Company: PAGP
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001581990-25-000006
Chunk: 305

Company: PLAINS GP HOLDINGS LP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 8
Chunk 305
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$1,687 $1,789 (1)Price per unit of measure is comprised of a weighted average associated with various grades, qualities and locations. Accordingly, these prices may not coincide with any published benchmarks for such products.

F-20

Table of ContentsIndex to Financial StatementsPLAINS GP HOLDINGS, L.P. AND SUBSIDIARIESNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 6—Property and Equipment

In accordance with our capitalization policy, expenditures made to expand the existing operating and/or earnings capacity of our assets are capitalized, as are certain costs directly related to the construction of such assets, including related internal labor costs, engineering costs and interest costs. We also capitalize expenditures for the replacement and/or refurbishment of partially or fully depreciated assets in order to maintain the operating and/or earnings capacity of our existing assets. Repair and maintenance expenditures incurred in order to maintain the day to day operation of our existing assets are expensed as incurred.Property and equipment, net is stated at cost and consisted of the following (in millions):Estimated UsefulLives (Years)December 31,20242023Crude oil pipeline systems10 - 50$14,621 $14,265 Crude oil storage and terminal facilities10 - 502,679 2,664 NGL storage, terminal, fractionation and processing facilities10 - 502,412 2,554 NGL pipeline systems10 - 50491 506 Office property and equipment and rolling stock2 - 50464 556 Construction in progressN/A297 257 Land and otherN/A336 341 Property and equipment, gross (1)21,300 21,143 Accumulated depreciation(5,876)(5,361)Property and equipment, net$15,424 $15,782 (1)We include rights-of-way, which are intangible assets, within property and equipment.We calculate our depreciation using the straight-line method, based on estimated useful lives and salvage values of our assets. Depreciation expense for the years ended December 31, 2024, 2023 and 2022 was $753 million, $736 million and $710 million, respectively. As of December 31, 2024, 2023 and 2022, we incurred liabilities of $78 million, $55 million and $46 million, respectively, for construction in progress that had not been paid