Plains All American Pipeline sees full-year earnings at high end of guidance
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Plains All American (NASDAQ:PAA) closed +1.3% on Friday after reporting better than expected Q2 adjusted earnings and saying it sees full-year profit coming in at the top end of previous guidance, citing higher crude oil volumes.
Q2 net income rose to $293M, or $0.32/unit, from $203M, or $0.22/unit, in the year-ago quarter, while adjusted EBITDA fell to $597M from $615M a year earlier and free cash flow after distributions dropped to $404M from $473M in the prior-year period.
Q2 crude oil segment adjusted EBITDA gained 7% Y/Y, primarily due to a 13% jump in pipeline volumes to 8.4M bbl/day, while NGL segment adjusted EBITDA fell 48% because of lower propane sales volumes, turnarounds and deferred sales due to market structure.
Plains (PAA) said it now expects full-year adjusted EBITDA to come in at the high end of its estimate of $2.45B-$2.55B.
The company also announced a bolt-on acquisition of Diamondback Energy's (FANG) 43% interest in OMOG JV LLC for ~$225M, in a bet on rising shale oil production from the Permian Basin.
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