XML 49 R29.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2023
Segment Reporting [Abstract] |
Segment Information | Segment Information Our operating segments, Crude Oil and NGL, which are also our reportable segments, are organized by product as our Crude Oil and NGL businesses are generally impacted by different market fundamentals and require the use of different assets and business strategies. The Crude Oil segment includes our crude oil pipelines, crude oil storage and marine terminals and related crude oil marketing activities. The NGL segment includes our NGL pipelines, NGL storage, natural gas processing and NGL fractionation facilities and related NGL marketing activities. Our crude oil and NGL marketing activities are included in the respective reporting segments as their primary purpose is to support the utilization of our assets by entering into transactions that facilitate increased volumes handled by our assets, resulting in additional earnings for each of our segments. Our CODM (our Chief Executive Officer) evaluates segment performance based on measures including Segment Adjusted EBITDA (as defined below) and maintenance capital. The measure of Segment Adjusted EBITDA forms the basis of our internal financial reporting and is the primary performance measure used by our CODM in assessing performance and allocating resources among our operating segments. We define Segment Adjusted EBITDA as revenues and equity earnings in unconsolidated entities less (a) purchases and related costs, (b) field operating costs and (c) segment general and administrative expenses, plus (d) our proportionate share of the depreciation and amortization expense (including write-downs related to cancelled projects and impairments) of unconsolidated entities, further adjusted (e) for certain selected items including (i) gains and losses on derivative instruments that are related to underlying activities in another period (or the reversal of such adjustments from a prior period), gains and losses on derivatives that are either related to investing activities (such as the purchase of linefill) or purchases of long-term inventory, and inventory valuation adjustments, as applicable, (ii) long-term inventory costing adjustments, (iii) charges for obligations that are expected to be settled with the issuance of equity instruments, (iv) amounts related to deficiencies associated with minimum volume commitments, net of the applicable amounts subsequently recognized into revenue and (v) other items that our CODM believes are integral to understanding our core segment operating performance and (f) to exclude the portion of all preceding items that is attributable to noncontrolling interests (“Segment amounts attributable to noncontrolling interests”). Segment Adjusted EBITDA excludes depreciation and amortization. As an MLP, we make quarterly distributions of our “available cash” (as defined in our partnership agreement) to our unitholders. We look at each period’s earnings before non-cash depreciation and amortization as an important measure of segment performance. The exclusion of depreciation and amortization expense could be viewed as limiting the usefulness of Segment Adjusted EBITDA as a performance measure because it does not account in current periods for the implied reduction in value of our capital assets, such as pipelines and facilities, caused by age-related decline and wear and tear. We compensate for this limitation by recognizing that depreciation and amortization are largely offset by repair and maintenance investments, which act to partially offset the aging and wear and tear in the value of our principal fixed assets. These maintenance investments are a component of field operating costs included in Segment Adjusted EBITDA or in maintenance capital, depending on the nature of the cost. Capital expenditures made to expand the existing operating and/or earnings capacity of our assets are classified as investment capital. Capital 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 are classified as maintenance capital, which is deducted in determining “available cash.” Repair and maintenance expenditures incurred in order to maintain the day to day operation of our existing assets are charged to expense as incurred. Assets are not reviewed by our CODM on a segmented basis; therefore, such information is not presented. The following tables reflect certain financial data for each segment (in millions):
| Crude Oil |  | NGL |  | Intersegment Revenues Elimination |  | Total
Year Ended December 31, 2023 |  |  |  |  |  |  |
Revenues (1): |  |  |  |  |  |  |
Product sales | $ | 45,587 |  |  | $ | 1,765 |  |  | $ | (378) |  |  | $ | 46,974 |
Services | 1,587 |  |  | 170 |  |  | (19) |  |  | 1,738 |
Total revenues | $ | 47,174 |  |  | $ | 1,935 |  |  | $ | (397) |  |  | $ | 48,712 |
Equity earnings in unconsolidated entities | $ | 369 |  |  | $ | — |  |  |  |  | $ | 369 |
Segment Adjusted EBITDA | $ | 2,163 |  |  | $ | 522 |  |  |  |  | $ | 2,685 |
Investment and acquisition capital expenditures (2) (3) | $ | 765 |  |  | $ | 65 |  |  |  |  | $ | 830 |
Maintenance capital expenditures (3) | $ | 145 |  |  | $ | 86 |  |  |  |  | $ | 231 |
As of December 31, 2023 |  |  |  |  |  |  |
Investments in unconsolidated entities | $ | 2,820 |  |  | $ | — |  |  |  |  | $ | 2,820 |
| Crude Oil |  | NGL |  | Intersegment Revenues Elimination |  | Total
Year Ended December 31, 2022 |  |  |  |  |  |  |
Revenues (1): |  |  |  |  |  |  |
Product sales | $ | 53,840 |  |  | $ | 2,575 |  |  | $ | (467) |  |  | $ | 55,948 |
Services | 1,240 |  |  | 186 |  |  | (32) |  |  | 1,394 |
Total revenues | $ | 55,080 |  |  | $ | 2,761 |  |  | $ | (499) |  |  | $ | 57,342 |
Equity earnings in unconsolidated entities | $ | 403 |  |  | $ | — |  |  |  |  | $ | 403 |
Segment Adjusted EBITDA | $ | 1,986 |  |  | $ | 518 |  |  |  |  | $ | 2,504 |
Investment and acquisition capital expenditures (2) (3) | $ | 461 |  |  | $ | 157 |  |  |  |  | $ | 618 |
Maintenance capital expenditures (3) | $ | 112 |  |  | $ | 99 |  |  |  |  | $ | 211 |
As of December 31, 2022 |  |  |  |  |  |  |
Investments in unconsolidated entities | $ | 3,084 |  |  | $ | — |  |  |  |  | $ | 3,084 |
| Crude Oil |  | NGL |  | Intersegment Revenues Elimination |  | Total
Year Ended December 31, 2021 |  |  |  |  |  |  |
Revenues (1): |  |  |  |  |  |  |
Product sales | $ | 39,395 |  |  | $ | 1,829 |  |  | $ | (341) |  |  | $ | 40,883 |
Services | 1,075 |  |  | 139 |  |  | (19) |  |  | 1,195 |
Total revenues | $ | 40,470 |  |  | $ | 1,968 |  |  | $ | (360) |  |  | $ | 42,078 |
Equity earnings in unconsolidated entities | $ | 274 |  |  | $ | — |  |  |  |  | $ | 274 |
Segment Adjusted EBITDA | $ | 1,909 |  |  | $ | 285 |  |  |  |  | $ | 2,194 |
Investment and acquisition capital expenditures (2) (3) | $ | 212 |  |  | $ | 57 |  |  |  |  | $ | 269 |
Maintenance capital expenditures (3) | $ | 100 |  |  | $ | 68 |  |  |  |  | $ | 168 |
As of December 31, 2021 |  |  |  |  |  |  |
Investments in unconsolidated entities | $ | 3,805 |  |  | $ | — |  |  |  |  | $ | 3,805 |
(1)Segment revenues include intersegment amounts that are eliminated in Purchases and related costs. Intersegment activities are conducted at posted tariff rates where applicable, or otherwise at rates similar to those charged to third parties or rates that we believe approximate market at the time the agreement is executed or renegotiated. (2)Investment and acquisition capital expenditures, including investments in unconsolidated entities. (3)These amounts combined represent total capital expenditures. Segment Adjusted EBITDA Reconciliation The following table reconciles Segment Adjusted EBITDA to Net income attributable to PAA (in millions):
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
Segment Adjusted EBITDA | $ | 2,685 |  |  | $ | 2,504 |  |  | $ | 2,194 |
Adjustments (1): |  |  |  |  |
Depreciation and amortization of unconsolidated entities (2) | (87) |  |  | (85) |  |  | (123) |
Derivative activities and inventory valuation adjustments (3) | (159) |  |  | 280 |  |  | 271 |
Long-term inventory costing adjustments (4) | (35) |  |  | 4 |  |  | 94 |
Deficiencies under minimum volume commitments, net (5) | (12) |  |  | (7) |  |  | 7 |
Equity-indexed compensation expense (6) | (36) |  |  | (32) |  |  | (19) |
Foreign currency revaluation (7) | (24) |  |  | (4) |  |  | 4 |
Line 901 incident (8) | (10) |  |  | (95) |  |  | (15) |
Transaction-related expenses (9) | (1) |  |  | — |  |  | (16) |
Segment amounts attributable to noncontrolling interests (10) | 454 |  |  | 364 |  |  | 94 |
Depreciation and amortization | (1,048) |  |  | (965) |  |  | (774) |
Gains/(losses) on asset sales and asset impairments, net | 152 |  |  | (269) |  |  | (592) |
Gains/(losses) on investments in unconsolidated entities, net | 28 |  |  | 346 |  |  | 2 |
Interest expense, net | (386) |  |  | (405) |  |  | (425) |
Other income/(expense), net | 102 |  |  | (219) |  |  | 19 |
Income before tax | 1,623 |  |  | 1,417 |  |  | 721 |
Income tax expense | (121) |  |  | (189) |  |  | (73) |
Net income | 1,502 |  |  | 1,228 |  |  | 648 |
Net income attributable to noncontrolling interests | (272) |  |  | (191) |  |  | (55) |
Net income attributable to PAA | $ | 1,230 |  |  | $ | 1,037 |  |  | $ | 593 |
(1)Represents adjustments utilized by our CODM in the evaluation of segment results. (2)Includes our proportionate share of the depreciation and amortization expense (including write-downs related to cancelled projects and impairments) of unconsolidated entities. (3)We use derivative instruments for risk management purposes and our related processes include specific identification of hedging instruments to an underlying hedged transaction. Although we identify an underlying transaction for each derivative instrument we enter into, there may not be an accounting hedge relationship between the instrument and the underlying transaction. In the course of evaluating our results, we identify differences in the timing of earnings from the derivative instruments and the underlying transactions and exclude the related gains and losses in determining Segment Adjusted EBITDA such that the earnings from the derivative instruments and the underlying transactions impact Segment Adjusted EBITDA in the same period. In addition, we exclude gains and losses on derivatives that are related to (i) investing activities, such as the purchase of linefill, and (ii) purchases of long-term inventory. We also exclude the impact of corresponding inventory valuation adjustments, as applicable. (4)We carry crude oil and NGL inventory that is comprised of minimum working inventory requirements in third-party assets and other working inventory that is needed for our commercial operations. We consider this inventory necessary to conduct our operations and we intend to carry this inventory for the foreseeable future. Therefore, we classify this inventory as long-term on our balance sheet and do not hedge the inventory with derivative instruments (similar to linefill in our own assets). We exclude the impact of changes in the average cost of the long-term inventory (that result from fluctuations in market prices) and write-downs of such inventory that result from price declines from Segment Adjusted EBITDA. (5)We, and certain of our equity method investees, have certain agreements that require counterparties to deliver, transport or throughput a minimum volume over an agreed upon period. Substantially all of such agreements were entered into with counterparties to economically support the return on capital expenditure necessary to construct the related asset. Some of these agreements include make-up rights if the minimum volume is not met. We record a receivable from the counterparty in the period that services are provided or when the transaction occurs, including amounts for deficiency obligations from counterparties associated with minimum volume commitments. If a counterparty has a make-up right associated with a deficiency, we defer the revenue attributable to the counterparty’s make-up right and subsequently recognize the revenue at the earlier of when the deficiency volume is delivered or shipped, when the make-up right expires or when it is determined that the counterparty’s ability to utilize the make-up right is remote. We include the impact of amounts billed to counterparties for their deficiency obligation, net of applicable amounts subsequently recognized into revenue or equity earnings, as a selected item impacting comparability. Our CODM views the inclusion of the contractually committed revenues associated with that period as meaningful to Segment Adjusted EBITDA as the related asset has been constructed, is standing ready to provide the committed service and the fixed operating costs are included in the current period results. (6)Our total equity-indexed compensation expense includes expense associated with awards that will be settled in units and awards that will be settled in cash. The awards that will be settled in units are included in our diluted net income per unit calculation when the applicable performance criteria have been met. We exclude compensation expense associated with these awards in determining Segment Adjusted EBITDA as the dilutive impact of the outstanding awards is included in our diluted net income per unit calculation, as applicable. The portion of compensation expense associated with awards that will be settled in cash is not excluded in determining Segment Adjusted EBITDA. See Note 17 for information regarding our equity-indexed compensation plans. (7)During the periods presented, there were fluctuations in the value of CAD to USD, resulting in the realization of foreign exchange gains and losses on the settlement of foreign currency transactions as well as the revaluation of monetary assets and liabilities denominated in a foreign currency. These gains and losses are not integral to our core operating performance and were therefore excluded in determining Segment Adjusted EBITDA. (8)Includes costs recognized during the period related to the Line 901 incident that occurred in May 2015, net of amounts we believe are probable of recovery from insurance. See Note 18 for additional information regarding the Line 901 incident. (9)Includes expenses associated with the Rattler Permian Transaction in 2023 and the Permian JV transaction in 2021. See Note 7 for additional discussion. An adjustment for these non-recurring expenses is included in the calculation of Segment Adjusted EBITDA for the years ended December 31, 2023 and 2021 as our CODM does not view such expenses as integral to understanding our core segment operating performance. (10)Reflects amounts attributable to noncontrolling interests in the Permian JV (beginning October 2021), Cactus II (beginning November 2022) and Red River. Geographic Data We have operations in the United States and Canada. Set forth below are revenues and long-lived assets attributable to these geographic areas (in millions):
|  | Year Ended December 31,
Revenues (1) |  | 2023 |  | 2022 |  | 2021
United States |  | $ | 42,308 |  |  | $ | 46,903 |  |  | $ | 34,458 |
Canada |  | 6,404 |  |  | 10,439 |  |  | 7,620 |
|  | $ | 48,712 |  |  | $ | 57,342 |  |  | $ | 42,078 |
(1)Revenues are primarily attributed to each region based on where the services are provided or the product is shipped.
|  | December 31,
Long-Lived Assets (1) |  | 2023 |  | 2022
United States |  | $ | 18,591 |  |  | $ | 18,655 |
Canada |  | 3,820 |  |  | 3,802 |
|  | $ | 22,411 |  |  | $ | 22,457 |
(1)Excludes long-term derivative assets and long-term deferred tax assets.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration