Plains All American’s oil pipeline volumes rise 16% on Permian production growth
Plains All American Pipeline said its quarterly crude oil pipeline volumes rose nearly 16% on the back of production growth in the top U.S. shale basin.
The pipeline and storage company is the latest company to benefit from oil production from the Permian Basin, spread across Texas and New Mexico, and said it does not see any material change in expectations to its Permian production estimates amid worries of a slow down in growth.
The company, which reaffirmed guidance for full-year adjusted earnings before interest, tax, depreciation and amortization of $2.45-$2.55 billion, said volumes on its Permian pipeline grew 20% to average 6.3 million barrels per day (bpd).
Overall crude volumes grew to 8.3 million bpd in the three months to March 31, from 7.2 million bpd a year earlier.
Net income, excluding items, rose 29% to $344 million, or 41 cents per share.
Rival Enterprise Products Partners’ posted higher net income and crude oil pipeline volumes earlier this week helped by Permian production.
Source: Reuters (Reporting by Arathy Somasekhar in Houston; Editing by Mark Potter)