Plains All American Pipeline LP (PAA) Q1 Results - May 15
Posted: Thu May 15, 2025 2:26 pm
First-Quarter Results
Reported net income attributable to PAA of $443 million and net cash provided by operating activities of $639 million
Delivered Adjusted EBITDA attributable to PAA of $754 million
Exited the quarter with 3.3x leverage ratio, toward the low end of our target range of 3.25x - 3.75x (includes previously announced and closed transactions)
Paid a quarterly cash distribution of $0.38 per unit ($1.52 per unit annualized), representing a current distribution yield of ~9.0% < DCF per common unit was $0.66, so the dividends for PAA and PAGP are Super Secure.
Business Highlights
Plains acquired the remaining 50% interest in Cheyenne Pipeline, enhancing our integration from the Guernsey market to pipelines supplying Cushing, Oklahoma, which closed on February 28, 2025
Plains acquired Black Knight Midstream’s Permian Basin crude oil gathering business, for approximately $55 million, which closed effective May 1, 2025
Placed into service the 30 Mb/d Fort Saskatchewan fractionation complex debottleneck project enhancing our fee-based cash flow in Canada
Increased our 2025 C3+ spec product sales hedge profile to approximately 80% at approximately $0.70 per gallon level
“Plains delivered another quarter of solid operational and financial performance,” said Willie Chiang, Chairman and CEO. “Substantial cash flow generation from our integrated Crude Oil and NGL footprints coupled with a strong balance sheet positions us well through a time of market volatility and uncertainty. Our focus on efficient growth remains consistent with the addition of two new bolt-on acquisitions and our Fort Saskatchewan fractionation complex debottleneck project now in service. Finally, our commitment to financial discipline and financial flexibility remains unchanged while continuing to return cash to unitholders through a strong distribution payout.”
Reported net income attributable to PAA of $443 million and net cash provided by operating activities of $639 million
Delivered Adjusted EBITDA attributable to PAA of $754 million
Exited the quarter with 3.3x leverage ratio, toward the low end of our target range of 3.25x - 3.75x (includes previously announced and closed transactions)
Paid a quarterly cash distribution of $0.38 per unit ($1.52 per unit annualized), representing a current distribution yield of ~9.0% < DCF per common unit was $0.66, so the dividends for PAA and PAGP are Super Secure.
Business Highlights
Plains acquired the remaining 50% interest in Cheyenne Pipeline, enhancing our integration from the Guernsey market to pipelines supplying Cushing, Oklahoma, which closed on February 28, 2025
Plains acquired Black Knight Midstream’s Permian Basin crude oil gathering business, for approximately $55 million, which closed effective May 1, 2025
Placed into service the 30 Mb/d Fort Saskatchewan fractionation complex debottleneck project enhancing our fee-based cash flow in Canada
Increased our 2025 C3+ spec product sales hedge profile to approximately 80% at approximately $0.70 per gallon level
“Plains delivered another quarter of solid operational and financial performance,” said Willie Chiang, Chairman and CEO. “Substantial cash flow generation from our integrated Crude Oil and NGL footprints coupled with a strong balance sheet positions us well through a time of market volatility and uncertainty. Our focus on efficient growth remains consistent with the addition of two new bolt-on acquisitions and our Fort Saskatchewan fractionation complex debottleneck project now in service. Finally, our commitment to financial discipline and financial flexibility remains unchanged while continuing to return cash to unitholders through a strong distribution payout.”