Plains GP Holdings, L.P. has recently released its 10-Q report, providing a detailed insight into its financial condition and operational performance. The company, through its subsidiary Plains All American Pipeline, L.P., owns and operates midstream infrastructure systems in the United States and Canada, operating in two segments: Crude Oil and Natural Gas Liquids (NGLs). As of June 30, 2024, the company's sole cash-generating assets consisted of an approximate 85% limited partner interest in AAP and a 100% managing member interest in GP LLC, which holds the non-economic general partner interest in AAP. AAP directly owned a limited partner interest in PAA through its ownership of approximately 232.7 million PAA common units. PAA’s business model integrates large-scale supply aggregation capabilities with the ownership and operation of critical midstream infrastructure systems that connect major producing regions to key demand centers and export terminals.
During the first six months of 2024, Plains GP recognized net income of $653 million compared to $776 million during the first six months of 2023. The company's Crude Oil segment results were more favorable for the first six months of 2024 compared to 2023, while its NGL segment results were relatively flat year-over-year. The consolidated financial results for the three and six months ended June 30, 2024, showed an increase in product sales revenues and services revenues, along with a decrease in net income attributable to PAGP.
The company's revenues from product sales and purchases increased for the three and six months ended June 30, 2024, compared to the same periods in 2023, primarily due to higher commodity prices in the 2024 periods. Revenues from services also increased for the same periods in 2024 compared to 2023, primarily due to higher pipeline volumes and tariff escalations, as well as the impact of acquisitions.
Plains GP's non-GAAP financial measures, Adjusted EBITDA and Adjusted EBITDA attributable to PAA, showed positive trends, with Adjusted EBITDA increasing by 15% for the three months ended June 30, 2024, compared to the same period in 2023. Adjusted EBITDA attributable to PAA also increased by 13% for the same period, indicating a positive financial performance.
The market has reacted to these announcements by moving the company's shares 2.1% to a price of $18.67. If you want to know more, read the company's complete 10-Q report here.
