Plains GP Holdings (PAGP) Reports Q4 Loss of $0.11, Revenues Miss

Plains GP Holdings (NASDAQ: PAGP) reported Q4 EPS of ($0.11). Revenue for the quarter came in at $5.96 billion versus the consensus estimate of $6.06 billion.

Summary Highlights

• Reported fourth-quarter and full-year 2020 net cash flow from operations of $258 million and $1,514 million, respectively, and a net loss of $28 million and $2,590 million, respectively. Reported full-year net loss incorporates the impact of $3.4 billion of non-cash goodwill and asset impairment charges incurred in the year
• Delivered fourth-quarter and full-year 2020 Adjusted EBITDA of $559 million and $2,560 million, respectively (full-year results within 1% of original guidance furnished in February of 2020)
• Completed ~$450 million of assets sales in 2020
• Reduced full-year 2020 field operating costs and general and administrative expenses by approximately $250 million, or 16%, versus 2019, with expectation for approximately 50% of these cost savings to endure in future years
• Achieved our annual 20%+ reduction goal in key Safety and Environmental metrics (represents more than a 50% reduction in each of these metrics since 2017 and reflects our best year since formally tracking these metrics)
• Estimate 2021 Free Cash Flow after distributions of +/- $300 million, or more than $1 billion when including anticipated proceeds from asset sales targeted in 2021
• Increased 2021 asset sales target to +/- $750 million (+$150 million)

“From almost any perspective, 2020 was an extremely challenging year for the world in general and our industry in particular,” stated Willie Chiang, Chairman and CEO of Plains. “Despite the challenges, we capitalized on the opportunity to advance several key initiatives, which accelerated our transition to maximizing free cash flow. The collective result of our actions enabled us to improve our 2020 cash positioning significantly, position the company to generate meaningful free cash flow in 2021 and beyond and activate an equity repurchase program as an additional method of returning cash to equity holders, which we are balancing with our priorities of reducing debt and maintaining an investment-grade balance sheet. We have conviction in the long-term need for crude oil as part of any energy transition and the value of our business and sustainability of our cash flow stream, and we are well positioned to generate a significant level of positive free cash flow after distributions on a multi-year basis going forward.”

For earnings history and earnings-related data on Plains GP Holdings (PAGP) click here.

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