Company: PAGP
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001581990-25-000021
Chunk: 45

Company: PLAINS GP HOLDINGS LP
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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ES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Our commodity derivatives are not designated in a hedging relationship for accounting purposes; as such, changes in the fair value are reported in earnings. The following table summarizes the impact of our commodity derivatives recognized in earnings (in millions): Three Months EndedJune 30,Six Months EndedJune 30, 2025202420252024Product sales revenues$(40)$— $(41)$(28)Field operating costs5 (5)3 (6)   Net loss from commodity derivative activity$(35)$(5)$(38)$(34)Our accounting policy is to offset derivative assets and liabilities executed with the same counterparty when a master netting arrangement exists. Accordingly, we also offset derivative assets and liabilities with amounts associated with cash margin. Our exchange-traded derivatives are transacted through clearing brokerage accounts and are subject to margin requirements as established by the respective exchange. On a daily basis, our account equity (consisting of the sum of our cash balance and the fair value of our open derivatives) is compared to our initial margin requirement resulting in the payment or return of variation margin. The following table provides the components of our net broker receivable (in millions):June 30,2025December 31,2024Initial margin$9 $16 Variation margin posted/(returned)(6)15 Letters of credit— (9)   Net broker receivable$3 $22 The following table reflects the Condensed Consolidated Balance Sheet line items that include the fair values of our commodity derivative assets and liabilities and the effect of the collateral netting. Such amounts are presented on a gross basis, before the effects of counterparty netting. However, we have elected to present our commodity derivative assets and liabilities with the same counterparty on a net basis on our Condensed Consolidated Balance Sheet when the legal right of offset exists. Amounts in the table below are presented in millions.June 30, 2025December 31, 2024Effect of Collateral NettingNet Carrying Value Presented on the Balance SheetEffect of Collateral NettingNet Carrying Value Presented on the Balance SheetCommodity DerivativesCommodity DerivativesAssetsLiabilitiesAssetsLiabilitiesDerivative AssetsOther current assets$27 $(16)$3 $14 $25 $(24)$22 $23 Other long-term assets, net1 — — 1