Plains GP Holdings Reports $1.070 Billion Net Income for Fiscal Year 2024, Down 25%

Plains GP Holdings, L.P. reported a net income of $1.070 billion for the fiscal year ending December 31, 2024, a decrease of 25% from the previous year's net income of $1.425 billion. The decline was attributed to increased costs related to the Line 901 incident, which included a $225 million write-off of insurance receivables and $120 million in settlements. Despite the drop in net income, the company experienced a 3% increase in product sales revenues, totaling $48.254 billion, driven by higher crude oil sales volumes. Segment Adjusted EBITDA rose to $3.326 billion, reflecting improved performance in the Crude Oil segment, although contributions from the NGL segment were lower.

In terms of operational metrics, Plains GP Holdings reported a significant increase in pipeline volumes, particularly in the Permian Basin, which continues to be a key driver of U.S. crude oil production growth. The company’s Crude Oil segment generated $48.720 billion in revenues, up from $47.174 billion in 2023, while the NGL segment saw revenues decrease to $1.724 billion from $1.935 billion. The overall increase in revenues was supported by tariff escalations and contributions from acquisitions, although the NGL segment faced challenges due to lower realized frac spreads.

Strategically, Plains GP Holdings has been active in acquisitions, completing two significant transactions in early 2025 for approximately $580 million, which included a Delaware Basin crude oil gathering business and an Eagle Ford Basin gathering system. The company also repurchased 12.7 million Series A preferred units for about $333 million, funded by proceeds from a recent senior notes offering. As of December 31, 2024, the company had a working capital deficit of $148 million but maintained over $2.6 billion in liquidity, indicating a strong financial position to support ongoing operations and capital expenditures.

Looking ahead, Plains GP Holdings anticipates continued demand for crude oil and NGL, driven by global population growth and the need for reliable energy sources. The company projects total investment capital expenditures of approximately $500 million for 2025, with a focus on capital-efficient projects that align with its existing asset base. The management remains optimistic about generating significant free cash flow in the coming years, supported by its integrated business model and strategic asset positioning in key energy markets.