Company: PAGP
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001581990-25-000006
Chunk: 475

Company: PLAINS GP HOLDINGS LP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 475
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 cash flow and improving shareholder returns by (i) increasing returns of capital to equity holders, primarily through increased distributions, (ii) making disciplined accretive investments and (iii) maintaining an investment grade credit profile and ensuring balance sheet flexibility.  

Overview of Operating Results

We recognized net income of $1.070 billion for the year ended December 31, 2024 compared to net income of $1.425 billion for the year ended December 31, 2023. 

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Table of ContentsIndex to Financial Statements

The decrease in net income was largely driven by higher costs in the 2024 period associated with the Line 901 incident that occurred in May 2015 (including $225 million related to the write-off of a receivable for insurance proceeds in the fourth quarter of 2024 and $120 million related to settlements in the third quarter of 2024), losses on asset sales, asset impairments and other related items (as compared to gains from such items in the 2023 period), and higher income tax expense largely associated with Canadian withholding tax. In addition, net income for the 2023 period included the favorable impact of gains from the mark-to-market adjustment of the Preferred Distribution Rate Reset Option. However, our Segment Adjusted EBITDA increased in 2024 compared to 2023 due to more favorable results from our Crude Oil segment, partially offset by lower contributions from our NGL segment. See the “—Results of Operations” section below for further discussion.

Results of Operations 

Consolidated Results

The following table sets forth an overview of our consolidated financial results calculated in accordance with GAAP (in millions, except per share data):

Year Ended December 31,Variance20242023$%Product sales revenues$48,254 $46,974 $1,280 3 %Services revenues1,819 1,738 81 5 %Purchases and related costs(45,560)(44,531)(1,029)(2)%Field operating costs(1,768)(1,425)(343)(24)%General and administrative expenses(387)(356)(31)(9)%Depreciation and amortization(1,026)(1,051)25 2 %Gains/(losses) on asset sales, asset impairments and other, net(160)152 (312)(205)%Equity earnings in unconsolidated entities452 369 83 22 %Gain on investments in uncons