Plains All American Pipeline LP Announces 2024 Annual Meeting and Reports Strong 2023 Performance

TL;DR

<b>Plains All American Pipeline LP exceeded 2023 financial targets, demonstrating strong execution and strategic capital allocation.</b>

AI Summary

PLAINS ALL AMERICAN PIPELINE LP (PAAPU) filed a Proxy Statement (DEF 14A) with the SEC on April 12, 2024. Plains All American Pipeline LP exceeded 2023 financial targets, reporting $2.71 billion in Adjusted EBITDA and $2.46 in Implied Distributable Cash Flow per Common Unit. The company generated $1.60 billion in Adjusted Free Cash Flow in 2023, returning approximately $989 million to equity holders. Capital investments for 2023 totaled approximately $524 million (net). Plains All American Pipeline LP lowered its long-term leverage ratio target range to 3.25x - 3.75x and ended 2023 with a leverage ratio of 3.1x. The company received two credit rating upgrades from rating agencies in recognition of its efforts.

Why It Matters

For investors and stakeholders tracking PLAINS ALL AMERICAN PIPELINE LP, this filing contains several important signals. The filing details the company's strong financial performance in 2023, exceeding targets for Adjusted EBITDA and Distributable Cash Flow, indicating successful operational execution and favorable market conditions. The company's strategic focus on free cash flow generation, capital discipline, and returning capital to equity holders, alongside a lowered leverage target, suggests a commitment to financial health and shareholder value.

Risk Assessment

Risk Level: low — PLAINS ALL AMERICAN PIPELINE LP shows low risk based on this filing. The filing is a routine proxy statement (DEF 14A) and does not contain new material non-public information that would significantly alter the risk profile.

Analyst Insight

Review the detailed proposals and executive compensation in the proxy statement to understand the board's recommendations and management incentives for the upcoming year.

Key Numbers

• 2024-05-22 — Annual Meeting Date (Date of the annual meeting)
• $2.71 billion — Adjusted EBITDA (2023 performance exceeding initial targets)
• $2.46 — Implied Distributable Cash Flow per Common Unit (2023 performance exceeding initial targets)
• $1.60 billion — Adjusted Free Cash Flow (Generated in 2023)
• $989 million — Returned to Equity Holders (Via distributions in 2023)
• $524 million — Investment and Maintenance Capital (Net to interest in 2023)
• 3.25x - 3.75x — Long-term Leverage Ratio Target (New target range)
• 3.1x — 2023 Leverage Ratio (End of year ratio)

Key Players & Entities

• PLAINS ALL AMERICAN PIPELINE LP (company) — Registrant
• 333 CLAY STREET SUITE 1600 (company) — Business and Mail Address
• HOUSTON (company) — City
• TX (company) — State
• 77002 (company) — ZIP Code
• 7136544100 (company) — Business Phone
• DE (company) — State of Incorporation
• 1934 Act (regulator) — SEC Act

FAQ

Risk Factors

• Leverage Ratio Management [low — financial]: The company has lowered its long-term leverage ratio target to 3.25x-3.75x, ending 2023 at 3.1x, indicating a focus on financial flexibility.

Key Dates

• 2024-05-22: Annual Meeting of Stockholders — Opportunity for shareholders to vote on corporate matters and hear updates.

Key Financial Figures

• $2.71 billion — 23 accomplishments include: Delivered $2.71 billion in Adjusted EBITDA attributable to PAA
• $2 — mmon Unit and Common Unit Equivalent of $2.46, exceeding our initial February targ
• $2.50 billion — itial February targets of approximately $2.50 billion and $2.33, respectively; Generated $1
• $1.60 billion — on and $2.33, respectively; Generated $1.60 billion in Adjusted Free Cash Flow (excluding c
• $989 million — nd Liabilities), returned approximately $989 million to our common and preferred equity hold
• $524 million — stributions, and invested approximately $524 million of investment and maintenance capital (
• $0.20 — Increased our annual distribution by $0.20 per unit (23%) in 2023 and by $0.20 per

Filing Documents

• tm242707d2_def14a.htm (DEF 14A) — 2557KB
• lg_plainsaap-pn.jpg (GRAPHIC) — 16KB
• sg_williechiang-bw.jpg (GRAPHIC) — 12KB
• sg_richardmcgee-bw.jpg (GRAPHIC) — 9KB
• fc_ownership-pn.jpg (GRAPHIC) — 99KB
• ic_box-bw.jpg (GRAPHIC) — 1KB
• ic_whitedia-bw.jpg (GRAPHIC) — 1KB
• ic_tickbox-bw.jpg (GRAPHIC) — 1KB
• ic_whitestar-bw.jpg (GRAPHIC) — 1KB
• ic_blackstar-bw.jpg (GRAPHIC) — 1KB
• ic_blackdia-bw.jpg (GRAPHIC) — 1KB
• ic_cross-bw.jpg (GRAPHIC) — 1KB
• pc_compensation-pn.jpg (GRAPHIC) — 70KB
• ic_tick-bw.gif (GRAPHIC) — 1KB
• ic_tick-bw.jpg (GRAPHIC) — 1KB
• fc_base-pn.jpg (GRAPHIC) — 36KB
• fc_ltip-pn.jpg (GRAPHIC) — 23KB
• bc_tsr-pn.jpg (GRAPHIC) — 52KB
• bc_netincome-pn.jpg (GRAPHIC) — 50KB
• bc_ebitda-pn.jpg (GRAPHIC) — 54KB
• px_24plainsallpxy1pg01-bw.jpg (GRAPHIC) — 300KB
• px_24plainsallpxy1pg02-bw.jpg (GRAPHIC) — 143KB
• px_24plainsallpxy1pg03-bw.jpg (GRAPHIC) — 375KB
• 0001104659-24-046387.txt (&nbsp;) — 6628KB
• paa-20231231.xsd (EX-101.SCH) — 9KB
• paa-20231231_def.xml (EX-101.DEF) — 6KB
• paa-20231231_lab.xml (EX-101.LAB) — 29KB
• paa-20231231_pre.xml (EX-101.PRE) — 5KB
• tm242707d2_def14a_htm.xml (XML) — 212KB

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 26

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT 60 EQUITY COMPENSATION PLAN INFORMATION TABLE 64 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS 65 REPORT OF THE AUDIT COMMITTEE 69 PRINCIPAL ACCOUNTANT FEES AND SERVICES 70 PROPOSAL 2–RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 71 PROPOSAL 3–ADVISORY VOTE TO APPROVE OUR 2023 NAMED EXECUTIVE OFFICER COMPENSATION 72 PROPOSAL 4–ADVISORY VOTE ON THE FREQUENCY OF FUTURE VOTES TO APPROVE OUR NAMED EXECUTIVE OFFICER COMPENSATION 73 OTHER MATTERS FOR THE PAA ANNUAL MEETING 74 DIRECTOR NOMINATIONS AND UNITHOLDER PROPOSALS FOR THE 2025 ANNUAL MEETING 74 HOUSEHOLDING MATTERS 75 i TABLE OF CONTENTS PLAINS ALL AMERICAN PIPELINE, L.P. PROXY STATEMENT For 2024 Annual Meeting of Unitholders To Be Held On May 22, 2024 GENERAL INFORMATION ABOUT THE PLAINS ALL AMERICAN PIPELINE, L.P. ANNUAL MEETING The board of directors (the "Board") of PAA GP Holdings LLC ("PAGP GP" or our "general partner"), the general partner of Plains GP Holdings, L.P. ("PAGP"), the sole member of Plains All American GP LLC ("GP LLC"), the general partner of Plains AAP, L.P. ("Plains AAP"), the sole member of PAA GP LLC, the general partner of Plains All American Pipeline, L.P. ("PAA"), is soliciting proxies to be voted on behalf of holders of our common units and holders of our Series A Convertible Preferred Units ("Series A preferred units") (holders of our common units and our Series A preferred units are collectively referred to as our "Unitholders") at the 2024 annual meeting of Unitholders (the "PAA Annual Meeting"). This proxy statement is being furnished to you in connection with the solicitation of proxies by and on behalf of the Board for use at the PAA Annual Meeting and includes information about the matters to be voted upon at the PAA Annual Meeting. The PAA Annual Meeting will be held on May 22, 2024, at 10:00 a.m. Central Time, in the Texas Roo

View Full Filing

View this DEF 14A filing on SEC EDGAR