Plains All American Raises Stake Saddlehorn Pipeline JV, Surpasses Q1 Profit Estimates

(Reuters) — Pipeline and storage operator Plains All American raised its stake in the Saddlehorn Pipeline Company joint venture and a mid-Continent basin terminal asset by 10% for about $110 million in cash.

Plains already held 30% interest in the Saddlehorn Pipeline joint venture, according to its 2023 year-end filing.

The company also said it has extended the duration of its Permian basin long-haul portfolio, including the Cactus I crude oil pipeline.

The move would provide greater clarity on the outlook for Plains' long-haul assets, bolstering investor confidence in the outlook for the business and its ability to continue generating cash flow in the long term, said CEO Willie Chiang.

Separately, Plains beat Wall Street estimates for first-quarter profit on Friday, helped by higher crude oil pipeline tariff volumes.

Quarterly crude oil volumes rose to 8.6 million barrels per day (bpd), nearly 4% higher as compared to 8.3 million bpd last year.

The crude oil unit reported a 7% higher adjusted core profit for the quarter at $553 million compared with the previous year.

On an adjusted basis, the firm reported a profit of 41 cents per share, above the average analysts' estimate of 39 cents per share.

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