HOUSTON - Plains All American Pipeline, L.P. (NASDAQ: PAA) today reported financial results for the first quarter of 2024, surpassing analyst expectations for earnings per share (EPS) but falling short on revenue. PAA shares were up 0.87% in premarket trading.
The company posted an EPS of $0.41, which is $0.02 higher than the analyst estimate of $0.39. However, revenue for the quarter was reported at $12 billion, missing the consensus estimate of $13.11 billion.
The first quarter results showed a solid performance in terms of adjusted net income attributable to PAA, which saw a 3% increase to $354 million compared to $344 million in the same quarter last year. Additionally, the company delivered Adjusted EBITDA attributable to PAA of $718 million, maintaining a steady course to meet the full-year guidance of $2.625 - $2.725 billion. Despite the revenue shortfall, the company's Adjusted Free Cash Flow was robust, totaling $262 million.
Plains All American Pipeline's Crude Oil Segment Adjusted EBITDA increased by 7% compared to the same period in 2023, primarily due to higher tariff volumes on pipelines, tariff escalations, and contributions from acquisitions. However, the NGL Segment Adjusted EBITDA decreased by 17% over the same period, mainly because of lower realized frac spreads.
Willie Chiang, Chairman and CEO of Plains, commented on the results, "This marks a solid start to the year as we are on track to deliver against our full-year plan, and our bolt-on M&A strategy continues to prove successful with complementary transactions enhancing our footprint in the Rockies and Mid-Con." Chiang also highlighted the company's success in extending the duration of its Permian long-haul portfolio, which provides greater clarity on the outlook for long-haul assets.
The company also announced an increase in the annualized common distribution by $0.20 to $1.27 per unit, representing a 19% increase, which was paid in February.
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