Plains All American Pipeline (NYSE: PAA) reported Q1 EPS of $0.55, $0.10 better than the analyst estimate of $0.45. Revenue for the quarter came in at $8.27 billion versus the consensus estimate of $9.01 billion.

Summary

• Reported a net loss for the period of $2.8 billion including the impact of approximately $3.2 billion of non-cash goodwill and asset impairment charges as a result of the current environment
• Delivered first-quarter 2020 adjusted EBITDA of $795 million, which was ahead of expectations
• Updated full-year 2020 guidance to reflect expected performance outlook during dynamic and uncertain market conditions
• Reiterated previously reduced 2020 / 2021 expansion capital program of $1.55 billion

“Our first-quarter adjusted operating results exceeded expectations. However, as the quarter progressed, the global response to the COVID-19 pandemic has led to an unprecedented energy supply and demand imbalance,” stated Willie Chiang, Chairman and CEO of Plains. “The North American energy supply chain has responded swiftly with significant reductions to refinery utilization, drilling and completion activity and shut-ins of existing production in multiple areas.”

“In light of the challenging and uncertain environment, last month we announced a number of proactive steps to further strengthen our balance sheet and enhance our liquidity and long-term financial flexibility. These actions include significantly reducing our capital program and common distributions, progressing asset sales, and reducing costs across the supply chain, while remaining focused on operating safely and responsibly.”

For earnings history and earnings-related data on Plains All American Pipeline (PAA) click here.