Plains All American Pipeline LP (NASDAQ:PAA) Q3 2022 Earnings Conference Call November 2, 2022 5:30 PM ET

Company Participants

Roy Lamoreaux - Vice President of Investor Relations

Al Swanson - Executive Vice President & Chief Financial Officer

Jeremy Goebel - Executive Vice President & Chief Commercial Officer

Wilfred Chiang - Chairman & Chief Executive Officer

Conference Call Participants

Michael Blum - Wells Fargo

Keith Stanley - Wolfe Research

Brian Reynolds - UBS

Jeremy Tonet - JPMorgan Securities

Jean Salisbury - Bernstein

Neel Mitra - Bank of America

Sunil Sibal - Seaport Global

Operator

Hello and thank you for standing by. Welcome to the PAA and PAGP Third Quarter Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I’d like to hand the conference over to your speaker, Roy Lamoreaux, Vice President, Investor Relations, Communications and Government Relations.

Roy Lamoreaux

Thank you, Therese. Good afternoon and welcome to Plains All American’s third quarter 2022 earnings call. Today’s slide presentation is posted on the Investor Relations website under the News and Events section at plains.com, where an audio replay will also be available following today’s call. Important disclosures regarding forward-looking statements and non-GAAP financial measures are provided on Slide 2. An overview of today’s call is provided on Slide 3. The condensed consolidating balance sheet for PAGP and other reference materials is located in the appendix.

Today’s call will be hosted by Willie Chiang, Chairman and I; and Al Swanson, Executive Vice President and Chief Financial Officer. Other members of our team will be available for Q&A, including Harry Pefanis, our President; Chris Chandler, Executive Vice President and Chief Operating Officer; Jeremy Goebel, Executive Vice President and Chief Commercial Officer; and Chris Herbold, Senior Vice President, Finance and Chief Accounting Officer.

With that, I will now turn the call over to Willie.

Wilfred Chiang

Thank you, Roy and thank you, everyone, for joining us this afternoon. Today, we announced strong third quarter results above our expectations, reflecting continued execution of our long-term goals and initiatives and our strong performance in both of our Crude Oil and NGL segments. In summary, third quarter adjusted EBITDA, attributable to PAA, was $623 million.

We increased our full year 2022 adjusted EBITDA guidance by $75 million to $2.45 billion which is $250 million above our initial February guidance. The year-to-year increase is driven by outperformance in both our Crude Oil and NGL segments due to the capture of additional volumes, higher commodity prices and favorable margin-based opportunities. Additionally, today, we announced and closed an $85 million acquisition of an additional 5% in the Cactus II pipeline, bringing our total ownership to 70%.