Plains All American Pipeline Q3 Earnings: Revenue Miss, EPS Beat, Revised Annual Outlook & More

Plains All American Pipeline, L.P. PAA reported third-quarter revenue growth of 5.6% year-over-year to $12.743 billion, missing the consensus of $13.087 billion.

Adjusted EPS was 37 cents, up from 35 cents a year ago, beating the consensus of 31 cents.

The company reported an operating income of $347 million, compared to $234 million a year ago. The margin expanded by 80 bps to 2.7%.

The adjusted EBITDA attributable to PAA remained relatively flat on year at $659 million.

The Crude Oil Segment Adjusted EBITDA rose 4% YoY to $577 million on higher tariff volumes, escalations, and acquisitions despite fewer market opportunities. NGL segment Adjusted EBITDA fell 26% YoY to $73 million due to lower frac spreads.

The company ended the quarter with a 3.0x leverage ratio, beating the target range of 3.25x to 3.75x. PAA’s operating cash for the nine months ended September 2024 was $1.763 billion compared to $1.716 billion. Adjusted free cash flow was $882 million.

2024 Outlook: Full-year Adjusted EBITDA for 2024 is projected at the high end of the $2.725 – $2.775 billion range.

The company expects Adjusted Free Cash Flow to reach around $1.45 billion (down from the prior view of $1.55 billion), excluding asset/liability changes but including acquisition costs and legal settlements.

“We delivered solid operational and financial results in the third quarter and we continue to make progress on our efficient growth strategy, which includes generating multi-year Free Cash Flow, maintaining capital discipline and returning capital to our investors while preserving financial flexibility,” said Willie Chiang, Chairman and CEO of Plains.

“Our company is well positioned, and we have grown increasingly confident in both the durability and cash generating potential of the asset base. The improved outlook for the year provides more confidence in our long-term return of capital framework, which should continue creating value for our unitholders.”

Price Action: PAA shares are trading lower by 2.76% at $17.29 at the last check Friday.