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• Adjusted Attributable Plains: $729 million for Q4 2024; $2.78 billion for the full year 2024.

• Adjusted EBITDA Guidance for 2025: $2.950 billion, approximately 3% growth year over year at the midpoint.

• Permian Crude Production: Expected to grow to 300,000 barrels a day in 2025.

• Annual Distribution Increase: $0.25 per unit increase, bringing the annual distribution to $1.52 per unit, representing a yield of approximately 7.5%.

• Fourth Quarter Adjusted EBITDA: $729 million, benefiting from higher volumes and pipeline tariff escalation.

• 2025 Capital Investments: Approximately $400 million of growth capital and $240 million of maintenance capital.

• Adjusted Free Cash Flow for 2025: Approximately $1.15 billion, excluding changes in assets and liabilities.

• Senior Unsecured Notes: $1 billion raised at a rate of 5.95%, maturing in 2035.

• Noncash Impairment Charge: $140 million related to two US NGL terminal assets.

• Insurance Claim Write-off: $225 million receivable written off due to arbitration ruling.

• Leverage Target Ratio for 2025: Expected to operate at or below the low end of 3.25 times to 3.75 times.

• Warning! GuruFocus has detected 7 Warning Signs with PAGP.

Release Date: February 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Plains GP Holdings LP (NASDAQ:PAGP) exceeded its expectations for the fourth quarter and full year 2024, with adjusted EBITDA of $729 million and $2.78 billion respectively, surpassing initial guidance by approximately $105 million.

• The company provided a positive outlook for 2025, with an adjusted EBITDA guidance of $2.950 billion, representing approximately 3% growth year over year.

• Plains GP Holdings LP (NASDAQ:PAGP) completed strategic acquisitions, including Ironwood Midstream and the remaining interest in Midway Pipeline, enhancing its asset base and operational synergies.

• The company announced a 20% increase in the quarterly distribution, reflecting its commitment to returning capital to unit holders and optimizing its capital structure.

• Plains GP Holdings LP (NASDAQ:PAGP) maintains a strong balance sheet, providing significant financial capacity and flexibility, and expects to operate at or below the low end of its leverage target ratio in 2025.

Negative Points

• The company faced a $140 million noncash impairment related to two US NGL terminal assets, impacting its GAAP results.

• Plains GP Holdings LP (NASDAQ:PAGP) experienced a $225 million write-off due to an arbitration ruling against its insurance reimbursement claim related to a 2015 incident.

• The NGL segment's adjusted EBITDA is expected to be slightly lower year over year, with a shift to approximately 45% fee-based in 2025.

• Certain long-haul contract tariffs are expected to reset and step down in the second half of 2025, potentially impacting revenue.

• The company remains exposed to potential impacts from tariffs on Canadian crude, which could affect its NGL and crude business dynamics.