Business
Plains All American Reports Third-Quarter 2023 Results & Raises 2023 Guidance
Announces Capital Allocation Updates & Permian Bolt-On Acquisitions HOUSTON, Nov. 03, 2023 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq:
About this update from Plains All American Pipeline, L.p.
[{"type":"text","content":"Announces Capital Allocation Updates & Permian Bolt-On Acquisitions\nHOUSTON, Nov. 03, 2023 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported third-quarter 2023 results and provided updated 2023 guidance as highlighted below. Plains also provided additional information regarding its multi-year capital allocation framework and announced two bolt-on acquisitions in the Permian Basin. Third-Quarter Results Reported Net income attributable to PAA of $203 million and Net cash provided by operating activities of $85 million.Delivered strong results with Adjusted EBITDA attributable to PAA of $662 million. 2023 Guidance Update Raising guidance for full-year 2023 Adjusted EBITDA attributable to PAA to $2.60 - $2.65 billion from $2.45 - $2.55 billion. Capital Allocation Updates Management currently intends to recommend to the Board of Directors of PAA GP Holdings LLC (“the Plains Board”) an annualized increase of $0.20 per unit to PAA's and PAGP’s fourth-quarter 2023 distribution payable in February 2024, which would increase the annualized rate from $1.07 to $1.27 per common unit and Class A share, representing a 19% increase.As part of a continued commitment to enhance the balance sheet, management is lowering the long-term leverage ratio target range by 0.5x to 3.25x - 3.75x and expects year-end 2023 leverage to be below 3.5x. Permian Bolt-on Acquisitions Subsidiaries of Plains Oryx Permian Basin LLC (the “Permian JV”) acquired Rattler Midstream’s Southern Delaware Basin crude oil gathering system and LM Energy’s Northern Delaware Basin Touchdown crude oil gathering system for aggregate cash consideration of approximately $205 million ($135 million net to PAA’s interest in the Permian JV). “Today’s announcements include strong quarterly results contributing to an upward revision of our full-year EBITDA guidance. We closed two bolt-on acquisitions that complement our existing portfolio and enhance the service offering of our Permian JV. Our strong performance and positive outlook for our business combined with the contribution from recent bolt-on transactions underpins our intent to recommend to our Board a 19% increase in the annualized distribution rate for the distribution payable in February 2024. We remain committed to operating with a strong balance sheet tha...