Vrathan Reddy's questions to PLAINS GP HOLDINGS (PAGP) leadership • Q1 2025
Question
Vrathan Reddy, on for Jeremy Tonet, asked about the outlook for growth CapEx and how much is committed for 2026, as well as the philosophy behind the increased NGL hedging to 80%.
Answer
Executive Chris Chandler confirmed the 2025 CapEx guidance of $400 million is unchanged and expects 2026 spending to be within the long-term range of $300-$400 million. Executive Jeremy Goebel explained the hedging strategy remains consistent: maintaining steady cash flow and being opportunistic, which led to more front-end hedging in the current backwardated market.