Plains All American sees record Permian crude output in 2024

Plains All American Pipeline LP

09/02/2024 21:36

HOUSTON, Feb 9 (Reuters) - Plains All American  PAA.O 
said on Friday it expects crude production in the Permian basin,
the top U.S. oilfield, to grow between 200,000 and 300,000
barrels a day (bpd) to a record by the end of this year.
    The pipeline and storage operator said oil output from the
basin would rise to 6.4 million bpd, from 6.1 million bpd at the
end of 2023. Independent analysts have forecast Permian growth
between 290,000 bpd and as much as 360,000 bpd.
    The growth would primarily come from the Delaware basin in
the Permian and assumes an average of 300 to 320 rigs, said
Willie Chiang, the company's chief executive officer.
    Baker Hughes on Friday estimated 313 rigs active in the
Permian basin. 
    Plains All American also forecast full-year 2024 adjusted
earnings before interest, tax, depreciation and amortization
attributable to the company between $2.63 billion and $2.73
billion. It reported income of $2.71 billion for 2023.
    Shares rose 5 cents to $15.40 in midday trading on Friday.
    Crude oil segment profit rose 12% in the fourth quarter,
helped by a 10% rise in total crude oil pipeline volumes,
contributions from acquisitions and tariff escalations, the
company said. 
    Adjusted net income rose to 42 cents per share in the
quarter, beating analysts average estimate of 37 cents,
according to investment firm LSEG.         

 (Reporting by Arathy Somasekhar in Houston; editing by Diane
Craft)
 ((arathy.s@thomsonreuters.com; +1 832 610 7346; Twitter:
@ArathySom;))