Jeremy Goebel
PLAINS GP HOLDINGSAbout Jeremy Goebel
Executive Vice President and Chief Commercial Officer of Plains GP Holdings (PAGP) and Plains All American Pipeline (PAA) since March 2021; age 47; joined Plains in 2013 after investment banking at Simmons & Company International, with 25+ years of energy and investment banking experience . Under his commercial leadership, Plains delivered 2024 Adjusted EBITDA attributable to PAA of $2.78B (~4% above guidance), Adjusted Free Cash Flow of $1.17B, and strong total shareholder returns in 2024 of 24% for PAGP and 21% for PAA; distributions were increased 19% in 2024 and a further 20% in Feb 2025 . 2024 performance targets tied to executive pay included Adjusted EBITDA, DCF per common unit & unit equivalent (CUE), safety (TRIR), environmental (FRR), relative TSR, and multi‑year DCF/CUE, aligning pay with value creation .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Plains (PAGP/PAA) | EVP & Chief Commercial Officer | 2021–present | Leads commercial strategy and BD; long‑haul recontracting; NGL strategy; bolt‑on deals; acreage dedication growth . |
| Plains (PAGP/PAA) | EVP — Commercial | 2019–2021 | Commercial leadership across segments; positioned for 2024+ overperformance . |
| Plains (PAGP/PAA) | Senior Group VP — Commercial | 2018–2019 | Expanded commercial footprint and initiatives . |
| Plains (PAGP/PAA) | SVP — Acquisitions & Strategic Planning | 2017–2018 | M&A and capital allocation planning . |
| Plains (PAGP/PAA) | VP — Acquisitions & Strategic Planning | 2015–2017 | Deal execution and portfolio optimization . |
| Plains (PAGP/PAA) | Assistant VP — Lease Supply | 2014–2015 | Supply optimization . |
| Plains (PAGP/PAA) | Managing Director — Acquisitions & Strategic Planning | 2013–2014 | Initiated transactional growth platform . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Simmons & Company International | Investment banker | pre‑2013 | Upstream/midstream advisory experience enhances Plains’ commercial and M&A execution . |
Fixed Compensation
| Year | Base Salary ($) | All Other Compensation ($) | Notes |
|---|---|---|---|
| 2022 | 550,000 | 19,140 | 401(k) match and group term life; no significant perquisites . |
| 2023 | 600,000 | 20,640 | 401(k) match and group term life . |
| 2024 | 600,000 | 21,540 | 401(k) match ($20,700) + life premiums; policy: no guaranteed bonuses, no excise tax gross‑ups . |
Performance Compensation
| Year | Target Bonus (% of Salary) | Target ($) | Company Score (60% weight) | Individual Score (40% weight) | Payout (% of Target) | Actual Bonus ($) |
|---|---|---|---|---|---|---|
| 2024 | 150% | 900,000 | 128% | 175% | 147% | 1,325,000 |
Detailed 2024 bonus metric framework:
- Company metrics, weighting, target vs actual, payout:
- Adjusted EBITDA attributable to PAA (40%): Target $2.675B; Actual $2.779B; Payout 152% .
- Implied DCF/CUE (40%): Target $2.44; Actual $2.49; Payout 127% .
- Safety TRIR (10%): Target 0.25; Actual 0.25; Payout 75% (with discretionary 25bp reduction) .
- Environmental FRR (10%): Target 15; Actual 19; Payout 89% (with discretionary 25bp increase) .
- Individual highlights: Led commercial strategies that drove overperformance vs plan; bolt‑on transactions; long‑haul recontracting; +~225,000 Permian acres; volume capture; NGL strategy; emerging energy oversight; strong 2025+ positioning .
Long‑term incentives (phantom units; 50% time‑based, 50% performance‑based):
| Grant Date | 2024 LTIP Target Value ($) | Units Granted | Time‑Based Units (#) | Performance‑Based Units (#) | Grant Date FV ($) |
|---|---|---|---|---|---|
| 8/15/2024 | 2,550,000 | 143,100 | 71,550 | 71,550 | 1,863,162 |
Performance LTIP metrics and vesting:
- 2024 grant performance portion: Relative TSR (50%) vs peer group through 6/30/2027, with negative TSR modifier; DCF per CUE cumulative $7.75 (50%) through 6/30/2027, leverage modifier; vest/pay on Aug 2027 distribution date; DERs accrue and pay at vest .
- 2023 grant performance portion: Relative TSR (50%) through 6/30/2026; DCF/CUE $7.45 (50%); vest/pay Aug 2026; DERs accrue and pay at vest .
- 2022 grant performance portion: Relative TSR (50%) through 6/30/2025; DCF/CUE $7.05 (50%); as of 12/31/2024, estimated payouts TSR ~167% and DCF/CUE ~143%; vest/pay Aug 2025 .
Options: None issued under the plan; equity incentives are phantom units only .
Equity Ownership & Alignment
| Security | Beneficially Owned | % of Class | Notes |
|---|---|---|---|
| PAGP Class A shares | 1,314 | <1% | |
| PAGP Class B shares | 35,350 | <1% | Exchange right to A shares exists at holder’s election (cash settlement at AAP’s option) . |
| PAA “pass‑through” Class C (as voting mechanism) | 380,737 | <1% | Represents PAA voting pass‑through . |
Outstanding unvested phantom unit awards (as of 12/31/2024):
| Tranche | Units (#) | Market/Payout Value ($) |
|---|---|---|
| Nov 2019 special retention award (amended in Feb 2022) | 250,000 | 4,270,000 (per side columns showing both TB and PB blocks; equal counts for time and performance components) . |
| Aug 2022 time‑based | 89,350 | 1,526,098 . |
| Aug 2022 performance‑based (target) | 89,350 | 1,526,098 (estimated payout percentages disclosed separately) . |
| Aug 2023 time‑based | 65,825 | 1,124,291 . |
| Aug 2023 performance‑based (target) | 65,825 | 1,124,291 . |
| Aug 2024 time‑based | 71,550 | 1,222,074 . |
| Aug 2024 performance‑based (target) | 71,550 | 1,222,074 . |
Ownership guidelines and alignment:
- Equity Ownership Guidelines: EVP multiple 3x base salary; “hold‑until‑met” requirement; all executives/directors are on track or have met guidelines; compliance date for current executives is Nov 2025 .
- Anti‑hedging and pledging: Prohibited; to company’s knowledge, no pledging by directors/NEOs as of 3/24/2025 .
Employment Terms
- Special retention grant (Aug 14, 2025): 545,550 phantom units to Goebel, vesting Aug 2030 (continued service); DERs: 20% accrues year one and pays Aug 2026; additional 20% vests each Aug (2026–2029) then paid quarterly; change‑in‑status triggers include death, disability, termination without cause, change of control, or retirement approved by Board .
- Acceleration and termination provisions for existing grants:
- Death/disability: All outstanding phantom units from Aug 2022/Aug 2023 grants (and Nov 2019 for Goebel) become nonforfeitable, vest on next distribution date; Aug 2024 grants forfeited in early death/disability example date; value computed at $17.08 per PAA unit as of 12/31/2024 .
- Termination without cause: For Aug 2022/23/24 grants, pro‑rata nonforfeitable after year 1 of grant; Nov 2019 grants reach 100% nonforfeitable after 11/21/2024 .
- Double‑trigger change‑in‑control (“change in status”): All outstanding phantom units (and DERs) become nonforfeitable and vest on next distribution date .
- Potential payments upon termination (equity acceleration scenarios for Goebel, as if terminated 12/31/2024):
- Death: $13,840,778 .
- Disability: $13,840,778 .
- Company without cause: $11,993,257 .
- Change‑in‑control or retirement: $16,284,926 .
Clawback and governance:
- Clawback policy amended Nov 2023: Mandatory recovery for excess incentive pay after material restatement; discretionary recovery/forfeiture for detrimental conduct causing significant harm (3‑year lookback) .
- Say‑on‑pay support: ~98% approval at 2024 annual meeting; multi‑year average ~98% .
Multi‑Year Compensation Summary
| Year | Salary ($) | Stock Awards ($) | Non‑Equity Incentive ($) | All Other ($) | Total ($) |
|---|---|---|---|---|---|
| 2022 | 550,000 | 4,081,569 | 1,730,000 | 19,140 | 6,380,709 |
| 2023 | 600,000 | 1,485,999 | 1,340,000 | 20,640 | 3,446,639 |
| 2024 | 600,000 | 1,863,162 | 1,325,000 | 21,540 | 3,809,702 |
Compensation Structure Analysis
- Increased LTIP target from 325% to 425% of salary for Goebel in 2024 to align with market and retention objectives .
- Mix remains heavily at‑risk: Annual cash is 100% performance‑based; long‑term equity is 50% performance‑based (relative TSR, multi‑year DCF/CUE with leverage modifier) .
- Award modifications (Nov 2019 special retention grants amended Feb 2022 to replace DCF/CUE with TSR on performance portion) — creates clearer market‑based alignment while keeping scheduled vest date (Aug 2026) .
Performance & Track Record
- 2024 quantitative goals met/exceeded on Adjusted EBITDA (+4% vs goal) and DCF/CUE (+2% vs goal); safety TRIR target met; FRR above target but volumes materially lower vs five‑year avg; leverage ended ~3.0x and Moody’s upgrade achieved .
- Commercial execution led by Goebel included multiple accretive bolt‑ons, long‑haul recontracting, ~225,000 dedicated Permian acres added, volume capture, and NGL strategy execution .
- Total shareholder returns disclosed: 2024 returns of 24% for PAGP and 21% for PAA; distributions increased 19% (2024) and 20% (Feb 2025) .
Risk Indicators & Red Flags
- Hedging/pledging banned; no pledging by NEOs disclosed .
- No options or option repricing; phantom units only .
- Clawback policy strengthened to meet Nasdaq/Dodd‑Frank requirements .
- Environmental/Safety metrics included with discretion adjustments acknowledging fatalities and FRR context .
Equity Ownership & Guideline Compliance
- EVP guideline 3x base salary; executives on track or met by Nov 2025; hold‑until‑met policy for vested units/shares .
Investment Implications
- Strong pay‑for‑performance alignment: Cash bonuses tied to EBITDA and DCF/CUE; LTIPs tied to multi‑year DCF/CUE and relative TSR, with leverage modifier — supports capital discipline and TSR outperformance incentives .
- Retention risk mitigated: Significant unvested phantom units across 2025–2027 cycles plus 545,550‑unit special retention grant vesting Aug 2030; double‑trigger CoC acceleration ensures continuity unless status changes — limits near‑term insider selling pressure to distribution vest dates (Aug 2025/2026/2027/2030) .
- Alignment and governance: No hedging/pledging, robust clawback, high say‑on‑pay (~98%) — lowers governance risk and suggests investor support for current comp design .
- Trading signals: Watch August distribution dates for vesting‑related liquidity and DER cash flows (Aug 2025/2026/2027); monitor TSR peer‑relative performance heading into June measurement dates (2025–2027) for performance‑based vesting outcomes .