Plains GP Holdings LP delivered a solid Q3 2024 performance anchored by robust Permian volumes, a diversified midstream footprint, and an ongoing program of bolt-on acquisitions. Revenue totaled $12.743 billion, with net income of $33 million and GAAP EBITDA of $711 million, while adjusted EBITDA net to PAA was $659 million. The quarter underscored the durability of Plains’ cash flow, supported by a large, integrated asset base and a strategically disciplined capital-allocation framework focused on efficient growth, bolt-on opportunities, and returning capital to unitholders.
Key takeaways from management commentary include: (1) Permian volume growth remained on track for 2024 with 200,000–300,000 barrels/day exit-to-exit guidance; (2) Fort Saskatchewan NGL fractionation expansion is on schedule for H1 2025; (3) the Fivestones Permian gathering acquisition enhances the intra-basin and long-haul network and complements bolt-on strategy; (4) the company settled material California Line 901 contingencies and remains engaged on the reimbursement claim, providing more cash-flow certainty; and (5) Moody’s upgrade to Baa2 with a stable outlook reinforces Plains’ balance-sheet resilience and financial flexibility.
Looking ahead, Plains reiterated its commitment to an “efficient growth” framework: maximize multiyear free cash flow, maintain capital discipline, and opportunistically pursue bolt-on acquisitions while preserving financial flexibility. With leverage below the target range and a strong run-rate cash flow profile, Plains appears well-positioned to fund continued bolt-ons and potential shareholder returns, subject to commodity and regulatory risk dynamics. The February 2025 guidance update will be critical for the next phase of planning, particularly around 2025 volumes and capex timing.