Plains All American Reports Fourth-Quarter and Full-Year 2023 Results; Announces 2024 Guidance
HOUSTON, Feb. 09, 2024 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported fourth-quarter and full-year 2023 results, announced 2024 guidance and provided the following highlights:
*2023 Highlights *
· Fourth-quarter and full-year 2023 Net income attributable to PAA of $312 million and $1.23 billion, respectively, and 2023 Net cash provided by operating activities of $1.01 billion and $2.73 billion, respectively· Delivered strong fourth-quarter and full-year 2023 Adjusted EBITDA attributable to PAA above the top-end of guidance with $737 million and $2.71 billion, respectively· Generated full-year 2023 Adjusted Free Cash Flow (excluding changes in Assets & Liabilities) of $1.60 billion and achieved year-end leverage of 3.1x· Delivered on commitment to increase cash return to equity holders by increasing distributions $0.20 per unit annualized in February 2023, representing a 23% aggregate increase in the annualized distribution versus 2022 levels· High graded the asset base through continued portfolio optimization including two asset sales and three bolt-on acquisitions· Received two credit rating agency upgrades demonstrating progress on deleveraging efforts and our target to achieve BBB credit ratings*2024 Outlook*
· Expect full-year 2024 Adjusted EBITDA attributable to PAA of $2.625 - $2.725 billion· Reaffirming leverage ratio target range of 3.25x - 3.75x reflecting commitment to balance sheet strength and flexibility· Board approved increasing the annualized common distribution by $0.20 to $1.27 per unit commencing in February 2024, representing a 19% aggregate increase in the annualized distribution versus 2023 levels· Expect to generate approximately $1.65 billion of Adjusted Free Cash Flow (excluding changes in Assets & Liabilities) and $500 million of Adjusted Free Cash Flow after Distributions (excluding changes in Assets & Liabilities)· Remain focused on disciplined capital investments, anticipating full-year 2024 Investment and Maintenance Capital of +/- $375 million and +/- $230 million, net to PAA, respectively“Strong execution in 2023 drove better-than-expected results and allowed us to accelerate progress on our long-term goals and objectives. This included lowering our leverage ratio target range, increasing capital returns to equity holders through increased distributions, and completing multiple win-win strategic transactions in both our Crude Oil and NGL segments,” said Willie Chiang, Chairman and CEO of Plains. “Looking forward to 2024, Plains remains well-positioned to deliver value to our unitholders through our continued focus on generating strong free cash flow, capital discipline, and increasing returns to unitholders all while maintaining our financial flexibility.”
*Plains All American Pipeline*
*Summary Financial Information* (unaudited)
(in millions, except per unit data)
*Three Months Ended*
*December 31,* *% * *Twelve Months Ended*
*December 31,* *% *
*GAAP Results* *2023* *2022* *Change* *2023* *2022* *Change*
Net income attributable to PAA ^(1) $ 312 $ 263 19 % $ 1,230 $ 1,037 19 %
Diluted net income per common unit $ 0.35 $ 0.30 17 % $ 1.40 $ 1.19 18 %
Diluted weighted average common units outstanding 701 698 — % 699 701 — %
Net cash provided by operating activities $ 1,011 $ 335 202 % $ 2,727 $ 2,408 13 %
Distribution per common unit declared for the period $ 0.3175 $ 0.2675 19 % $ 1.1200 $ 0.9200 22 %
____________________
^(1) Reported results for the three and twelve months ended December 31, 2022 include a non-cash asset impairment of $330 million related to our California assets and a non-cash gain on investments in unconsolidated entities of approximately $370 million related to our purchase of an additional interest in the Cactus II pipeline.
*Three Months Ended*
*December 31,* *% * *Twelve Months Ended*
*December 31,* *% *
*Non-GAAP Results *^*(1)* *2023* *2022* *Change* *2023* *2022* *Change*
Adjusted net income attributable to PAA $ 355 $ 286 24 % $ 1,250 $ 1,091 15 %
Diluted adjusted net income per common unit $ 0.42 $ 0.33 27 % $ 1.42 $ 1.26 13 %
Adjusted EBITDA $ 875 $ 759 15 % $ 3,167 $ 2,875 10 %
Adjusted EBITDA attributable to PAA ^(2) $ 737 $ 659 12 % $ 2,711 $ 2,510 8 %
Implied DCF per common unit and common unit equivalent $ 0.68 $ 0.58 17 % $ 2.46 $ 2.26 9 %
Adjusted Free Cash Flow^ (3) $ 710 $ (4 ) ** $ 1,798 $ 1,610 12 %
Adjusted Free Cash Flow after Distributions $ 458 $ (218 ) ** $ 809 $ 828 (2 )%
Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) $ 402 $ 236 70 % $ 1,604 $ 1,801 (11 )%
Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) $ 150 $ 22 ** $ 615 $ 1,019 (40 )%
____________________
** Indicates that variance as a percentage is not meaningful.
^(1) See the section of this release entitled “Non-GAAP Financial Measures and Selected Items Impacting Comparability” and the tables attached hereto for information regarding our Non-GAAP financial measures, including their reconciliation to the most directly comparable measures as reported in accordance with GAAP, and certain selected items that PAA believes impact comparability of financial results between reporting periods.
^(2) Excludes amounts attributable to noncontrolling interests in the Plains Oryx Permian Basin LLC joint venture, Cactus II Pipeline LLC and Red River Pipeline LLC.
^(3) Fourth-quarter 2022 Adjusted Free Cash Flow is impacted by a $230 million payment related to the settlement of a Line 901 class action lawsuit.
*Summary of Selected Financial Data by Segment* (unaudited)
(in millions)
*Segment Adjusted EBITDA* *Crude Oil* *NGL*
Three Months Ended December 31, 2023 $ 563 $ 169
Three Months Ended December 31, 2022 $ 504 $ 151
*Percentage change in Segment Adjusted EBITDA versus 2022 period* *12* *%* *12* *%* *Segment Adjusted EBITDA* *Crude Oil* *NGL*
Twelve Months Ended December 31, 2023 $ 2,163 $ 522
Twelve Months Ended December 31, 2022 $ 1,986 $ 518
*Percentage change in Segment Adjusted EBITDA versus 2022 period* *9* *%* *1* *%*
Fourth-quarter 2023 Crude Oil Segment Adjusted EBITDA increased 12% versus comparable 2022 results primarily due to higher volumes across our pipeline systems, contributions from acquisitions and the benefit of tariff escalation, partially offset by fewer market-based opportunities for our merchant activities.
Fourth-quarter 2023 NGL Segment Adjusted EBITDA increased 12% versus comparable 2022 results primarily due to favorable NGL basis differentials and additional market-based opportunities partially offset by the divestiture of our interest in the KFS facility and increased field operating costs.
*Plains GP Holdings*
PAGP owns an indirect non-economic controlling interest in PAA’s general partner and an indirect limited partner interest in PAA. As the control entity of PAA, PAGP consolidates PAA’s results into its financial statements, which is reflected in the condensed consolidating balance sheet and income statement tables attached hereto.
*Conference Call and Webcast Instructions*
PAA and PAGP will hold a joint conference call at 9:00 a.m. CT on Friday, February 9, 2024 to discuss fourth-quarter performance and related items.
To access the internet webcast, please go to https://edge.media-server.com/mmc/p/ukgq4wwt/.
Alternatively, the webcast can be accessed on our website (www.plains.com) under Investor Relations (Navigate to: Investor Relations / either “PAA” or “PAGP” / News & Events / Events & Presentations). Following the live webcast, an audio replay will be available on our website and will be accessible for a period of 365 days. Slides will be posted prior to the call at the above referenced website.
*Non-GAAP Financial Measures and Selected Items Impacting Comparability*
To supplement our financial information presented in accordance with GAAP, management uses additional measures known as “non-GAAP financial measures” in its evaluation of past performance and prospects for the future and to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. The primary additional measures used by management are Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied Distributable Cash Flow (“DCF”), Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions.
Our definition and calculation of certain non-GAAP financial measures may not be comparable to similarly-titled measures of other companies. Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied DCF and certain other non-GAAP financial performance measures are reconciled to Net Income, and Adjusted Free Cash Flow, Adjusted Free Cash Flow after Distributions and certain other non-GAAP financial liquidity measures are reconciled to Net Cash Provided by Operating Activities (the most directly comparable measures as reported in accordance with GAAP) for the historical periods presented in the tables attached to this release, and should be viewed in addition to, and not in lieu of, our Consolidated Financial Statements and accompanying notes. In addition, we encourage you to visit our website at www.plains.com (in particular the section under “Financial Information” entitled “Non-GAAP Reconciliations” within the Investor Relations tab), which presents a reconciliation of our commonly used non-GAAP and supplemental financial measures. We do not reconcile non-GAAP financial measures on a forward-looking basis as it is impractical to do so without unreasonable effort.
*Non-GAAP Financial Performance Measures*
Adjusted EBITDA is defined as earnings before interest expense, income tax (expense)/benefit, depreciation and amortization (including our proportionate share of depreciation and amortization, including write-downs related to cancelled projects and impairments, of unconsolidated entities), gains and losses on asset sales and asset impairments and gains or losses on investments in unconsolidated entities, adjusted for certain selected items impacting comparability. Adjusted EBITDA attributable to PAA excludes the portion of Adjusted EBITDA that is attributable to noncontrolling interests.
Management believes that the presentation of Adjusted EBITDA, Adjusted EBITDA attributable to PAA and Implied DCF provides useful information to investors regarding our performance and results of operations because these measures, when used to supplement related GAAP financial measures, (i) provide additional information about our core operating performance and ability to fund distributions to our unitholders through cash generated by our operations and (ii) provide investors with the same financial analytical framework upon which management bases financial, operational, compensation and planning/budgeting decisions. We also present these and additional non-GAAP financial measures, including adjusted net income attributable to PAA and basic and diluted adjusted net income per common unit, as they are measures that investors, rating agencies and debt holders have indicated are useful in assessing us and our results of operations. These non-GAAP financial performance measures may exclude, for example, (i) charges for obligations that are expected to be settled with the issuance of equity instruments, (ii) gains and losses on derivative instruments that are related to underlying activities in another period (or the reversal of such adjustments from a prior period), gains and losses on derivatives that are either related to investing activities (such as the purchase of linefill) or purchases of long-term inventory, and inventory valuation adjustments, as applicable, (iii) long-term inventory costing adjustments, (iv) items that are not indicative of our core operating results and/or (v) other items that we believe should be excluded in understanding our core operating performance. These measures may be further adjusted to include amounts related to deficiencies associated with minimum volume commitments whereby we have billed the counterparties for their deficiency obligation and such amounts are recognized as deferred revenue in “Other current liabilities” in our Consolidated Financial Statements. We also adjust for amounts billed by our equity method investees related to deficiencies under minimum volume commitments. Such amounts are presented net of applicable amounts subsequently recognized into revenue. Furthermore, the calculation of these measures contemplates tax effects as a separate reconciling item, where applicable. We have defined all such items as “selected items impacting comparability.” Due to the nature of the selected items, certain selected items impacting comparability may impact certain non-GAAP financial measures, referred to as adjusted results, but not impact other non-GAAP financial measures. We do not necessarily consider all of our selected items impacting comparability to be non-recurring, infrequent or unusual, but we believe that an understanding of these selected items impacting comparability is material to the evaluation of our operating results and prospects.
Although we present selected items impacting comparability that management considers in evaluating our performance, you should also be aware that the items presented do not represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices, exchange rates, mechanical interruptions, acquisitions, divestitures, investment capital projects and numerous other factors. These types of variations may not be separately identified in this release, but will be discussed, as applicable, in management’s discussion and analysis of operating results in our Annual Report on Form 10-K.
*Non-GAAP Financial Liquidity Measures*
Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. Adjusted Free Cash Flow is defined as Net Cash Provided by Operating Activities, less Net Cash Provided by/(Used in) Investing Activities, which primarily includes acquisition, investment and maintenance capital expenditures, investments in unconsolidated entities and the impact from the purchase and sale of linefill, net of proceeds from the sales of assets and further impacted by distributions to and contributions from noncontrolling interests. Adjusted Free Cash Flow is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions.
We also present these measures and additional non-GAAP financial liquidity measures as they are measures that investors have indicated are useful. We present the Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) for use in assessing our underlying business liquidity and cash flow generating capacity excluding fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is defined as Adjusted Free Cash Flow excluding the impact of “Changes in assets and liabilities, net of acquisitions” on our Condensed Consolidated Statements of Cash Flows. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities).
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS*
(in millions, except per unit data)
*Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,* *2023* *2022* *2023* *2022*
*REVENUES* $ 12,698 $ 12,952 $ 48,712 $ 57,342
*COSTS AND EXPENSES*
Purchases and related costs 11,558 11,995 44,531 53,176
Field operating costs 363 343 1,425 1,315
General and administrative expenses 87 82 350 325
Depreciation and amortization 273 254 1,048 965
(Gains)/losses on asset sales and asset impairments, net (9 ) 315 (152 ) 269
Total costs and expenses 12,272 12,989 47,202 56,050
*OPERATING INCOME/(LOSS)* 426 (37 ) 1,510 1,292
*OTHER INCOME/(EXPENSE)*
Equity earnings in unconsolidated entities 92 96 369 403
Gains/(losses) on investments in unconsolidated entities, net — 345 28 346
Interest expense, net (97 ) (100 ) (386 ) (405 )
Other income/(expense), net 17 18 102 (219 )
*INCOME BEFORE TAX* 438 322 1,623 1,417
Current income tax expense (41 ) (24 ) (145 ) (84 )
Deferred income tax (expense)/benefit 2 12 24 (105 )
*NET INCOME* 399 310 1,502 1,228
Net income attributable to noncontrolling interests (87 ) (47 ) (272 ) (191 )
*NET INCOME ATTRIBUTABLE TO PAA* $ 312 $ 263 $ 1,230 $ 1,037
*NET INCOME PER COMMON UNIT:*
Net income allocated to common unitholders — Basic and Diluted $ 248 $ 210 $ 976 $ 831
Basic and diluted weighted average common units outstanding 701 698 699 701
Basic and diluted net income per common unit $ 0.35 $ 0.30 $ 1.40 $ 1.19
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*CONDENSED CONSOLIDATED BALANCE SHEET DATA*
(in millions)
*December 31,*
*2023* *December 31,*
*2022*
*ASSETS*
Current assets (including Cash and cash equivalents of $450 and $401, respectively) $ 4,913 $ 5,355
Property and equipment, net 15,782 15,250
Investments in unconsolidated entities 2,820 3,084
Intangible assets, net 1,875 2,145
Linefill 976 961
Long-term operating lease right-of-use assets, net 313 349
Long-term inventory 265 284
Other long-term assets, net 411 464
Total assets $ 27,355 $ 27,892
*LIABILITIES AND PARTNERS’ CAPITAL*
Current liabilities $ 5,003 $ 5,891
Senior notes, net 7,242 7,237
Other long-term debt, net 63 50
Long-term operating lease liabilities 274 308
Other long-term liabilities and deferred credits 1,041 1,081
Total liabilities 13,623 14,567
Partners’ capital excluding noncontrolling interests 10,422 10,057
Noncontrolling interests 3,310 3,268
Total partners’ capital 13,732 13,325
Total liabilities and partners’ capital $ 27,355 $ 27,892
*DEBT CAPITALIZATION RATIOS*
(in millions)
*December 31,*
*2023* *December 31,*
*2022*
Short-term debt $ 446 $ 1,159
Long-term debt 7,305 7,287
Total debt $ 7,751 $ 8,446
Long-term debt $ 7,305 $ 7,287
Partners’ capital excluding noncontrolling interests 10,422 10,057
Total book capitalization excluding noncontrolling interests (“Total book capitalization”) $ 17,727 $ 17,344
Total book capitalization, including short-term debt $ 18,173 $ 18,503
Long-term debt-to-total book capitalization 41 % 42 %
Total debt-to-total book capitalization, including short-term debt 43 % 46 %
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*COMPUTATION OF BASIC AND DILUTED NET INCOME PER COMMON UNIT*^* (1)*
(in millions, except per unit data)
*Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,* *2023* *2022* *2023* *2022*
*Basic and Diluted Net Income per Common Unit*
Net income attributable to PAA $ 312 $ 263 $ 1,230 $ 1,037
Distributions to Series A preferred unitholders (44 ) (37 ) (173 ) (149 )
Distributions to Series B preferred unitholders (20 ) (15 ) (76 ) (52 )
Amounts allocated to participating securities (1 ) (1 ) (10 ) (5 )
Other 1 — 5 —
Net income allocated to common unitholders $ 248 $ 210 $ 976 $ 831
Basic and diluted weighted average common units outstanding ^(2) (3) 701 698 699 701
Basic and diluted net income per common unit $ 0.35 $ 0.30 $ 1.40 $ 1.19
____________________^(1) We calculate net income allocated to common unitholders based on the distributions pertaining to the current period’s net income. After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.
^(2) The possible conversion of our Series A preferred units was excluded from the calculation of diluted net income per common unit for the three and twelve months ended December 31, 2023 and 2022 as the effect was either antidilutive or did not change net income per common unit.
^(3) Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS*
(in millions)
*Twelve Months Ended December 31, 2023* *2023* *2022*
*CASH FLOWS FROM OPERATING ACTIVITIES*
Net income $ 1,502 $ 1,228
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization 1,048 965
(Gains)/losses on asset sales and asset impairments, net (152 ) 269
Deferred income tax expense/(benefit) (24 ) 105
Change in fair value of Preferred Distribution Rate Reset Option (58 ) 189
Equity earnings in unconsolidated entities (369 ) (403 )
Distributions on earnings from unconsolidated entities 458 488
(Gains)/losses on investments in unconsolidated entities, net (28 ) (346 )
Other 156 104
Changes in assets and liabilities, net of acquisitions 194 (191 )
Net cash provided by operating activities 2,727 2,408
*CASH FLOWS FROM INVESTING ACTIVITIES*
Net cash used in investing activities (702 ) (526 )
*CASH FLOWS FROM FINANCING ACTIVITIES*
Net cash used in financing activities (1,976 ) (1,931 )
Effect of translation adjustment — (3 )
Net increase/(decrease) in cash and cash equivalents and restricted cash 49 (52 )
Cash and cash equivalents and restricted cash, beginning of period 401 453
Cash and cash equivalents and restricted cash, end of period $ 450 $ 401
*CAPITAL EXPENDITURES*
(in millions)
*Net to PAA *^*(1)* *Consolidated* *Three Months Ended December 31,* *Twelve Months Ended December 31,* *Three Months Ended December 31,* *Twelve Months Ended December 31,* *2023* *2022* *2023* *2022* *2023* *2022* *2023* *2022*
Investment capital expenditures:
Crude Oil $ 75 $ 44 $ 245 $ 229 $ 100 $ 64 $ 334 $ 298
NGL 14 8 65 36 14 8 65 36
Total Investment capital expenditures 89 52 310 265 114 72 399 334
Maintenance capital expenditures 58 63 214 202 63 65 231 211 $ 147 $ 115 $ 524 $ 467 $ 177 $ 137 $ 630 $ 545
____________________
^(1) Excludes expenditures attributable to noncontrolling interests.
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*NON-GAAP RECONCILIATIONS*
(in millions, except per unit and ratio data)
*COMPUTATION OF BASIC AND DILUTED ADJUSTED NET INCOME PER COMMON UNIT* ^*(1)*
*Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,* *2023* *2022* *2023* *2022*
*Basic and Diluted Adjusted Net Income per Common Unit*
Net income attributable to PAA $ 312 $ 263 $ 1,230 $ 1,037
Selected items impacting comparability - Adjusted net income attributable to PAA ^(2) 43 23 20 54
Adjusted net income attributable to PAA $ 355 $ 286 $ 1,250 $ 1,091
Distributions to Series A preferred unitholders (44 ) (37 ) (173 ) (149 )
Distributions to Series B preferred unitholders (20 ) (15 ) (76 ) (52 )
Amounts allocated to participating securities (1 ) (1 ) (10 ) (5 )
Other 1 — 5 —
Adjusted net income allocated to common unitholders $ 291 $ 233 $ 996 $ 885
Basic and diluted weighted average common units outstanding ^(3) (4) 701 698 699 701
Basic and diluted adjusted net income per common unit $ 0.42 $ 0.33 $ 1.42 $ 1.26
____________________
^(1) We calculate adjusted net income allocated to common unitholders based on the distributions pertaining to the current period’s net income. After adjusting for the appropriate period’s distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.
^(2) See the “Selected Items Impacting Comparability” table for additional information.
^(3) The possible conversion of our Series A preferred units was excluded from the calculation of diluted adjusted net income per common unit for the three and twelve months ended December 31, 2023 and 2022 as the effect was antidilutive.
^(4) Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.
*Net Income Per Common Unit to Adjusted Net Income Per Common Unit Reconciliation:*
*Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,* *2023* *2022* *2023* *2022*
Basic and diluted net income per common unit $ 0.35 $ 0.30 $ 1.40 $ 1.19
Selected items impacting comparability per common unit ^(1) 0.07 0.03 0.02 0.07
Basic and diluted adjusted net income per common unit $ 0.42 $ 0.33 $ 1.42 $ 1.26
____________________
^(1) See the “Selected Items Impacting Comparability” and the “Computation of Basic and Diluted Adjusted Net Income Per Common Unit” tables for additional information.
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation:*
*Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,* *2023* *2022* *2023* *2022*
Net Income $ 399 $ 310 $ 1,502 $ 1,228
Interest expense, net 97 100 386 405
Income tax expense 39 12 121 189
Depreciation and amortization 273 254 1,048 965
(Gains)/losses on asset sales and asset impairments, net (9 ) 315 (152 ) 269
(Gains)/losses on investments in unconsolidated entities, net — (345 ) (28 ) (346 )
Depreciation and amortization of unconsolidated entities^ (1) 20 27 87 85
Selected items impacting comparability - Adjusted EBITDA ^(2) 56 86 203 80
Adjusted EBITDA $ 875 $ 759 $ 3,167 $ 2,875
Adjusted EBITDA attributable to noncontrolling interests (138 ) (100 ) (456 ) (365 )
Adjusted EBITDA attributable to PAA $ 737 $ 659 $ 2,711 $ 2,510
Adjusted EBITDA $ 875 $ 759 $ 3,167 $ 2,875
Interest expense, net of certain non-cash items ^(3) (92 ) (96 ) (367 ) (391 )
Maintenance capital (63 ) (65 ) (231 ) (211 )
Investment capital of noncontrolling interests ^(4) (24 ) (18 ) (87 ) (69 )
Current income tax expense (41 ) (24 ) (145 ) (84 )
Distributions from unconsolidated entities in excess of/(less than) adjusted equity earnings ^(5) (15 ) 20 (37 ) (28 )
Distributions to noncontrolling interests ^(6) (97 ) (104 ) (333 ) (298 )
Implied DCF $ 543 $ 472 $ 1,967 $ 1,794
Preferred unit cash distributions ^(6) (64 ) (62 ) (241 ) (198 )
Implied DCF Available to Common Unitholders $ 479 $ 410 $ 1,726 $ 1,596
Weighted Average Common Units Outstanding 701 698 699 701
Weighted Average Common Units and Common Unit Equivalents 772 769 770 772
Implied DCF per Common Unit ^(7) $ 0.68 $ 0.59 $ 2.47 $ 2.28
Implied DCF per Common Unit and Common Unit Equivalent ^(8) $ 0.68 $ 0.58 $ 2.46 $ 2.26
Cash Distribution Paid per Common Unit $ 0.2675 $ 0.2175 $ 1.0700 $ 0.8325
Common Unit Cash Distributions ^(6) $ 188 $ 152 $ 748 $ 584
Common Unit Distribution Coverage Ratio 2.55x 2.70x 2.31x 2.73x
Implied DCF Excess $ 291 $ 258 $ 978 $ 1,012
____________________
^(1) Adjustment to exclude our proportionate share of depreciation and amortization expense (including write-downs related to cancelled projects and impairments) of unconsolidated entities.
^(2) See the “Selected Items Impacting Comparability” table for additional information.
^(3) Excludes certain non-cash items impacting interest expense such as amortization of debt issuance costs and terminated interest rate swaps.
^(4) Investment capital expenditures attributable to noncontrolling interests that reduce Implied DCF available to PAA common unitholders.
^(5) Comprised of cash distributions received from unconsolidated entities less equity earnings in unconsolidated entities (adjusted for our proportionate share of depreciation and amortization, including write-downs related to cancelled projects and impairments, and selected items impacting comparability of unconsolidated entities).
^(6) Cash distributions paid during the period presented.
^(7) Implied DCF Available to Common Unitholders for the period divided by the weighted average common units outstanding for the period.
^(8) Implied DCF Available to Common Unitholders for the period, adjusted for Series A preferred unit cash distributions paid, divided by the weighted average common units and common unit equivalents outstanding for the period. Our Series A preferred units are convertible into common units, generally on a one-for-one basis and subject to customary anti-dilution adjustments, in whole or in part, subject to certain minimum conversion amounts.
*Net Income Per Common Unit to Implied DCF Per Common Unit and Common Unit Equivalent Reconciliation:*
*Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,* *2023* *2022* *2023* *2022*
Basic net income per common unit $ 0.35 $ 0.30 $ 1.40 $ 1.19
Reconciling items per common unit ^(1) (2) 0.33 0.29 1.07 1.09
Implied DCF per common unit $ 0.68 $ 0.59 $ 2.47 $ 2.28
Basic net income per common unit $ 0.35 $ 0.30 $ 1.40 $ 1.19
Reconciling items per common unit and common unit equivalent ^(1) (3) 0.33 0.28 1.06 1.07
Implied DCF per common unit and common unit equivalent $ 0.68 $ 0.58 $ 2.46 $ 2.26
____________________
^(1) Represents adjustments to Net Income to calculate Implied DCF Available to Common Unitholders. See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” table for additional information.
^(2) Based on weighted average common units outstanding for the period of 701 million, 698 million, 699 million and 701 million, respectively.
^(3) Based on weighted average common units outstanding for the period, as well as weighted average Series A preferred units outstanding of 71 million for each of the periods presented.
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*Net Cash Provided by Operating Activities to Non-GAAP Financial Liquidity Measures Reconciliation:*
*Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,* *2023* *2022* *2023* *2022*
Net cash provided by operating activities $ 1,011 $ 335 $ 2,727 $ 2,408
Adjustments to reconcile net cash provided by operating activities to free cash flow:
Net cash used in investing activities (257 ) (235 ) (702 ) (526 )
Cash contributions from noncontrolling interests 53 — 106 26
Cash distributions paid to noncontrolling interests ^(1) (97 ) (104 ) (333 ) (298 )
Adjusted Free Cash Flow ^(2) $ 710 $ (4 ) $ 1,798 $ 1,610
Cash distributions ^(3) (252 ) (214 ) (989 ) (782 )
Adjusted Free Cash Flow after Distributions ^(2) $ 458 $ (218 ) $ 809 $ 828 *Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,* *2023* *2022* *2023* *2022*
Adjusted Free Cash Flow ^(2) $ 710 $ (4 ) $ 1,798 $ 1,610
Changes in assets and liabilities, net of acquisitions^ (4) (308 ) 240 (194 ) 191
Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) ^(5) $ 402 $ 236 $ 1,604 $ 1,801
Cash distributions ^(3) (252 ) (214 ) (989 ) (782 )
Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) ^(5) $ 150 $ 22 $ 615 $ 1,019
____________________
^(1) Cash distributions paid during the period presented.
^(2) Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes.
^(3) Cash distributions paid to preferred and common unitholders during the period.
^(4) See the “Condensed Consolidated Statements of Cash Flows” table.
^(5) Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) and Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) to assess the underlying business liquidity and cash flow generating capacity excluding fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period.
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*SELECTED ITEMS IMPACTING COMPARABILITY*
(in millions)
*Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,* *2023* *2022* *2023* *2022*
*Selected Items Impacting Comparability: *^*(1)*
Derivative activities and inventory valuation adjustments ^(2) $ 43 $ (76 ) $ (101 ) $ 91
Long-term inventory costing adjustments ^(3) (62 ) (18 ) (35 ) 4
Deficiencies under minimum volume commitments, net ^(4) (8 ) 24 (12 ) (7 )
Equity-indexed compensation expense ^(5) (8 ) (8 ) (36 ) (32 )
Foreign currency revaluation ^(6) (11 ) 2 (8 ) (41 )
Line 901 incident ^(7) (10 ) (10 ) (10 ) (95 )
Transaction-related expenses ^(8) — — (1 ) —
Selected items impacting comparability - Adjusted EBITDA $ (56 ) $ (86 ) $ (203 ) $ (80 )
Derivative activities — 1 — 7
Gains/(losses) on investments in unconsolidated entities, net — 345 28 346
Gains/(losses) on asset sales and asset impairments, net 9 (315 ) 152 (269 )
Tax effect on selected items impacting comparability 4 24 13 (65 )
Aggregate selected items impacting noncontrolling interests — 8 (10 ) 7
Selected items impacting comparability - Adjusted net income attributable to PAA $ (43 ) $ (23 ) $ (20 ) $ (54 )
____________________
^(1) Certain of our non-GAAP financial measures may not be impacted by each of the selected items impacting comparability. See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” and “Computation of Basic and Diluted Adjusted Net Income Per Common Unit” table for additional details on how these selected items impacting comparability affect such measures.
^(2) We use derivative instruments for risk management purposes and our related processes include specific identification of hedging instruments to an underlying hedged transaction. Although we identify an underlying transaction for each derivative instrument we enter into, there may not be an accounting hedge relationship between the instrument and the underlying transaction. In the course of evaluating our results, we identify differences in the timing of earnings from the derivative instruments and the underlying transactions and exclude the related gains and losses in determining adjusted results such that the earnings from the derivative instruments and the underlying transactions impact adjusted results in the same period. In addition, we exclude gains and losses on derivatives that are related to (i) investing activities, such as the purchase of linefill, and (ii) purchases of long-term inventory. We also exclude the impact of corresponding inventory valuation adjustments, as applicable. For applicable periods, we excluded gains and losses from the mark-to-market of the embedded derivative associated with the Preferred Distribution Rate Reset Option of our Series A preferred units.
^(3) We carry crude oil and NGL inventory that is comprised of minimum working inventory requirements in third-party assets and other working inventory that is needed for our commercial operations. We consider this inventory necessary to conduct our operations and we intend to carry this inventory for the foreseeable future. Therefore, we classify this inventory as long-term on our balance sheet and do not hedge the inventory with derivative instruments (similar to linefill in our own assets). We treat the impact of changes in the average cost of the long-term inventory (that result from fluctuations in market prices) and write-downs of such inventory that result from price declines as a selected item impacting comparability.
^(4) We, and certain of our equity method investees, have certain agreements that require counterparties to deliver, transport or throughput a minimum volume over an agreed upon period. Substantially all of such agreements were entered into with counterparties to economically support the return on capital expenditure necessary to construct the related asset. Some of these agreements include make-up rights if the minimum volume is not met. We record a receivable from the counterparty in the period that services are provided or when the transaction occurs, including amounts for deficiency obligations from counterparties associated with minimum volume commitments. If a counterparty has a make-up right associated with a deficiency, we defer the revenue attributable to the counterparty’s make-up right and subsequently recognize the revenue at the earlier of when the deficiency volume is delivered or shipped, when the make-up right expires or when it is determined that the counterparty’s ability to utilize the make-up right is remote. We include the impact of amounts billed to counterparties for their deficiency obligation, net of applicable amounts subsequently recognized into revenue or equity earnings, as a selected item impacting comparability. We believe the inclusion of the contractually committed revenues associated with that period is meaningful to investors as the related asset has been constructed, is standing ready to provide the committed service and the fixed operating costs are included in the current period results.
^(5) Our total equity-indexed compensation expense includes expense associated with awards that will be settled in units and awards that will be settled in cash. The awards that will be settled in units are included in our diluted net income per unit calculation when the applicable performance criteria have been met. We consider the compensation expense associated with these awards as a selected item impacting comparability as the dilutive impact of the outstanding awards is included in our diluted net income per unit calculation, as applicable. The portion of compensation expense associated with awards that will be settled in cash is not considered a selected item impacting comparability.
^(6) During the periods presented, there were fluctuations in the value of the Canadian dollar to the U.S. dollar, resulting in the realization of foreign exchange gains and losses on the settlement of foreign currency transactions as well as the revaluation of monetary assets and liabilities denominated in a foreign currency. The associated gains and losses are not integral to our results and were thus classified as a selected item impacting comparability.
^(7) Includes costs recognized during the period related to the Line 901 incident that occurred in May 2015, net of amounts we believe are probable of recovery from insurance.
^(8) Includes expenses associated with the Rattler Permian Transaction.
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*SELECTED FINANCIAL DATA BY SEGMENT*
(in millions)
*Three Months Ended*
*December 31, 2023* *Three Months Ended*
*December 31, 2022* *Crude Oil* *NGL* *Crude Oil* *NGL*
Revenues ^(1) $ 12,187 $ 623 $ 12,386 $ 686
Purchases and related costs ^(1) (11,306 ) (364 ) (11,593 ) (522 )
Field operating costs ^(2) (274 ) (89 ) (253 ) (90 )
Segment general and administrative expenses ^(2) (3) (68 ) (19 ) (63 ) (19 )
Equity earnings in unconsolidated entities 92 — 96 —
Adjustments: ^(4)
Depreciation and amortization of unconsolidated entities 20 — 27 —
Derivative activities and inventory valuation adjustments (52 ) 9 (8 ) 91
Long-term inventory costing adjustments 58 4 14 4
Deficiencies under minimum volume commitments, net 8 — (24 ) —
Equity-indexed compensation expense 8 — 8 —
Foreign currency revaluation 18 5 4 1
Line 901 incident 10 — 10 —
Segment amounts attributable to noncontrolling interests ^(5) (138 ) — (100 ) —
Segment Adjusted EBITDA $ 563 $ 169 $ 504 $ 151
Maintenance capital expenditures $ 39 $ 24 $ 32 $ 33
____________________
^(1) Includes intersegment amounts.
^(2) Field operating costs and Segment general and administrative expenses include equity-indexed compensation expense.
^(3) Segment general and administrative expenses reflect direct costs attributable to each segment and an allocation of other expenses to the segments. The proportional allocations by segment require judgment by management and are based on the business activities that exist during each period.
^(4) Represents adjustments utilized by our CODM in the evaluation of segment results. Many of these adjustments are also considered selected items impacting comparability when calculating consolidated non-GAAP financial measures such as Adjusted EBITDA. See the “Selected Items Impacting Comparability” table for additional discussion.
^(5) Reflects amounts attributable to noncontrolling interests in the Permian JV, Cactus II Pipeline LLC (beginning November 2022) and Red River Pipeline LLC.
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*SELECTED FINANCIAL DATA BY SEGMENT*
(in millions)
*Twelve Months Ended*
*December 31, 2023* *Twelve Months Ended*
*December 31, 2022* *Crude Oil* *NGL* *Crude Oil* *NGL*
Revenues ^(1) $ 47,174 $ 1,935 $ 55,080 $ 2,761
Purchases and related costs ^(1) (43,805 ) (1,123 ) (52,088 ) (1,587 )
Field operating costs ^(2) (1,053 ) (372 ) (1,003 ) (312 )
Segment general and administrative expenses ^(2) (3) (271 ) (79 ) (250 ) (75 )
Equity earnings in unconsolidated entities 369 — 403 —
Adjustments: ^(4)
Depreciation and amortization of unconsolidated entities 87 — 85 —
Derivative activities and inventory valuation adjustments 17 142 (11 ) (269 )
Long-term inventory costing adjustments 22 13 (3 ) (1 )
Deficiencies under minimum volume commitments, net 12 — 7 —
Equity-indexed compensation expense 35 1 32 —
Foreign currency revaluation 19 5 3 1
Line 901 incident 10 — 95 —
Transaction-related expenses 1 — — —
Segment amounts attributable to noncontrolling interests ^(5) (454 ) — (364 ) —
Segment Adjusted EBITDA $ 2,163 $ 522 $ 1,986 $ 518
Maintenance capital expenditures $ 145 $ 86 $ 112 $ 99
____________________
^(1) Includes intersegment amounts.
^(2) Field operating costs and Segment general and administrative expenses include equity-indexed compensation expense.
^(3) Segment general and administrative expenses reflect direct costs attributable to each segment and an allocation of other expenses to the segments. The proportional allocations by segment require judgment by management and are based on the business activities that exist during each period.
^(4) Represents adjustments utilized by our CODM in the evaluation of segment results. Many of these adjustments are also considered selected items impacting comparability when calculating consolidated non-GAAP financial measures such as Adjusted EBITDA. See the “Selected Items Impacting Comparability” table for additional discussion.
^(5) Reflects amounts attributable to noncontrolling interests in the Permian JV, Cactus II Pipeline LLC (beginning November 2022) and Red River Pipeline LLC.
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*OPERATING DATA BY SEGMENT*
*Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,* *2023* *2022* *2023* *2022*
*Crude Oil Segment Volumes*
Crude oil pipeline tariff (by region)^ (1)
Permian Basin ^(2) 6,710 6,195 6,356 5,638
South Texas / Eagle Ford ^(2) 411 382 410 357
Mid-Continent ^(2) 503 538 507 512
Gulf Coast ^(2) 250 229 260 219
Rocky Mountain ^(2) 452 327 372 332
Western 237 90 214 179
Canada 340 333 341 328
Total crude oil pipeline tariff ^(1) (2) 8,903 8,094 8,460 7,565
Commercial crude oil storage capacity ^(2) (3) 72 72 72 72
Crude oil lease gathering purchases ^(1) 1,518 1,409 1,452 1,382
*NGL Segment Volumes *^*(1)*
NGL fractionation 127 155 115 137
NGL pipeline tariff 188 222 180 192
Propane and butane sales 125 128 86 94
____________________
^(1) Average volumes in thousands of barrels per day calculated as the total volumes (attributable to our interest for assets owned by unconsolidated entities or through undivided joint interests) for the period divided by the number of days in the period. Volumes associated with assets acquired during the period represent total volumes for the number of days we actually owned the assets divided by the number of days in the period.
^(2) Includes volumes (attributable to our interest) from assets owned by unconsolidated entities.
^(3) Average monthly capacity in millions of barrels calculated as total volumes for the period divided by the number of months in the period.
*PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*NON-GAAP SEGMENT RECONCILIATIONS*
(in millions)
*Supplemental Adjusted EBITDA attributable to PAA Reconciliation:*
*Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,* *2023* *2022* *2023* *2022*
Crude Oil Segment Adjusted EBITDA $ 563 $ 504 $ 2,163 $ 1,986
NGL Segment Adjusted EBITDA 169 151 522 518
Adjusted other income/(expense), net ^(1) 5 4 26 6
Adjusted EBITDA attributable to PAA ^(2) $ 737 $ 659 $ 2,711 $ 2,510
____________________
^(1) Represents “Other income/(expense), net” as reported on our Condensed Consolidated Statements of Operations, excluding other income/(expense), net attributable to noncontrolling interests, adjusted for selected items impacting comparability. See the “Selected Items Impacting Comparability” table for additional information.
^(2) See the “Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation” table for reconciliation to Net Income.
*PLAINS GP HOLDINGS AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS*
(in millions, except per share data)
*Three Months Ended*
*December 31, 2023* *Three Months Ended*
*December 31, 2022* *Consolidating* *Consolidating* *PAA* *Adjustments *^*(1)* *PAGP* *PAA* *Adjustments *^*(1)* *PAGP*
*REVENUES* $ 12,698 $ — $ 12,698 $ 12,952 $ — $ 12,952
*COSTS AND EXPENSES*
Purchases and related costs 11,558 — 11,558 11,995 — 11,995
Field operating costs 363 — 363 343 — 343
General and administrative expenses 87 1 88 82 1 83
Depreciation and amortization 273 — 273 254 1 255
(Gains)/losses on asset sales and asset impairments, net (9 ) — (9 ) 315 — 315
Total costs and expenses 12,272 1 12,273 12,989 2 12,991
*OPERATING INCOME/(LOSS)* 426 (1 ) 425 (37 ) (2 ) (39 )
*OTHER INCOME/(EXPENSE)*
Equity earnings in unconsolidated entities 92 — 92 96 — 96
Gains/(losses) on investments in unconsolidated entities, net — — — 345 — 345
Interest expense, net (97 ) — (97 ) (100 ) — (100 )
Other income, net 17 — 17 18 — 18
*INCOME BEFORE TAX* 438 (1 ) 437 322 (2 ) 320
Current income tax expense (41 ) — (41 ) (24 ) — (24 )
Deferred income tax (expense)/benefit 2 (16 ) (14 ) 12 (13 ) (1 )
*NET INCOME* 399 (17 ) 382 310 (15 ) 295
Net income attributable to noncontrolling interests (87 ) (243 ) (330 ) (47 ) (204 ) (251 )
*NET INCOME ATTRIBUTABLE TO PAGP* $ 312 $ (260 ) $ 52 $ 263 $ (219 ) $ 44
Basic and diluted weighted average Class A shares outstanding 196 194
Basic and diluted net income per Class A share $ 0.27 $ 0.23
____________________
^(1) Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.
*PLAINS GP HOLDINGS AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS*
(in millions, except per share data)
*Twelve Months Ended*
*December 31, 2023* *Twelve Months Ended*
*December 31, 2022* *Consolidating* *Consolidating* *PAA* *Adjustments *^*(1)* *PAGP* *PAA* *Adjustments *^*(1)* *PAGP*
*REVENUES* $ 48,712 $ — $ 48,712 $ 57,342 $ — $ 57,342
*COSTS AND EXPENSES*
Purchases and related costs 44,531 — 44,531 53,176 — 53,176
Field operating costs 1,425 — 1,425 1,315 — 1,315
General and administrative expenses 350 6 356 325 5 330
Depreciation and amortization 1,048 3 1,051 965 3 968
(Gains)/losses on asset sales and asset impairments, net (152 ) — (152 ) 269 — 269
Total costs and expenses 47,202 9 47,211 56,050 8 56,058
*OPERATING INCOME* 1,510 (9 ) 1,501 1,292 (8 ) 1,284
*OTHER INCOME/(EXPENSE)*
Equity earnings in unconsolidated entities 369 — 369 403 — 403
Gains/(losses) on investments in unconsolidated entities, net 28 — 28 346 — 346
Interest expense, net (386 ) — (386 ) (405 ) — (405 )
Other income/(expense), net 102 — 102 (219 ) — (219 )
*INCOME BEFORE TAX* 1,623 (9 ) 1,614 1,417 (8 ) 1,409
Current income tax expense (145 ) — (145 ) (84 ) — (84 )
Deferred income tax (expense)/benefit 24 (68 ) (44 ) (105 ) (57 ) (162 )
*NET INCOME* 1,502 (77 ) 1,425 1,228 (65 ) 1,163
Net income attributable to noncontrolling interests (272 ) (955 ) (1,227 ) (191 ) (804 ) (995 )
*NET INCOME ATTRIBUTABLE TO PAGP* $ 1,230 $ (1,032 ) $ 198 $ 1,037 $ (869 ) $ 168
Basic and diluted weighted average Class A shares outstanding 195 194
Basic and diluted net income per Class A share $ 1.01 $ 0.86
____________________
^(1) Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.
*PLAINS GP HOLDINGS AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*CONDENSED CONSOLIDATING BALANCE SHEET DATA*
(in millions)
*December 31, 2023* *December 31, 2022* *Consolidating* *Consolidating* *PAA* *Adjustments *^*(1)* *PAGP* *PAA* *Adjustments *^*(1)* *PAGP*
*ASSETS*
Current assets $ 4,913 $ 3 $ 4,916 $ 5,355 $ 3 $ 5,358
Property and equipment, net 15,782 — 15,782 15,250 3 15,253
Investments in unconsolidated entities 2,820 — 2,820 3,084 — 3,084
Intangible assets, net 1,875 — 1,875 2,145 — 2,145
Deferred tax asset — 1,239 1,239 — 1,309 1,309
Linefill 976 — 976 961 — 961
Long-term operating lease right-of-use assets, net 313 — 313 349 — 349
Long-term inventory 265 — 265 284 — 284
Other long-term assets, net 411 — 411 464 — 464
Total assets $ 27,355 $ 1,242 $ 28,597 $ 27,892 $ 1,315 $ 29,207
*LIABILITIES AND PARTNERS’ CAPITAL*
Current liabilities $ 5,003 $ 2 $ 5,005 $ 5,891 $ 2 $ 5,893
Senior notes, net 7,242 — 7,242 7,237 — 7,237
Other long-term debt, net 63 — 63 50 — 50
Long-term operating lease liabilities 274 — 274 308 — 308
Other long-term liabilities and deferred credits 1,041 — 1,041 1,081 — 1,081
Total liabilities 13,623 2 13,625 14,567 2 14,569
Partners’ capital excluding noncontrolling interests 10,422 (8,874 ) 1,548 10,057 (8,533 ) 1,524
Noncontrolling interests 3,310 10,114 13,424 3,268 9,846 13,114
Total partners’ capital 13,732 1,240 14,972 13,325 1,313 14,638
Total liabilities and partners’ capital $ 27,355 $ 1,242 $ 28,597 $ 27,892 $ 1,315 $ 29,207
____________________
^(1) Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.
*PLAINS GP HOLDINGS AND SUBSIDIARIES*
*FINANCIAL SUMMARY* (unaudited)
*COMPUTATION OF BASIC AND DILUTED NET INCOME PER CLASS A SHARE*
(in millions, except per share data)
* * *Three Months Ended*
*December 31,* *Twelve Months Ended*
*December 31,*
* * *2023* *2022* *2023* *2022*
*Basic and Diluted Net Income per Class A Share*
Net income attributable to PAGP $ 52 $ 44 $ 198 $ 168
Basic and diluted weighted average Class A shares outstanding 196 194 195 194
Basic and diluted net income per Class A share $ 0.27 $ 0.23 $ 1.01 $ 0.86
*Forward-Looki