Plains All American Tops Estimates, Sees 2023 Earnings Near High End of Guidance
(Reuters) — Plains All American 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 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 estimates by 1 cent, Refinitiv data showed.
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