Plains GP Holdings (PAGP) Q4 2024 earnings summary

Executive summary

• Achieved Q4 2024 adjusted EBITDA of $729 million and full-year $2.78 billion, exceeding guidance by 4%.

• Completed bolt-on acquisitions totaling ~$670 million, including Ironwood Midstream and the remaining 50% of Midway Pipeline, expanding the asset base.

• Repurchased 12.7 million Series A Preferred Units (~18%) and increased annualized distribution by 20% to $1.52 per unit, yielding ~7.5%.

• Reported 2024 net income attributable to unitholders of $36 million for Q4 and $772 million for the year, with net cash from operating activities of $726 million and $2.49 billion, respectively.

Financial highlights

• Year-end 2024 leverage at 3.0x, below the target range of 3.25x–3.75x, with net debt at $7.27 billion and $2.6 billion committed liquidity.

• 2024 Adjusted Free Cash Flow (excluding changes in assets & liabilities) was $1.17 billion after distributions.

• Q4 Adjusted EBITDA was $729 million, driven by higher crude volumes and pipeline tariff escalation.

• Distribution per unit increased 20% in Q4 and 19% for the year.

• Raised $1 billion in senior unsecured notes at 5.95% to fund acquisitions; $1 billion in notes mature in October 2025, expected to be refinanced.

Outlook and guidance

• 2025 Adjusted EBITDA guidance is $2.8–$2.95 billion, with crude oil segment growth and slightly lower NGL segment contributions.

• 2025 Adjusted Free Cash Flow expected at ~$1.15 billion, reduced by $580 million for bolt-on acquisitions.

• Growth capital investment of ~$400 million and maintenance capital of ~$240 million planned for 2025.

• Distribution increase to $1.52 per unit annualized, with further increases tied to bolt-on growth and base business performance.

• Anticipate leverage at or below the low end of the 3.25x–3.75x target range.