Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-36132 | |
Entity Registrant Name | PLAINS GP HOLDINGS LP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-1005472 | |
Entity Address, Address Line One | 333 Clay Street | |
Entity Address, Address Line Two | Suite 1600 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 646-4100 | |
Title of 12(b) Security | Class A Shares | |
Trading Symbol | PAGP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Small Business Entity | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (shares) | 184,260,178 | |
Entity Central Index Key | 0001581990 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 42 | $ 47 |
Restricted cash | 64 | 37 |
Trade accounts receivable and other receivables, net | 1,919 | 3,614 |
Inventory | 662 | 604 |
Other current assets | 476 | 312 |
Total current assets | 3,163 | 4,614 |
PROPERTY AND EQUIPMENT | 18,304 | 18,983 |
Accumulated depreciation | (3,694) | (3,616) |
Property and equipment, net | 14,610 | 15,367 |
OTHER ASSETS | ||
Investments in unconsolidated entities | 3,781 | 3,683 |
Goodwill | 0 | 2,540 |
Deferred tax asset | 1,442 | 1,280 |
Linefill and base gas | 962 | 981 |
Long-term operating lease right-of-use assets, net | 416 | 466 |
Long-term inventory | 125 | 182 |
Other long-term assets, net | 990 | 856 |
Total assets | 25,489 | 29,969 |
CURRENT LIABILITIES | ||
Trade accounts payable | 2,138 | 3,687 |
Short-term debt | 729 | 504 |
Other current liabilities | 767 | 828 |
Total current liabilities | 3,634 | 5,019 |
LONG-TERM LIABILITIES | ||
Senior notes, net | 9,067 | 8,939 |
Other long-term debt, net | 326 | 248 |
Long-term operating lease liabilities | 356 | 387 |
Other long-term liabilities and deferred credits | 853 | 891 |
Total long-term liabilities | 10,602 | 10,465 |
COMMITMENTS AND CONTINGENCIES (NOTE 12) | ||
PARTNERS’ CAPITAL | ||
Noncontrolling interests | 9,788 | 12,330 |
Total partners’ capital | 11,253 | 14,485 |
Total liabilities and partners’ capital | 25,489 | 29,969 |
Class A Shares | ||
PARTNERS’ CAPITAL | ||
Class A shareholders (184,260,178 and 182,138,592 shares outstanding, respectively) | $ 1,465 | $ 2,155 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Class A Shares | ||||||
Shares outstanding | ||||||
Shares outstanding (shares) | 184,260,178 | 184,240,079 | 182,138,592 | 166,817,333 | 159,485,588 | 159,485,588 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
REVENUES | ||||
Total revenues | $ 3,225 | $ 8,253 | $ 11,494 | $ 16,628 |
COSTS AND EXPENSES | ||||
Purchases and related costs | 2,525 | 7,244 | 9,893 | 14,362 |
Field operating costs | 253 | 340 | 557 | 667 |
General and administrative expenses | 74 | 76 | 144 | 154 |
Depreciation and amortization | 166 | 148 | 335 | 284 |
(Gains)/losses on asset sales and asset impairments, net (Note 14) | (1) | (4) | 618 | 0 |
Goodwill impairment losses (Note 6) | 0 | 2,515 | ||
Total costs and expenses | 3,017 | 7,804 | 14,062 | 15,467 |
OPERATING INCOME/(LOSS) | 208 | 449 | (2,568) | 1,161 |
OTHER INCOME/(EXPENSE) | ||||
Equity earnings in unconsolidated entities | 81 | 83 | 191 | 172 |
Gain on/(impairment of) investments in unconsolidated entities, net (Note 7) | (69) | (91) | 267 | |
Interest expense (net of capitalized interest of $5, $11, $11 and $22, respectively) | (108) | (103) | (215) | (203) |
Other income/(expense), net | 18 | (6) | (13) | 18 |
INCOME/(LOSS) BEFORE TAX | 130 | 423 | (2,696) | 1,415 |
Current income tax expense | (15) | (24) | (22) | (53) |
Deferred income tax (expense)/benefit | 22 | 27 | 162 | (22) |
NET INCOME/(LOSS) | 137 | 426 | (2,556) | 1,340 |
Net (income)/loss attributable to noncontrolling interests | (121) | (360) | 1,991 | (1,127) |
NET INCOME/(LOSS) ATTRIBUTABLE TO PAGP | $ 16 | $ 66 | $ (565) | $ 213 |
Class A Shares | ||||
OTHER INCOME/(EXPENSE) | ||||
BASIC NET INCOME/(LOSS) PER CLASS A SHARE (in dollars per share) | $ 0.09 | $ 0.41 | $ (3.08) | $ 1.32 |
DILUTED NET INCOME/(LOSS) PER CLASS A SHARE (IN DOLLARS PER SHARE) | $ 0.09 | $ 0.40 | $ (3.08) | $ 1.32 |
BASIC WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING (in shares) | 184,000 | 162,000 | 183,000 | 161,000 |
DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING (in shares) | 184,000 | 164,000 | 183,000 | 161,000 |
Supply and Logistics | ||||
REVENUES | ||||
Total revenues | $ 2,925 | $ 7,914 | $ 10,833 | $ 15,936 |
Transportation | ||||
REVENUES | ||||
Total revenues | 151 | 188 | 338 | 385 |
OTHER INCOME/(EXPENSE) | ||||
Equity earnings in unconsolidated entities | 81 | 83 | 189 | 172 |
Facilities | ||||
REVENUES | ||||
Total revenues | $ 149 | $ 151 | 323 | $ 307 |
OTHER INCOME/(EXPENSE) | ||||
Equity earnings in unconsolidated entities | $ 2 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Interest expense, capitalized interest | $ 5 | $ 11 | $ 11 | $ 22 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income/(loss) | $ 137 | $ 426 | $ (2,556) | $ 1,340 |
Other comprehensive income/(loss) | 116 | 51 | (212) | 109 |
Comprehensive income/(loss) | 253 | 477 | (2,768) | 1,449 |
Comprehensive (income)/loss attributable to noncontrolling interests | (207) | (399) | 2,150 | (1,211) |
Comprehensive income/(loss) attributable to PAGP | $ 46 | $ 78 | $ (618) | $ 238 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Changes in Accumulated Other Comprehensive Income/(Loss) | ||||
Total period activity | $ 116 | $ 51 | $ (212) | $ 109 |
Derivative Instruments | ||||
Changes in Accumulated Other Comprehensive Income/(Loss) | ||||
Balance at beginning of period | (259) | (177) | ||
Reclassification adjustments | 5 | 5 | ||
Unrealized loss on hedges | (61) | (58) | ||
Total period activity | (56) | (53) | ||
Balance at end of period | (315) | (230) | (315) | (230) |
Translation Adjustments | ||||
Changes in Accumulated Other Comprehensive Income/(Loss) | ||||
Balance at beginning of period | (674) | (853) | ||
Currency translation adjustments | (157) | 161 | ||
Total period activity | (157) | 161 | ||
Balance at end of period | (831) | (692) | (831) | (692) |
Other | ||||
Changes in Accumulated Other Comprehensive Income/(Loss) | ||||
Other | 1 | 1 | ||
Total period activity | 1 | 1 | ||
Balance at end of period | 1 | 1 | 1 | 1 |
Total | ||||
Changes in Accumulated Other Comprehensive Income/(Loss) | ||||
Balance at beginning of period | (933) | (1,030) | ||
Reclassification adjustments | 5 | 5 | ||
Unrealized loss on hedges | (61) | (58) | ||
Currency translation adjustments | (157) | 161 | ||
Other | 1 | 1 | ||
Total period activity | (212) | 109 | ||
Balance at end of period | $ (1,145) | $ (921) | $ (1,145) | $ (921) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income/(loss) | $ (2,556) | $ 1,340 |
Reconciliation of net income/(loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 335 | 284 |
(Gains)/losses on asset sales and asset impairments, net (Note 14) | 618 | 0 |
Goodwill impairment losses (Note 6) | 2,515 | |
Equity-indexed compensation expense | 5 | 24 |
Inventory valuation adjustments | 232 | |
Deferred income tax expense/(benefit) | (162) | 22 |
Loss on foreign currency revaluation | 23 | 12 |
Settlement of terminated interest rate hedging instruments | (100) | (22) |
Change in fair value of Preferred Distribution Rate Reset Option (Note 10) | (17) | (16) |
Equity earnings in unconsolidated entities | (191) | (172) |
Distributions on earnings from unconsolidated entities | 236 | 200 |
(Gain on)/impairment of investments in unconsolidated entities, net (Note 7) | 91 | (267) |
Other | 10 | 12 |
Changes in assets and liabilities, net of acquisitions | (67) | 51 |
Net cash provided by operating activities | 972 | 1,468 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Cash paid in connection with acquisitions, net of cash acquired (Note 14) | (308) | (47) |
Investments in unconsolidated entities | (314) | (259) |
Additions to property, equipment and other | (472) | (642) |
Proceeds from sales of assets (Note 14) | 245 | 2 |
Cash paid for purchases of linefill and base gas | (12) | (24) |
Other investing activities | 3 | (8) |
Net cash used in investing activities | (858) | (978) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net borrowings/(repayments) under PAA commercial paper program (Note 8) | (93) | 218 |
Net borrowings/(repayments) under PAA senior secured hedged inventory facility (Note 8) | (325) | 100 |
Proceeds from the issuance of PAA senior notes (Note 8) | 748 | |
Repayments of PAA senior notes (Note 8) | (17) | |
Distributions paid to Class A shareholders (Note 9) | (99) | (105) |
Distributions paid to noncontrolling interests (Note 9) | (397) | (474) |
Sale of noncontrolling interest in a subsidiary | 128 | |
Other financing activities | 100 | 47 |
Net cash used in financing activities | (83) | (86) |
Effect of translation adjustment | (9) | (3) |
Net increase in cash and cash equivalents and restricted cash | 22 | 401 |
Cash and cash equivalents and restricted cash, beginning of period | 84 | 69 |
Cash and cash equivalents and restricted cash, end of period | 106 | 470 |
Cash paid for: | ||
Interest, net of amounts capitalized | 213 | 188 |
Income taxes, net of amounts refunded | $ 51 | $ 86 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($) $ in Millions | Total | Noncontrolling Interests | Limited PartnersClass A Shares |
Beginning balance at Dec. 31, 2018 | $ 13,319 | $ 11,473 | $ 1,846 |
Increase (Decrease) in Partners' Capital | |||
Net income/(loss) | 1,340 | 1,127 | 213 |
Distributions (Note 9) | (579) | (474) | (105) |
Deferred tax asset | 27 | 27 | |
Other comprehensive income/(loss) | 109 | 84 | 25 |
Change in ownership interest in connection with Exchange Right exercises (Note 9) | (31) | 31 | |
Sale of noncontrolling interest in a subsidiary | 128 | 128 | 0 |
Other | (2) | (1) | (1) |
Ending balance at Jun. 30, 2019 | 14,342 | 12,306 | 2,036 |
Beginning balance at Mar. 31, 2019 | 14,022 | 12,067 | 1,955 |
Increase (Decrease) in Partners' Capital | |||
Net income/(loss) | 426 | 360 | 66 |
Distributions (Note 9) | (311) | (254) | (57) |
Deferred tax asset | 30 | 30 | |
Other comprehensive income/(loss) | 51 | 39 | 12 |
Change in ownership interest in connection with Exchange Right exercises (Note 9) | (31) | 31 | |
Sale of noncontrolling interest in a subsidiary | 128 | 128 | 0 |
Other | (4) | (3) | (1) |
Ending balance at Jun. 30, 2019 | 14,342 | 12,306 | 2,036 |
Beginning balance at Dec. 31, 2019 | 14,485 | 12,330 | 2,155 |
Increase (Decrease) in Partners' Capital | |||
Net income/(loss) | (2,556) | (1,991) | (565) |
Distributions (Note 9) | (496) | (397) | (99) |
Deferred tax asset | 13 | 13 | |
Other comprehensive income/(loss) | (212) | (159) | (53) |
Change in ownership interest in connection with Exchange Right exercises (Note 9) | (10) | 10 | |
Contributions from noncontrolling interests (Note 9) | 10 | 10 | |
Other | 9 | 5 | 4 |
Ending balance at Jun. 30, 2020 | 11,253 | 9,788 | 1,465 |
Beginning balance at Mar. 31, 2020 | 11,186 | 9,729 | 1,457 |
Increase (Decrease) in Partners' Capital | |||
Net income/(loss) | 137 | 121 | 16 |
Distributions (Note 9) | (184) | (151) | (33) |
Deferred tax asset | (7) | (7) | |
Other comprehensive income/(loss) | 116 | 86 | 30 |
Contributions from noncontrolling interests (Note 9) | 2 | 2 | |
Other | 3 | 1 | 2 |
Ending balance at Jun. 30, 2020 | $ 11,253 | $ 9,788 | $ 1,465 |
Organization and Basis of Conso
Organization and Basis of Consolidation and Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Consolidation and Presentation | Organization and Basis of Consolidation and Presentation Organization Plains GP Holdings, L.P. (“PAGP”) is a Delaware limited partnership formed in 2013 that has elected to be taxed as a corporation for United States federal income tax purposes. PAGP does not directly own any operating assets; as of June 30, 2020, its principal sources of cash flow are derived from an indirect investment in Plains All American Pipeline, L.P. (“PAA”), a publicly traded Delaware limited partnership. As used in this Form 10-Q and unless the context indicates otherwise (taking into account the fact that PAGP has no operating activities apart from those conducted by PAA and its subsidiaries), the terms “Partnership,” “we,” “us,” “our,” “ours” and similar terms refer to PAGP and its subsidiaries. As of June 30, 2020, PAGP owned (i) a 100% managing member interest in Plains All American GP LLC (“GP LLC”), an entity that has also elected to be taxed as a corporation for United States federal income tax purposes and (ii) an approximate 75% limited partner interest in Plains AAP, L.P. (“AAP”) through our direct ownership of approximately 183.3 million Class A units of AAP (“AAP units”) and indirect ownership of approximately 1.0 million AAP units through GP LLC. GP LLC is a Delaware limited liability company that also holds the non-economic general partner interest in AAP. AAP is a Delaware limited partnership that, as of June 30, 2020, directly owned a limited partner interest in PAA through its ownership of approximately 248.4 million PAA common units (approximately 31% of PAA’s total outstanding common units and Series A preferred units combined). AAP is the sole member of PAA GP LLC (“PAA GP”), a Delaware limited liability company that directly holds the non-economic general partner interest in PAA. PAA is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services primarily for crude oil, natural gas liquids (“NGL”) and natural gas. PAA owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. Our business activities are conducted through three operating segments: Transportation, Facilities and Supply and Logistics. See Note 13 for further discussion of our operating segments. PAA GP Holdings LLC, a Delaware limited liability company, is our general partner. Our general partner manages our operations and activities and is responsible for exercising on our behalf any rights we have as the sole and managing member of GP LLC, including responsibility for conducting the business and managing the operations of AAP and PAA. GP LLC employs our domestic officers and personnel involved in the operation and management of AAP and PAA. PAA’s Canadian officers and personnel are employed by our subsidiary, Plains Midstream Canada ULC. References to the “Plains Entities” include us, our general partner, GP LLC, AAP, PAA GP and PAA and its subsidiaries. Definitions Additional defined terms are used in this Form 10-Q and shall have the meanings indicated below: AOCI = Accumulated other comprehensive income/(loss) ASC = Accounting Standards Codification ASU = Accounting Standards Update Bcf = Billion cubic feet Btu = British thermal unit CAD = Canadian dollar CODM = Chief Operating Decision Maker EBITDA = Earnings before interest, taxes, depreciation and amortization EPA = United States Environmental Protection Agency FASB = Financial Accounting Standards Board GAAP = Generally accepted accounting principles in the United States ICE = Intercontinental Exchange ISDA = International Swaps and Derivatives Association LIBOR = London Interbank Offered Rate LTIP = Long-term incentive plan Mcf = Thousand cubic feet MMbls = Million barrels NGL = Natural gas liquids, including ethane, propane and butane NYMEX = New York Mercantile Exchange SEC = United States Securities and Exchange Commission TWh = Terawatt hour USD = United States dollar WTI = West Texas Intermediate Basis of Consolidation and Presentation The accompanying unaudited condensed consolidated interim financial statements and related notes thereto should be read in conjunction with our 2019 Annual Report on Form 10-K. The accompanying condensed consolidated financial statements include the accounts of PAGP and all of its wholly owned subsidiaries and those entities that it controls. Investments in entities over which we have significant influence but not control are accounted for by the equity method. We apply proportionate consolidation for pipelines and other assets in which we own undivided joint interests. The financial statements have been prepared in accordance with the instructions for interim reporting as set forth by the SEC. All adjustments (consisting only of normal recurring adjustments) that in the opinion of management were necessary for a fair statement of the results for the interim periods have been reflected. All significant intercompany transactions have been eliminated in consolidation, and certain reclassifications have been made to information from previous years to conform to the current presentation. The condensed consolidated balance sheet data as of December 31, 2019 was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for the three and six months ended June 30, 2020 should not be taken as indicative of results to be expected for the entire year. Management judgment is required to evaluate whether PAGP controls an entity. Key areas of that evaluation include (i) determining whether an entity is a variable interest entity (“VIE”); (ii) determining whether PAGP is the primary beneficiary of a VIE, including evaluating which activities of the VIE most significantly impact its economic performance and the degree of power that PAGP and its related parties have over those activities through variable interests; and (iii) identifying events that require reconsideration of whether an entity is a VIE and continuously evaluating whether PAGP is a VIE’s primary beneficiary. We have determined that our subsidiaries, PAA and AAP, are VIEs and should be consolidated by PAGP because: • The limited partners of PAA and AAP lack (i) substantive “kick-out rights” (i.e., the right to remove the general partner) based on a simple majority or lower vote and (ii) substantive participation rights and thus lack the ability to block actions of the general partner that most significantly impact the economic performance of PAA and AAP, respectively. • AAP is the primary beneficiary of PAA because it has the power to direct the activities that most significantly impact PAA’s performance and the right to receive benefits, and obligation to absorb losses, that could be significant to PAA. • PAGP is the primary beneficiary of AAP because it has the power to direct the activities that most significantly impact AAP’s performance and the right to receive benefits, and obligation to absorb losses, that could be significant to AAP. With the exception of a deferred tax asset of $1.442 billion and $1.280 billion as of June 30, 2020 and December 31, 2019, respectively, substantially all assets and liabilities presented on PAGP’s Condensed Consolidated Balance Sheets are those of PAA. Only the assets of each respective VIE can be used to settle the obligations of that individual VIE, and the creditors of each/either of those VIEs do not have recourse against the general credit of PAGP. PAGP did not provide any financial support to PAA or AAP during the six months ended June 30, 2020 or the year ended December 31, 2019. See Note 17 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for information regarding the Omnibus Agreement entered into by the Plains Entities on November 15, 2016. Subsequent events have been evaluated through the financial statements issuance date and have been included in the following footnotes where applicable. COVID-19 During the first quarter of 2020, the novel coronavirus (“COVID-19”) pandemic resulted in a swift and material decline in global crude oil demand, which contributed to an oversupply of crude oil that was exacerbated by increases in production from certain suppliers in the global oil markets. These macroeconomic and industry specific challenges resulted in a number of impairment charges recognized during the first half of 2020. See Note 6 and Note 14 for further discussion of these impairments. Many uncertainties remain with respect to COVID-19, including uncertainty regarding the length of time the pandemic will continue, as well as the timing, pace and extent of an economic recovery in the United States, Canada and elsewhere, and how such uncertainties will impact the energy industry and our business. As a result, these matters may affect our estimates and assumptions on amounts reported in the financial statements and accompanying notes in the near term. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Restricted Cash Restricted cash includes cash held by us that is unavailable for general use and is comprised of amounts advanced to us by certain equity method investees related to the construction of fixed assets where we serve as construction manager. The following table presents a reconciliation of cash and cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheet that sum to the total of the amounts shown on our Condensed Consolidated Statement of Cash Flows (in millions): June 30, December 31, Cash and cash equivalents $ 42 $ 47 Restricted cash 64 37 Total cash and cash equivalents and restricted cash $ 106 $ 84 Recent Accounting Pronouncements Except as discussed below and in our 2019 Annual Report on Form 10-K, there have been no new accounting pronouncements that have become effective or have been issued during the six months ended June 30, 2020 that are of significance or potential significance to us. Accounting Standards Updates Adopted During the Period We adopted the ASUs listed below effective January 1, 2020 and our adoption did not have a material impact on our financial position, results of operations or cash flows (see Note 2 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for additional information regarding these ASUs): • ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments; • ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities; • ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force); • ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement; and • ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (along with a series of related ASUs). Accounting Standards Updates Issued During the Period In March 2020, the FASB issued 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This guidance is effective prospectively upon issuance through December 31, 2022 and may be applied from the beginning of an interim period that includes the issuance date of this ASU. We are currently evaluating the effect that this guidance will have on our financial position, results of operations and cash flows. |
Revenues and Accounts Receivabl
Revenues and Accounts Receivable | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues and Accounts Receivable | Revenues and Accounts Receivable Revenue Recognition We disaggregate our revenues by segment and type of activity under ASC Topic 606, Revenues from Contracts with Customers (“Topic 606”). These categories depict how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. See Note 3 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for additional information regarding our types of revenues and policies for revenue recognition. The following tables present our Supply and Logistics, Transportation and Facilities segment revenues from contracts with customers disaggregated by type of activity (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Supply and Logistics segment revenues from contracts with customers Crude oil transactions $ 2,928 $ 7,595 $ 10,251 $ 14,532 NGL and other transactions 127 269 555 1,178 Total Supply and Logistics segment revenues from contracts with customers $ 3,055 $ 7,864 $ 10,806 $ 15,710 Three Months Ended Six Months Ended 2020 2019 2020 2019 Transportation segment revenues from contracts with customers Tariff activities: Crude oil pipelines $ 405 $ 494 $ 917 $ 971 NGL pipelines 26 22 52 50 Total tariff activities 431 516 969 1,021 Trucking 22 35 57 74 Total Transportation segment revenues from contracts with customers $ 453 $ 551 $ 1,026 $ 1,095 Three Months Ended Six Months Ended 2020 2019 2020 2019 Facilities segment revenues from contracts with customers Crude oil, NGL and other terminalling and storage $ 176 $ 177 $ 357 $ 349 NGL and natural gas processing and fractionation 80 87 190 175 Rail load / unload 8 19 22 39 Total Facilities segment revenues from contracts with customers $ 264 $ 283 $ 569 $ 563 Reconciliation to Total Revenues of Reportable Segments. The following tables present the reconciliation of our revenues from contracts with customers to segment revenues and total revenues as disclosed in our Condensed Consolidated Statements of Operations (in millions): Three Months Ended June 30, 2020 Transportation Facilities Supply and Total Revenues from contracts with customers $ 453 $ 264 $ 3,055 $ 3,772 Other items in revenues 4 12 (130) (114) Total revenues of reportable segments $ 457 $ 276 $ 2,925 $ 3,658 Intersegment revenues (433) Total revenues $ 3,225 Three Months Ended June 30, 2019 Transportation Facilities Supply and Total Revenues from contracts with customers $ 551 $ 283 $ 7,864 $ 8,698 Other items in revenues 8 8 51 67 Total revenues of reportable segments $ 559 $ 291 $ 7,915 $ 8,765 Intersegment revenues (512) Total revenues $ 8,253 Six Months Ended June 30, 2020 Transportation Facilities Supply and Total Revenues from contracts with customers $ 1,026 $ 569 $ 10,806 $ 12,401 Other items in revenues 10 20 28 58 Total revenues of reportable segments $ 1,036 $ 589 $ 10,834 $ 12,459 Intersegment revenues (965) Total revenues $ 11,494 Six Months Ended June 30, 2019 Transportation Facilities Supply and Total Revenues from contracts with customers $ 1,095 $ 563 $ 15,710 $ 17,368 Other items in revenues 20 26 228 274 Total revenues of reportable segments $ 1,115 $ 589 $ 15,938 $ 17,642 Intersegment revenues (1,014) Total revenues $ 16,628 Minimum Volume Commitments. We have certain agreements that require counterparties to transport or throughput a minimum volume over an agreed upon period. At June 30, 2020 and December 31, 2019, counterparty deficiencies associated with contracts with customers and buy/sell arrangements that include minimum volume commitments for which we have remaining performance obligations and the customers still have the ability to meet their obligations totaled $50 million and $42 million, respectively. Billed counterparty deficiencies of $19 million and $22 million at June 30, 2020 and December 31, 2019, respectively, were recorded as a liability. Unbilled counterparty deficiencies of $31 million and $20 million at June 30, 2020 and December 31, 2019, respectively, were not reflected in our Condensed Consolidated Financial Statements. Contract Balances . Our contract balances consist of amounts received associated with services or sales for which we have not yet completed the related performance obligation. The following table presents the change in the Topic 606 contract liability balance during the six months ended June 30, 2020 (in millions): Contract Liabilities Balance at December 31, 2019 $ 354 Amounts recognized as revenue (245) Additions (1) 193 Balance at June 30, 2020 $ 302 (1) Includes approximately $155 million associated with crude oil sales agreements that are entered into in conjunction with storage arrangements and future inventory exchanges. Such amount is expected to be recognized as revenue in the third quarter of 2020. Remaining Performance Obligations . Topic 606 requires a presentation of information about partially and wholly unsatisfied performance obligations under contracts that exist as of the end of the period. The information includes the amount of consideration allocated to those remaining performance obligations and the timing of revenue recognition of those remaining performance obligations. Certain contracts meet the requirements for the presentation as remaining performance obligations. These arrangements include a fixed minimum level of service, typically a set volume of service, and do not contain any variability other than expected timing within a limited range. These contracts are all within the scope of Topic 606. The following table presents the amount of consideration associated with remaining performance obligations for the population of contracts with external customers meeting the presentation requirements as of June 30, 2020 (in millions): Remainder of 2020 2021 2022 2023 2024 2025 and Thereafter Pipeline revenues supported by minimum volume commitments and capacity agreements (1) $ 78 $ 167 $ 166 $ 164 $ 143 $ 580 Storage, terminalling and throughput agreement revenues 216 344 276 211 164 416 Total $ 294 $ 511 $ 442 $ 375 $ 307 $ 996 (1) Calculated as volumes committed under contracts multiplied by the current applicable tariff rate. The presentation above does not include (i) expected revenues from legacy shippers not underpinned by minimum volume commitments, including pipelines where there are no or limited alternative pipeline transportation options, (ii) intersegment revenues and (iii) the amount of consideration associated with certain income generating contracts, which include a fixed minimum level of service, that are either not within the scope of Topic 606 or do not meet the requirements for presentation as remaining performance obligations under Topic 606. The following are examples of contracts that are not included in the table above because they are not within the scope of Topic 606 or do not meet the Topic 606 requirements for presentation: • Minimum volume commitments on certain of our joint venture pipeline systems; • Acreage dedications; • Supply and Logistics buy/sell arrangements with future committed volumes; • All other Supply and Logistics contracts, due to the election of practical expedients related to variable consideration and short-term contracts; • Transportation and Facilities contracts that are short-term; • Contracts within the scope of ASC Topic 842, Leases ; and • Contracts within the scope of ASC Topic 815, Derivatives and Hedging . Trade Accounts Receivable and Other Receivables, Net Our accounts receivable are primarily from purchasers and shippers of crude oil and, to a lesser extent, purchasers of NGL. During the first quarter of 2020, macroeconomic and geopolitical conditions including the collapse of oil prices driven by both the decrease in demand caused by the COVID-19 pandemic and excess supply has caused liquidity issues impacting many energy companies, which in turn has increased the potential credit risks associated with certain counterparties with which we do business. To mitigate credit risk related to our accounts receivable, we utilize a rigorous credit review process. We closely monitor market conditions and perform credit reviews of each customer to make a determination with respect to the amount, if any, of open credit to be extended to any given customer and the form and amount of financial performance assurances we require. Such financial assurances are commonly provided to us in the form of advance cash payments, standby letters of credit, credit insurance or parental guarantees. Additionally, in an effort to mitigate credit risk, a significant portion of our transactions with counterparties are settled on a net-cash basis. For a majority of these net-cash arrangements, we also enter into netting agreements (contractual agreements that allow us to offset receivables and payables with those counterparties against each other on our balance sheet). Accounts receivable from the sale of crude oil are generally settled with counterparties on the industry settlement date, which is typically in the month following the month in which the title transfers. Otherwise, we generally invoice customers within 30 days of when the products or services were provided and generally require payment within 30 days of the invoice date. We review all outstanding accounts receivable balances on a monthly basis and record our receivables net of expected credit losses. We do not write-off accounts receivable balances until we have exhausted substantially all collection efforts. At June 30, 2020 and December 31, 2019, substantially all of our trade accounts receivable were less than 30 days past their scheduled invoice date. Our expected credit losses are immaterial. Although we consider our credit procedures to be adequate to mitigate any significant credit losses, given the sharp decline in demand for crude oil and the drop in prices, the actual amount of current and future credit losses could vary significantly from estimated amounts. The following is a reconciliation of trade accounts receivable from revenues from contracts with customers to total Trade accounts receivable and other receivables, net as presented on our Condensed Consolidated Balance Sheets (in millions): June 30, December 31, 2019 Trade accounts receivable arising from revenues from contracts with customers $ 1,588 $ 3,381 Other trade accounts receivables and other receivables (1) 1,891 3,576 Impact due to contractual rights of offset with counterparties (1,560) (3,343) Trade accounts receivable and other receivables, net $ 1,919 $ 3,614 (1) The balance is comprised primarily of accounts receivable associated with buy/sell arrangements that are not within the scope of Topic 606. |
Net Income_(Loss) Per Class A S
Net Income/(Loss) Per Class A Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income/(Loss) Per Class A Share | Net Income/(Loss) Per Class A Share Basic net income/(loss) per Class A share is determined by dividing net income/(loss) attributable to PAGP by the weighted average number of Class A shares outstanding during the period. Our Class B and Class C shares do not share in the earnings of the Partnership; accordingly, basic and diluted net income per Class B and Class C share has not been presented. Diluted net income/(loss) per Class A share is determined by dividing net income/(loss) attributable to PAGP by the diluted weighted average number of Class A shares outstanding during the period. For purposes of calculating diluted net income per Class A share, both the net income/(loss) attributable to PAGP and the diluted weighted average number of Class A shares outstanding consider the impact of possible future exchanges of (i) AAP units and the associated Class B shares into our Class A shares and (ii) certain Class B units of AAP (referred to herein as “AAP Management Units”) into our Class A shares. In addition, the calculation of the diluted weighted average number of Class A shares outstanding considers the effect of potentially dilutive awards under the Plains GP Holdings, L.P. Long-Term Incentive Plan (the “PAGP LTIP”). All AAP Management Units that have satisfied the applicable performance conditions are considered potentially dilutive. Exchanges of potentially dilutive AAP units and AAP Management Units are assumed to have occurred at the beginning of the period and the incremental income attributable to PAGP resulting from the assumed exchanges is representative of the incremental income that would have been attributable to PAGP if the assumed exchanges occurred on that date. See Note 12 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for information regarding exchanges of AAP units and AAP Management Units. PAGP LTIP awards that are deemed to be dilutive are reduced by a hypothetical share repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB. See Note 18 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for information regarding PAGP LTIP awards. On a weighted-average basis, for the three months ended June 30, 2020 and 2019, the possible exchange of 63 million and 112 million AAP units, respectively, and for the six months ended June 30, 2020 and 2019, the possible exchange of 64 million and 116 million AAP units, respectively, would not have had a dilutive effect on basic net income/(loss) per Class A share. For the three months ended June 30, 2020, the possible exchange of 1 million AAP Management Units, and for the six months ended June 30, 2020 and 2019, the possible exchange of 1 million and 2 million AAP Management Units, respectively, would not have had a dilutive effect on basic net income/(loss) per Class A share on a weighted-average basis. For the three and six months ended June 30, 2020, our PAGP LTIP awards were antidilutive. For the three and six months ended June 30, 2019, our PAGP LTIP awards were dilutive; however, there were less than 0.1 million dilutive LTIP awards for each period, which did not change the presentation of diluted weighted average Class A shares outstanding or diluted net income/(loss) per Class A share. The following table sets forth the computation of basic and diluted net income/(loss) per Class A share (in millions, except per share data): Three Months Ended Six Months Ended 2020 2019 2020 2019 Basic Net Income/(Loss) per Class A Share Net income/(loss) attributable to PAGP $ 16 $ 66 $ (565) $ 213 Basic weighted average Class A shares outstanding 184 162 183 161 Basic net income/(loss) per Class A share $ 0.09 $ 0.41 $ (3.08) $ 1.32 Diluted Net Income/(Loss) per Class A Share Net income/(loss) attributable to PAGP $ 16 $ 66 $ (565) $ 213 Incremental net income attributable to PAGP resulting from assumed exchange of AAP Management Units — — — — Net income/(loss) attributable to PAGP including incremental net income from assumed exchange of AAP Management Units $ 16 $ 66 $ (565) $ 213 Basic weighted average Class A shares outstanding 184 162 183 161 Dilutive shares resulting from assumed exchange of AAP Management Units — 2 — — Diluted weighted average Class A shares outstanding 184 164 183 161 Diluted net income/(loss) per Class A share $ 0.09 $ 0.40 $ (3.08) $ 1.32 |
Inventory, Linefill and Base Ga
Inventory, Linefill and Base Gas and Long-term Inventory | 6 Months Ended |
Jun. 30, 2020 | |
Inventory, Linefill and Base Gas and Long-term Inventory | |
Inventory, Linefill and Base Gas and Long-term Inventory | Inventory, Linefill and Base Gas and Long-term Inventory Inventory, linefill and base gas and long-term inventory consisted of the following (barrels and natural gas volumes in thousands and carrying value in millions): June 30, 2020 December 31, 2019 Volumes Unit of Carrying Price/ Unit (1) Volumes Unit of Carrying Price/ Unit (1) Inventory Crude oil 20,306 barrels $ 512 $ 25.21 8,613 barrels $ 450 $ 52.25 NGL 10,923 barrels 140 $ 12.82 7,574 barrels 142 $ 18.75 Other N/A 10 N/A N/A 12 N/A Inventory subtotal 662 604 Linefill and base gas Crude oil 14,491 barrels 810 $ 55.90 14,316 barrels 826 $ 57.70 NGL 1,645 barrels 42 $ 25.53 1,701 barrels 47 $ 27.63 Natural gas 25,576 Mcf 110 $ 4.30 24,976 Mcf 108 $ 4.32 Linefill and base gas subtotal 962 981 Long-term inventory Crude oil 2,747 barrels 104 $ 37.86 2,598 barrels 152 $ 58.51 NGL 1,579 barrels 21 $ 13.30 1,707 barrels 30 $ 17.57 Long-term inventory subtotal 125 182 Total $ 1,749 $ 1,767 (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. At the end of each reporting period, we assess the carrying value of our inventory and make any adjustments necessary to reduce the carrying value to the applicable net realizable value. Any resulting adjustments are a component of “Purchases and related costs” on our accompanying Condensed Consolidated Statements of Operations. We recorded a charge of $232 million during the first quarter of 2020 related to the write-down of our crude oil and NGL inventory, of which $40 million was associated with our long-term inventory, due to declines in prices. A portion of this inventory valuation adjustment was offset by the recognition of gains on derivative instruments being utilized to hedge future sales of our crude oil and NGL inventory. Such gains were recorded to “Supply and Logistics segment revenues” in our accompanying Consolidated Statement of Operations. See Note 10 for discussion of our derivative and risk management activities. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill During the first quarter of 2020, we recorded impairment losses related to goodwill. Our market capitalization declined significantly during the first quarter driven by current macroeconomic and geopolitical conditions including the collapse of oil prices driven by both the decrease in demand caused by the COVID-19 pandemic and excess supply as well as changing market conditions and expected lower crude oil production in certain regions, resulting in expected decreases in future cash flows for certain of our assets. In addition, the uncertainty related to oil demand continues to have a significant impact on the investment and operating plans of our primary customers. Based on these events, we concluded that a triggering event occurred which required us to perform a quantitative impairment test as of March 31, 2020, utilizing a discounted cash flow approach. We applied a discount rate of approximately 14% in the determination of the fair value of each of our reporting units, which represents our estimate of the cost of capital of a theoretical market participant. The fair values of the reporting units are Level 3 measurements in the fair value hierarchy and were based on various inputs, as discussed below. The discounted cash flows for each reporting unit were based on six years of projected cash flows and terminal values that we believe would be applied by a theoretical market participant in similar market transactions. The discounted cash flows for the respective reporting units utilized various other assumptions, including, but not limited to (i) volumes (based on historical information and estimates of future drilling and completion activity, as well as expectations of future demand recovery), (ii) tariff and storage rates, (iii) future commodity prices (based on relevant indices and applicable quality and location differentials), and (iv) estimated fixed and variable costs. We used a range of cash flows for the discounted cash flow calculations, based on differing potential market scenarios but for each of the reporting units, the ultimate outcome of the impairment test was unchanged by the various points within the range of cash flows. Based upon the results of the impairment test, we concluded that the carrying value of each of our reporting units exceeded their respective fair values, resulting in a goodwill impairment charge for the entire goodwill balance for each reporting unit. Goodwill by segment and changes in goodwill are reflected in the following table (in millions): Transportation Facilities Supply and Logistics Total Balance at December 31, 2019 $ 1,052 $ 982 $ 506 $ 2,540 Acquisitions 2 — — 2 Foreign currency translation adjustments (11) (4) (3) (18) Goodwill, gross 1,043 978 503 2,524 Impairments (1,038) (975) (502) (2,515) Foreign currency translation adjustments (5) (3) (1) (9) Accumulated impairment losses (1,043) (978) (503) (2,524) Balance at June 30, 2020 $ — $ — $ — $ — |
Investments in Unconsolidated E
Investments in Unconsolidated Entities | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities Our investments in unconsolidated entities consisted of the following (in millions, except percentage data): Ownership Interest at June 30, Investment Balance Entity (1) Type of Operation June 30, December 31, 2019 BridgeTex Pipeline Company, LLC Crude Oil Pipeline 20% $ 424 $ 431 Cactus II Pipeline LLC Crude Oil Pipeline 65% 789 738 Capline Pipeline Company LLC Crude Oil Pipeline (2) 54% 503 484 Diamond Pipeline LLC Crude Oil Pipeline 50% 479 476 Eagle Ford Pipeline LLC Crude Oil Pipeline 50% 375 382 Eagle Ford Terminals Corpus Christi LLC (“Eagle Ford Terminals”) Crude Oil Terminal and Dock 50% 122 126 Red Oak Pipeline LLC (“Red Oak”) Crude Oil Pipeline 50% 35 20 Saddlehorn Pipeline Company, LLC (“Saddlehorn”) Crude Oil Pipeline 30% 198 234 STACK Pipeline LLC Crude Oil Pipeline 50% 114 117 White Cliffs Pipeline, LLC Crude Oil Pipeline 36% 197 196 Wink to Webster Pipeline LLC Crude Oil Pipeline (3) 16% 242 136 Other investments 303 343 Total investments in unconsolidated entities $ 3,781 $ 3,683 (1) Except for Eagle Ford Terminals, which is reported in our Facilities segment, the financial results from the entities are reported in our Transportation segment. (2) The Capline pipeline was taken out of service pending the reversal of the pipeline system. (3) Asset is currently under construction and has not yet been placed in service. Impairments In March 2020, the partners of Red Oak announced they were deferring the Red Oak pipeline project and suspending actions that would require additional capital spending on the project, and that they would re-evaluate demand for the project in light of recent market developments. During the second quarter, PAA determined that it would not proceed with the project as previously contemplated, and determined that there was an other-than-temporary impairment of its investment in Red Oak. PAA wrote its investment in Red Oak down to the estimated residual value of its share of the net assets. In addition, during the first quarter of 2020, PAA recorded a write-down of certain of its investments included in “Other investments” in the table above due to an other-than-temporary impairment related to a decline in market conditions. As a result of these write-downs, during the three and six months ended June 30, 2020, we recognized losses of $69 million and $112 million, respectively. These losses are reflected in “Gain on/(impairment of) investments in unconsolidated entities, net” on our Condensed Consolidated Statement of Operations. Divestitures Saddlehorn. In February 2020, we sold a 10% ownership interest in Saddlehorn for proceeds of approximately $78 million, including working capital adjustments, and have retained a 30% ownership interest. We recorded a gain of approximately $21 million related to this sale, which is included in “Gain on/(impairment of) investments in unconsolidated entities” on our Condensed Consolidated Statement of Operations. We continue to account for our remaining interest under the equity method of accounting. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following (in millions): June 30, December 31, SHORT-TERM DEBT PAA commercial paper notes, bearing a weighted-average interest rate of 2.2% (1) $ — $ 93 PAA senior secured hedged inventory facility, bearing a weighted-average interest rate of 2.7% (1) — 325 PAA senior notes: 5.00% senior notes due February 2021 600 — Other 129 86 Total short-term debt 729 504 LONG-TERM DEBT PAA senior notes, net of unamortized discounts and debt issuance costs of $66 and $61, respectively (2) 9,067 8,939 PAA GO Zone term loans, net of debt issuance costs of $1 and $1, respectively, bearing a weighted-average interest rate of 1.3% and 2.6%, respectively 199 199 Other 127 49 Total long-term debt 9,393 9,187 Total debt (3) $ 10,122 $ 9,691 (1) We classified these PAA commercial paper notes and credit facility borrowings as short-term as of December 31, 2019, as these notes and borrowings were primarily designated as working capital borrowings, were required to be repaid within one year and were primarily for hedged NGL and crude oil inventory and NYMEX and ICE margin deposits. (2) During the six months ended June 30, 2020, PAA repurchased $17 million of its outstanding senior notes on the open market and recognized a gain of $3 million on these transactions, which is included in “Other income/(expense), net” on our Condensed Consolidated Statement of Operations. (3) PAA’s fixed-rate senior notes had a face value of approximately $9.7 billion and $9.0 billion as of June 30, 2020 and December 31, 2019, respectively. We estimated the aggregate fair value of these notes as of June 30, 2020 and December 31, 2019 to be approximately $9.7 billion and $9.3 billion, respectively. PAA’s fixed-rate senior notes are traded among institutions, and these trades are routinely published by a reporting service. Our determination of fair value is based on reported trading activity near the end of the reporting period. We estimate that the carrying value of outstanding borrowings under PAA’s credit facilities, commercial paper program and GO Zone term loans approximates fair value as interest rates reflect current market rates. The fair value estimates for PAA’s senior notes, credit facilities, commercial paper program and GO Zone term loans are based upon observable market data and are classified in Level 2 of the fair value hierarchy. PAA Senior Notes In June 2020, PAA completed the offering of $750 million, 3.80% senior notes due September 2030 at a public offering price of 99.794%. Interest payments are due on March 15 and September 15 of each year, commencing on September 15, 2020. Borrowings and Repayments Total borrowings under the PAA credit facilities and commercial paper program for the six months ended June 30, 2020 and 2019 were approximately $12.6 billion and $4.1 billion, respectively. Total repayments under the PAA credit facilities and commercial paper program were approximately $13.0 billion and $3.8 billion for the six months ended June 30, 2020 and 2019, respectively. The variance in total gross borrowings and repayments is impacted by various business and financial factors including, but not limited to, the timing, average term and method of general partnership borrowing activities. Letters of Credit In connection with our supply and logistics activities, we provide certain suppliers with irrevocable standby letters of credit to secure our obligation for the purchase and transportation of crude oil, NGL and natural gas. Additionally, we issue letters of credit to support insurance programs, derivative transactions, including hedging-related margin obligations, and construction activities. At June 30, 2020 and December 31, 2019, we had outstanding letters of credit of $112 million and $157 million, respectively. |
Partners' Capital and Distribut
Partners' Capital and Distributions | 6 Months Ended |
Jun. 30, 2020 | |
Partners' Capital Notes [Abstract] | |
Partners' Capital and Distributions | Partners’ Capital and Distributions Shares Outstanding The following tables present 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, 2019 182,138,592 65,785,702 549,538,139 Conversion of AAP Management Units (1) — 559,768 — Exchange Right exercises (1) 2,101,487 (2,101,487) — Redemption Right exercises (1) — (1,206,599) 1,206,599 Other — — 24,431 Outstanding at March 31, 2020 184,240,079 63,037,384 550,769,169 Conversion of AAP Management Units (1) — 35,349 — Redemption Right exercises (1) — (40,679) 40,679 Other 20,099 — 27,292 Outstanding at June 30, 2020 184,260,178 63,032,054 550,837,140 Class A Shares Class B Shares Class C Shares Outstanding at December 31, 2018 159,485,588 119,604,338 516,938,280 Redemption Right exercises (1) — (91,672) 91,672 Other — — 226,814 Outstanding at March 31, 2019 159,485,588 119,512,666 517,256,766 Exchange Right exercises (1) 7,331,745 (7,331,745) — Redemption Right exercises (1) — (12,193,771) 12,193,771 Other — — 603,456 Outstanding at June 30, 2019 166,817,333 99,987,150 530,053,993 (1) See Note 12 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for information regarding conversions of AAP Management Units, Exchange Rights and Redemption Rights. Distributions The following table details distributions to our Class A shareholders paid during or pertaining to the first six months of 2020 (in millions, except per share data): Distribution Payment Date Distributions to Distributions per August 14, 2020 (1) $ 33 $ 0.18 May 15, 2020 $ 33 $ 0.18 February 14, 2020 $ 66 $ 0.36 (1) Payable to shareholders of record at the close of business on July 31, 2020 for the period from April 1, 2020 through June 30, 2020. Consolidated Subsidiaries Noncontrolling Interests in Subsidiaries As of June 30, 2020, noncontrolling interests in our subsidiaries consisted of (i) limited partner interests in PAA including a 69% 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 25% limited partner interest in AAP and (iii) a 33% interest in Red River Pipeline Company LLC (“Red River LLC”). During the six months ended June 30, 2020, we received $10 million of contributions from noncontrolling interests in Red River LLC related to the Red River pipeline capacity expansion and paid distributions of $4 million. Subsidiary Distributions PAA Series A Preferred Unit Distributions . The following table details distributions to PAA’s Series A preferred unitholders paid during or pertaining to the first six months of 2020 (in millions, except per unit data): Series A Preferred Unitholders Distribution Payment Date Cash Distribution Distribution per Unit August 14, 2020 (1) $ 37 $ 0.525 May 15, 2020 $ 37 $ 0.525 February 14, 2020 $ 37 $ 0.525 (1) Payable to unitholders of record at the close of business on July 31, 2020 for the period from April 1, 2020 through June 30, 2020. At June 30, 2020, such amount was accrued as distributions payable in “Other current liabilities” on our Condensed Consolidated Balance Sheet. PAA Series B Preferred Unit Distributions . Distributions on PAA’s Series B preferred units are payable semi-annually in arrears on the 15th day of May and November. The following table details distributions paid to PAA’s Series B preferred unitholders during the first six months of 2020 (in millions, except per unit data): Series B Preferred Unitholders Distribution Payment Date Cash Distribution Distribution per Unit May 15, 2020 $ 24.5 $ 30.625 At June 30, 2020, approximately $6 million of accrued distributions payable to PAA’s Series B preferred unitholders was included in “Other current liabilities” on our Condensed Consolidated Balance Sheet. PAA Common Unit Distributions. The following table details distributions to PAA’s common unitholders paid during or pertaining to the first six months of 2020 (in millions, except per unit data): Distributions Cash Distribution per Common Unit Common Unitholders Total Cash Distribution Distribution Payment Date Public AAP August 14, 2020 (1) $ 86 $ 45 $ 131 $ 0.18 May 15, 2020 $ 86 $ 45 $ 131 $ 0.18 February 14, 2020 $ 172 $ 90 $ 262 $ 0.36 (1) Payable to unitholders of record at the close of business on July 31, 2020 for the period from April 1, 2020 through June 30, 2020. AAP Distributions. The following table details the distributions to AAP’s partners paid during or pertaining to the first six months of 2020 from distributions received from PAA (in millions): Distribution to AAP ’ s Partners Distribution Payment Date Noncontrolling Interests PAGP Total Cash Distributions August 14, 2020 (1) $ 12 $ 33 $ 45 May 15, 2020 $ 12 $ 33 $ 45 February 14, 2020 $ 24 $ 66 $ 90 (1) Payable to unitholders of record at the close of business on July 31, 2020 for the period from April 1, 2020 through June 30, 2020. |
Derivatives and Risk Management
Derivatives and Risk Management Activities | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Risk Management Activities | Derivatives and Risk Management Activities We identify the risks that underlie our core business activities and use risk management strategies to mitigate those risks when we determine that there is value in doing so. Our policy is to use derivative instruments for risk management purposes and not for the purpose of speculating on hydrocarbon commodity (referred to herein as “commodity”) price changes. We use various derivative instruments to manage our exposure to (i) commodity price risk, as well as to optimize our profits, (ii) interest rate risk and (iii) currency exchange rate risk. Our commodity price risk management policies and procedures are designed to help ensure that our hedging activities address our risks by monitoring our derivative positions, as well as physical volumes, grades, locations, delivery schedules and storage capacity. Our interest rate and currency exchange rate risk management policies and procedures are designed to monitor our derivative positions and ensure that those positions are consistent with our objectives and approved strategies. When we apply hedge accounting, our policy is to formally document all relationships between hedging instruments and hedged items, as well as our risk management objectives for undertaking the hedge. This process includes specific identification of the hedging instrument and the hedged transaction, the nature of the risk being hedged and how the hedging instrument’s effectiveness will be assessed. At the inception of the hedging relationship, we assess whether the derivatives employed are highly effective in offsetting changes in cash flows of anticipated hedged transactions. Throughout the hedging relationship, retrospective and prospective hedge effectiveness is assessed on a qualitative basis. We record all open derivatives on the balance sheet as either assets or liabilities measured at fair value. Changes in the fair value of derivatives are recognized currently in earnings unless specific hedge accounting criteria are met. For derivatives designated as cash flow hedges, changes in fair value are deferred in AOCI and recognized in earnings in the periods during which the underlying hedged transactions are recognized in earnings. Derivatives that are not designated as a hedging instrument and derivatives that do not qualify for hedge accounting are recognized in earnings each period. Cash settlements associated with our derivative activities are classified within the same category as the related hedged item in our Condensed Consolidated Statements of Cash Flows. Our financial derivatives, used for hedging risk, are governed through ISDA master agreements and clearing brokerage agreements. These agreements include stipulations regarding the right of set off in the event that we or our counterparty default on performance obligations. If a default were to occur, both parties have the right to net amounts payable and receivable into a single net settlement between parties. At June 30, 2020 and December 31, 2019, none of our outstanding derivatives contained credit-risk related contingent features that would result in a material adverse impact to us upon any change in our credit ratings. Although we may be required to post margin on our exchange-traded derivatives transacted through a clearing brokerage account, as described below, we do not require our non-cleared derivative counterparties to post collateral with us. Commodity Price Risk Hedging Our core business activities involve certain commodity price-related risks that we manage in various ways, including through the use of derivative instruments. Our policy is to (i) only purchase inventory for which we have a sales market, (ii) structure our sales contracts so that price fluctuations do not materially affect our operating income and (iii) not acquire and hold physical inventory or derivatives for the purpose of speculating on commodity price changes. The material commodity-related risks inherent in our business activities can be divided into the following general categories: Commodity Purchases and Sales — In the normal course of our operations, we purchase and sell commodities. We use derivatives to manage the associated risks and to optimize profits. As of June 30, 2020, net derivative positions related to these activities included: • A net long position of 10.2 million barrels associated with our crude oil purchases, which was unwound ratably during July 2020 to match monthly average pricing. • A net short time spread position of 6.6 million barrels, which hedges a portion of our anticipated crude oil lease gathering purchases through September 2021. • A net crude oil basis spread position of 7.9 million barrels at multiple locations through December 2021. These derivatives allow us to lock in grade basis differentials. • A net short position of 33.2 million barrels through December 2022 related to anticipated net sales of crude oil and NGL inventory. Natural Gas Processing/NGL Fractionation — We purchase natural gas for processing and operational needs. Additionally, we purchase NGL mix for fractionation and sell the resulting individual specification products (including ethane, propane, butane and condensate). In conjunction with these activities, we hedge the price risk associated with the purchase of the natural gas and the subsequent sale of the individual specification products. The following table summarizes our open derivative positions utilized to hedge the price risk associated with anticipated purchases and sales related to our natural gas processing and NGL fractionation activities as of June 30, 2020: Notional Volume (Short)/Long Remaining Tenor Natural gas purchases 23.8 Bcf December 2020 Propane sales (4.1) MMbls December 2020 Butane sales (1.3) MMbls December 2020 Condensate sales (WTI position) (0.5) MMbls December 2020 Fuel gas requirements (1) 17.4 Bcf December 2022 Power supply requirements (1) 0.9 TWh December 2022 (1) Positions to hedge a portion of our power supply and fuel gas requirements at our Canadian natural gas processing and fractionation plants. Physical commodity contracts that meet the definition of a derivative but are ineligible, or not designated, for the normal purchases and normal sales scope exception are recorded on the balance sheet at fair value, with changes in fair value recognized in earnings. We have determined that substantially all of our physical commodity contracts qualify for the normal purchases and normal sales scope exception. Our commodity derivatives are not designated as a hedging relationship, as such, changes in the fair value are reported in earnings. A summary of the impact of our commodity derivatives recognized in earnings as follows (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Supply and Logistics segment revenues $ (134) $ 56 $ 15 $ 231 Field operating costs (1) 4 — 11 Net gain/(loss) from commodity derivative activity $ (135) $ 60 $ 15 $ 242 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/(payable) (in millions): June 30, December 31, Initial margin $ 140 $ 73 Variation margin posted/(returned) (20) (45) Letters of credit (75) (73) Net broker receivable/(payable) $ 45 $ (45) 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, 2020 December 31, 2019 Effect of Collateral Netting Net Carrying Value Presented on the Balance Sheet Effect of Collateral Netting Net Carrying Value Presented on the Balance Sheet Commodity Derivatives Commodity Derivatives Assets Liabilities Assets Liabilities Derivative Assets Other current assets $ 171 $ (83) $ 39 $ 127 $ 179 $ (37) $ (45) $ 97 Other long-term assets, net 64 (3) — 61 24 — — 24 Derivative Liabilities Other current liabilities 118 (149) 6 (25) 32 (56) — (24) Other long-term liabilities and deferred credits 16 (51) — (35) — (12) — (12) Total $ 369 $ (286) $ 45 $ 128 $ 235 $ (105) $ (45) $ 85 Interest Rate Risk Hedging We use interest rate derivatives to hedge the benchmark interest rate associated with interest payments occurring as a result of debt issuances. The derivative instruments we use to manage this risk consist of forward starting interest rate swaps and treasury locks. These derivatives are designated as cash flow hedges. As such, changes in fair value are deferred in AOCI and are reclassified to interest expense as we incur the interest expense associated with the underlying debt. The following table summarizes the terms of our outstanding interest rate derivatives as of June 30, 2020 (notional amounts in millions): Hedged Transaction Number and Types of Notional Expected Average Rate Accounting Anticipated interest payments 8 forward starting swaps (30-year) $ 200 6/15/2023 1.38 % Cash flow hedge Anticipated interest payments 8 forward starting swaps (30-year) $ 200 6/14/2024 0.73 % Cash flow hedge As of June 30, 2020, there was a net loss of $315 million deferred in AOCI. The deferred net loss recorded in AOCI is expected to be reclassified to future earnings contemporaneously with (i) the earnings recognition of the underlying hedged commodity transactions or (ii) interest expense accruals associated with underlying debt instruments. We reclassified losses of $3 million during each of the three months ended June 30, 2020 and 2019 and losses of $5 million during each of the six months ended June 30, 2020 and 2019, respectively. Of the total net loss deferred in AOCI at June 30, 2020, we expect to reclassify a loss of $13 million to earnings in the next twelve months. We estimate that substantially all of the remaining deferred loss will be reclassified to earnings through 2054 as the underlying hedged transactions impact earnings. A portion of these amounts is based on market prices as of June 30, 2020; thus, actual amounts to be reclassified will differ and could vary materially as a result of changes in market conditions. The following table summarizes the net unrealized gain/(loss) recognized in AOCI for derivatives (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Interest rate derivatives, net $ 19 $ (35) $ (61) $ (58) At June 30, 2020, the net fair value of our interest rate hedges, which were included in “Other long-term liabilities and deferred credits” on our Condensed Consolidated Balance Sheet, totaled $5 million. At December 31, 2019, the fair value of these hedges was $44 million and included in “Other current liabilities.” Currency Exchange Rate Risk Hedging Because a significant portion of our Canadian business is conducted in CAD, we use foreign currency derivatives to minimize the risk of unfavorable changes in exchange rates. These instruments include foreign currency exchange contracts, forwards and options. Our use of foreign currency derivatives include (i) derivatives we use to hedge currency exchange risk created by the use of USD-denominated commodity derivatives to hedge commodity price risk associated with CAD-denominated commodity purchases and sales and (ii) foreign currency exchange contracts we use to manage our Canadian business cash requirements. The following table summarizes our open forward exchange contracts as of June 30, 2020 (in millions): USD CAD Average Exchange Rate Forward exchange contracts that exchange CAD for USD: 2020 $ 185 $ 252 $1.00 - $1.36 Forward exchange contracts that exchange USD for CAD: 2020 $ 275 $ 371 $1.00 - $1.35 These derivatives are not designated as a hedging relationship. As such, changes in fair value are recognized in earnings as a component of Supply and Logistics segment revenues. For the three months ended June 30, 2020 and 2019, the amounts recognized in earnings for our currency exchange rate hedges were gains of $2 million in each respective period. For the six months ended June 30, 2020 and 2019, the amounts recognized in earnings for our currency exchange rate hedges were a loss of $4 million and a gain of $7 million, respectively. At June 30, 2020, the net fair value of these currency exchange rate hedges, which was included in “Other current liabilities” on our Condensed Consolidated Balance Sheet, totaled $2 million. At December 31, 2019, the net fair value of these currency exchange rate hedges, which was included in “Other current assets” and “Other current liabilities” on our Condensed Consolidated Balance Sheet, totaled $2 million and $1 million, respectively. Preferred Distribution Rate Reset Option A derivative feature embedded in a contract that does not meet the definition of a derivative in its entirety must be bifurcated and accounted for separately if the economic characteristics and risks of the embedded derivative are not clearly and closely related to those of the host contract. The Preferred Distribution Rate Reset Option of the PAA Series A preferred units is an embedded derivative that must be bifurcated from the related host contract, the PAA partnership agreement, and recorded at fair value on our Condensed Consolidated Balance Sheets. This embedded derivative is not designated as a hedging relationship and corresponding changes in fair value are recognized in “Other income/(expense), net” in our Condensed Consolidated Statement of Operations. For the three months ended June 30, 2020 and 2019, we recognized losses of $9 million and $7 million, respectively. For the six months ended June 30, 2020 and 2019, we recognized net gains of $17 million and $16 million, respectively. The fair value of the Preferred Distribution Rate Reset Option, which was included in “Other long-term liabilities and deferred credits” on our Condensed Consolidated Balance Sheets, totaled $17 million and $34 million at June 30, 2020 and December 31, 2019, respectively. See Note 13 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for additional information regarding the Series A preferred units and Preferred Distribution Rate Reset Option. Recurring Fair Value Measurements Derivative Financial Assets and Liabilities The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis (in millions): Fair Value as of June 30, 2020 Fair Value as of December 31, 2019 Recurring Fair Value Measures (1) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Commodity derivatives $ 24 $ 84 $ (25) $ 83 $ 42 $ 105 $ (17) $ 130 Interest rate derivatives — (5) — (5) — (44) — (44) Foreign currency derivatives — (3) — (3) — 1 — 1 Preferred Distribution Rate Reset Option — — (17) (17) — — (34) (34) Total net derivative asset/(liability) $ 24 $ 76 $ (42) $ 58 $ 42 $ 62 $ (51) $ 53 (1) Derivative assets and liabilities are presented above on a net basis but do not include related cash margin deposits. Level 1 Level 1 of the fair value hierarchy includes exchange-traded commodity derivatives and over-the-counter commodity contracts such as futures and swaps. The fair value of exchange-traded commodity derivatives and over-the-counter commodity contracts is based on unadjusted quoted prices in active markets. Level 2 Level 2 of the fair value hierarchy includes exchange-cleared commodity derivatives and over-the-counter commodity, interest rate and foreign currency derivatives that are traded in observable markets with less volume and transaction frequency than active markets. In addition, it includes certain physical commodity contracts. The fair values of these derivatives are corroborated with market observable inputs. Level 3 Level 3 of the fair value hierarchy includes certain physical commodity and other contracts, over-the-counter options and the Preferred Distribution Rate Reset Option contained in PAA’s partnership agreement which is classified as an embedded derivative. The fair values of our Level 3 physical commodity and other contracts and over-the-counter options are based on valuation models utilizing significant timing estimates, which involve management judgment, and pricing inputs from observable and unobservable markets with less volume and transaction frequency than active markets. Significant deviations from these estimates and inputs could result in a material change in fair value. We report unrealized gains and losses associated with these contracts in our Condensed Consolidated Statements of Operations as Supply and Logistics segment revenues. Rollforward of Level 3 Net Asset/(Liability) The following table provides a reconciliation of changes in fair value of the beginning and ending balances for our derivatives classified as Level 3 (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Beginning Balance $ (61) $ (10) $ (51) $ (24) Net gains/(losses) for the period included in earnings 18 (5) 8 18 Settlements 1 (3) 1 (11) Derivatives entered into during the period — (8) — (9) Ending Balance $ (42) $ (26) $ (42) $ (26) Change in unrealized gains/(losses) included in earnings relating to Level 3 derivatives still held at the end of the period $ 18 $ (13) $ 8 $ 9 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions See Note 17 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for a complete discussion of our related party transactions. PAA ’ s Ownership of our Class C Shares As of June 30, 2020 and December 31, 2019, PAA owned 550,837,140 and 549,538,139, respectively, Class C shares. The Class C shares represent a non-economic limited partner interest in us that provides PAA, as the sole holder, a “pass-through” voting right through which PAA’s common unitholders and Series A preferred unitholders have the effective right to vote, pro rata with the holders of our Class A and Class B shares, for the election of eligible directors. Transactions with Other Related Parties Our other related parties include (i) principal owners and their affiliated entities and (ii) entities in which we hold investments and account for under the equity method of accounting (see Note 7 for information regarding such entities). We recognize as our principal owners entities that have a designated representative on the board of directors of our general partner and/or own greater than 10% of the limited partner interests in AAP. Such limited partner interests in AAP translates into a significantly smaller indirect ownership interest in PAA. We also consider subsidiaries or funds identified as affiliated with principal owners to be related parties. As of June 30, 2020, Kayne Anderson Capital Advisors, L.P. was a principal owner. During the three and six months ended June 30, 2020 and 2019, we recognized sales and transportation revenues, purchased petroleum products and utilized transportation services from our principal owners and their affiliated entities and our equity method investees. These transactions were conducted at posted tariff rates or prices that we believe approximate market. Included in these transactions was a crude oil buy/sell agreement that includes a multi-year minimum volume commitment. The impact to our Condensed Consolidated Statements of Operations from these transactions is included below (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Revenues from related parties (1) (2) (3) $ 10 $ 231 $ 33 $ 456 Purchases and related costs from related parties (2) (3) $ 94 $ (14) $ 223 $ 100 (1) A majority of these revenues are included in “Supply and Logistics segment revenues” on our Condensed Consolidated Statements of Operations. (2) Crude oil purchases that are part of inventory exchanges under buy/sell transactions are netted with the related sales, with any margin presented in “Purchases and related costs” in our Condensed Consolidated Statements of Operations. (3) Revenues and purchases and related costs from related parties for 2019 include transactions with The Energy & Minerals Group (“EMG”) and its subsidiaries through May 2019 and Occidental Petroleum Corporation (“Oxy”) and its subsidiaries through September 2019. Following transactions reducing EMG and Oxy’s ownership interest in AAP in May and September 2019, respectively, EMG and Oxy are no longer recognized as principal owners. See Note 17 to our 2019 Annual Report on Form 10-K for additional information. Our receivable and payable amounts with these related parties as reflected on our Condensed Consolidated Balance Sheets were as follows (in millions): June 30, December 31, Trade accounts receivable and other receivables, net from related parties (1) $ 131 $ 134 Trade accounts payable to related parties (1) (2) $ 46 $ 102 (1) Includes amounts related to crude oil purchases and sales, transportation services and amounts owed to us or advanced to us related to expansion projects of equity method investees where we serve as construction manager. (2) We have agreements to store and transport crude oil at posted tariff rates on pipelines or at facilities that are owned by equity method investees, in which we own a 50% interest. A portion of our commitment to transport is supported by crude oil buy/sell or other agreements with third parties with commensurate quantities. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Loss Contingencies — General To the extent we are able to assess the likelihood of a negative outcome for a contingency, our assessments of such likelihood range from remote to probable. If we determine that a negative outcome is probable and the amount of loss is reasonably estimable, we accrue an undiscounted liability equal to the estimated amount. If a range of probable loss amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then we accrue an undiscounted liability equal to the minimum amount in the range. In addition, we estimate legal fees that we expect to incur associated with loss contingencies and accrue those costs when they are material and probable of being incurred. We do not record a contingent liability when the likelihood of loss is probable but the amount cannot be reasonably estimated or when the likelihood of loss is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and the impact would be material to our consolidated financial statements, we disclose the nature of the contingency and, where feasible, an estimate of the possible loss or range of loss. Legal Proceedings — General In the ordinary course of business, we are involved in various legal proceedings, including those arising from regulatory and environmental matters. In connection with determining the probability of loss associated with such legal proceedings and whether any potential losses associated therewith are estimable, we take into account what we believe to be all relevant known facts and circumstances, and what we believe to be reasonable assumptions regarding the application of those facts and circumstances to existing agreements, laws and regulations. Although we are insured against various risks to the extent we believe it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to fully protect us from losses arising from current or future legal proceedings. Accordingly, we can provide no assurance that the outcome of the various legal proceedings that we are currently involved in, or will become involved with in the future, will not, individually or in the aggregate, have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Environmental — General Although we have made significant investments in our maintenance and integrity programs, we have experienced (and likely will experience future) releases of hydrocarbon products into the environment from our pipeline, rail, storage and other facility operations. These releases can result from accidents or from unpredictable man-made or natural forces and may reach surface water bodies, groundwater aquifers or other sensitive environments. Damages and liabilities associated with any such releases from our existing or future assets could be significant and could have a material adverse effect on our consolidated financial condition, results of operations or cash flows. We record environmental liabilities when environmental assessments and/or remedial efforts are probable and the amounts can be reasonably estimated. Generally, our recording of these accruals coincides with our completion of a feasibility study or our commitment to a formal plan of action. We do not discount our environmental remediation liabilities to present value. We also record environmental liabilities assumed in business combinations based on the estimated fair value of the environmental obligations caused by past operations of the acquired company. We record receivables for amounts we believe are recoverable from insurance or from third parties under indemnification agreements in the period that we determine the costs are probable of recovery. Environmental expenditures that pertain to current operations or to future revenues are expensed or capitalized consistent with our capitalization policy for property and equipment. Expenditures that result from the remediation of an existing condition caused by past operations and that do not contribute to current or future profitability are expensed. At June 30, 2020, our estimated undiscounted reserve for environmental liabilities (including liabilities related to the Line 901 incident, as discussed further below) totaled $192 million, of which $148 million was classified as short-term and $44 million was classified as long-term. At December 31, 2019, our estimated undiscounted reserve for environmental liabilities (including liabilities related to the Line 901 incident) totaled $140 million, of which $60 million was classified as short-term and $80 million was classified as long-term. Such short- and long-term environmental liabilities are reflected in “Other current liabilities” and “Other long-term liabilities and deferred credits,” respectively, on our Condensed Consolidated Balance Sheets. At June 30, 2020, we had recorded receivables totaling $126 million for amounts probable of recovery under insurance and from third parties under indemnification agreements and such amount was classified as short-term. At December 31, 2019, we had recorded $72 million of such receivables, of which $35 million was classified as short-term and $37 million was classified as long-term. Such short- and long-term receivables are reflected in “Trade accounts receivable and other receivables, net” and “Other long-term assets, net,” respectively, on our Condensed Consolidated Balance Sheets. In some cases, the actual cash expenditures associated with these liabilities may not occur for three years or longer. Our estimates used in determining these reserves are based on information currently available to us and our assessment of the ultimate outcome. Among the many uncertainties that impact our estimates are the necessary regulatory approvals for, and potential modification of, our remediation plans, the limited amount of data available upon initial assessment of the impact of soil or water contamination, changes in costs associated with environmental remediation services and equipment and the possibility of existing or future legal claims giving rise to additional liabilities. Therefore, although we believe that the reserve is adequate, actual costs incurred (which may ultimately include costs for contingencies that are currently not reasonably estimable or costs for contingencies where the likelihood of loss is currently believed to be only reasonably possible or remote) may be in excess of the reserve and may potentially have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Specific Legal, Environmental or Regulatory Matters Line 901 Incident . In May 2015, we experienced a crude oil release from our Las Flores to Gaviota Pipeline (Line 901) in Santa Barbara County, California. A portion of the released crude oil reached the Pacific Ocean at Refugio State Beach through a drainage culvert. Following the release, we shut down the pipeline and initiated our emergency response plan. A Unified Command, which included the United States Coast Guard, the EPA, the State of California Department of Fish and Wildlife (“CDFW”), the California Office of Spill Prevention and Response and the Santa Barbara Office of Emergency Management, was established for the response effort. Clean-up and remediation operations with respect to impacted shoreline and other areas has been determined by the Unified Command to be complete, and the Unified Command has been dissolved. Our estimate of the amount of oil spilled, based on relevant facts, data and information and as set forth in the Consent Decree described below, is approximately 2,934 barrels; of this amount, we estimate that 598 barrels reached the Pacific Ocean. As a result of the Line 901 incident, several governmental agencies and regulators initiated investigations into the Line 901 incident, various claims have been made against us and a number of lawsuits have been filed against us. We may be subject to additional claims, investigations and lawsuits, which could materially impact the liabilities and costs we currently expect to incur as a result of the Line 901 incident. Set forth below is a brief summary of actions and matters that are currently pending: On May 21, 2015, we received a corrective action order from the United States Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (“PHMSA”), the governmental agency with jurisdiction over the operation of Line 901 as well as over a second stretch of pipeline extending from Gaviota Pump Station in Santa Barbara County to Emidio Pump Station in Kern County, California (Line 903), requiring us to shut down, purge, review, remediate and test Line 901. The corrective action order was subsequently amended on June 3, 2015; November 12, 2015; and June 16, 2016 to require us to take additional corrective actions with respect to both Lines 901 and 903 (as amended, the “CAO”). Among other requirements, the CAO obligated us to conduct a root cause failure analysis with respect to Line 901 and present remedial work plans and restart plans to PHMSA prior to returning Line 901 and 903 to service; the CAO also imposed a pressure restriction on the section of Line 903 between Pentland Pump Station and Emidio Pump Station, which was subsequently lifted, and required us to take other specified actions with respect to both Lines 901 and 903. We intend to continue to comply with the CAO and to cooperate with any other governmental investigations relating to or arising out of the release. Excavation and removal of the affected section of the pipeline was completed on May 28, 2015. Line 901 and Line 903 have been purged and are not currently operational, with the exception of the Pentland to Emidio segment of Line 903, which remains in service. No timeline has been established for the restart of Line 901 or Line 903. The remaining uncompleted portions of the CAO, which primarily relate to returning Lines 901 and 903 to service, have been incorporated into the Consent Decree (defined and discussed below). Upon entry of the Consent Decree by the Court, we expect that the CAO will be closed out by PHMSA. On February 17, 2016, PHMSA issued a Preliminary Factual Report of the Line 901 failure, which contains PHMSA’s preliminary findings regarding factual information about the events leading up to the accident and the technical analysis that has been conducted to date. On May 19, 2016, PHMSA issued its final Failure Investigation Report regarding the Line 901 incident. PHMSA’s findings indicate that the direct cause of the Line 901 incident was external corrosion that thinned the pipe wall to a level where it ruptured suddenly and released crude oil. PHMSA also concluded that there were numerous contributory causes of the Line 901 incident, including ineffective protection against external corrosion, failure to detect and mitigate the corrosion and a lack of timely detection and response to the rupture. The report also included copies of various engineering and technical reports regarding the incident. All potential claims by PHMSA against PAA arising out of the Line 901 failure would be settled pursuant to the Consent Decree discussed below. In late May of 2015, the California Attorney General’s Office and the District Attorney’s office for the County of Santa Barbara (collectively, the “Prosecutors”) began investigating the Line 901 incident to determine whether any applicable state or local laws had been violated. On May 16, 2016, PAA and one of its employees were charged by a California state grand jury, pursuant to an indictment filed in California Superior Court, Santa Barbara County (the “May 2016 Indictment”), with alleged violations of California law in connection with the Line 901 incident. The May 2016 Indictment included a total of 46 counts against PAA. On July 28, 2016, at an arraignment hearing held in California Superior Court in Santa Barbara County, PAA pled not guilty to all counts. Between May of 2016 and May of 2018, 31 of the criminal charges against PAA (including one felony charge) and all of the criminal charges against our employee, were dismissed. The remaining 15 charges were the subject of a jury trial in California Superior Court in Santa Barbara County that began in May of 2018. The jury returned a verdict on September 7, 2018, pursuant to which we were (i) found guilty on one felony discharge count and eight misdemeanor counts (which included one reporting count, one strict liability discharge count and six strict liability animal takings counts) and (ii) found not guilty on one strict liability animal takings count. The jury deadlocked on three counts (including two felony discharge counts and one strict liability animal takings count), and two misdemeanor discharge counts were dropped. On April 25, 2019, PAA was sentenced to pay fines and penalties in the aggregate amount of just under $3.35 million for the convictions covered by the September 2018 jury verdict (the “2019 Sentence”). The fines and penalties imposed in connection with the 2019 Sentence have been paid. The Superior Court also indicated that it would conduct further hearings on the issue of whether there were any “direct victims” of the spill that are entitled to restitution under applicable law. In April of 2019, the Prosecutors announced their intent to re-try the two felony discharge counts for which no jury verdict was returned. The strict liability animal taking count for which no jury verdict was returned has been dismissed. On October 7, 2019, upon motion from Plains, the court dismissed the two remaining felony counts and vacated a second trial on these counts. Also in late May of 2015, the United States Attorney for the Department of Justice, Central District of California, Environmental Crimes Section (“DOJ”) began an investigation into whether there were any violations of federal criminal statutes in connection with the Line 901 incident, including potential violations of the federal Clean Water Act. We have cooperated with the DOJ’s investigation by responding to their requests for documents and access to our employees. Consistent with the terms of our governing organizational documents, we are funding our employees’ defense costs, including the costs of separate counsel engaged to represent such individuals. The statute of limitations for federal criminal charges lapsed in May of 2020 with no federal criminal charges being brought against PAA or any of its affiliates, officers or employees. Shortly following the Line 901 incident, we established a claims line and encouraged any parties that were damaged by the release to contact us to discuss their damage claims. We have received a number of claims through the claims line and we have been processing those claims and making payments as appropriate. In addition, we have also had nine class action lawsuits filed against us, six of which have been administratively consolidated into a single proceeding in the United States District Court for the Central District of California. In general, the plaintiffs are seeking to establish different classes of claimants that have allegedly been damaged by the release. The court originally certified three sub-classes of claimants and denied certification of the other proposed sub-class. On appeal, the Ninth Circuit Court of Appeals overturned the certification of one of the three sub-classes, the oil-industry sub-class, and the District Court subsequently dismissed the oil-industry sub-class representatives’ claims. The two remaining sub-classes include (i) commercial fishermen who landed fish in certain specified fishing blocks in the waters off the coast of Southern California or persons or businesses who resold commercial seafood landed in such areas; and (ii) residential beachfront properties on a beach and residential properties with a private easement to a beach where oil from the spill washed up. The court has set a trial date of September 1, 2020 for those two sub-classes, but the trial is unlikely to proceed on that date due to COVID-19 related trial suspensions. We are also defending a separate class action lawsuit proceeding in the United States District Court for the Central District of California brought on behalf of the Line 901 and Line 903 easement holders seeking injunctive relief as well as compensatory damages. In addition, four unitholder derivative lawsuits have been filed by certain purported investors in PAA against PAGP and certain of PAA’s affiliates, officers and directors. One lawsuit was filed in State District Court in Harris County, Texas and subsequently dismissed by the Court. Two of these lawsuits were filed in the United States District Court for the Southern District of Texas and were administratively consolidated into one action and later dismissed on the basis that Plains Partnership agreements require that derivative suits be filed in Delaware Chancery Court. Following the order dismissing the Texas Federal Court suits, a new derivative suit brought by different plaintiffs was filed in Delaware Chancery Court and subsequently dismissed without prejudice. Plaintiffs amended and refiled their complaint on June 3, 2019. All claims against the officers and directors of PAA and all affiliates of PAA, except PAGP, were dismissed with prejudice in January 2020. Consistent with and subject to the terms of our governing organizational documents (and to the extent applicable, insurance policies), we have indemnified and funded the defense costs of our officers and directors in connection with these lawsuits. We will vigorously defend the remaining derivative claim against PAGP. We have also received several other individual lawsuits and complaints from companies, governmental agencies and individuals alleging damages arising out of the Line 901 incident. These lawsuits and claims generally seek compensatory and punitive damages, and in some cases permanent injunctive relief. In addition to the foregoing, as the “responsible party” for the Line 901 incident we are liable for various costs and for certain natural resource damages under the Oil Pollution Act. In this regard, following the Line 901 incident, we entered into a cooperative Natural Resource Damage Assessment (“NRDA”) process with the following federal and state agencies designated or authorized by law to act as trustees for the natural resources of the United States and the State of California (collectively, the “Trustees”): the United States Department of Interior, the National Oceanic and Atmospheric Administration, CDFW, the California Department of Parks and Recreation, the California State Lands Commission, and the Regents of the University of California. As part of the NRDA process, PAA and the Trustees jointly and independently planned and conducted a number of natural resource assessment activities related to the Line 901 incident. On March 13, 2020, the United States and the People of the State of California filed a civil complaint against Plains All American Pipeline, L.P. and Plains Pipeline L.P. along with a pre-negotiated settlement agreement in the form of a Consent Decree (the “Consent Decree”). The Consent Decree, which was pre-negotiated and signed by DOJ, PHMSA, EPA, CDFW, California Department of Parks and Recreation, California State Lands Commission, Office of the State Fire Marshal, Central Coast Regional Water Quality Control Board, and Regents of the University of California, will, if entered by the court, settle all of the claims asserted in the lawsuit. The Consent Decree would require Plains to pay $24 million in civil penalties and implement certain agreed-upon injunctive relief, and pay $22.325 million as compensation for injuries to, destruction of, loss of, or loss of use of natural resources resulting from the Line 901 incident. The Consent Decree is subject to review and approval by the Federal District Court for the Central District of California. We have included the costs associated with the Consent Decree settlement in the loss accrual described below. Taking the foregoing into account, as of June 30, 2020, we estimate that the aggregate total costs we have incurred or will incur with respect to the Line 901 incident will be approximately $455 million, which estimate includes actual and projected emergency response and clean-up costs, natural resource damage assessments and certain third party claims settlements, as well as estimates for fines, penalties and certain legal fees. We accrue such estimates of aggregate total costs to “Field operating costs” in our Condensed Consolidated Statements of Operations. This estimate considers our prior experience in environmental investigation and remediation matters and available data from, and in consultation with, our environmental and other specialists, as well as currently available facts and presently enacted laws and regulations. We have made assumptions for (i) the duration of the natural resource damage assessment process and the ultimate amount of damages determined, (ii) the resolution of certain third party claims and lawsuits, but excluding claims and lawsuits with respect to which losses are not probable and reasonably estimable, and excluding future claims and lawsuits, (iii) the determination and calculation of fines and penalties, but excluding fines and penalties that are not probable or reasonably estimable and (iv) the nature, extent and cost of legal services that will be required in connection with all lawsuits, claims and other matters requiring legal or expert advice associated with the Line 901 incident. Our estimate does not include any lost revenue associated with the shutdown of Line 901 or 903 and does not include any liabilities or costs that are not reasonably estimable at this time or that relate to contingencies where we currently regard the likelihood of loss as being only reasonably possible or remote. We believe we have accrued adequate amounts for all probable and reasonably estimable costs; however, this estimate is subject to uncertainties associated with the assumptions that we have made. For example, the amount of time it takes for us to resolve all of the current and future lawsuits, claims and investigations that relate to the Line 901 incident could turn out to be significantly longer than we have assumed, and as a result the costs we incur for legal services could be significantly higher than we have estimated. In addition, with respect to fines and penalties, the ultimate amount of any fines and penalties assessed against us depends on a wide variety of factors, many of which are not estimable at this time. Where fines and penalties are probable and estimable, we have included them in our estimate, although such estimates could turn out to be wrong. Accordingly, our assumptions and estimates may turn out to be inaccurate and our total costs could turn out to be materially higher; therefore, we can provide no assurance that we will not have to accrue significant additional costs in the future with respect to the Line 901 incident. As of June 30, 2020, we had a remaining undiscounted gross liability of $140 million related to this event, which is presented in “Other current liabilities” on our Condensed Consolidated Balance Sheet. We maintain insurance coverage, which is subject to certain exclusions and deductibles, in the event of such environmental liabilities. Subject to such exclusions and deductibles, we believe that our coverage is adequate to cover the current estimated total emergency response and clean-up costs, claims settlement costs and remediation costs and we believe that this coverage is also adequate to cover any potential increase in the estimates for these costs that exceed the amounts currently identified. Through June 30, 2020, we had collected, subject to customary reservations, $212 million out of the approximate $330 million of release costs that we believe are probable of recovery from insurance carriers, net of deductibles. Therefore, as of June 30, 2020, we have recognized a receivable of approximately $118 million for the portion of the release costs that we believe is probable of recovery from insurance, net of deductibles and amounts already collected. Such amount is recognized as a current asset in “Trade accounts receivable and other receivables, net” on our Condensed Consolidated Balance Sheet. We have completed the required clean-up and remediation work as determined by the Unified Command and the Unified Command has been dissolved; however, we expect to make payments for additional costs associated with restoration of the impacted areas, as well as natural resource damage assessment and compensation, legal, professional and regulatory costs, in addition to fines and penalties, during future periods. |
Operating Segments
Operating Segments | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating Segments We manage our operations through three operating segments: Transportation, Facilities and Supply and Logistics. See Note 3 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for a summary of the types of products and services from which each segment derives its revenues. Our CODM (our Chief Executive Officer) evaluates segment performance based on measures including Segment Adjusted EBITDA (as defined below) and maintenance capital investment. 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 our proportionate share of the depreciation and amortization expense of unconsolidated entities, and further adjusted 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 related to investing activities (such as the purchase of linefill) 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. Segment Adjusted EBITDA excludes depreciation and amortization. Maintenance capital consists of 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. The following tables reflect certain financial data for each segment (in millions): Transportation Facilities Supply and Intersegment Adjustment Total Three Months Ended June 30, 2020 Revenues: External customers (1) $ 234 $ 149 $ 2,925 $ (83) $ 3,225 Intersegment (2) 223 127 — 83 433 Total revenues of reportable segments $ 457 $ 276 $ 2,925 $ — $ 3,658 Equity earnings in unconsolidated entities $ 81 $ — $ — $ 81 Segment Adjusted EBITDA $ 346 $ 174 $ 3 $ 523 Maintenance capital $ 31 $ 15 $ 8 $ 54 Three Months Ended June 30, 2019 Revenues: External customers (1) $ 316 $ 151 $ 7,914 $ (128) $ 8,253 Intersegment (2) 243 140 1 128 512 Total revenues of reportable segments $ 559 $ 291 $ 7,915 $ — $ 8,765 Equity earnings in unconsolidated entities $ 83 $ — $ — $ 83 Segment Adjusted EBITDA $ 410 $ 172 $ 200 $ 782 Maintenance capital $ 39 $ 30 $ 3 $ 72 Six Months Ended June 30, 2020 Revenues: External customers (1) $ 532 $ 323 $ 10,833 $ (194) $ 11,494 Intersegment (2) 504 266 1 194 965 Total revenues of reportable segments $ 1,036 $ 589 $ 10,834 $ — $ 12,459 Equity earnings in unconsolidated entities $ 189 $ 2 $ — $ 191 Segment Adjusted EBITDA $ 788 $ 384 $ 144 $ 1,316 Maintenance capital $ 64 $ 29 $ 11 $ 104 Transportation Facilities Supply and Intersegment Adjustment Total Six Months Ended June 30, 2019 Revenues: External customers (1) $ 618 $ 307 $ 15,936 $ (233) $ 16,628 Intersegment (2) 497 282 2 233 1,014 Total revenues of reportable segments $ 1,115 $ 589 $ 15,938 $ — $ 17,642 Equity earnings in unconsolidated entities $ 172 $ — $ — $ 172 Segment Adjusted EBITDA $ 809 $ 356 $ 478 $ 1,643 Maintenance capital $ 67 $ 46 $ 5 $ 118 As of June 30, 2020 Total assets $ 14,599 $ 6,314 $ 4,576 $ 25,489 As of December 31, 2019 Total assets $ 15,549 $ 7,593 $ 6,827 $ 29,969 (1) Transportation revenues from External customers include certain inventory exchanges with our customers where our Supply and Logistics segment has transacted the inventory exchange and serves as the shipper on our pipeline systems. See Note 3 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for a discussion of our related accounting policy. We have included an estimate of the revenues from these inventory exchanges in our Transportation segment revenues from External customers presented above and adjusted those revenues out such that Total revenues from External customers reconciles to our Condensed Consolidated Statements of Operations. This presentation is consistent with the information provided to our CODM. (2) Segment revenues include intersegment amounts that are eliminated in Purchases and related costs and Field operating costs in our Condensed Consolidated Statements of Operations. 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. Segment Adjusted EBITDA Reconciliation The following table reconciles Segment Adjusted EBITDA to Net income/(loss) attributable to PAGP (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Segment Adjusted EBITDA $ 523 $ 782 $ 1,316 $ 1,643 Adjustments (1) : Depreciation and amortization of unconsolidated entities (2) (16) (14) (33) (27) Gains/(losses) from derivative activities, net of inventory valuation adjustments (3) (90) (44) (121) 30 Long-term inventory costing adjustments (4) 51 (25) (64) (4) Deficiencies under minimum volume commitments, net (5) (7) (1) (6) 7 Equity-indexed compensation expense (6) (5) (4) (8) (7) Net gain/(loss) on foreign currency revaluation (7) — (7) 13 (12) Line 901 incident (8) — (10) — (10) Significant acquisition-related expenses (9) — — (3) — Unallocated general and administrative expenses (2) (1) (3) (3) Depreciation and amortization (166) (148) (335) (284) Gains/(losses) on asset sales and asset impairments, net 1 4 (618) — Goodwill impairment losses — — (2,515) — Gain on/(impairment of) investments in unconsolidated entities, net (69) — (91) 267 Interest expense, net (108) (103) (215) (203) Other income/(expense), net 18 (6) (13) 18 Income/(loss) before tax 130 423 (2,696) 1,415 Income tax (expense)/benefit 7 3 140 (75) Net income/(loss) 137 426 (2,556) 1,340 Net (income)/loss attributable to noncontrolling interests (121) (360) 1,991 (1,127) Net income/(loss) attributable to PAGP $ 16 $ 66 $ (565) $ 213 (1) Represents adjustments utilized by our CODM in the evaluation of segment results. (2) Includes our proportionate share of the depreciation and amortization 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 the earnings that were recognized during the period related to derivative instruments for which the identified underlying transaction does not occur in the current period and exclude the related gains and losses in determining Segment Adjusted EBITDA. In addition, we exclude gains and losses on derivatives that are related to investing activities, such as the purchase of linefill. 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 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 our 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, 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) Includes equity-indexed compensation expense associated with awards that will or may be settled in PAA common units. (7) Includes gains and losses realized on the settlement of foreign currency transactions as well as the revaluation of monetary assets and liabilities denominated in a foreign currency. (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 12 for additional information regarding the Line 901 incident. (9) Includes acquisition-related expenses associated with the Felix Midstream LLC acquisition. See Note 14 for additional discussion. An adjustment for these non-recurring expenses is included in the calculation of Segment Adjusted EBITDA for the three and six months ended June 30, 2020 as our CODM does not view such expenses as integral to understanding our core segment operating performance. |
Acquisitions, Divestitures and
Acquisitions, Divestitures and Asset Impairments | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions, Divestitures and Asset Impairments | Acquisitions, Divestitures and Asset Impairments Acquisitions Felix Midstream LLC. In February 2020, we acquired Felix Midstream LLC, now known as FM Gathering LLC (“FM Gathering”) from Felix Energy Holdings II, LLC for approximately $300 million, net of working capital and other adjustments. FM Gathering owns and operates a newly constructed crude oil gathering system in the Delaware Basin, with associated crude oil storage and truck offloading capacity, and is supported by a long-term acreage dedication. The assets acquired are primarily included in our Transportation and Supply and Logistics segments. This acquisition was accounted for using the acquisition method of accounting and the determination of the fair value of the assets acquired and liabilities assumed has been estimated in accordance with the applicable accounting guidance. The determination of these values is preliminary and we expect to finalize our fair value determination in 2020. The assets acquired primarily consisted of property and equipment of $115 million and intangible assets of $187 million. The preliminary fair value of the tangible assets is a Level 3 measurement in the fair value hierarchy and was determined using a cost approach. The cost approach was based on costs incurred on similar recent construction projects. The preliminary fair value of the intangible assets is also a Level 3 measurement in the fair value hierarchy and was determined by applying a discounted cash flow approach. Such approach utilized discount rates varying from 15% to 16%, based on our estimate of the risk that a theoretical market participant would assign to the respective intangible assets. Divestitures Saddlehorn Pipeline Company, LLC. In February 2020, we sold a 10% ownership interest in Saddlehorn Pipeline Company, LLC for proceeds of approximately $78 million, including working capital adjustments. We recorded a gain of approximately $21 million related to this sale, which is included in “Gain on/(impairment of) investments in unconsolidated entities, net” on our Condensed Consolidated Statement of Operations. Assets Held For Sale. As of June 30, 2020, we classified approximately $198 million as assets held for sale on our Condensed Consolidated Balance Sheet (in “Other current assets”). The assets held for sale, which were valued based on fair value less costs to sell, are primarily property and equipment, are included in our Facilities segment and are related to transactions to sell our interests in: • certain Los Angeles Basin (“LA Basin”) terminals. In January 2020, we signed a definitive agreement to sell certain of our LA Basin crude oil terminals for $195 million, subject to certain adjustments. We expect the transaction to close in the second half of 2020, subject to customary closing conditions, including the receipt of regulatory approvals. During the first quarter of 2020, certain NGL terminals included in our Facilities segment were also classified as held for sale. In April 2020, the transaction closed for proceeds of approximately $163 million, subject to certain adjustments. Upon these classifications to assets held for sale, we recognized non-cash impairment losses of approximately $167 million during the first quarter of 2020. Such impairment losses are reflected in “(Gains)/losses on asset sales and asset impairments, net” on our Condensed Consolidated Statement of Operations. Asset Impairments (Held and Used) During the six months ended June 30, 2020, we recognized approximately $558 million of non-cash impairment losses related to certain pipeline and other long-lived assets included in our Transportation and Facilities segments, along with certain of our investments in unconsolidated entities. Of these losses, approximately $446 million is reflected in “(Gains)/losses on asset sales and asset impairments, net” with the remainder reflected in “Gain on/(impairment of) investments in unconsolidated entities, net” on our Condensed Consolidated Statement of Operations. A majority of the impairment losses were recognized during the first quarter of 2020. See Note 7 for additional information regarding our investments in unconsolidated entities. The current macroeconomic and geopolitical conditions including the collapse of oil prices driven by both the decrease in demand caused by the COVID-19 pandemic and excess supply, as well as changing market conditions and expected lower crude oil production in certain regions, resulted in expected decreases in future cash flows for certain of our assets, which was a triggering event that required us to assess the recoverability of our carrying value of such long-lived assets. As a result of our impairment review, we wrote off the portion of the carrying amount of these long-lived assets that exceeded their fair value. Our estimated fair values (which we consider a Level 3 measurement in the fair value hierarchy) were based upon a discounted cash flow approach utilizing various assumptions and the application of a discount rate of approximately 14%, which represents our estimate of the cost of capital of a theoretical market participant. Such assumptions included (but were not limited to) (i) volumes (based on historical information and estimates of future drilling and completion activity), (ii) tariff rates, (iii) future commodity prices (based on relevant indices and applicable quality and location differentials), and (iv) estimated fixed and variable costs. |
Acquisitions, Divestitures and Asset Impairments | Acquisitions, Divestitures and Asset Impairments Acquisitions Felix Midstream LLC. In February 2020, we acquired Felix Midstream LLC, now known as FM Gathering LLC (“FM Gathering”) from Felix Energy Holdings II, LLC for approximately $300 million, net of working capital and other adjustments. FM Gathering owns and operates a newly constructed crude oil gathering system in the Delaware Basin, with associated crude oil storage and truck offloading capacity, and is supported by a long-term acreage dedication. The assets acquired are primarily included in our Transportation and Supply and Logistics segments. This acquisition was accounted for using the acquisition method of accounting and the determination of the fair value of the assets acquired and liabilities assumed has been estimated in accordance with the applicable accounting guidance. The determination of these values is preliminary and we expect to finalize our fair value determination in 2020. The assets acquired primarily consisted of property and equipment of $115 million and intangible assets of $187 million. The preliminary fair value of the tangible assets is a Level 3 measurement in the fair value hierarchy and was determined using a cost approach. The cost approach was based on costs incurred on similar recent construction projects. The preliminary fair value of the intangible assets is also a Level 3 measurement in the fair value hierarchy and was determined by applying a discounted cash flow approach. Such approach utilized discount rates varying from 15% to 16%, based on our estimate of the risk that a theoretical market participant would assign to the respective intangible assets. Divestitures Saddlehorn Pipeline Company, LLC. In February 2020, we sold a 10% ownership interest in Saddlehorn Pipeline Company, LLC for proceeds of approximately $78 million, including working capital adjustments. We recorded a gain of approximately $21 million related to this sale, which is included in “Gain on/(impairment of) investments in unconsolidated entities, net” on our Condensed Consolidated Statement of Operations. Assets Held For Sale. As of June 30, 2020, we classified approximately $198 million as assets held for sale on our Condensed Consolidated Balance Sheet (in “Other current assets”). The assets held for sale, which were valued based on fair value less costs to sell, are primarily property and equipment, are included in our Facilities segment and are related to transactions to sell our interests in: • certain Los Angeles Basin (“LA Basin”) terminals. In January 2020, we signed a definitive agreement to sell certain of our LA Basin crude oil terminals for $195 million, subject to certain adjustments. We expect the transaction to close in the second half of 2020, subject to customary closing conditions, including the receipt of regulatory approvals. During the first quarter of 2020, certain NGL terminals included in our Facilities segment were also classified as held for sale. In April 2020, the transaction closed for proceeds of approximately $163 million, subject to certain adjustments. Upon these classifications to assets held for sale, we recognized non-cash impairment losses of approximately $167 million during the first quarter of 2020. Such impairment losses are reflected in “(Gains)/losses on asset sales and asset impairments, net” on our Condensed Consolidated Statement of Operations. Asset Impairments (Held and Used) During the six months ended June 30, 2020, we recognized approximately $558 million of non-cash impairment losses related to certain pipeline and other long-lived assets included in our Transportation and Facilities segments, along with certain of our investments in unconsolidated entities. Of these losses, approximately $446 million is reflected in “(Gains)/losses on asset sales and asset impairments, net” with the remainder reflected in “Gain on/(impairment of) investments in unconsolidated entities, net” on our Condensed Consolidated Statement of Operations. A majority of the impairment losses were recognized during the first quarter of 2020. See Note 7 for additional information regarding our investments in unconsolidated entities. The current macroeconomic and geopolitical conditions including the collapse of oil prices driven by both the decrease in demand caused by the COVID-19 pandemic and excess supply, as well as changing market conditions and expected lower crude oil production in certain regions, resulted in expected decreases in future cash flows for certain of our assets, which was a triggering event that required us to assess the recoverability of our carrying value of such long-lived assets. As a result of our impairment review, we wrote off the portion of the carrying amount of these long-lived assets that exceeded their fair value. Our estimated fair values (which we consider a Level 3 measurement in the fair value hierarchy) were based upon a discounted cash flow approach utilizing various assumptions and the application of a discount rate of approximately 14%, which represents our estimate of the cost of capital of a theoretical market participant. Such assumptions included (but were not limited to) (i) volumes (based on historical information and estimates of future drilling and completion activity), (ii) tariff rates, (iii) future commodity prices (based on relevant indices and applicable quality and location differentials), and (iv) estimated fixed and variable costs. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Restricted Cash | Restricted CashRestricted cash includes cash held by us that is unavailable for general use and is comprised of amounts advanced to us by certain equity method investees related to the construction of fixed assets where we serve as construction manager. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Except as discussed below and in our 2019 Annual Report on Form 10-K, there have been no new accounting pronouncements that have become effective or have been issued during the six months ended June 30, 2020 that are of significance or potential significance to us. Accounting Standards Updates Adopted During the Period We adopted the ASUs listed below effective January 1, 2020 and our adoption did not have a material impact on our financial position, results of operations or cash flows (see Note 2 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for additional information regarding these ASUs): • ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments; • ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities; • ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force); • ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement; and • ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (along with a series of related ASUs). Accounting Standards Updates Issued During the Period In March 2020, the FASB issued 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash and Cash Equivalents and Restricted Cash | The following table presents a reconciliation of cash and cash equivalents and restricted cash reported on our Condensed Consolidated Balance Sheet that sum to the total of the amounts shown on our Condensed Consolidated Statement of Cash Flows (in millions): June 30, December 31, Cash and cash equivalents $ 42 $ 47 Restricted cash 64 37 Total cash and cash equivalents and restricted cash $ 106 $ 84 |
Revenues and Accounts Receiva_2
Revenues and Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | The following tables present the reconciliation of our revenues from contracts with customers to segment revenues and total revenues as disclosed in our Condensed Consolidated Statements of Operations (in millions): Three Months Ended June 30, 2020 Transportation Facilities Supply and Total Revenues from contracts with customers $ 453 $ 264 $ 3,055 $ 3,772 Other items in revenues 4 12 (130) (114) Total revenues of reportable segments $ 457 $ 276 $ 2,925 $ 3,658 Intersegment revenues (433) Total revenues $ 3,225 Three Months Ended June 30, 2019 Transportation Facilities Supply and Total Revenues from contracts with customers $ 551 $ 283 $ 7,864 $ 8,698 Other items in revenues 8 8 51 67 Total revenues of reportable segments $ 559 $ 291 $ 7,915 $ 8,765 Intersegment revenues (512) Total revenues $ 8,253 Six Months Ended June 30, 2020 Transportation Facilities Supply and Total Revenues from contracts with customers $ 1,026 $ 569 $ 10,806 $ 12,401 Other items in revenues 10 20 28 58 Total revenues of reportable segments $ 1,036 $ 589 $ 10,834 $ 12,459 Intersegment revenues (965) Total revenues $ 11,494 Six Months Ended June 30, 2019 Transportation Facilities Supply and Total Revenues from contracts with customers $ 1,095 $ 563 $ 15,710 $ 17,368 Other items in revenues 20 26 228 274 Total revenues of reportable segments $ 1,115 $ 589 $ 15,938 $ 17,642 Intersegment revenues (1,014) Total revenues $ 16,628 |
Contracts with customers, change in contract liability balance | The following table presents the change in the Topic 606 contract liability balance during the six months ended June 30, 2020 (in millions): Contract Liabilities Balance at December 31, 2019 $ 354 Amounts recognized as revenue (245) Additions (1) 193 Balance at June 30, 2020 $ 302 (1) Includes approximately $155 million associated with crude oil sales agreements that are entered into in conjunction with storage arrangements and future inventory exchanges. Such amount is expected to be recognized as revenue in the third quarter of 2020. The following is a reconciliation of trade accounts receivable from revenues from contracts with customers to total Trade accounts receivable and other receivables, net as presented on our Condensed Consolidated Balance Sheets (in millions): June 30, December 31, 2019 Trade accounts receivable arising from revenues from contracts with customers $ 1,588 $ 3,381 Other trade accounts receivables and other receivables (1) 1,891 3,576 Impact due to contractual rights of offset with counterparties (1,560) (3,343) Trade accounts receivable and other receivables, net $ 1,919 $ 3,614 (1) The balance is comprised primarily of accounts receivable associated with buy/sell arrangements that are not within the scope of Topic 606. |
Remaining Performance Obligations | The following table presents the amount of consideration associated with remaining performance obligations for the population of contracts with external customers meeting the presentation requirements as of June 30, 2020 (in millions): Remainder of 2020 2021 2022 2023 2024 2025 and Thereafter Pipeline revenues supported by minimum volume commitments and capacity agreements (1) $ 78 $ 167 $ 166 $ 164 $ 143 $ 580 Storage, terminalling and throughput agreement revenues 216 344 276 211 164 416 Total $ 294 $ 511 $ 442 $ 375 $ 307 $ 996 |
Supply and Logistics | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | The following tables present our Supply and Logistics, Transportation and Facilities segment revenues from contracts with customers disaggregated by type of activity (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Supply and Logistics segment revenues from contracts with customers Crude oil transactions $ 2,928 $ 7,595 $ 10,251 $ 14,532 NGL and other transactions 127 269 555 1,178 Total Supply and Logistics segment revenues from contracts with customers $ 3,055 $ 7,864 $ 10,806 $ 15,710 |
Transportation | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Three Months Ended Six Months Ended 2020 2019 2020 2019 Transportation segment revenues from contracts with customers Tariff activities: Crude oil pipelines $ 405 $ 494 $ 917 $ 971 NGL pipelines 26 22 52 50 Total tariff activities 431 516 969 1,021 Trucking 22 35 57 74 Total Transportation segment revenues from contracts with customers $ 453 $ 551 $ 1,026 $ 1,095 |
Facilities | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue | Three Months Ended Six Months Ended 2020 2019 2020 2019 Facilities segment revenues from contracts with customers Crude oil, NGL and other terminalling and storage $ 176 $ 177 $ 357 $ 349 NGL and natural gas processing and fractionation 80 87 190 175 Rail load / unload 8 19 22 39 Total Facilities segment revenues from contracts with customers $ 264 $ 283 $ 569 $ 563 |
Net Income Per Class A Share (T
Net Income Per Class A Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted net income/(loss) per Class A share | The following table sets forth the computation of basic and diluted net income/(loss) per Class A share (in millions, except per share data): Three Months Ended Six Months Ended 2020 2019 2020 2019 Basic Net Income/(Loss) per Class A Share Net income/(loss) attributable to PAGP $ 16 $ 66 $ (565) $ 213 Basic weighted average Class A shares outstanding 184 162 183 161 Basic net income/(loss) per Class A share $ 0.09 $ 0.41 $ (3.08) $ 1.32 Diluted Net Income/(Loss) per Class A Share Net income/(loss) attributable to PAGP $ 16 $ 66 $ (565) $ 213 Incremental net income attributable to PAGP resulting from assumed exchange of AAP Management Units — — — — Net income/(loss) attributable to PAGP including incremental net income from assumed exchange of AAP Management Units $ 16 $ 66 $ (565) $ 213 Basic weighted average Class A shares outstanding 184 162 183 161 Dilutive shares resulting from assumed exchange of AAP Management Units — 2 — — Diluted weighted average Class A shares outstanding 184 164 183 161 Diluted net income/(loss) per Class A share $ 0.09 $ 0.40 $ (3.08) $ 1.32 |
Inventory, Linefill and Base _2
Inventory, Linefill and Base Gas and Long-term Inventory (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory, Linefill and Base Gas and Long-term Inventory | |
Schedule of inventory, linefill and base gas and long-term inventory | Inventory, linefill and base gas and long-term inventory consisted of the following (barrels and natural gas volumes in thousands and carrying value in millions): June 30, 2020 December 31, 2019 Volumes Unit of Carrying Price/ Unit (1) Volumes Unit of Carrying Price/ Unit (1) Inventory Crude oil 20,306 barrels $ 512 $ 25.21 8,613 barrels $ 450 $ 52.25 NGL 10,923 barrels 140 $ 12.82 7,574 barrels 142 $ 18.75 Other N/A 10 N/A N/A 12 N/A Inventory subtotal 662 604 Linefill and base gas Crude oil 14,491 barrels 810 $ 55.90 14,316 barrels 826 $ 57.70 NGL 1,645 barrels 42 $ 25.53 1,701 barrels 47 $ 27.63 Natural gas 25,576 Mcf 110 $ 4.30 24,976 Mcf 108 $ 4.32 Linefill and base gas subtotal 962 981 Long-term inventory Crude oil 2,747 barrels 104 $ 37.86 2,598 barrels 152 $ 58.51 NGL 1,579 barrels 21 $ 13.30 1,707 barrels 30 $ 17.57 Long-term inventory subtotal 125 182 Total $ 1,749 $ 1,767 (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. |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill by segment and changes during the period | Goodwill by segment and changes in goodwill are reflected in the following table (in millions): Transportation Facilities Supply and Logistics Total Balance at December 31, 2019 $ 1,052 $ 982 $ 506 $ 2,540 Acquisitions 2 — — 2 Foreign currency translation adjustments (11) (4) (3) (18) Goodwill, gross 1,043 978 503 2,524 Impairments (1,038) (975) (502) (2,515) Foreign currency translation adjustments (5) (3) (1) (9) Accumulated impairment losses (1,043) (978) (503) (2,524) Balance at June 30, 2020 $ — $ — $ — $ — |
Investments in Unconsolidated_2
Investments in Unconsolidated Entities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investments in unconsolidated entities | Our investments in unconsolidated entities consisted of the following (in millions, except percentage data): Ownership Interest at June 30, Investment Balance Entity (1) Type of Operation June 30, December 31, 2019 BridgeTex Pipeline Company, LLC Crude Oil Pipeline 20% $ 424 $ 431 Cactus II Pipeline LLC Crude Oil Pipeline 65% 789 738 Capline Pipeline Company LLC Crude Oil Pipeline (2) 54% 503 484 Diamond Pipeline LLC Crude Oil Pipeline 50% 479 476 Eagle Ford Pipeline LLC Crude Oil Pipeline 50% 375 382 Eagle Ford Terminals Corpus Christi LLC (“Eagle Ford Terminals”) Crude Oil Terminal and Dock 50% 122 126 Red Oak Pipeline LLC (“Red Oak”) Crude Oil Pipeline 50% 35 20 Saddlehorn Pipeline Company, LLC (“Saddlehorn”) Crude Oil Pipeline 30% 198 234 STACK Pipeline LLC Crude Oil Pipeline 50% 114 117 White Cliffs Pipeline, LLC Crude Oil Pipeline 36% 197 196 Wink to Webster Pipeline LLC Crude Oil Pipeline (3) 16% 242 136 Other investments 303 343 Total investments in unconsolidated entities $ 3,781 $ 3,683 (1) Except for Eagle Ford Terminals, which is reported in our Facilities segment, the financial results from the entities are reported in our Transportation segment. (2) The Capline pipeline was taken out of service pending the reversal of the pipeline system. (3) Asset is currently under construction and has not yet been placed in service. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt consisted of the following (in millions): June 30, December 31, SHORT-TERM DEBT PAA commercial paper notes, bearing a weighted-average interest rate of 2.2% (1) $ — $ 93 PAA senior secured hedged inventory facility, bearing a weighted-average interest rate of 2.7% (1) — 325 PAA senior notes: 5.00% senior notes due February 2021 600 — Other 129 86 Total short-term debt 729 504 LONG-TERM DEBT PAA senior notes, net of unamortized discounts and debt issuance costs of $66 and $61, respectively (2) 9,067 8,939 PAA GO Zone term loans, net of debt issuance costs of $1 and $1, respectively, bearing a weighted-average interest rate of 1.3% and 2.6%, respectively 199 199 Other 127 49 Total long-term debt 9,393 9,187 Total debt (3) $ 10,122 $ 9,691 (1) We classified these PAA commercial paper notes and credit facility borrowings as short-term as of December 31, 2019, as these notes and borrowings were primarily designated as working capital borrowings, were required to be repaid within one year and were primarily for hedged NGL and crude oil inventory and NYMEX and ICE margin deposits. (2) During the six months ended June 30, 2020, PAA repurchased $17 million of its outstanding senior notes on the open market and recognized a gain of $3 million on these transactions, which is included in “Other income/(expense), net” on our Condensed Consolidated Statement of Operations. |
Partners' Capital and Distrib_2
Partners' Capital and Distributions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Partners' Capital and Distributions | |
Schedule of activity for preferred units and common units | The following tables present 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, 2019 182,138,592 65,785,702 549,538,139 Conversion of AAP Management Units (1) — 559,768 — Exchange Right exercises (1) 2,101,487 (2,101,487) — Redemption Right exercises (1) — (1,206,599) 1,206,599 Other — — 24,431 Outstanding at March 31, 2020 184,240,079 63,037,384 550,769,169 Conversion of AAP Management Units (1) — 35,349 — Redemption Right exercises (1) — (40,679) 40,679 Other 20,099 — 27,292 Outstanding at June 30, 2020 184,260,178 63,032,054 550,837,140 Class A Shares Class B Shares Class C Shares Outstanding at December 31, 2018 159,485,588 119,604,338 516,938,280 Redemption Right exercises (1) — (91,672) 91,672 Other — — 226,814 Outstanding at March 31, 2019 159,485,588 119,512,666 517,256,766 Exchange Right exercises (1) 7,331,745 (7,331,745) — Redemption Right exercises (1) — (12,193,771) 12,193,771 Other — — 603,456 Outstanding at June 30, 2019 166,817,333 99,987,150 530,053,993 (1) See Note 12 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for information regarding conversions of AAP Management Units, Exchange Rights and Redemption Rights. |
AAP | |
Partners' Capital and Distributions | |
Schedule of distributions | The following table details the distributions to AAP’s partners paid during or pertaining to the first six months of 2020 from distributions received from PAA (in millions): Distribution to AAP ’ s Partners Distribution Payment Date Noncontrolling Interests PAGP Total Cash Distributions August 14, 2020 (1) $ 12 $ 33 $ 45 May 15, 2020 $ 12 $ 33 $ 45 February 14, 2020 $ 24 $ 66 $ 90 (1) Payable to unitholders of record at the close of business on July 31, 2020 for the period from April 1, 2020 through June 30, 2020. |
Class A Shares | |
Partners' Capital and Distributions | |
Schedule of distributions | The following table details distributions to our Class A shareholders paid during or pertaining to the first six months of 2020 (in millions, except per share data): Distribution Payment Date Distributions to Distributions per August 14, 2020 (1) $ 33 $ 0.18 May 15, 2020 $ 33 $ 0.18 February 14, 2020 $ 66 $ 0.36 (1) Payable to shareholders of record at the close of business on July 31, 2020 for the period from April 1, 2020 through June 30, 2020. |
Series A Preferred Units | PAA | |
Partners' Capital and Distributions | |
Schedule of distributions | The following table details distributions to PAA’s Series A preferred unitholders paid during or pertaining to the first six months of 2020 (in millions, except per unit data): Series A Preferred Unitholders Distribution Payment Date Cash Distribution Distribution per Unit August 14, 2020 (1) $ 37 $ 0.525 May 15, 2020 $ 37 $ 0.525 February 14, 2020 $ 37 $ 0.525 (1) Payable to unitholders of record at the close of business on July 31, 2020 for the period from April 1, 2020 through June 30, 2020. At June 30, 2020, such amount was accrued as distributions payable in “Other current liabilities” on our Condensed Consolidated Balance Sheet. |
Series B Preferred Units | PAA | |
Partners' Capital and Distributions | |
Schedule of distributions | The following table details distributions paid to PAA’s Series B preferred unitholders during the first six months of 2020 (in millions, except per unit data): Series B Preferred Unitholders Distribution Payment Date Cash Distribution Distribution per Unit May 15, 2020 $ 24.5 $ 30.625 |
Common Units | PAA | |
Partners' Capital and Distributions | |
Schedule of distributions | The following table details distributions to PAA’s common unitholders paid during or pertaining to the first six months of 2020 (in millions, except per unit data): Distributions Cash Distribution per Common Unit Common Unitholders Total Cash Distribution Distribution Payment Date Public AAP August 14, 2020 (1) $ 86 $ 45 $ 131 $ 0.18 May 15, 2020 $ 86 $ 45 $ 131 $ 0.18 February 14, 2020 $ 172 $ 90 $ 262 $ 0.36 (1) Payable to unitholders of record at the close of business on July 31, 2020 for the period from April 1, 2020 through June 30, 2020. |
Derivatives and Risk Manageme_2
Derivatives and Risk Management Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivatives and Risk Management Activities | |
Impact of derivatives recognized in earnings | A summary of the impact of our commodity derivatives recognized in earnings as follows (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Supply and Logistics segment revenues $ (134) $ 56 $ 15 $ 231 Field operating costs (1) 4 — 11 Net gain/(loss) from commodity derivative activity $ (135) $ 60 $ 15 $ 242 |
Schedule of net broker receivable/(payable) | The following table provides the components of our net broker receivable/(payable) (in millions): June 30, December 31, Initial margin $ 140 $ 73 Variation margin posted/(returned) (20) (45) Letters of credit (75) (73) Net broker receivable/(payable) $ 45 $ (45) |
Summary of derivative assets and liabilities on Condensed Consolidated Balance Sheets on a gross basis | 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, 2020 December 31, 2019 Effect of Collateral Netting Net Carrying Value Presented on the Balance Sheet Effect of Collateral Netting Net Carrying Value Presented on the Balance Sheet Commodity Derivatives Commodity Derivatives Assets Liabilities Assets Liabilities Derivative Assets Other current assets $ 171 $ (83) $ 39 $ 127 $ 179 $ (37) $ (45) $ 97 Other long-term assets, net 64 (3) — 61 24 — — 24 Derivative Liabilities Other current liabilities 118 (149) 6 (25) 32 (56) — (24) Other long-term liabilities and deferred credits 16 (51) — (35) — (12) — (12) Total $ 369 $ (286) $ 45 $ 128 $ 235 $ (105) $ (45) $ 85 |
Net unrealized gain/(loss) recognized in AOCI for derivatives | The following table summarizes the net unrealized gain/(loss) recognized in AOCI for derivatives (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Interest rate derivatives, net $ 19 $ (35) $ (61) $ (58) |
Schedule of derivative financial assets and liabilities accounted for at fair value on a recurring basis, by level within the fair value hierarchy | The following table sets forth by level within the fair value hierarchy our financial assets and liabilities that were accounted for at fair value on a recurring basis (in millions): Fair Value as of June 30, 2020 Fair Value as of December 31, 2019 Recurring Fair Value Measures (1) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Commodity derivatives $ 24 $ 84 $ (25) $ 83 $ 42 $ 105 $ (17) $ 130 Interest rate derivatives — (5) — (5) — (44) — (44) Foreign currency derivatives — (3) — (3) — 1 — 1 Preferred Distribution Rate Reset Option — — (17) (17) — — (34) (34) Total net derivative asset/(liability) $ 24 $ 76 $ (42) $ 58 $ 42 $ 62 $ (51) $ 53 (1) Derivative assets and liabilities are presented above on a net basis but do not include related cash margin deposits. |
Reconciliation of changes in fair value of derivatives classified as Level 3 | The following table provides a reconciliation of changes in fair value of the beginning and ending balances for our derivatives classified as Level 3 (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Beginning Balance $ (61) $ (10) $ (51) $ (24) Net gains/(losses) for the period included in earnings 18 (5) 8 18 Settlements 1 (3) 1 (11) Derivatives entered into during the period — (8) — (9) Ending Balance $ (42) $ (26) $ (42) $ (26) Change in unrealized gains/(losses) included in earnings relating to Level 3 derivatives still held at the end of the period $ 18 $ (13) $ 8 $ 9 |
Commodity Derivatives | |
Derivatives and Risk Management Activities | |
Summary of open derivative positions | The following table summarizes our open derivative positions utilized to hedge the price risk associated with anticipated purchases and sales related to our natural gas processing and NGL fractionation activities as of June 30, 2020: Notional Volume (Short)/Long Remaining Tenor Natural gas purchases 23.8 Bcf December 2020 Propane sales (4.1) MMbls December 2020 Butane sales (1.3) MMbls December 2020 Condensate sales (WTI position) (0.5) MMbls December 2020 Fuel gas requirements (1) 17.4 Bcf December 2022 Power supply requirements (1) 0.9 TWh December 2022 (1) Positions to hedge a portion of our power supply and fuel gas requirements at our Canadian natural gas processing and fractionation plants. |
Interest Rate Derivatives | |
Derivatives and Risk Management Activities | |
Schedule of terms of outstanding interest rate derivatives | The following table summarizes the terms of our outstanding interest rate derivatives as of June 30, 2020 (notional amounts in millions): Hedged Transaction Number and Types of Notional Expected Average Rate Accounting Anticipated interest payments 8 forward starting swaps (30-year) $ 200 6/15/2023 1.38 % Cash flow hedge Anticipated interest payments 8 forward starting swaps (30-year) $ 200 6/14/2024 0.73 % Cash flow hedge |
Foreign Currency Derivatives | |
Derivatives and Risk Management Activities | |
Summary of open derivative positions | The following table summarizes our open forward exchange contracts as of June 30, 2020 (in millions): USD CAD Average Exchange Rate Forward exchange contracts that exchange CAD for USD: 2020 $ 185 $ 252 $1.00 - $1.36 Forward exchange contracts that exchange USD for CAD: 2020 $ 275 $ 371 $1.00 - $1.35 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The impact to our Condensed Consolidated Statements of Operations from these transactions is included below (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Revenues from related parties (1) (2) (3) $ 10 $ 231 $ 33 $ 456 Purchases and related costs from related parties (2) (3) $ 94 $ (14) $ 223 $ 100 (1) A majority of these revenues are included in “Supply and Logistics segment revenues” on our Condensed Consolidated Statements of Operations. (2) Crude oil purchases that are part of inventory exchanges under buy/sell transactions are netted with the related sales, with any margin presented in “Purchases and related costs” in our Condensed Consolidated Statements of Operations. (3) Revenues and purchases and related costs from related parties for 2019 include transactions with The Energy & Minerals Group (“EMG”) and its subsidiaries through May 2019 and Occidental Petroleum Corporation (“Oxy”) and its subsidiaries through September 2019. Following transactions reducing EMG and Oxy’s ownership interest in AAP in May and September 2019, respectively, EMG and Oxy are no longer recognized as principal owners. See Note 17 to our 2019 Annual Report on Form 10-K for additional information. Our receivable and payable amounts with these related parties as reflected on our Condensed Consolidated Balance Sheets were as follows (in millions): June 30, December 31, Trade accounts receivable and other receivables, net from related parties (1) $ 131 $ 134 Trade accounts payable to related parties (1) (2) $ 46 $ 102 (1) Includes amounts related to crude oil purchases and sales, transportation services and amounts owed to us or advanced to us related to expansion projects of equity method investees where we serve as construction manager. (2) We have agreements to store and transport crude oil at posted tariff rates on pipelines or at facilities that are owned by equity method investees, in which we own a 50% interest. A portion of our commitment to transport is supported by crude oil buy/sell or other agreements with third parties with commensurate quantities. |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment financial data | The following tables reflect certain financial data for each segment (in millions): Transportation Facilities Supply and Intersegment Adjustment Total Three Months Ended June 30, 2020 Revenues: External customers (1) $ 234 $ 149 $ 2,925 $ (83) $ 3,225 Intersegment (2) 223 127 — 83 433 Total revenues of reportable segments $ 457 $ 276 $ 2,925 $ — $ 3,658 Equity earnings in unconsolidated entities $ 81 $ — $ — $ 81 Segment Adjusted EBITDA $ 346 $ 174 $ 3 $ 523 Maintenance capital $ 31 $ 15 $ 8 $ 54 Three Months Ended June 30, 2019 Revenues: External customers (1) $ 316 $ 151 $ 7,914 $ (128) $ 8,253 Intersegment (2) 243 140 1 128 512 Total revenues of reportable segments $ 559 $ 291 $ 7,915 $ — $ 8,765 Equity earnings in unconsolidated entities $ 83 $ — $ — $ 83 Segment Adjusted EBITDA $ 410 $ 172 $ 200 $ 782 Maintenance capital $ 39 $ 30 $ 3 $ 72 Six Months Ended June 30, 2020 Revenues: External customers (1) $ 532 $ 323 $ 10,833 $ (194) $ 11,494 Intersegment (2) 504 266 1 194 965 Total revenues of reportable segments $ 1,036 $ 589 $ 10,834 $ — $ 12,459 Equity earnings in unconsolidated entities $ 189 $ 2 $ — $ 191 Segment Adjusted EBITDA $ 788 $ 384 $ 144 $ 1,316 Maintenance capital $ 64 $ 29 $ 11 $ 104 Transportation Facilities Supply and Intersegment Adjustment Total Six Months Ended June 30, 2019 Revenues: External customers (1) $ 618 $ 307 $ 15,936 $ (233) $ 16,628 Intersegment (2) 497 282 2 233 1,014 Total revenues of reportable segments $ 1,115 $ 589 $ 15,938 $ — $ 17,642 Equity earnings in unconsolidated entities $ 172 $ — $ — $ 172 Segment Adjusted EBITDA $ 809 $ 356 $ 478 $ 1,643 Maintenance capital $ 67 $ 46 $ 5 $ 118 As of June 30, 2020 Total assets $ 14,599 $ 6,314 $ 4,576 $ 25,489 As of December 31, 2019 Total assets $ 15,549 $ 7,593 $ 6,827 $ 29,969 (1) Transportation revenues from External customers include certain inventory exchanges with our customers where our Supply and Logistics segment has transacted the inventory exchange and serves as the shipper on our pipeline systems. See Note 3 to our Consolidated Financial Statements included in Part IV of our 2019 Annual Report on Form 10-K for a discussion of our related accounting policy. We have included an estimate of the revenues from these inventory exchanges in our Transportation segment revenues from External customers presented above and adjusted those revenues out such that Total revenues from External customers reconciles to our Condensed Consolidated Statements of Operations. This presentation is consistent with the information provided to our CODM. (2) Segment revenues include intersegment amounts that are eliminated in Purchases and related costs and Field operating costs in our Condensed Consolidated Statements of Operations. 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. |
Reconciliation of Segment Adjusted EBITDA to Net income attributable to PAGP | The following table reconciles Segment Adjusted EBITDA to Net income/(loss) attributable to PAGP (in millions): Three Months Ended Six Months Ended 2020 2019 2020 2019 Segment Adjusted EBITDA $ 523 $ 782 $ 1,316 $ 1,643 Adjustments (1) : Depreciation and amortization of unconsolidated entities (2) (16) (14) (33) (27) Gains/(losses) from derivative activities, net of inventory valuation adjustments (3) (90) (44) (121) 30 Long-term inventory costing adjustments (4) 51 (25) (64) (4) Deficiencies under minimum volume commitments, net (5) (7) (1) (6) 7 Equity-indexed compensation expense (6) (5) (4) (8) (7) Net gain/(loss) on foreign currency revaluation (7) — (7) 13 (12) Line 901 incident (8) — (10) — (10) Significant acquisition-related expenses (9) — — (3) — Unallocated general and administrative expenses (2) (1) (3) (3) Depreciation and amortization (166) (148) (335) (284) Gains/(losses) on asset sales and asset impairments, net 1 4 (618) — Goodwill impairment losses — — (2,515) — Gain on/(impairment of) investments in unconsolidated entities, net (69) — (91) 267 Interest expense, net (108) (103) (215) (203) Other income/(expense), net 18 (6) (13) 18 Income/(loss) before tax 130 423 (2,696) 1,415 Income tax (expense)/benefit 7 3 140 (75) Net income/(loss) 137 426 (2,556) 1,340 Net (income)/loss attributable to noncontrolling interests (121) (360) 1,991 (1,127) Net income/(loss) attributable to PAGP $ 16 $ 66 $ (565) $ 213 (1) Represents adjustments utilized by our CODM in the evaluation of segment results. (2) Includes our proportionate share of the depreciation and amortization 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 the earnings that were recognized during the period related to derivative instruments for which the identified underlying transaction does not occur in the current period and exclude the related gains and losses in determining Segment Adjusted EBITDA. In addition, we exclude gains and losses on derivatives that are related to investing activities, such as the purchase of linefill. 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 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 our 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, 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) Includes equity-indexed compensation expense associated with awards that will or may be settled in PAA common units. (7) Includes gains and losses realized on the settlement of foreign currency transactions as well as the revaluation of monetary assets and liabilities denominated in a foreign currency. (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 12 for additional information regarding the Line 901 incident. (9) Includes acquisition-related expenses associated with the Felix Midstream LLC acquisition. See Note 14 for additional discussion. An adjustment for these non-recurring expenses is included in the calculation of Segment Adjusted EBITDA for the three and six months ended June 30, 2020 as our CODM does not view such expenses as integral to understanding our core segment operating performance. |
Organization and Basis of Con_2
Organization and Basis of Consolidation and Presentation - Additional Information (Details) shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2020USD ($)segmentshares | Dec. 31, 2019USD ($) | |
Organization and basis of presentation | ||
Operating segments number | segment | 3 | |
Deferred tax asset | $ | $ 1,442 | $ 1,280 |
PAA | AAP | ||
Organization and basis of presentation | ||
Ownership interest | 31.00% | |
Ownership interest | 248.4 | |
GP LLC | ||
Organization and basis of presentation | ||
Ownership interest | 100.00% | |
AAP | ||
Organization and basis of presentation | ||
Ownership interest | 75.00% | |
Ownership interest | 183.3 | |
AAP | GP LLC | ||
Organization and basis of presentation | ||
Ownership interest | 1 | |
Consolidated Entity Excluding VIE | ||
Organization and basis of presentation | ||
Deferred tax asset | $ | $ 1,442 | $ 1,280 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Cash and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 42 | $ 47 | ||
Restricted cash | 64 | 37 | ||
Total cash and cash equivalents and restricted cash | $ 106 | $ 84 | $ 470 | $ 69 |
Revenues and Accounts Receiva_3
Revenues and Accounts Receivable - Disaggregation of Revenue (Details) - Operating Segments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 3,772 | $ 8,698 | $ 12,401 | $ 17,368 |
Supply and Logistics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,055 | 7,864 | 10,806 | 15,710 |
Supply and Logistics | Crude oil transactions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 2,928 | 7,595 | 10,251 | 14,532 |
Supply and Logistics | NGL and other transactions | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 127 | 269 | 555 | 1,178 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 453 | 551 | 1,026 | 1,095 |
Transportation | Total tariff activities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 431 | 516 | 969 | 1,021 |
Transportation | Crude oil pipelines | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 405 | 494 | 917 | 971 |
Transportation | NGL pipelines | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 26 | 22 | 52 | 50 |
Transportation | Trucking | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 22 | 35 | 57 | 74 |
Facilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 264 | 283 | 569 | 563 |
Facilities | Crude oil, NGL and other terminalling and storage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 176 | 177 | 357 | 349 |
Facilities | NGL and natural gas processing and fractionation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 80 | 87 | 190 | 175 |
Facilities | Rail load / unload | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | $ 8 | $ 19 | $ 22 | $ 39 |
Revenues and Accounts Receiva_4
Revenues and Accounts Receivable - Segment Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 3,225 | $ 8,253 | $ 11,494 | $ 16,628 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 151 | 188 | 338 | 385 |
Facilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 149 | 151 | 323 | 307 |
Supply and Logistics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 2,925 | 7,914 | 10,833 | 15,936 |
Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,772 | 8,698 | 12,401 | 17,368 |
Total revenues | 3,658 | 8,765 | 12,459 | 17,642 |
Operating Segments | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 453 | 551 | 1,026 | 1,095 |
Total revenues | 457 | 559 | 1,036 | 1,115 |
Operating Segments | Facilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 264 | 283 | 569 | 563 |
Total revenues | 276 | 291 | 589 | 589 |
Operating Segments | Supply and Logistics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues from contracts with customers | 3,055 | 7,864 | 10,806 | 15,710 |
Total revenues | 2,925 | 7,915 | 10,834 | 15,938 |
Intersegment | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (433) | (512) | (965) | (1,014) |
Intersegment | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (223) | (243) | (504) | (497) |
Intersegment | Facilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (127) | (140) | (266) | (282) |
Intersegment | Supply and Logistics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (1) | (1) | (2) | |
Other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | (114) | 67 | 58 | 274 |
Other | Operating Segments | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 4 | 8 | 10 | 20 |
Other | Operating Segments | Facilities | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 12 | 8 | 20 | 26 |
Other | Operating Segments | Supply and Logistics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ (130) | $ 51 | $ 28 | $ 228 |
Revenues and Accounts Receiva_5
Revenues and Accounts Receivable - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Minimum Volume Commitments [Line Items] | ||
Counterparty deficiencies billed | $ 302 | $ 354 |
General payment terms | 30 days | |
Substantially all trade accounts receivable, net, maximum age of balances past their scheduled invoice date | 30 days | 30 days |
Minimum Volume Commitments | ||
Minimum Volume Commitments [Line Items] | ||
Counterparty deficiencies | $ 50 | $ 42 |
Counterparty deficiencies billed | 19 | 22 |
Counterparty deficiencies unbilled and uncollected | $ 31 | $ 20 |
Revenues and Accounts Receiva_6
Revenues and Accounts Receivable - Contract Balances (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Beginning balance | $ 354 |
Amounts recognized as revenue | (245) |
Additions | 193 |
Ending balance | 302 |
Crude Oil Sales Agreements Entered Into In Conjunction With Storage Arrangements And Future Inventory Exchanges Member | |
Change in Contract with Customer, Liability [Roll Forward] | |
Additions | $ 155 |
Revenues and Accounts Receiva_7
Revenues and Accounts Receivable - Performance Obligations (Details) $ in Millions | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 294 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | 511 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | 442 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | 375 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | 307 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | 996 |
Pipeline revenues supported by minimum volume commitments and capacity agreements | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 78 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Pipeline revenues supported by minimum volume commitments and capacity agreements | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 167 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Pipeline revenues supported by minimum volume commitments and capacity agreements | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 166 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Pipeline revenues supported by minimum volume commitments and capacity agreements | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 164 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Pipeline revenues supported by minimum volume commitments and capacity agreements | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 143 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Pipeline revenues supported by minimum volume commitments and capacity agreements | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 580 |
Remaining performance obligation, expected timing of satisfaction, period | |
Storage, terminalling and throughput agreement revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 216 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Storage, terminalling and throughput agreement revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 344 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Storage, terminalling and throughput agreement revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 276 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Storage, terminalling and throughput agreement revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 211 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Storage, terminalling and throughput agreement revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 164 |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Storage, terminalling and throughput agreement revenues | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Remaining performance obligation | $ 416 |
Remaining performance obligation, expected timing of satisfaction, period |
Revenues and Accounts Receiva_8
Revenues and Accounts Receivable - Trade Accounts Receivable and Other Receivables (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Trade accounts receivable arising from revenues from contracts with customers | $ 1,588 | $ 3,381 |
Other trade accounts receivables and other receivables | 1,891 | 3,576 |
Impact due to contractual rights of offset with counterparties | (1,560) | (3,343) |
Trade accounts receivable and other receivables, net | $ 1,919 | $ 3,614 |
Net Income_(Loss) Per Class A_2
Net Income/(Loss) Per Class A Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic Net Income/(Loss) per Class A Share | ||||
Net income/(loss) attributable to PAGP | $ 16 | $ 66 | $ (565) | $ 213 |
Diluted Net Income/(Loss) per Class A Share | ||||
Net income/(loss) attributable to PAGP | 16 | 66 | (565) | 213 |
Incremental net income attributable to PAGP resulting from assumed exchange of AAP Management Units | 0 | 0 | 0 | 0 |
Net income/(loss) attributable to PAGP including incremental net income from assumed exchange of AAP Management Units | $ 16 | $ 66 | $ (565) | $ 213 |
AAP Units | ||||
Net Income Per Class A Share | ||||
Antidilutive securities excluded from computation of earnings per share (per share) | 63,000 | 112,000 | 64,000 | 116,000 |
AAP Management Units | ||||
Net Income Per Class A Share | ||||
Antidilutive securities excluded from computation of earnings per share (per share) | 1,000 | 1,000 | 2,000 | |
Class A Shares | ||||
Basic Net Income/(Loss) per Class A Share | ||||
Basic weighted average Class A shares outstanding (in shares) | 184,000 | 162,000 | 183,000 | 161,000 |
Basic net income/(loss) per Class A share (in dollars per share) | $ 0.09 | $ 0.41 | $ (3.08) | $ 1.32 |
Diluted Net Income/(Loss) per Class A Share | ||||
Dilutive shares resulting from assumed exchange of AAP Management Units (in shares) | 2,000 | |||
Diluted weighted average Class A shares outstanding (in shares) | 184,000 | 164,000 | 183,000 | 161,000 |
Diluted net income/(loss) per Class A share (in dollars per share) | $ 0.09 | $ 0.40 | $ (3.08) | $ 1.32 |
Maximum | ||||
Net Income Per Class A Share | ||||
Dilutive LTIP awards (shares) | 100 | 100 |
Inventory, Linefill and Base _3
Inventory, Linefill and Base Gas and Long-term Inventory (Details) bbl in Thousands, Mcf in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($)$ / bbl$ / McfbblMcf | Dec. 31, 2019USD ($)$ / bbl$ / McfbblMcf | |
Inventory by category | |||
Inventory | $ 662 | $ 604 | |
Linefill and base gas | 962 | 981 | |
Long-term inventory | 125 | 182 | |
Total | 1,749 | $ 1,767 | |
Charge related to the write-down of inventory | $ 232 | $ 232 | |
Charge related to the write-down of inventory, long-term inventory | $ 40 | ||
Crude oil | |||
Inventory by category | |||
Inventory, Volumes (in barrels or in Mcf) | bbl | 20,306 | 8,613 | |
Linefill and base gas, Volumes (in barrels or in Mcf) | bbl | 14,491 | 14,316 | |
Long-term inventory, Volumes (in barrels or in Mcf) | bbl | 2,747 | 2,598 | |
Inventory | $ 512 | $ 450 | |
Linefill and base gas | 810 | 826 | |
Long-term inventory | $ 104 | $ 152 | |
Inventory (Price/Unit of measure) | $ / bbl | 25.21 | 52.25 | |
Linefill and base gas (Price/Unit of measure) | $ / bbl | 55.90 | 57.70 | |
Long-term inventory (Price/Unit of measure) | $ / bbl | 37.86 | 58.51 | |
NGL | |||
Inventory by category | |||
Inventory, Volumes (in barrels or in Mcf) | bbl | 10,923 | 7,574 | |
Linefill and base gas, Volumes (in barrels or in Mcf) | bbl | 1,645 | 1,701 | |
Long-term inventory, Volumes (in barrels or in Mcf) | bbl | 1,579 | 1,707 | |
Inventory | $ 140 | $ 142 | |
Linefill and base gas | 42 | 47 | |
Long-term inventory | $ 21 | $ 30 | |
Inventory (Price/Unit of measure) | $ / bbl | 12.82 | 18.75 | |
Linefill and base gas (Price/Unit of measure) | $ / bbl | 25.53 | 27.63 | |
Long-term inventory (Price/Unit of measure) | $ / bbl | 13.30 | 17.57 | |
Natural gas | |||
Inventory by category | |||
Linefill and base gas, Volumes (in barrels or in Mcf) | Mcf | 25,576 | 24,976 | |
Linefill and base gas | $ 110 | $ 108 | |
Linefill and base gas (Price/Unit of measure) | $ / Mcf | 4.30 | 4.32 | |
Other | |||
Inventory by category | |||
Inventory | $ 10 | $ 12 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | |
Changes in goodwill | |||
Beginning Balance | $ 2,540 | $ 2,540 | |
Acquistions | 2 | ||
Foreign currency translation adjustments | (18) | ||
Goodwill, gross | $ 2,524 | 2,524 | |
Impairments | 0 | (2,515) | |
Foreign currency translation adjustment, accumulated impairment | (9) | ||
Accumulated impairment losses | (2,524) | (2,524) | |
Ending Balance | 0 | 0 | |
Level 3 | Valuation Technique, Discounted Cash Flow | |||
Goodwill | |||
Goodwill impairment analysis, projected cash flows, period | 6 years | ||
Level 3 | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | |||
Goodwill | |||
Goodwill impairment analysis, discount rate, cost of capital, theoretical market participant | 14.00% | ||
Operating Segments | Transportation | |||
Changes in goodwill | |||
Beginning Balance | $ 1,052 | 1,052 | |
Acquistions | 2 | ||
Foreign currency translation adjustments | (11) | ||
Goodwill, gross | 1,043 | 1,043 | |
Impairments | (1,038) | ||
Foreign currency translation adjustment, accumulated impairment | (5) | ||
Accumulated impairment losses | (1,043) | (1,043) | |
Ending Balance | 0 | 0 | |
Operating Segments | Facilities | |||
Changes in goodwill | |||
Beginning Balance | 982 | 982 | |
Foreign currency translation adjustments | (4) | ||
Goodwill, gross | 978 | 978 | |
Impairments | (975) | ||
Foreign currency translation adjustment, accumulated impairment | (3) | ||
Accumulated impairment losses | (978) | (978) | |
Ending Balance | 0 | 0 | |
Operating Segments | Supply and Logistics | |||
Changes in goodwill | |||
Beginning Balance | $ 506 | 506 | |
Foreign currency translation adjustments | (3) | ||
Goodwill, gross | 503 | 503 | |
Impairments | (502) | ||
Foreign currency translation adjustment, accumulated impairment | (1) | ||
Accumulated impairment losses | (503) | (503) | |
Ending Balance | $ 0 | $ 0 |
Investments in Unconsolidated_3
Investments in Unconsolidated Entities (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Feb. 29, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Investments in Unconsolidated Entities | ||||
Investments in unconsolidated entities | $ 3,781 | $ 3,781 | $ 3,683 | |
BridgeTex Pipeline Company, LLC | ||||
Investments in Unconsolidated Entities | ||||
Ownership interest in unconsolidated entity | 20.00% | 20.00% | ||
Investments in unconsolidated entities | $ 424 | $ 424 | 431 | |
Cactus II Pipeline LLC | ||||
Investments in Unconsolidated Entities | ||||
Ownership interest in unconsolidated entity | 65.00% | 65.00% | ||
Investments in unconsolidated entities | $ 789 | $ 789 | 738 | |
Capline Pipeline Company LLC | ||||
Investments in Unconsolidated Entities | ||||
Ownership interest in unconsolidated entity | 54.00% | 54.00% | ||
Investments in unconsolidated entities | $ 503 | $ 503 | 484 | |
Diamond Pipeline LLC | ||||
Investments in Unconsolidated Entities | ||||
Ownership interest in unconsolidated entity | 50.00% | 50.00% | ||
Investments in unconsolidated entities | $ 479 | $ 479 | 476 | |
Eagle Ford Pipeline LLC | ||||
Investments in Unconsolidated Entities | ||||
Ownership interest in unconsolidated entity | 50.00% | 50.00% | ||
Investments in unconsolidated entities | $ 375 | $ 375 | 382 | |
Eagle Ford Terminals Corpus Christi LLC | ||||
Investments in Unconsolidated Entities | ||||
Ownership interest in unconsolidated entity | 50.00% | 50.00% | ||
Investments in unconsolidated entities | $ 122 | $ 122 | 126 | |
Red Oak Pipeline LLC | ||||
Investments in Unconsolidated Entities | ||||
Ownership interest in unconsolidated entity | 50.00% | 50.00% | ||
Investments in unconsolidated entities | $ 35 | $ 35 | 20 | |
Saddlehorn Pipeline Company, LLC | ||||
Investments in Unconsolidated Entities | ||||
Ownership interest in unconsolidated entity | 30.00% | 30.00% | 30.00% | |
Investments in unconsolidated entities | $ 198 | $ 198 | 234 | |
Ownership percentage sold | 10.00% | |||
Proceeds from sale of interest in unconsolidated entity | $ 78 | |||
STACK Pipeline LLC | ||||
Investments in Unconsolidated Entities | ||||
Ownership interest in unconsolidated entity | 50.00% | 50.00% | ||
Investments in unconsolidated entities | $ 114 | $ 114 | 117 | |
White Cliffs Pipeline, LLC | ||||
Investments in Unconsolidated Entities | ||||
Ownership interest in unconsolidated entity | 36.00% | 36.00% | ||
Investments in unconsolidated entities | $ 197 | $ 197 | 196 | |
Wink to Webster Pipeline LLC | ||||
Investments in Unconsolidated Entities | ||||
Ownership interest in unconsolidated entity | 16.00% | 16.00% | ||
Investments in unconsolidated entities | $ 242 | $ 242 | 136 | |
Other investments | ||||
Investments in Unconsolidated Entities | ||||
Investments in unconsolidated entities | 303 | 303 | $ 343 | |
Gain on/(impairment of) investments in unconsolidated entities, net | ||||
Investments in Unconsolidated Entities | ||||
Write down of investments | $ 69 | $ 112 | ||
Gain on/(impairment of) investments in unconsolidated entities, net | Saddlehorn Pipeline Company, LLC | ||||
Investments in Unconsolidated Entities | ||||
Gain on sale of investment in unconsolidated entity | $ 21 |
Debt - Components (Details)
Debt - Components (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Short-term debt: | ||
Total short-term debt | $ 729 | $ 504 |
Long-term debt: | ||
Senior notes, net | 9,067 | 8,939 |
Other long-term debt, net | 326 | 248 |
Total long-term debt | 9,393 | 9,187 |
Total debt | 10,122 | 9,691 |
Senior notes | ||
Long-term debt: | ||
Senior notes, net | 9,067 | 8,939 |
Unamortized discounts and debt issuance costs | 66 | 61 |
Debt repurchase amount | 17 | |
Debt instrument face value | 9,700 | 9,000 |
Senior notes | Other income/(expense), net | ||
Long-term debt: | ||
Gain on repurchase of debt instrument | 3 | |
Other | ||
Long-term debt: | ||
Other long-term debt, net | 127 | 49 |
Level 2 | Senior notes | ||
Long-term debt: | ||
Debt instrument fair value | 9,700 | 9,300 |
Other | ||
Short-term debt: | ||
Total short-term debt | 129 | 86 |
Commercial Paper | Line of Credit | ||
Short-term debt: | ||
Short-term debt | $ 93 | |
Weighted average interest rate, short-term (as a percentage) | 2.20% | |
Senior Secured Hedged Inventory Facility | Line of Credit | ||
Short-term debt: | ||
Short-term debt | $ 325 | |
Weighted average interest rate, short-term (as a percentage) | 2.70% | |
5.00% senior notes due February 2021 | Senior notes | ||
Short-term debt: | ||
Short-term debt | $ 600 | |
Stated percentage | 5.00% | |
GO Zone term loans | Term loan | ||
Long-term debt: | ||
Other long-term debt, net | $ 199 | $ 199 |
Debt issuance costs | $ 1 | $ 1 |
Weighted average interest rate, long-term | 1.30% | 2.60% |
Debt - Letters of Credit, Borro
Debt - Letters of Credit, Borrowings and Repayments (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Debt | |||
Outstanding letters of credit | $ 112 | $ 157 | |
Senior notes | |||
Debt | |||
Debt instrument face value | 9,700 | $ 9,000 | |
Senior Notes Due In September 2030 At 3.80 Percent | Senior notes | |||
Debt | |||
Debt instrument face value | $ 750 | ||
Stated percentage | 3.80% | ||
Public offering price | 99.794% | ||
Credit facilities and PAA commercial paper program | |||
Debt | |||
Total borrowings | $ 12,600 | $ 4,100 | |
Total repayments | $ 13,000 | $ 3,800 |
Partners' Capital and Distrib_3
Partners' Capital and Distributions - Exchange Rights and Shares Activity (Details) - shares | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Class A Shares | ||||
Activity for Class A shares, Class B shares and Class C shares | ||||
Balance, beginning of period (shares) | 184,240,079 | 182,138,592 | 159,485,588 | 159,485,588 |
Exchange Right exercises (shares) | 2,101,487 | 7,331,745 | ||
Other (shares) | 20,099 | |||
Balance, end of period (shares) | 184,260,178 | 184,240,079 | 166,817,333 | 159,485,588 |
Class B Shares | ||||
Activity for Class A shares, Class B shares and Class C shares | ||||
Balance, beginning of period (shares) | 63,037,384 | 65,785,702 | 119,512,666 | 119,604,338 |
Conversion of AAP Management Units (shares) | 35,349 | 559,768 | ||
Exchange Right exercises (shares) | (2,101,487) | (7,331,745) | ||
Redemption Right exercises (shares) | (40,679) | (1,206,599) | (12,193,771) | (91,672) |
Balance, end of period (shares) | 63,032,054 | 63,037,384 | 99,987,150 | 119,512,666 |
Class C Shares | ||||
Activity for Class A shares, Class B shares and Class C shares | ||||
Balance, beginning of period (shares) | 550,769,169 | 549,538,139 | 517,256,766 | 516,938,280 |
Redemption Right exercises (shares) | 40,679 | 1,206,599 | 12,193,771 | 91,672 |
Other (shares) | 27,292 | 24,431 | 603,456 | 226,814 |
Balance, end of period (shares) | 550,837,140 | 550,769,169 | 530,053,993 | 517,256,766 |
Partners' Capital and Distrib_4
Partners' Capital and Distributions - Distributions, Class A (Details) - Cash Distribution - Class A Shares - USD ($) $ / shares in Units, $ in Millions | Aug. 14, 2020 | May 15, 2020 | Feb. 14, 2020 |
Partners' Capital and Distributions | |||
Distributions to Class A shareholders | $ 33 | $ 66 | |
Distribution per Class A share, paid (usd per share) | $ 0.18 | $ 0.36 | |
Forecast | |||
Partners' Capital and Distributions | |||
Distributions to Class A shareholders | $ 33 | ||
Distribution per Class A share, paid (usd per share) | $ 0.18 |
Partners' Capital and Distrib_5
Partners' Capital and Distributions - Noncontrolling Interests in Subsidiaries (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Partners' Capital and Distributions | ||||
Contribution from noncontrolling interests | $ 2 | $ 10 | ||
Distributions | 184 | $ 311 | 496 | $ 579 |
Noncontrolling Interests | ||||
Partners' Capital and Distributions | ||||
Contribution from noncontrolling interests | 2 | 10 | ||
Distributions | $ 151 | $ 254 | $ 397 | $ 474 |
AAP | ||||
Partners' Capital and Distributions | ||||
Noncontrolling interests in subsidiaries (percent) | 25.00% | 25.00% | ||
Red River LLC | ||||
Partners' Capital and Distributions | ||||
Noncontrolling interests in subsidiaries (percent) | 33.00% | 33.00% | ||
Common Units and Series A Preferred Units | PAA | ||||
Partners' Capital and Distributions | ||||
Noncontrolling interests in subsidiaries (percent) | 69.00% | 69.00% | ||
Series B Preferred Units | PAA | ||||
Partners' Capital and Distributions | ||||
Noncontrolling interests in subsidiaries (percent) | 100.00% | 100.00% | ||
Red River LLC | Noncontrolling Interests | ||||
Partners' Capital and Distributions | ||||
Contribution from noncontrolling interests | $ 10 | |||
Distributions | $ 4 |
Partners' Capital and Distrib_6
Partners' Capital and Distributions - Subsidiary Distributions (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 14, 2020 | May 15, 2020 | Feb. 14, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Partners' Capital and Distributions | |||||||
Total distributions paid | $ 184 | $ 311 | $ 496 | $ 579 | |||
PAA | Series A Preferred Units | Cash Distribution | |||||||
Partners' Capital and Distributions | |||||||
Preferred unit distribution amount | $ 37 | $ 37 | |||||
Preferred unit distribution amount (in dollars per unit) | $ 0.525 | $ 0.525 | |||||
PAA | Series B Preferred Units | Cash Distribution | |||||||
Partners' Capital and Distributions | |||||||
Preferred unit distribution amount | $ 24.5 | ||||||
Preferred unit distribution amount (in dollars per unit) | $ 30.625 | ||||||
PAA | Common Units | Cash Distribution | |||||||
Partners' Capital and Distributions | |||||||
Total distributions paid | $ 131 | $ 262 | |||||
Distributions per common unit, paid (usd per unit) | $ 0.18 | $ 0.36 | |||||
AAP | Cash Distribution | |||||||
Partners' Capital and Distributions | |||||||
Distributions to noncontrolling interests | $ 12 | $ 24 | |||||
Distributions to PAGP | 33 | 66 | |||||
Total distributions paid | 45 | 90 | |||||
Forecast | PAA | Series A Preferred Units | Cash Distribution | |||||||
Partners' Capital and Distributions | |||||||
Preferred unit distribution amount | $ 37 | ||||||
Preferred unit distribution amount (in dollars per unit) | $ 0.525 | ||||||
Forecast | PAA | Common Units | Cash Distribution | |||||||
Partners' Capital and Distributions | |||||||
Total distributions paid | $ 131 | ||||||
Distributions per common unit, paid (usd per unit) | $ 0.18 | ||||||
Forecast | AAP | Cash Distribution | |||||||
Partners' Capital and Distributions | |||||||
Distributions to noncontrolling interests | $ 12 | ||||||
Distributions to PAGP | 33 | ||||||
Total distributions paid | 45 | ||||||
Public | PAA | Common Units | Cash Distribution | |||||||
Partners' Capital and Distributions | |||||||
Distributions to common unitholders | 86 | 172 | |||||
Public | Forecast | PAA | Common Units | Cash Distribution | |||||||
Partners' Capital and Distributions | |||||||
Distributions to common unitholders | 86 | ||||||
AAP | PAA | Common Units | Cash Distribution | |||||||
Partners' Capital and Distributions | |||||||
Distributions to common unitholders | $ 45 | $ 90 | |||||
AAP | Forecast | PAA | Common Units | Cash Distribution | |||||||
Partners' Capital and Distributions | |||||||
Distributions to common unitholders | $ 45 | ||||||
Other current liabilities | PAA | Series B Preferred Units | |||||||
Partners' Capital and Distributions | |||||||
Amount accrued to distributions payable | 6 | 6 | |||||
Noncontrolling Interests | |||||||
Partners' Capital and Distributions | |||||||
Total distributions paid | $ 151 | $ 254 | 397 | $ 474 | |||
Noncontrolling Interests | Red River LLC | |||||||
Partners' Capital and Distributions | |||||||
Total distributions paid | $ 4 |
Derivatives and Risk Manageme_3
Derivatives and Risk Management Activities - Commodity Price Risk Hedging (Details) bbl in Millions | 6 Months Ended |
Jun. 30, 2020TWhBcfbblMMBbls | |
Net long position associated with crude oil purchases | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels, MMbls or Bcf) | 10.2 |
Net short time spread position hedging anticipated crude oil lease gathering purchases | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels, MMbls or Bcf) | 6.6 |
Net crude oil basis spread position | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels, MMbls or Bcf) | 7.9 |
Net short position related to anticipated net sales of crude oil and NGL inventory | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels, MMbls or Bcf) | 33.2 |
Long natural gas position for natural gas purchases and operational needs | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels, MMbls or Bcf) | Bcf | 23.8 |
Short propane position related to subsequent sale of products | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels, MMbls or Bcf) | MMBbls | 4.1 |
Short butane position related to subsequent sale of products | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels, MMbls or Bcf) | MMBbls | 1.3 |
Short condensate WTI position related to subsequent sale of products | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels, MMbls or Bcf) | MMBbls | 0.5 |
Long fuel gas position for fuel gas requirements | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in barrels, MMbls or Bcf) | Bcf | 17.4 |
Long power position for power supply requirements | |
Commodity Price Risk Hedging: | |
Derivative position notional amount (in Terawatt hours) | TWh | 0.9 |
Derivatives and Risk Manageme_4
Derivatives and Risk Management Activities - Financial Impact (Details) - Derivatives Not Designated as a Hedge - Commodity Derivatives - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Impact of derivative activities recognized in earnings | ||||
Total gain/(loss) on derivatives recognized in net income | $ (135) | $ 60 | $ 15 | $ 242 |
Supply and Logistics segment revenues | ||||
Impact of derivative activities recognized in earnings | ||||
Total gain/(loss) on derivatives recognized in net income | (134) | 56 | $ 15 | 231 |
Field operating costs | ||||
Impact of derivative activities recognized in earnings | ||||
Total gain/(loss) on derivatives recognized in net income | $ (1) | $ 4 | $ 11 |
Derivatives and Risk Manageme_5
Derivatives and Risk Management Activities - Broker Receivable/Payable (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Offsetting Assets, Liabilities [Line Items] | ||
Initial margin | $ 140 | $ 73 |
Variation margin posted/(returned) | (20) | (45) |
Letters of credit | (112) | (157) |
Net broker receivable | 45 | |
Net broker payable | (45) | |
Exchange traded | ||
Offsetting Assets, Liabilities [Line Items] | ||
Letters of credit | $ (75) | $ (73) |
Derivatives and Risk Manageme_6
Derivatives and Risk Management Activities - Offsetting Asset and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative Asset Positions | ||
Effect of Collateral Netting | $ (45) | |
Derivative Liability Positions | ||
Effect of Collateral Netting | $ 45 | |
Commodity Derivatives | ||
Derivative Asset Positions | ||
Effect of Collateral Netting | (45) | |
Derivative Liability Positions | ||
Gross Position - Asset | 369 | 235 |
Gross Position - Liability | (286) | (105) |
Effect of Collateral Netting | 45 | |
Net Carrying Value Presented on the Balance Sheet, Total | 128 | 85 |
Other current assets | Commodity Derivatives | ||
Derivative Asset Positions | ||
Gross Position - Asset | 171 | 179 |
Gross Position - Liability | (83) | (37) |
Effect of Collateral Netting | (45) | |
Net Carrying Value Presented on the Balance Sheet | 127 | 97 |
Derivative Liability Positions | ||
Effect of Collateral Netting | 39 | |
Other long-term assets, net | Commodity Derivatives | ||
Derivative Asset Positions | ||
Gross Position - Asset | 64 | 24 |
Gross Position - Liability | (3) | |
Net Carrying Value Presented on the Balance Sheet | 61 | 24 |
Other current liabilities | Commodity Derivatives | ||
Derivative Liability Positions | ||
Gross Position - Asset | 118 | 32 |
Gross Position - Liability | (149) | (56) |
Effect of Collateral Netting | 6 | |
Net Carrying Value Presented on the Balance Sheet | (25) | (24) |
Other long-term liabilities and deferred credits | Commodity Derivatives | ||
Derivative Liability Positions | ||
Gross Position - Asset | 16 | |
Gross Position - Liability | (51) | (12) |
Net Carrying Value Presented on the Balance Sheet | $ (35) | $ (12) |
Derivatives and Risk Manageme_7
Derivatives and Risk Management Activities - Interest Rate Risk Hedging (Details) - Cash flow hedge $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($)contract | |
8 forward starting interest rate swaps (30-year), 1.38% | |
Interest Rate Risk Hedging | |
Number of interest rate derivatives | contract | 8 |
Term of derivative contract | 30 years |
Notional amount of derivatives | $ | $ 200 |
Average rate locked (percent) | 1.38% |
8 forward starting interest rate swaps (30-year), 0.73% | |
Interest Rate Risk Hedging | |
Number of interest rate derivatives | contract | 8 |
Term of derivative contract | 30 years |
Notional amount of derivatives | $ | $ 200 |
Average rate locked (percent) | 0.73% |
Derivatives and Risk Manageme_8
Derivatives and Risk Management Activities - Net Unrealized Gain/(Loss) Recognized in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Derivative assets and liabilities | |||||
Net loss reclassified to earnings | $ 3 | $ 3 | $ 5 | $ 5 | |
Net loss expected to be reclassified to earnings in the next twelve months | 13 | ||||
Other long-term liabilities and deferred credits | |||||
Derivative assets and liabilities | |||||
Interest rate fair value hedge liability at fair value | 5 | 5 | |||
Other current liabilities | |||||
Derivative assets and liabilities | |||||
Interest rate fair value hedge liability at fair value | $ 44 | ||||
AOCI cash flow hedge | |||||
Derivative assets and liabilities | |||||
Net loss deferred in AOCI | 315 | 315 | |||
Interest Rate Derivatives | |||||
Derivative assets and liabilities | |||||
Net unrealized gain/(loss) recognized in AOCI | $ 19 | $ (35) | $ (61) | $ (58) |
Derivatives and Risk Manageme_9
Derivatives and Risk Management Activities - Currency Exchange Rate Risk Hedging (Details) $ in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($)$ / $ | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)$ / $ | Jun. 30, 2019USD ($) | Jun. 30, 2020CAD ($)$ / $ | Dec. 31, 2019USD ($) | |
Foreign Currency Derivatives | Derivatives Not Designated as a Hedge | Supply and Logistics segment revenues | ||||||
Currency Exchange Rate Risk Hedging: | ||||||
Gain/(loss) recognized in earnings | $ | $ 2 | $ 2 | $ (4) | $ 7 | ||
Forward exchange contracts that exchange CAD For USD maturing in 2020 | ||||||
Currency Exchange Rate Risk Hedging: | ||||||
Notional amount of derivatives | $ 185 | $ 185 | $ 252 | |||
Forward exchange contracts that exchange CAD For USD maturing in 2020 | Minimum | ||||||
Currency Exchange Rate Risk Hedging: | ||||||
Average exchange rate (cad per usd) | 1 | 1 | 1 | |||
Forward exchange contracts that exchange CAD For USD maturing in 2020 | Maximum | ||||||
Currency Exchange Rate Risk Hedging: | ||||||
Average exchange rate (cad per usd) | 1.36 | 1.36 | 1.36 | |||
Forward exchange contracts that exchange USD for CAD maturing in 2020 | ||||||
Currency Exchange Rate Risk Hedging: | ||||||
Notional amount of derivatives | $ 275 | $ 275 | $ 371 | |||
Forward exchange contracts that exchange USD for CAD maturing in 2020 | Minimum | ||||||
Currency Exchange Rate Risk Hedging: | ||||||
Average exchange rate (cad per usd) | 1 | 1 | 1 | |||
Forward exchange contracts that exchange USD for CAD maturing in 2020 | Maximum | ||||||
Currency Exchange Rate Risk Hedging: | ||||||
Average exchange rate (cad per usd) | 1.35 | 1.35 | 1.35 | |||
Interest Rate Derivatives | Derivatives in Hedging Relationships | Other current liabilities | ||||||
Currency Exchange Rate Risk Hedging: | ||||||
Derivative liability | $ | $ 2 | $ 2 | $ 1 | |||
Interest Rate Derivatives | Derivatives in Hedging Relationships | Other current assets | ||||||
Currency Exchange Rate Risk Hedging: | ||||||
Derivative asset | $ | $ 2 |
Derivatives and Risk Managem_10
Derivatives and Risk Management Activities - Preferred Distribution Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Derivatives and Risk Management Activities | |||||
Gain/(loss) recognized | $ 17 | $ 16 | |||
Preferred Distribution Rate Reset Option | Derivatives Not Designated as a Hedge | Other long-term liabilities and deferred credits | |||||
Derivatives and Risk Management Activities | |||||
Derivative liability | $ 17 | 17 | $ 34 | ||
Preferred Distribution Rate Reset Option | Derivatives Not Designated as a Hedge | Other income/(expense), net | |||||
Derivatives and Risk Management Activities | |||||
Gain/(loss) recognized | $ 9 | $ 7 | $ 17 | $ 16 |
Derivatives and Risk Managem_11
Derivatives and Risk Management Activities - Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Level 3 | |||||
Rollforward of Level 3 Net Asset/(Liability) | |||||
Beginning Balance | $ (61) | $ (10) | $ (51) | $ (24) | |
Net gains/(losses) for the period included in earnings | 18 | (5) | 8 | 18 | |
Settlements | 1 | (3) | 1 | (11) | |
Derivatives entered into during the period | (8) | (9) | |||
Ending Balance | (42) | (26) | (42) | (26) | |
Change in unrealized gains/(losses) included in earnings relating to Level 3 derivatives still held at the end of the period | 18 | $ (13) | 8 | $ 9 | |
Recurring Fair Value Measures | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | 58 | 58 | $ 53 | ||
Recurring Fair Value Measures | Commodity Derivatives | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | 83 | 83 | 130 | ||
Recurring Fair Value Measures | Interest Rate Derivatives | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | (5) | (5) | (44) | ||
Recurring Fair Value Measures | Foreign Currency Derivatives | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | (3) | (3) | 1 | ||
Recurring Fair Value Measures | Preferred Distribution Rate Reset Option | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | (17) | (17) | (34) | ||
Recurring Fair Value Measures | Level 1 | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | 24 | 24 | 42 | ||
Recurring Fair Value Measures | Level 1 | Commodity Derivatives | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | 24 | 24 | 42 | ||
Recurring Fair Value Measures | Level 2 | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | 76 | 76 | 62 | ||
Recurring Fair Value Measures | Level 2 | Commodity Derivatives | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | 84 | 84 | 105 | ||
Recurring Fair Value Measures | Level 2 | Interest Rate Derivatives | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | (5) | (5) | (44) | ||
Recurring Fair Value Measures | Level 2 | Foreign Currency Derivatives | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | (3) | (3) | 1 | ||
Recurring Fair Value Measures | Level 3 | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | (42) | (42) | (51) | ||
Recurring Fair Value Measures | Level 3 | Commodity Derivatives | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | (25) | (25) | (17) | ||
Recurring Fair Value Measures | Level 3 | Preferred Distribution Rate Reset Option | |||||
Recurring Fair Value Measurements | |||||
Total net derivative asset/(liability) | $ (17) | $ (17) | $ (34) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Related Party Transaction [Line Items] | ||||||
Revenues from related parties | $ 10 | $ 231 | $ 33 | $ 456 | ||
Purchases and related costs from related parties | 94 | $ (14) | 223 | $ 100 | ||
Trade accounts receivable and other receivables, net from related parties | $ 131 | $ 134 | 131 | 131 | ||
Trade accounts payable to related parties | $ 46 | $ 102 | $ 46 | $ 46 | ||
Class C Shares | PAA | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership interest (in shares) | 550,837,140 | 549,538,139 | ||||
Agreement To Transport Crude Oil On Pipeline Of Equity Method Investee | Equity Method Investee | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership interest in unconsolidated entity | 50.00% | 50.00% | 50.00% | |||
Minimum | AAP | Principal Owner | ||||||
Related Party Transaction [Line Items] | ||||||
Limited partner interest | 10.00% |
Commitments and Contingencies -
Commitments and Contingencies - Legal, Environmental or Regulatory (Details) $ in Thousands | Mar. 13, 2020USD ($) | Oct. 07, 2019count | May 31, 2015bbl | May 31, 2018count | Jun. 30, 2020USD ($)lawsuit | Dec. 31, 2019USD ($) | Apr. 25, 2019USD ($) | Sep. 07, 2018count | May 16, 2016count |
Legal, Environmental or Regulatory Matters | |||||||||
Estimated undiscounted reserve for environmental liabilities | $ 192,000 | $ 140,000 | |||||||
Amounts probable of recovery under insurance and from third parties under indemnification agreements | 126,000 | 72,000 | |||||||
Other current liabilities | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Estimated undiscounted reserve for environmental liabilities, short-term | 148,000 | 60,000 | |||||||
Other long-term liabilities and deferred credits | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Estimated undiscounted reserve for environmental liabilities, long-term | 44,000 | 80,000 | |||||||
Trade accounts receivable and other receivables, net | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Amounts probable of recovery under insurance and from third parties under indemnification agreements | 35,000 | ||||||||
Other long-term assets, net | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Amounts probable of recovery under insurance and from third parties under indemnification agreements | $ 37,000 | ||||||||
Line 901 Incident | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Estimated undiscounted reserve for environmental liabilities | 140,000 | ||||||||
Amounts probable of recovery under insurance and from third parties under indemnification agreements | 118,000 | ||||||||
Estimated size of release (in bbl) | bbl | 2,934 | ||||||||
Estimated size of release to reach Pacific Ocean (in bbl) | bbl | 598 | ||||||||
Aggregate total estimated costs | 455,000 | ||||||||
Recoveries from insurance carriers | 212,000 | ||||||||
Total release costs probable of recovery | $ 330,000 | ||||||||
Line 901 Incident | May 2016 Indictment | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Total counts included in the indictment | count | 46 | ||||||||
Number of counts dismissed | count | 31 | ||||||||
Number of felony charges dismissed | count | 2 | 1 | |||||||
Number of felony discharges found guilty | count | 1 | ||||||||
Number of misdemeanor charges found guilty | count | 8 | ||||||||
Number of misdemeanor charges found guilty, reporting | count | 1 | ||||||||
Number of misdemeanor charges found guilty, strict liability discharge | count | 1 | ||||||||
Number of misdemeanor charges found guilty, strict liability animal takings | count | 6 | ||||||||
Number of misdemeanor charges found not guilty, strict liability animal takings | count | 1 | ||||||||
Number of charges jury deadlocked | count | 3 | ||||||||
Number of charges jury deadlocked, felony discharges | count | 2 | ||||||||
Number of charges jury deadlocked, strict liability animal takings | count | 1 | ||||||||
Number of misdemeanor discharges dropped | count | 2 | ||||||||
Fines or penalties assessed | $ 3,350 | ||||||||
Line 901 Incident | Class Action Lawsuits | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Number of cases filed during the period | lawsuit | 9 | ||||||||
Number of cases consolidated into a single proceeding | lawsuit | 6 | ||||||||
Line 901 Incident | Unitholder Derivative Lawsuits | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Number of cases filed during the period | lawsuit | 4 | ||||||||
Line 901 Incident | Civil Penalties | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Loss contingency, damages sought, value | $ 24,000 | ||||||||
Line 901 Incident | Compensation for Injuries to, Destruction of, Loss of, Loss of Use of, Natural Resources | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Loss contingency, damages sought, value | $ 22,325 | ||||||||
UNITED STATES | Line 901 Incident | Unitholder Derivative Lawsuits | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Number of lawsuits dismissed | lawsuit | 2 | ||||||||
TEXAS | Line 901 Incident | Unitholder Derivative Lawsuits | |||||||||
Legal, Environmental or Regulatory Matters | |||||||||
Number of lawsuits dismissed | lawsuit | 1 |
Operating Segments - Segment Fi
Operating Segments - Segment Financial Data (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||
Operating segments number | segment | 3 | ||||
Revenues: | |||||
Revenues | $ 3,225 | $ 8,253 | $ 11,494 | $ 16,628 | |
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments | |||||
Equity earnings in unconsolidated entities | 81 | 83 | 191 | 172 | |
Segment Adjusted EBITDA | 523 | 782 | 1,316 | 1,643 | |
Maintenance capital | 54 | 72 | 104 | 118 | |
Total assets | 25,489 | 25,489 | $ 29,969 | ||
Transportation | |||||
Revenues: | |||||
Revenues | 151 | 188 | 338 | 385 | |
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments | |||||
Equity earnings in unconsolidated entities | 81 | 83 | 189 | 172 | |
Segment Adjusted EBITDA | 346 | 410 | 788 | 809 | |
Maintenance capital | 31 | 39 | 64 | 67 | |
Total assets | 14,599 | 14,599 | 15,549 | ||
Facilities | |||||
Revenues: | |||||
Revenues | 149 | 151 | 323 | 307 | |
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments | |||||
Equity earnings in unconsolidated entities | 2 | ||||
Segment Adjusted EBITDA | 174 | 172 | 384 | 356 | |
Maintenance capital | 15 | 30 | 29 | 46 | |
Total assets | 6,314 | 6,314 | 7,593 | ||
Supply and Logistics | |||||
Revenues: | |||||
Revenues | 2,925 | 7,914 | 10,833 | 15,936 | |
Segment Reporting, Disclosure of Other Information about Entity's Reportable Segments | |||||
Segment Adjusted EBITDA | 3 | 200 | 144 | 478 | |
Maintenance capital | 8 | 3 | 11 | 5 | |
Total assets | 4,576 | 4,576 | $ 6,827 | ||
Operating Segments Excluding Intersegment Elimination | Transportation | |||||
Revenues: | |||||
Revenues | 234 | 316 | 532 | 618 | |
Operating Segments Excluding Intersegment Elimination | Facilities | |||||
Revenues: | |||||
Revenues | 149 | 151 | 323 | 307 | |
Operating Segments Excluding Intersegment Elimination | Supply and Logistics | |||||
Revenues: | |||||
Revenues | 2,925 | 7,914 | 10,833 | 15,936 | |
Intersegment | |||||
Revenues: | |||||
Revenues | (433) | (512) | (965) | (1,014) | |
Intersegment | Transportation | |||||
Revenues: | |||||
Revenues | (223) | (243) | (504) | (497) | |
Intersegment | Facilities | |||||
Revenues: | |||||
Revenues | (127) | (140) | (266) | (282) | |
Intersegment | Supply and Logistics | |||||
Revenues: | |||||
Revenues | (1) | (1) | (2) | ||
Intersegment Adjustment | |||||
Revenues: | |||||
Revenues | (83) | (128) | (194) | (233) | |
Operating Segments | |||||
Revenues: | |||||
Revenues | 3,658 | 8,765 | 12,459 | 17,642 | |
Operating Segments | Transportation | |||||
Revenues: | |||||
Revenues | 457 | 559 | 1,036 | 1,115 | |
Operating Segments | Facilities | |||||
Revenues: | |||||
Revenues | 276 | 291 | 589 | 589 | |
Operating Segments | Supply and Logistics | |||||
Revenues: | |||||
Revenues | $ 2,925 | $ 7,915 | $ 10,834 | $ 15,938 |
Operating Segments - Segment Ad
Operating Segments - Segment Adjusted EBITDA Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting, Reconciling Item from Segments to Consolidated [Line Items] | ||||
Segment Adjusted EBITDA | $ 523 | $ 782 | $ 1,316 | $ 1,643 |
Adjustments: | ||||
Depreciation and amortization of unconsolidated entities | (16) | (14) | (33) | (27) |
Gains/(losses) from derivative activities, net of inventory valuation adjustments | (90) | (44) | (121) | 30 |
Long-term inventory costing adjustments | 51 | (25) | (64) | (4) |
Deficiencies under minimum volume commitments, net | (7) | (1) | (6) | 7 |
Equity-indexed compensation expense | (5) | (4) | (8) | (7) |
Net gain/(loss) on foreign currency revaluation | (7) | 13 | (12) | |
Significant acquisition-related expenses | (3) | |||
Unallocated general and administrative expenses | (74) | (76) | (144) | (154) |
Depreciation and amortization | (166) | (148) | (335) | (284) |
Gains/(losses) on asset sales and asset impairments, net | 1 | 4 | (618) | 0 |
Goodwill impairment losses | 0 | (2,515) | ||
Gain on/(impairment of) investments in unconsolidated entities, net | (69) | (91) | 267 | |
Interest expense, net | (108) | (103) | (215) | (203) |
Other income/(expense), net | 18 | (6) | (13) | 18 |
INCOME/(LOSS) BEFORE TAX | 130 | 423 | (2,696) | 1,415 |
Income tax (expense)/benefit | 7 | 3 | 140 | (75) |
NET INCOME/(LOSS) | 137 | 426 | (2,556) | 1,340 |
Net (income)/loss attributable to noncontrolling interests | (121) | (360) | 1,991 | (1,127) |
NET INCOME/(LOSS) ATTRIBUTABLE TO PAGP | 16 | 66 | (565) | 213 |
Line 901 Incident | ||||
Adjustments: | ||||
Line 901 incident | (10) | (10) | ||
Unallocated | ||||
Adjustments: | ||||
Unallocated general and administrative expenses | $ (2) | $ (1) | $ (3) | $ (3) |
Acquisitions, Divestitures an_2
Acquisitions, Divestitures and Asset Impairments (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2020 | Feb. 29, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses | $ 308 | $ 47 | ||||
Proceeds from sale of assets | 245 | $ 2 | ||||
Level 3 | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate, asset impairment analysis, cost of capital, theoretical market participant | 14.00% | |||||
(Gains)/losses on asset sales and asset impairments, net | ||||||
Business Acquisition [Line Items] | ||||||
Non-cash impairment losses upon classification as assets held for sale | $ 167 | |||||
Non-cash asset impairment losses, held and used | 446 | |||||
Transportation and Facilities Segments | ||||||
Business Acquisition [Line Items] | ||||||
Non-cash asset impairment losses | $ 558 | |||||
FM Gathering LLC | ||||||
Business Acquisition [Line Items] | ||||||
Payments to acquire businesses | $ 300 | |||||
Property and equipment acquired | 115 | |||||
Intangible assets acquired | $ 187 | |||||
FM Gathering LLC | Minimum | Level 3 | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate, intangible assets, estimate of risk, theoretical market participant | 15.00% | |||||
FM Gathering LLC | Maximum | Level 3 | Measurement Input, Discount Rate | Valuation Technique, Discounted Cash Flow | ||||||
Business Acquisition [Line Items] | ||||||
Discount rate, intangible assets, estimate of risk, theoretical market participant | 16.00% | |||||
Saddlehorn Pipeline Company, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Ownership percentage sold | 10.00% | |||||
Proceeds from sale of interest in unconsolidated entity | $ 78 | |||||
Saddlehorn Pipeline Company, LLC | Gain on/(impairment of) investments in unconsolidated entities, net | ||||||
Business Acquisition [Line Items] | ||||||
Gain on sale of investment in unconsolidated entity | $ 21 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Other current assets | ||||||
Business Acquisition [Line Items] | ||||||
Assets held for sale | $ 198 | |||||
Los Angeles Basin Crude Oil Terminals | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Forecast | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from sale of assets | $ 195 | |||||
NGL Terminals | Disposal Group, Disposed of by Sale, Not Discontinued Operations | Facilities | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from sale of assets | $ 163 |