Plains All American Sees Record Permian Crude Output in 2024
(Reuters) — Plains All American 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.
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