Plains All American sees more consolidation in the U.S. oil patch (updated)

Plains All American Pipeline LP

02/08/2024 20:18

(Adds detail from Plains All American Pipeline conference call)
    By Georgina McCartney
       HOUSTON, Aug 2 (Reuters) - Pipeline operator Plains all
American  PAA.OQ  on Friday hit Wall Street estimates for the
second quarter earnings, and reported a jump in revenue after
their crude oil and natural gas liquids (NGL) segments surpassed
expectations. 
    Plains All American Pipeline LP reported quarterly adjusted
earnings of 31 cents​​ per share for the quarter ended in June
30, higher than the prior year, but in line with analyst
estimates. 
    The company's revenue jumped around 11.5% to $12.93 billion
from a year ago, surpassing analysts' expectations for $12.84
billion.
        Plains executives told investors they remain bullish
output in the Permian basin, the largest U.S. oilfield, and that
they expect to see more consolidation in the oil and gas sector.
    U.S. oil and gas deals continued to run hot in the second
quarter, topping $30 billion with big dollar tie-ups pushing
values higher, according to data released on Tuesday by energy
researcher Enverus.
        "We've been pretty open on the views that we think there
is going to be more consolidation across the industry, whether
it be in upstream, midstream, downstream," Willie Chiang,
managing director of Plains All American Pipeline said in an
investors call on Friday. 
    "Just because capital is more expensive, and you start
growing a little bit more through efficiencies and synergies,"
Chiang added.
        Plains shares had risen by 0.8% this quarter and
gained 18.8% so far this year and were trading at $17.50 on
Friday afternoon.             
  

 (Reporting by Georgina McCartney in Houston)
 ((Georgina.McCartney@thomsonreuters.com;))