Plains All American tops estimates, sees 2023 earnings near high end of guidance

Plains All American Pipeline LP

04/08/2023 16:33

HOUSTON, Aug 4 (Reuters) - Plains All American  PAA.O 
on Friday posted earnings above estimates and said it expects
full-year profit at the top end of the pipeline operator's
previous guidance, citing higher crude oil volumes.
    Plains All American, which moves crude oil and natural gas
liquids (NGL), also said it bought Diamondback Energy's  FANG.O 
43% interest in OMOG JV LLC for about $225 million in a bet on
rising shale oil production from the Permian Basin across west
Texas and New Mexico.
    OMOG operates some 400 miles of crude oil gathering and
regional transportation pipelines and 350,000 barrels of crude
storage in Texas.
    Adjusted earnings from Plains' crude oil business rose 7%
due to higher volumes and tariff, the company said. Crude oil
pipeline volumes rose 13% to 8.4 million barrels per day (bpd)
in the quarter ended June 30. 
    NGL Segment profits fell 48% from the year-ago quarter due
to lower propane sales volumes, turnarounds and deferred sales.
    Plain said it now expects 2003 adjusted earnings before
interest, tax, depreciation and amortization at the high end of
its estimate of $2.45 billion to $2.55 billion. 
    Adjusted net income attributable to Plains fell 7% to $243
million, or 25 cents per share. That beat analysts' consensus
estimate by 1 cent, Refinitiv data showed.

 (Reporting by Arathy Somasekhar in Houston; Editing by Richard
Chang)
 ((arathy.s@thomsonreuters.com; +1 832 610 7346; Twitter:
@ArathySom;))