Tristan Richardson's questions to Plains All American Pipeline LP (PAA) leadership • Q2 2024
Question
Tristan Richardson inquired about the drivers behind the increased guidance for the crude segment, specifically the role of producer efficiencies, and asked about the expected reduction in earnings variability for the NGL segment as it transitions to a more fee-based model.
Answer
Executive Jeremy Goebel explained that the crude guidance increase was due to both opportunistic captures and producer efficiencies, which he views as a sustainable positive trend. For the NGL segment, Goebel noted that new long-term contracts will shift the business to less than 50% frac spread exposed, increasing predictability. CEO Willie Chiang added that while seasonality will remain, the fee-based shift aims to flatten its impact.