in Canada now this now that this plant is up and running.

20m 35s

Manav, it's Chris Chandler. So yes, we were excited to bring up the expanded capacity of 30,000 barrels a day at our PFS facility in Edmonton, Alberta. We brought it up just ahead of our new commercial contracts taking effect. They don't all ramp to full volume immediately. They'll ramp over the remainder of this year and a little into next year. This is also part of a multi project effort where we're doing some additional connectivity [indiscernible] gathering investments along that value chain that will also come online throughout 2025. So I think you'll see that gradually contribute throughout the year and on a kind of full run rate basis starting in 2026.

21m 30s

Perfect. Can we get a few more details about the Black Knight Midstream Permian Basin, the deal you did for about $55,000,000 at the benefit of the deal and why you decided to go ahead with that one? Thank you.

21m 42s

Sure. It's right in the middle of our Northern Midland Basin gathering footprint. It's a position that we operate in on behalf of the the producer and their affiliate. And we negotiated the transaction with them It's got some long term capital synergies helping us to get to other positions that are on the other side of that. It's in the absolute core of the Northern Midland Basin The producer on the system one of their top assets. So we feel very comfortable with the rock, the resource, the inventory, the purchasing multiple that we did, and it's a good as Willie said, win win. It's a good win for our private equity partner that developed the asset. And it's a great win for Plains longer term to own this asset. Asset.

22m 28s

Thank you.

22m 31s

Thank you. One moment for our next question.

22m 33s

Our next question is going to come from the line of Michael Blum with Wells Fargo. Your line is open. Please go ahead.

22m 41s

Thanks. Good morning, everyone. Wondering if you can give us your latest latest thoughts on conversations with producers, what they're telling you, and just your latest outlook on Permian volumes. I realize kept the guidance at 2,000 to 300,000 barrels, but curious if where you think that's sort of really trending and also for '26? Thanks.

23m 4s

Sure, Michael. I'll pick the 25. But what I can tell you is you've already grown over 100,000 barrels a day from the end of last year to now. So the 200,000 barrels a day does not seem very Herculean as a growth expectation for this. I'd say by and large, the producers are very in a very similar situation. It's a bit of wait and see the just started a month ago. And so you don't make two or three year plans based on one month of activity and you've seen some rebound in it. So I think in the next three months, it's a function of time, and it's a function of flat price. And so it's a short period of time at this price. If it sustains for a longer period of time here, you will see some flattening out. If it goes below this, below $55 barely heard from the producer community, would start to go to flat and maybe even decline. If gets above $65 for an extended period of time, you'll see it go the other way. You'll see it back to growth. So from our standpoint, there's a bit of wait and see at this point, you're right in this position where you shouldn't see much difference in activity for the next three to six months.

24m 11s

Six plus months, you might see some deferral of completions and maybe some rigs go down. But it's very consistent with you've heard from the upstream community That's what they're telling us as well. So like I said, our guidance here is just predicated on what could happen in the price range, but the volatility literally started a month ago. So it's a function of time and price. And Michael, this is Willie. I think the key point in this is when you think about '25 with the sensitivities that we've given the impacts to us are very modest could be very modest. And really the broader thing is to stay engaged and understand what's going on in the rest of the world, This is going to be a twenty six plus issue if it becomes an issue. But as we've outlined on our slide deck, I actually think we you know, this just going to reinforce their cyclicality, the cyclability in the cycles of commodities. As prices go lower, tend to bring more activity in and prices go higher, it's the other way around.

25m 15s

Great, understood. Appreciate that. And then second question, just wanted to ask how should we think about the acquisition multiples you paid for the two bolt on deals this quarter. Thanks.

25m 28s

So as opposed to multiples, this they both hit our return thresholds higher.

25m 33s

As Willie mentioned, capital discipline The first was a reduction in future MVCs in exchange for taking of the asset. From a partner we priced in our rates of return there. And we've done as well or better filling the pipeline after the fact that the so that's the first one, gathering transaction once again, our goal is to earn our base return with limited synergy allocation and to compress that multiple with synergies. I'd say both of them fit the model of the previous 12 acquisitions.

26m 8s

Thanks. Thank you. One moment for our next question.

26m 13s

Our next question is going to come from the line of Jeremy Tonet with JPMorgan. Your line is open. Please go ahead.

26m 21s

Hey. Good morning. This is Robin Reddy on for Jeremy.

26m 24s

Materials highlighted expectations for 300 to 400,000,000 of annual growth CapEx. Maybe just wondering how you think about CapEx spend at this point and how much might be locked in for 2026?

26m 40s

Hi, Robin, this is Chris Chandler.

26m 42s

We left our investment capital guidance for 2025 unchanged at 400,000,000 net to Plains. We just wrapped up the expansion project at Fort Sass that we mentioned and we have some related NGL supply and connectivity projects that will happen later this year.

27m

On the Permian side where the rest of our capital is largely allocated, that connection capital and gathering spend is designed to pace our producers.

27m 11s

But we do typically schedule that work six to twelve months out. So we're nearly in the 2026 on that segment.

27m 18s

But if we were to see a large change in activity from the producers we could adjust our capital and would obviously do so in response to anything that happens in that area.

27m 30s

As for 2026, we haven't and won't provide guidance yet but we are feeling comfortable that capital spend will be in our long term capital guidance range of 300,000,000 to $400,000,000 net to Plains.

27m 48s

Got it, thank you. And then on the frac spread, for the hedging, looks like it stepped up to 80%. And just wondering if we could get your latest thoughts on the hedging philosophy this year and moving forward.

27m 59s

Jeremy? Yeah, it's consistent. We take a fundamental view We recognize the need to maintain steady cash flow We set targets and we continue to execute. So we're opportunistic around hedging Because of the back related market, we're more hedged in the front end than the back end, but that's been consistent with the last several years. So I don't think anything's changed in the last several years in the strategy.

28m 23s

Thank you.

28m 24s

Thank you. And one moment for our next question. Our next question is going to come from the line of Sunil Sibal with C. Global. Your line is open. Please go ahead.

28m 35s

Yeah. Hi. Good morning, everybody. And congrats to Harry on a successful career at Plains. My first question was related to the sensitivity that was provided with regard to the Permian production. I was curious, is the underlying assumption there that the marginal barrel is is moving to a particular market? I. E. Pushing or or say Houston, and that's kind of primary driver of that sensitivity. And then is that sensitivity based on your full year volumes or obviously you have, you know, almost four months plus of 2025 already in. So we should think about that sensitivity on full year volumes or more like eight month volumes.

29m 18s

Sunil, this is Jeremy. That guidance was for the full year And like I had said earlier, we've already grown over 100,000 barrels a day. So the view of 203 still stands for exit to exit 24 to 25. [indiscernible] the Permian Basin, the supply push the market's going to price where the marginal barrel goes. So we don't necessarily have assumptions upfront that prices will dictate that. But it's a supply push market and they have a $60 to $80 commodity, they're moving that last 50¢ just going be dictated by the consumer. Not necessarily the producer.

29m 55s

Okay, thanks for that. Then one clarification. So for full year '25, you're guiding in the NGL segment 45,000 pounds per day of spec sales.

30m 9s

I presume there is a fair bit of seasonality in that. So how much of that should date in Q1?

30m 17s

Sunil, I think that's a follow-up question for the IR team. But the seasonality we use our 8,000,000 barrels of storage to optimize when we sell. So the market tells us when to sell those commodities. So we produce the spec sales condensate is sold ratably, butane and propane are the two that are sold seasonally. But that's a function of price and timing and maximizing value. But that's probably a better follow-up question for the IR team.

30m 45s

And Sunil, this is Willie. You'll remember the typical satellite we have with colder months, obviously more propane is typically sold. Again, our team can follow-up with you on that.

30m 56s

Thanks for that.

30m 58s

Thank you.

30m 59s

Thank you. One moment for our next question. Our next question will be from the line of A. J. O'Donnell with TPH. Your line is open. Please go ahead.

31m 9s

Good morning, everyone. I was just wondering if I could start on some of the prepared comments about the volume recovery in April and May. Just wondering if you could provide some additional detail around that, where you're seeing that along your system. And maybe how that could translate into higher long haul throughput for the remainder of the year. Thanks.

31m 35s

AJ, hi, this is Jeremy. Thank you for the question. Some of that recovery was you had a strong fourth quarter, then you had weather events in January and February, which kept production down. So some of that was just production coming back online also deferral of completions just to get around the weather. So, it is very typical. You have the best weather periods here in the spring and the fall. And so you see a lot of completion. So that surge of completions as we said earlier, the impact of prices we really haven't seen any impact of prices so far, and we don't expect to for the next month or two. I think Al was just stating that while volumes were a little bit down in the first quarter, that was really a function of intra basin, which is the lowest margin part of our value chain. And that's really feeding some of the long haul and that would the long haul down there was driven by downstream demand. So to get to your question on long haul, as you get to the summer driving season and refineries ramp back up, you're going to see a pickup in those refining markets and their demand for crude.

32m 36s

So you'll see more crude So it's an interrelated question.

32m 42s

Okay.

32m 43s

I appreciate the detail there. And then maybe just one more on kind of the the longer term outlook.

32m 50s

You know, granted, like, you know, we're all kind of theorizing about what's going to happen over the next six to twelve months here with all the backdrop of volatility. Just curious if you guys could provide maybe some updated views about how you're thinking around total Permian long haul utilization filling up I know there were some materials provided in the previous investor deck where you're talking about that 80% threshold and pipes hitting that Yeah. Just any comments about how you're thinking about the forward market there?

33m 24s

AJ, that's really a function of production So I think everybody has their own views of production. I think Willie said it in the beginning, which is this is probably not a pause, this is not the stop of growth. You hear different views on that. But our view is, the world's going to need this crude oil for a period of time. There's a great resource There's very well capitalized producers. They're saying pause at the 55 to 60 range and you've seen prices pause. Which means as you see things recover on the demand side and you get more certainty around investment and decisions associated with the tariffs and all that settles out. You see demand recovery, you see the need for more crude oil recover, This is all related. So we're not going to make long term statements Utilization of pipelines is related to to volumes, but longer term our longer term growth profile and expectation for the Permian hasn't changed. So I don't think that's changed materially. Just might be a timing thing.

34m 18s

AJ, I just reinforce that it's when you think about the current volatility, you've got the tariffs tariffs and OPEC, right? Those are the two things that are the the catalyst for volatility and I think a lot of business plan and everyone else's business plan is going to really rest on when that that ultimately gets resolved and no one knows the answer to that. So we'll just have to keep following it.

34m 47s

Thank you very much.

34m 48s

Thank you.

34m 49s

Thank you. And one moment for our next question. Our next question is going to be from the line of John Mackie with Goldman Sachs. Your line is open. Please go ahead.

34m 58s

Hey, team. Thanks for the time. We've a lot about the upstream side, but you guys are also really tied in on the demand side as well. I'd just be curious if you have any read on kind of real time demand signals and any sign of of slowdown specifically you're seeing either on the refining side or on the export side?

35m 18s

Thanks.

35m 19s

Yeah, so those are two different questions. I'd say very healthy is the the global refining market. Candidly, you haven't seen gasoline prices move much, but you've seen crude prices go down so crack spreads are very strong. And we're seeing all the refineries come out of turnarounds and run very strong. So I'd say that's a part of the reason for lower volumes in the first quarter was driven by lower movements to refineries. That's all picking up. So that part of the business is very healthy. On the export side, that changes month to month and even within one week periods within given months. You've seen some slowdown on movements internationally, the price the barrels have to move, so they get price to move. Like said, the Permian is $60 to $80 commodity and it's going to push to the water and it's going to price to be sold. So I'd say we're seeing healthy margins globally for refining. So that's the thing to pay attention to on a forward basis that demand appears to be healthy.

36m 21s

I appreciate that. Thanks. And maybe just going back to think it was Gabe's question and Will, you commented a little bit more here. But just on capital allocation, I think now at the end of the quarter, you're still at the bottom end of the leverage range. Just curious how you guys are thinking about kind of managing within that range given the potential for the backdrop on the macro side to get a little softer? Is that changing view at all and where you want to be in specifically?

36m 50s

John, I'll start and Alton certainly. Add But we've been very clear about our capital allocation plan. One, we're going to we're committed to returning cash to unitholders. And we've got our targeted increase to a coverage limit that we've announced years ago. And we're going to execute on that We are also very optimistic and continue to work on the bolt ons. And we think that opportunity set us out there and that is really the primary focus on the highest return options for cash. So, those two are going to drive it. Our leverage is at the lower end. If there were some transactions that made sense, we've always said that we would allow the leverage to go up with the with the understanding that in the planning that it doesn't stay up So we're using that leverage range really to our benefit as we think about what we might be able to do as far as growing in a capital disciplined way. [indiscernible] Yeah, the only thing I would add is it is a range, the leverage range We don't have the stated desire to be at the bottom end or below on a sustained basis. So So we do look at the ability to use some of that capacity for strategic quality investments as we look go ahead.

38m 11s

We just recently in the last year, got BBB rated at all three agencies. We We do not view and have no interest in putting leverage at a point that would jeopardize any of those writings.

38m 28s

I appreciate the color. Thank you.

38m 31s

Thank you. And one moment for our next question. Our next question is going to come from the line of Chen with Barclays. Your line is open. Please go ahead.

38m 40s

Good morning. I wanted to go back to the comment about M and A opportunities and the volatile landscape effectively creating more opportunities within this part of your capital allocation strategy. Are you seeing more sellers come to market at this juncture or do you expect this to happen as the year unfolds depending on where pricing goes? And if there are more sellers coming to market, would you expect a more rapid pace of acquisitions just given the state of your leverage, your balance sheet and you might only have a short window to execute, how do you view that?

39m 21s

Hey Theresa, it's Willie. The answer your question is, I think it's a pretty broad range of opportunities. Mean, if you looked at the list of things that we've done, I would argue that some of those transactions were done because of where perhaps a refiner was in the cycle and wanting to monetize. We've had similar discussions with upstream folks on where do they want to deploy capital and how do they monetize. So this truly is kind of a back and forth with our partners on an everyday basis on how do you win and how do we get to something. And the thing I would point out is, and I think you understand our system well, because of the network that we have, and the relationships we have with a lot of these partners, we can create value in many different ways.

40m 8s

So, lots of times it's not just simply a bid ask on the asset, it's a bid ask on the asset but we have more opportunities to create value that create win win situations. So I know it's a little bit general, but hopefully gives you the dynamics of all the different things that we look at.

40m 27s

Thank you so much.

40m 29s

Thanks, Teresa.

40m 31s

Thank you. And I'm showing no further questions at this time. And I would like to hand the conference back over to Willie Chang for closing remarks.

40m 38s

Thanks, Michelle. Well, thanks everyone for dialing in. Strong start to the quarter. We look forward to seeing you on the road and giving you more updates. Have a great day.

40m 47s

This concludes today's conference call. Thank you for participating. You may now disconnect.

Key Insights

Reported solid Q1 performance with adjusted EBITDA of $754 million; crude oil segment adjusted EBITDA was $559 million (impacted by winter weather and refinery downtime), and NGL segment adjusted EBITDA was $189 million (benefiting from higher frac spreads and sales volumes).
2025 EBITDA guidance and Permian growth outlook are expected to be in the lower half of their respective ranges if $60–$65 WTI persists; key assumptions for the year remain unchanged, including $75/bbl WTI and 200,000–300,000 bpd Permian growth.
NGL segment is largely insulated from lower commodity prices, with approximately 80% of estimated 2025 C3+ spec product sales hedged; transition to more fee-based earnings continues with new fractionation capacity online and further expansions planned.
Completed two bolt-on acquisitions: acquired remaining 50% equity in Cheyenne Pipeline and purchased Black Knight Midstream in the Midland Basin for ~$55 million; both deals align with capital discipline and risk-adjusted return thresholds.
Capital allocation remains focused on distribution growth as the primary method of returning cash to unitholders, with opportunistic unit repurchases; 2025 investment capital guidance unchanged at $400 million, and long-term capital spend expected in the $300–$400 million range.

Recent Transcripts

Plains All American delivered solid Q1 results and remains focused on efficient growth and capital returns despite market volatility.

Plains All American exceeded 2024 guidance, raised distribution, and projects steady EBITDA growth in 2025.

Feb 07

Q4 2024

EBITDA

$2.78B (2024), $2.8-2.95B (2025)

Distribution

+20% increase, 7.5% yield

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$23B	$42B	$57B	$49B	$50B
Cost of Revenue	$21B	$39B	$54B	$46B	$47B
Gross Profit	$2.2B	$2.8B	$3.2B	$3.1B	$3.5B
Gross Profit %	9.5%	6.7%	5.6%	6.4%	7%
R&D Expenses	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Revenue

$23B

$42B

$57B

$49B

$50B

Cost of Revenue

$21B

$39B

$54B

$46B

$47B

Gross Profit

$2.2B

$2.8B

$3.2B

$3.1B

$3.5B

Gross Profit %

9.5%

6.7%

5.6%

6.4%

R&D Expenses

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-$2.4B	$600M	$1.2B	$198M	$1.1B
Dep. & Amort.	$656M	$777M	$968M	$1.1B	$1B
Def. Tax	-$218M	$62M	$162M	$44M	$9M
Stock Comp.	$16M	$24M	$41M	$51M	$52M
Chg. in WC	-$158M	-$227M	-$191M	$194M	$72M

2020

2021

2022

2023

2024

Net Income

-$2.4B

$600M

$1.2B

$198M

$1.1B

Dep. & Amort.

$656M

$777M

$968M

$1.1B

$1B

Def. Tax

-$218M

$62M

$162M

$44M

$9M

Stock Comp.

$16M

$24M

$41M

$51M

$52M

Chg. in WC

-$158M

-$227M

-$191M

$194M

$72M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$25M	$452M	$404M	$453M	$349M
ST Investments	$0	$0	$75M	$0	$0
Cash & ST Inv.	$25M	$452M	$404M	$453M	$349M
Receivables	$2.6B	$4.7B	$3.9B	$3.8B	$3.9B
Inventory	$647M	$783M	$729M	$548M	$439M

2020

2021

2022

2023

2024

Cash

$25M

$452M

$404M

$453M

$349M

ST Investments

$75M

Cash & ST Inv.

$25M

$452M

$404M

$453M

$349M

Receivables

$2.6B

$4.7B

$3.9B

$3.8B

$3.9B

Inventory

$647M

$783M

$729M

$548M

$439M

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Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $3.5B
IPO Date: 10/16/13
CEO: Mr. Wilfred C.W. Chiang
Fulltime Employees: 5K
Sector: Energy
Industry: Oil & Gas Midstream
Country: US
Exchange: NASDAQ Global Select

Peers

Targa Resources Corp.

$160.46

TRGP

0.86%

Equitrans Midstream Corporation

$12.42

ETRN

0.57%

Western Midstream Partners, LP

$38.94

WES

0.65%

Holly Energy Partners, L.P.

Magellan Midstream Partners, L.P.

$69.00

MMP

0.67%

Plains All American Pipeline, L.P.

Crestwood Equity Partners LP

Watchlist

Earnings

Report Date

May 9, 2025

Reported Revenue

12B

Miss -7.54%

Avg 1d Change

2.65%

Report Period

Q1 2025

Reported EPS

0.42

Beat +2.44%

Implied Move 1d

3.26%

Transcript

10m 11s

11m 41s

13m 3s

14m 34s

15m 36s

16m 52s

17m 29s

Thank you. Our first question is gonna come from the line of Gabriel Marine with Mizuho. Your line is open. Please go ahead.

17m 48s

Hey, good morning, everyone, and congrats to Harry on the retirement and an excellent career at Plains.

17m 55s

18m 18s

19m 8s

19m 31s

20m 9s

Appreciate it. Thanks, Willie.

20m 12s

20m 35s

21m 30s

21m 42s

22m 28s

Thank you.

22m 31s

Thank you. One moment for our next question.

22m 33s

Our next question is going to come from the line of Michael Blum with Wells Fargo. Your line is open. Please go ahead.

22m 41s

23m 4s

24m 11s

25m 15s

Great, understood. Appreciate that. And then second question, just wanted to ask how should we think about the acquisition multiples you paid for the two bolt on deals this quarter. Thanks.

25m 28s

So as opposed to multiples, this they both hit our return thresholds higher.

25m 33s

26m 8s

Thanks. Thank you. One moment for our next question.

26m 13s

Our next question is going to come from the line of Jeremy Tonet with JPMorgan. Your line is open. Please go ahead.

26m 21s

Hey. Good morning. This is Robin Reddy on for Jeremy.

26m 24s

Materials highlighted expectations for 300 to 400,000,000 of annual growth CapEx. Maybe just wondering how you think about CapEx spend at this point and how much might be locked in for 2026?

26m 40s

Hi, Robin, this is Chris Chandler.

26m 42s

27m

On the Permian side where the rest of our capital is largely allocated, that connection capital and gathering spend is designed to pace our producers.

27m 11s

But we do typically schedule that work six to twelve months out. So we're nearly in the 2026 on that segment.

27m 18s

But if we were to see a large change in activity from the producers we could adjust our capital and would obviously do so in response to anything that happens in that area.

27m 30s

As for 2026, we haven't and won't provide guidance yet but we are feeling comfortable that capital spend will be in our long term capital guidance range of 300,000,000 to $400,000,000 net to Plains.

27m 48s

27m 59s

28m 23s

Thank you.

28m 24s

Thank you. And one moment for our next question. Our next question is going to come from the line of Sunil Sibal with C. Global. Your line is open. Please go ahead.

28m 35s

29m 18s

29m 55s

Okay, thanks for that. Then one clarification. So for full year '25, you're guiding in the NGL segment 45,000 pounds per day of spec sales.

30m 9s

I presume there is a fair bit of seasonality in that. So how much of that should date in Q1?

30m 17s

30m 45s

And Sunil, this is Willie. You'll remember the typical satellite we have with colder months, obviously more propane is typically sold. Again, our team can follow-up with you on that.

30m 56s

Thanks for that.

30m 58s

Thank you.

30m 59s

Thank you. One moment for our next question. Our next question will be from the line of A. J. O'Donnell with TPH. Your line is open. Please go ahead.

31m 9s

31m 35s

32m 36s

So you'll see more crude So it's an interrelated question.

32m 42s

Okay.

32m 43s

I appreciate the detail there. And then maybe just one more on kind of the the longer term outlook.

32m 50s

33m 24s

34m 18s

34m 47s

Thank you very much.

34m 48s

Thank you.

34m 49s

Thank you. And one moment for our next question. Our next question is going to be from the line of John Mackie with Goldman Sachs. Your line is open. Please go ahead.

34m 58s

35m 18s

Thanks.

35m 19s

36m 21s

36m 50s

38m 11s

We just recently in the last year, got BBB rated at all three agencies. We We do not view and have no interest in putting leverage at a point that would jeopardize any of those writings.

38m 28s

I appreciate the color. Thank you.

38m 31s

Thank you. And one moment for our next question. Our next question is going to come from the line of Chen with Barclays. Your line is open. Please go ahead.

38m 40s

39m 21s

40m 8s

40m 27s

Thank you so much.

40m 29s

Thanks, Teresa.

40m 31s

Thank you. And I'm showing no further questions at this time. And I would like to hand the conference back over to Willie Chang for closing remarks.

40m 38s

Thanks, Michelle. Well, thanks everyone for dialing in. Strong start to the quarter. We look forward to seeing you on the road and giving you more updates. Have a great day.

40m 47s

This concludes today's conference call. Thank you for participating. You may now disconnect.

Key Insights

Reported solid Q1 performance with adjusted EBITDA of $754 million; crude oil segment adjusted EBITDA was $559 million (impacted by winter weather and refinery downtime), and NGL segment adjusted EBITDA was $189 million (benefiting from higher frac spreads and sales volumes).
2025 EBITDA guidance and Permian growth outlook are expected to be in the lower half of their respective ranges if $60–$65 WTI persists; key assumptions for the year remain unchanged, including $75/bbl WTI and 200,000–300,000 bpd Permian growth.
NGL segment is largely insulated from lower commodity prices, with approximately 80% of estimated 2025 C3+ spec product sales hedged; transition to more fee-based earnings continues with new fractionation capacity online and further expansions planned.
Completed two bolt-on acquisitions: acquired remaining 50% equity in Cheyenne Pipeline and purchased Black Knight Midstream in the Midland Basin for ~$55 million; both deals align with capital discipline and risk-adjusted return thresholds.
Capital allocation remains focused on distribution growth as the primary method of returning cash to unitholders, with opportunistic unit repurchases; 2025 investment capital guidance unchanged at $400 million, and long-term capital spend expected in the $300–$400 million range.

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