XML 43 R21.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Partners' Capital and Distributions | 12 Months Ended
--- | ---
Dec. 31, 2024
Partners' Capital Notes [Abstract] |
Partners' Capital and Distributions | Partners’ Capital and Distributions Our Shares Our Class A shares, Class B shares and Class C shares represent limited partner interests in us. The holders of our Class A and Class B shares are entitled to exercise the rights or privileges available to limited partners under our partnership agreement, but only holders of Class A shares are entitled to participate in our distributions. Our Class C shares are non-economic and provide PAA, as the sole holder of such Class C shares, the right to vote, pro rata with the holders of our Class A and Class B shares, in the election of eligible PAGP GP directors. Pursuant to the Omnibus Agreement entered into on November 15, 2016, the number of Class C shares that PAA owns will at all times equal the number of outstanding PAA common units, excluding common units held by AAP, and Series A preferred units. Thus, the Class C shares function as a “pass-through” voting mechanism through which PAA votes at the direction of and as proxy for the PAA common unitholders (other than AAP) and Series A preferred unitholders in such director elections. Exchange and Redemption Rights Holders of AAP units and their permitted transferees each have the right to exchange all or a portion of their AAP units for Class A shares at an exchange ratio of one Class A share for each AAP unit exchanged (referred to herein as the “Exchange Right”). This Exchange Right may be exercised only if, simultaneously therewith, an equal number of our Class B shares and general partner units (if any) are transferred by the exercising party to us. See Note 14 for information regarding the recognition of deferred tax assets associated the transfer of ownership resulting from Exchange Right exercises. Additionally, subject to certain limitations, a holder of AAP units (other than us) has the right (a “Redemption Right”) to cause AAP to redeem any or all of such holder’s AAP units in exchange for the distribution of an equivalent number of PAA common units held by AAP (“AAP Unit Redemption”). In connection with any AAP Unit Redemption, the redeeming holder will transfer the AAP units to AAP and a corresponding number of our Class B shares and general partner units (if any), in each case, to us. The AAP units transferred to AAP will be canceled, the Class B shares transferred to us will be canceled and any general partner units transferred to us will remain outstanding and increase our ownership percentage in our general partner. Additionally, we will issue a corresponding number of Class C shares to PAA. Shares Outstanding The following table presents the activity for our Class A shares, Class B shares and Class C shares:
| Class A Shares |  | Class B Shares |  | Class C Shares
Outstanding at December 31, 2021 | 194,192,777 |  |  | 46,645,514 |  |  | 534,596,831 |
Conversion of AAP Management Units | — |  |  | 258,047 |  |  | — |
Exchange Right exercises | 179,150 |  |  | (179,150) |  |  | — |
Redemption Right exercises | — |  |  | (518,464) |  |  | 518,464 |
Repurchase and cancellation of common units by a subsidiary under the Common Equity Repurchase Program | — |  |  | — |  |  | (7,251,361) |
Other | 35,715 |  |  | — |  |  | 578,604 |
Outstanding at December 31, 2022 | 194,407,642 |  |  | 46,205,947 |  |  | 528,442,538 |
Conversion of AAP Management Units | — |  |  | 388,839 |  |  | — |
Exchange Right exercises | 1,869,768 |  |  | (1,869,768) |  |  | — |
Redemption Right exercises | — |  |  | (8,487,850) |  |  | 8,487,850 |
Other | 139,350 |  |  | — |  |  | 2,514,901 |
Outstanding at December 31, 2023 | 196,416,760 |  |  | 36,237,168 |  |  | 539,445,289 |
Exchange Right exercises | 846,937 |  |  | (846,937) |  |  | — |
Other | 202,002 |  |  | — |  |  | 2,559,549 |
Outstanding at December 31, 2024 | 197,465,699 |  |  | 35,390,231 |  |  | 542,004,838 |
Distributions to Our Shareholders We distribute 100% of our available cash within 55 days following the end of each quarter to Class A shareholders of record. Available cash is generally defined as all cash on hand at the date of determination of available cash for the distribution in respect to such quarter (including expected distributions from AAP in respect of such quarter), less reserves established by our general partner for future requirements. The following table details distributions paid to our Class A shareholders during the years presented (in millions, except per share data):
Year |  | Distributions to Class A Shareholders |  | Distributions per Class A Share
2024 |  | $ | 251 |  |  | $ | 1.2700 |
2023 |  | $ | 209 |  |  | $ | 1.0700 |
2022 |  | $ | 162 |  |  | $ | 0.8325 |
On January 7, 2025, we declared a cash distribution of $0.38 per outstanding Class A share. This distribution of $75 million was paid on February 14, 2025 to shareholders of record at the close of business on January 31, 2025, for the period October 1, 2024 through December 31, 2024. Other Comprehensive Income/(Loss) Other comprehensive income/(loss) attributable to our Class A shareholders is comprised solely of their proportionate share of PAA’s other comprehensive income/(loss) based on our indirect ownership interest in PAA during the period. Consolidated Subsidiaries Noncontrolling Interests in Subsidiaries As of December 31, 2024, noncontrolling interests in our subsidiaries consisted of (i) limited partner interests in PAA including a 70% interest in PAA’s common units and PAA’s Series A preferred units combined and 100% of PAA’s Series B preferred units, (ii) an approximate 15% limited partner interest in AAP, (iii) a 35% interest in the Permian JV, (iv) a 30% interest in Cactus II and (v) a 33% interest in Red River Pipeline Company LLC (“Red River”). The transactions resulting in the recognition of noncontrolling interests in the Permian JV and Cactus II are described below. In November 2022, we acquired an additional 5% interest in Cactus II which, combined with changes in governance, resulted in our obtaining control of the entity. We own 70% of Cactus II and reflect the entity as a consolidated subsidiary in our Consolidated Financial Statements, with Enbridge’s 30% interest accounted for as a noncontrolling interest. This transaction resulted in the recognition of partners’ capital attributable to noncontrolling interests of approximately $526 million. See Note 7 for more details regarding this transaction. Common Equity Repurchase Program In November 2020, the board of directors of our general partner approved a $500 million common equity repurchase program (the “Program”) to be utilized as an additional method of returning capital to investors. The Program authorizes the repurchase from time to time of up to $500 million of PAA common units and/or our Class A shares via open market purchases or negotiated transactions conducted in accordance with applicable regulatory requirements. No time limit has been set for completion of the Program, and the Program may be suspended or discontinued at any time. The Program does not obligate PAA or us to acquire a particular number of PAA common units or Class A shares. Any PAA common units or Class A shares that are repurchased will be canceled. Class C shares held by PAA associated with any publicly held common units that are repurchased will also be canceled. There were no repurchases under the Program during the years ended December 31, 2024 or 2023. During the years ended December 31, 2022, PAA repurchased common units under the Program through open market purchases for a total purchase price of $74 million, including commissions and fees. The repurchased common units were canceled immediately upon acquisition, as were the Class C shares held by PAA associated with the repurchased common units. At December 31, 2024, the remaining available capacity under the Program was $198 million. PAA’s capital attributable to AAP was adjusted, in accordance with ASC 810, to reflect the accretion of its interest in PAA as a result of the repurchase of common units from public unitholders. Such adjustment is recognized by PAGP in proportion to its ownership interest in AAP, which results in a net increase in partners’ capital attributable to PAGP. See Note 14 for additional information regarding the associated impact to the deferred tax asset. Subsidiary Distributions PAA Series A Preferred Unit Distributions. After the fifth anniversary of the January 28, 2016 issuance date of PAA’s Series A preferred units, the holders of PAA’s Series A preferred units, acting by majority vote, had the option to make a one-time election to reset the Series A preferred unit distribution rate to equal the then applicable rate of ten-year U.S. Treasury Securities plus 5.85% (the “Preferred Distribution Rate Reset Option”). The Preferred Distribution Rate Reset Option was accounted for as an embedded derivative. See Note 12 for additional information. In January 2023, the Series A preferred unitholders elected the Preferred Distribution Rate Reset Option. Effective January 31, 2023, the new Series A preferred unit distribution rate is equal to 9.375% per annum of the original Issue Price (approximately $2.46 per unit annualized). The quarterly distribution paid in May 2023 reflected a pro-rated amount of approximately $0.585 per unit. On January 31, 2025, PAA repurchased approximately 12.7 million units, or 18%, of its outstanding Series A preferred units at the issue price of $26.25 per unit for a purchase price of approximately $333 million, plus accrued and unpaid distributions through January 30, 2025 of approximately $10 million. The following table details distributions paid to PAA’s Series A preferred unitholders during the years presented (in millions, except unit data):
|  | Series A Preferred Unitholders
Year |  | Cash Distribution |  |  | Distribution per Unit
2024 |  | $ | 175 |  |  |  |  |  | $ | 2.46 |
2023 |  | $ | 166 |  |  |  |  |  | $ | 2.34 |
2022 |  | $ | 149 |  |  |  |  |  | $ | 2.10 |
On February 14, 2025, PAA paid a cash distribution of $36 million to its Series A preferred unitholders outstanding as of January 31,2025. At December 31, 2024, such amount was accrued as distributions payable in “Other current liabilities” on our Consolidated Balance Sheet. PAA Series B Preferred Unit Distributions. The initial distribution rate for the Series B preferred units from and including October 10, 2017 to, but not including, November 15, 2022 was 6.125% per year of the liquidation preference per unit (equal to $61.25 per unit per year). From November 15, 2022 through August 14, 2023, distributions on the Series B preferred units accumulated for each distribution period at a percentage of the liquidation preference equal to the applicable three-month LIBOR plus a spread of 4.11% per annum. Beginning August 15, 2023, distributions on the Series B preferred units accumulate based on the applicable three-month SOFR, plus a credit spread adjustment of 0.26161%, plus 4.11% per annum. The following table details distributions paid to PAA’s Series B preferred unitholders during the years presented (in millions, except unit data):
|  | Series B Preferred Unitholders
Year |  | Cash Distribution |  |  | Distribution per Unit
2024 |  | $ | 79 |  |  |  | $ | 98.14 |
2023 |  | $ | 75 |  |  |  | $ | 93.43 |
2022 |  | $ | 49 |  |  |  | $ | 61.25 |
On February 18, 2025, PAA paid a cash distribution of $18 million ($22.73 per unit) to its Series B preferred unitholders. At December 31, 2024, approximately $9 million of accrued distributions payable to PAA’s Series B preferred unitholders was included in “Other current liabilities” on our Consolidated Balance Sheet. PAA Common Unit Distributions. After making distributions to its outstanding preferred units, PAA distributes the remainder of its available cash within 45 days following the end of each quarter to common unitholders of record, including AAP. Available cash is generally defined as all of PAA’s cash and cash equivalents on hand at the end of each quarter, less reserves established in the discretion of its general partner for future requirements. PAA’s available cash also includes cash on hand resulting from borrowings made after the end of the quarter. The following table details distributions paid by PAA to its common unitholders during the years presented (in millions, except per unit data):
|  | Distributions Paid |  |  | Distributions per Common Unit
Year |  | Public |  | AAP |  | Total |  |
2024 |  | $ | 595 |  |  | $ | 296 |  |  | $ | 891 |  |  |  | $ | 1.2700 |
2023 |  | $ | 492 |  |  | $ | 256 |  |  | $ | 748 |  |  |  | $ | 1.0700 |
2022 |  | $ | 383 |  |  | $ | 201 |  |  | $ | 584 |  |  |  | $ | 0.8325 |
On January 7, 2025, PAA declared a cash distribution of $0.38 per unit on its outstanding common units. The total distribution of $267 million was paid on February 14, 2025 to unitholders of record at the close of business on January 31, 2025, for the period from October 1, 2024 through December 31, 2024. Of this amount, approximately $88 million was paid to AAP. AAP Distributions. AAP distributes all of the cash received from PAA distributions on a quarterly basis, less reserves established in the discretion of its general partner for future requirements. Generally, distributions are paid to its partners in proportion to their percentage interest in AAP. The following table details the distributions to AAP’s partners paid during the years presented from distributions received from PAA (in millions):
|  | Distributions to AAP’s Partners
Year |  | Noncontrolling Interests |  | PAGP |  | Total Cash Distributions
2024 |  | $ | 45 |  |  | $ | 251 |  |  | $ | 296 |
2023 |  | $ | 47 |  |  | $ | 209 |  |  | $ | 256 |
2022 |  | $ | 39 |  |  | $ | 162 |  |  | $ | 201 |
On February 14, 2025, AAP distributed $88 million to its partners from distributions received from PAA. Of this amount, $13 million was distributed to noncontrolling interests and $75 million was distributed to us. Consolidated Joint Venture Distributions. Distributions from Cactus II and Red River are paid in proportion to each owner’s interest in the entity. Cash available for distribution is cash on hand less the amount of cash required to fund normal operations and capital projects. The following table details distributions paid to noncontrolling interests in consolidated joint venture entities during the years presented (in millions):
| 2024 |  | 2023 |  | 2022
Permian JV (1) | $ | 322 |  |  | $ | 249 |  |  | $ | 273 |
Cactus II | 77 |  |  | 63 |  |  | 4 |
Red River | 26 |  |  | 21 |  |  | 21 |
| $ | 425 |  |  | $ | 333 |  |  | $ | 298 |
(1)The initial distribution from the Permian JV was paid during the first quarter of 2022, with approximately $54 million paid to noncontrolling interests.

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

X
- Definition The entire disclosure for the formation, structure, control and ownership of the partnership. Disclosures related to accounts comprising partners' capital. Includes balances of general partners' capital account, limited partners' capital account, preferred partners' capital account and total partners' capital account and units outstanding; accumulated other comprehensive income; amount and nature of changes to amount of partner's capital and units outstanding by class, rights and privileges for each class of units; distribution policies and distributions paid by unit class; impact of and correction of an error in previously issued financial statements; limitations of partners' liability; redemption, conversion and distribution policies; and deferred compensation related to the issuance of units. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent + Details
Name: | us-gaap_PartnersCapitalNotesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration