The following is a summary of the Plains All American Pipeline, L.P. (PAA) Q1 2024 Earnings Call Transcript:
Financial Performance:
Plains All American Pipeline reported Q1 2024 adjusted EBITDA attributable to PAA of $718 million, in line with their expectations and indicating progress towards full-year 2024 targets.
PAA successfully acquired an additional 10% in the Saddlehorn Pipeline Company and the Mid-Con terminal asset for an aggregate cash consideration of approximately $110 million.
They project to generate $1.55 billion of adjusted free cash flow for 2024, including the return of approximately $1.15 billion to common and preferred distributions.
The company is executing a self-funding scheme for targeted growth and maintenance capital of $375 million and $230 million respectively.
Business Progress:
PAA increased contract volumes and extended the term on certain contracts to secure a weighted average contract duration of roughly five years, extending through 2028 for their Permian long-haul portfolio.
The company is driving business growth and attractive returns with efficient growth investments.
Plains All American Pipeline foresees 200,000 to 300,000 barrels per day of growth in the Permian from the end of 2023 to 2024, affecting mostly Q3 and Q4.
PAA views the future of its Canadian assets positively and expects more production growth from these assets.
They communicated successful recontracting strategies and potential growth adjustments between their Midland and Del rigs. They also outlined strategies for managing any impacts from the upcoming maintenance schedule on operations.
More details: Plains All American Pipeline IR
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