Plains All American Pipeline Reports $772 Million Net Income, 37% Decrease Due to Line 901 Incident

Plains All American Pipeline, L.P. reported a net income of $772 million for the fiscal year ending December 31, 2024, a decrease of 37% from the previous year's net income of $1.230 billion. The decline in profitability was attributed to increased costs related to the Line 901 incident, which included a $225 million write-off of an insurance receivable and $120 million in settlements. Despite this, the company saw a 3% increase in product sales revenues, totaling $48.254 billion, driven by higher crude oil sales volumes. The overall Segment Adjusted EBITDA increased to $2.779 billion, reflecting improved performance in the Crude Oil segment, although contributions from the NGL segment were lower.

In terms of operational developments, Plains All American Pipeline has continued to expand its asset base, with significant investments in the Permian Basin and other key regions. The company reported an increase in average daily volumes transported through its pipeline systems, particularly in the Permian Basin, which remains a critical area for crude oil production growth. The company also completed two acquisitions in early 2025 for approximately $580 million, further enhancing its operational footprint.

The company’s workforce stood at approximately 4,200 employees as of December 31, 2024, with a significant portion engaged in field operations. The increase in employee-related costs contributed to a rise in general and administrative expenses, which totaled $381 million for the year. Plains All American Pipeline continues to focus on maintaining a strong safety culture and operational excellence, which is reflected in its commitment to employee training and development.

Looking ahead, Plains All American Pipeline anticipates continued demand for crude oil and NGL, supported by global population growth and the ongoing need for energy resources. The company plans to invest approximately $500 million in capital projects for 2025, with a focus on enhancing its existing infrastructure and addressing market needs. The financial strategy remains centered on generating sustainable cash flow and maintaining an investment-grade credit profile, which is crucial for funding future growth and returning capital to unitholders.