Q2 2024 Plains All American Pipeline LP Earnings Call Transcript
Key Points
- Plains All American Pipeline LP (PAA) reported second quarter adjusted EBITDA of $674 million, exceeding expectations.
- The company raised its full-year 2024 adjusted EBITDA guidance by $75 million to a new range of $2.725 billion to $2.775 billion.
- PAA completed eight bolt-on acquisitions since the second half of 2022, totaling approximately $535 million, enhancing their asset base and financial profile.
- The company expects to generate approximately $1.55 billion of adjusted free cash flow in 2024, with significant allocations to common and preferred distributions.
- PAA issued $650 million of senior and secured notes due in 2034 at a rate of 5.7%, which will be used to repay the $750 million note maturing in November.
- Rigs are trending slightly below initial expectations, although efficiencies have largely offset the impact.
- Some of the lower operating expenses in the first half of the year were due to deferred spending, which will reverse in the second half.
- The NGL segment's favorable ISO to normal butane spreads and higher frac spreads may not be sustainable long-term.
- There are infrastructure constraints in the Delaware Basin, driven by lower natural gas prices and water and gas infrastructure issues.
- The company faces challenges in maintaining consistent growth due to seasonal and market variability in the NGL segment.
Good day and thank you for standing by. Welcome to the 2024 Second Quarter Plains All American Pipeline Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. (Operator Instructions) Please be advised that today's conference is being recorded.
I would like to hand the conference over to your first speaker today, Blake Fernandez, VP of Investor Relations. Please go ahead.
Thank you, Marvin. Good morning and welcome to Plains All American second quarter 2024 earnings call. Todayâs slide presentation is posted on the Investor Relations website under the News and Events section at plains.com. An audio replay will also be available following todayâs call.
Important disclosures regarding forward-looking statements and non-GAAP financial measures are provided on Slide 2. An overview of todayâs call is provided on Slide 3. Condensed consolidating balance sheet for PAGP and
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