PLAINS ALL AMERICAN PIPELINE LP [PAA] Filings

10-Q 1 paa-20220930.htm 10-Q paa-20220930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________________________________

FORM 10-Q

________________________________________________________________________________________________________________________________

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 1-14569

________________________________________________________________

PLAINS ALL AMERICAN PIPELINE, L.P.

(Exact name of registrant as specified in its charter)


Delaware						76-0582150
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

333 Clay Street, Suite 1600

Houston, Texas 77002

(Address of principal executive offices) (Zip code)

(713) 646-4100

(Registrant’s telephone number, including area code)

________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Units	PAA	Nasdaq

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☑ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☑ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

As of October 31, 2022, there were 698,332,685 Common Units outstanding.

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

TABLE OF CONTENTS


			Page
PART I. FINANCIAL INFORMATION
Item 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
Condensed Consolidated Balance Sheets: As of September 30, 2022 and December 31, 2021			3
Condensed Consolidated Statements of Operations: For the three and nine months ended September 30, 2022 and 2021			4
Condensed Consolidated Statements of Comprehensive Income/(Loss): For the three and nine months ended September 30, 2022 and 2021			5
Condensed Consolidated Statements of Changes in Accumulated Other Comprehensive Income/(Loss): For the three and nine months ended September 30, 2022 and 2021			5
Condensed Consolidated Statements of Cash Flows: For the nine months ended September 30, 2022 and 2021			6
Condensed Consolidated Statements of Changes in Partners’ Capital: For the three and nine months ended September 30, 2022 and 2021			7
Notes to the Condensed Consolidated Financial Statements:
1. Organization and Basis of Consolidation and Presentation			9
2. Summary of Significant Accounting Policies			11
3. Revenues and Accounts Receivable			12
4. Net Income/(Loss) Per Common Unit			15
5. Inventory, Linefill and Long-term Inventory			17
6. Debt			17
7. Partners’ Capital and Distributions			19
8. Derivatives and Risk Management Activities			21
9. Related Party Transactions			26
10. Commitments and Contingencies			26
11. Segment Information			31


Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			35
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			55
Item 4. CONTROLS AND PROCEDURES			56

PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS			57
Item 1A. RISK FACTORS			57
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			57
Item 3. DEFAULTS UPON SENIOR SECURITIES			57
Item 4. MINE SAFETY DISCLOSURES			57
Item 5. OTHER INFORMATION			57
Item 6. EXHIBITS			58
SIGNATURES			62

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except unit data)


	September 30, 2022		December 31, 2021
	(unaudited)
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	623	$	449

Trade accounts receivable and other receivables, net	4,101		4,705
Inventory	603		783
Other current assets	247		200
Total current assets	5,574		6,137

PROPERTY AND EQUIPMENT	19,310		19,257
Accumulated depreciation	(4,745)		(4,354)
Property and equipment, net	14,565		14,903

OTHER ASSETS
Investments in unconsolidated entities	3,684		3,805
Intangible assets, net	1,785		1,960
Linefill	954		907
Long-term operating lease right-of-use assets, net	338		393
Long-term inventory	301		253
Other long-term assets, net	256		251
Total assets	$	27,457	$	28,609

LIABILITIES AND PARTNERS’ CAPITAL

CURRENT LIABILITIES
Trade accounts payable	$	3,995	$	4,810
Short-term debt	459		822
Other current liabilities	879		600
Total current liabilities	5,333		6,232

LONG-TERM LIABILITIES
Senior notes, net	7,934		8,329
Other long-term debt, net	52		69
Long-term operating lease liabilities	300		339
Other long-term liabilities and deferred credits	1,095		830
Total long-term liabilities	9,381		9,567

COMMITMENTS AND CONTINGENCIES (NOTE 10)

PARTNERS’ CAPITAL
Series A preferred unitholders (71,090,468 and 71,090,468 units outstanding, respectively)	1,505		1,505
Series B preferred unitholders (800,000 and 800,000 units outstanding, respectively)	787		787
Common unitholders (698,332,685 and 704,991,540 units outstanding, respectively)	7,652		7,680
Total partners’ capital excluding noncontrolling interests	9,944		9,972
Noncontrolling interests	2,799		2,838
Total partners’ capital	12,743		12,810
Total liabilities and partners’ capital	$	27,457	$	28,609

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per unit data)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(unaudited)				(unaudited)
REVENUES
Product sales revenues	$	14,001	$	10,515	$	43,390	$	28,221
Services revenues	335		261		1,000		868
Total revenues	14,336		10,776		44,390		29,089

COSTS AND EXPENSES
Purchases and related costs	13,071		10,074		41,181		26,743
Field operating costs	318		274		971		746
General and administrative expenses	83		67		243		205
Depreciation and amortization	238		178		711		551
(Gains)/losses on asset sales and asset impairments, net	—		221		(46)		592
Total costs and expenses	13,710		10,814		43,060		28,837

OPERATING INCOME/(LOSS)	626		(38)		1,330		252

OTHER INCOME/(EXPENSE)
Equity earnings in unconsolidated entities	105		69		306		190
Gain on investment in unconsolidated entities	1		—		1		—
Interest expense (net of capitalized interest of $1, $4, $3 and $14, respectively)	(99)		(106)		(305)		(319)
Other income/(expense), net	(82)		(10)		(237)		13

INCOME/(LOSS) BEFORE TAX	551		(85)		1,095		136
Current income tax expense	(12)		(8)		(60)		(11)
Deferred income tax (expense)/benefit	(97)		38		(117)		27

NET INCOME/(LOSS)	442		(55)		918		152
Net income attributable to noncontrolling interests	(58)		(4)		(144)		(9)
NET INCOME/(LOSS) ATTRIBUTABLE TO PAA	$	384	$	(59)	$	774	$	143

NET INCOME/(LOSS) PER COMMON UNIT (NOTE 4):
Net income/(loss) allocated to common unitholders — Basic and Diluted	$	333	$	(109)	$	621	$	(7)
Basic and diluted weighted average common units outstanding	698		715		702		719
Basic and diluted net income/(loss) per common unit	$	0.48	$	(0.15)	$	0.89	$	(0.01)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(in millions)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(unaudited)				(unaudited)
Net income/(loss)	$	442	$	(55)	$	918	$	152
Other comprehensive income/(loss)	(173)		(44)		(150)		64
Comprehensive income/(loss)	269		(99)		768		216
Comprehensive income attributable to noncontrolling interests	(58)		(4)		(144)		(9)
Comprehensive income/(loss) attributable to PAA	$	211	$	(103)	$	624	$	207

The accompanying notes are an integral part of these condensed consolidated financial statements.

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

(in millions)


	Derivative Instruments		Translation Adjustments		Other		Total
	(unaudited)
Balance at December 31, 2021	$	(208)	$	(642)	$	(3)	$	(853)

Reclassification adjustments	5		—		—		5
Unrealized gain on hedges	88		—		—		88
Currency translation adjustments	—		(241)		—		(241)
Other	—		—		(2)		(2)
Total period activity	93		(241)		(2)		(150)
Balance at September 30, 2022	$	(115)	$	(883)	$	(5)	$	(1,003)


	Derivative Instruments		Translation Adjustments		Other		Total
	(unaudited)
Balance at December 31, 2020	$	(258)	$	(657)	$	(3)	$	(918)

Reclassification adjustments	28		—		—		28
Unrealized gain on hedges	36		—		—		36
Currency translation adjustments	—		1		—		1
Other	—		—		(1)		(1)
Total period activity	64		1		(1)		64
Balance at September 30, 2021	$	(194)	$	(656)	$	(4)	$	(854)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)


	Nine Months Ended September 30,
	2022		2021
	(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	918	$	152
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	711		551
(Gains)/losses on asset sales and asset impairments, net	(46)		592


Deferred income tax expense/(benefit)	117		(27)
Gains on sales of linefill	(35)		—
Loss on foreign currency revaluation	42		3
Settlement of terminated interest rate hedging instruments	42		—
Change in fair value of Preferred Distribution Rate Reset Option (Note 8)	196		(13)
Equity earnings in unconsolidated entities	(306)		(190)
Distributions on earnings from unconsolidated entities	344		322

Other	41		39
Changes in assets and liabilities, net of acquisitions	50		(68)
Net cash provided by operating activities	2,074		1,361

CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid in connection with acquisitions, net of cash acquired	(68)		(32)
Investments in unconsolidated entities	(3)		(78)
Additions to property, equipment and other	(312)		(257)
Cash paid for purchases of linefill	(69)		(36)
Proceeds from sales of assets	58		878

Cash received from sales of linefill	72		3
Other investing activities	31		—
Net cash (used in)/provided by investing activities	(291)		478

CASH FLOWS FROM FINANCING ACTIVITIES
Net repayments under commercial paper program (Note 6)	—		(546)

Net repayments under senior secured hedged inventory facility (Note 6)	—		(167)
Repayment of GO Zone term loans	—		(200)

Repayments of senior notes (Note 6)	(750)		—

Repurchase of common units (Note 7)	(74)		(117)
Distributions paid to Series A preferred unitholders (Note 7)	(112)		(112)
Distributions paid to Series B preferred unitholders (Note 7)	(25)		(25)
Distributions paid to common unitholders (Note 7)	(432)		(389)
Distributions paid to noncontrolling interests (Note 7)	(194)		(10)
Contributions from noncontrolling interests (Note 7)	26		1


Other financing activities	(47)		(142)
Net cash used in financing activities	(1,608)		(1,707)

Effect of translation adjustment	(5)		2

Net increase in cash and cash equivalents and restricted cash	170		134
Cash and cash equivalents and restricted cash, beginning of period	453		60
Cash and cash equivalents and restricted cash, end of period	$	623	$	194

Cash paid for:
Interest, net of amounts capitalized	$	268	$	265
Income taxes, net of amounts refunded	$	85	$	32

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

(in millions)


	Limited Partners						Partners’ Capital Excluding Noncontrolling Interests		Noncontrolling Interests		Total Partners’ Capital
	Preferred Unitholders				Common Unitholders
	Series A		Series B
	(unaudited)
Balance at December 31, 2021	$	1,505	$	787	$	7,680	$	9,972	$	2,838	$	12,810
Net income	112		37		625		774		144		918
Distributions (Note 7)	(112)		(37)		(432)		(581)		(194)		(775)
Other comprehensive loss	—		—		(150)		(150)		—		(150)
Repurchase of common units (Note 7)	—		—		(74)		(74)		—		(74)
Contributions from noncontrolling interests (Note 7)	—		—		—		—		26		26
Other	—		—		3		3		(15)		(12)
Balance at September 30, 2022	$	1,505	$	787	$	7,652	$	9,944	$	2,799	$	12,743

	Limited Partners						Partners’ Capital Excluding Noncontrolling Interests		Noncontrolling Interests		Total Partners’ Capital
	Preferred Unitholders				Common Unitholders
	Series A		Series B
	(unaudited)
Balance at June 30, 2022	$	1,505	$	787	$	7,639	$	9,931	$	2,788	$	12,719
Net income	37		12		335		384		58		442
Distributions (Note 7)	(37)		(12)		(152)		(201)		(73)		(274)
Other comprehensive loss	—		—		(173)		(173)		—		(173)

Contributions from noncontrolling interests (Note 7)	—		—		—		—		26		26

Other	—		—		3		3		—		3
Balance at September 30, 2022	$	1,505	$	787	$	7,652	$	9,944	$	2,799	$	12,743

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL

(continued)

(in millions)


	Limited Partners						Partners’ Capital Excluding Noncontrolling Interests		Noncontrolling Interests		Total Partners’ Capital
	Preferred Unitholders				Common Unitholders
	Series A		Series B
	(unaudited)
Balance at December 31, 2020	$	1,505	$	787	$	7,301	$	9,593	$	145	$	9,738
Net income/(loss)	112		37		(6)		143		9		152
Distributions	(112)		(37)		(389)		(538)		(10)		(548)
Other comprehensive income	—		—		64		64		—		64
Repurchase of common units (Note 7)	—		—		(117)		(117)		—		(117)
Contributions from noncontrolling interests	—		—		—		—		1		1
Other	—		—		7		7		—		7
Balance at September 30, 2021	$	1,505	$	787	$	6,860	$	9,152	$	145	$	9,297

	Limited Partners						Partners’ Capital Excluding Noncontrolling Interests		Noncontrolling Interests		Total Partners’ Capital
	Preferred Unitholders				Common Unitholders
	Series A		Series B
	(unaudited)
Balance at June 30, 2021	$	1,505	$	787	$	7,203	$	9,495	$	145	$	9,640
Net income/(loss)	37		12		(108)		(59)		4		(55)
Distributions	(37)		(12)		(129)		(178)		(4)		(182)
Other comprehensive loss	—		—		(44)		(44)		—		(44)
Repurchase of common units (Note 7)	—		—		(64)		(64)		—		(64)

Other	—		—		2		2		—		2
Balance at September 30, 2021	$	1,505	$	787	$	6,860	$	9,152	$	145	$	9,297

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1—Organization and Basis of Consolidation and Presentation

Organization

Plains All American Pipeline, L.P. (“PAA”) is a Delaware limited partnership formed in 1998. Our operations are conducted directly and indirectly through our primary operating subsidiaries. As used in this Form 10-Q and unless the context indicates otherwise, the terms “Partnership,” “we,” “us,” “our,” “ours” and similar terms refer to PAA and its subsidiaries.

Our business model integrates large-scale supply aggregation capabilities with the ownership and operation of critical midstream infrastructure systems that connect major producing regions to key demand centers and export terminals. As one of the largest midstream service providers in North America, we own an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and natural gas liquids (“NGL”) producing basins (including the Permian Basin) and transportation corridors and at major market hubs in the United States and Canada. Our assets and the services we provide are primarily focused on and conducted through two operating segments: Crude Oil and NGL. See Note 11 for further discussion of our operating segments.

Our non-economic general partner interest is held by PAA GP LLC (“PAA GP”), a Delaware limited liability company, whose sole member is Plains AAP, L.P. (“AAP”), a Delaware limited partnership. In addition to its ownership of PAA GP, as of September 30, 2022, AAP also owned a limited partner interest in us through its ownership of approximately 241.5 million of our common units (approximately 31% of our total outstanding common units and Series A preferred units combined). Plains All American GP LLC (“GP LLC”), a Delaware limited liability company, is AAP’s general partner. Plains GP Holdings, L.P. (“PAGP”) is the sole and managing member of GP LLC, and, at September 30, 2022, owned an approximate 81% limited partner interest in AAP. PAA GP Holdings LLC (“PAGP GP”) is the general partner of PAGP.

As the sole member of GP LLC, PAGP has responsibility for conducting our business and managing our operations; however, the board of directors of PAGP GP has ultimate responsibility for managing the business and affairs of PAGP, AAP and us. GP LLC employs our domestic officers and personnel; our Canadian officers and personnel are employed by our subsidiary, Plains Midstream Canada ULC.

References to our “general partner,” as the context requires, include any or all of PAGP GP, PAGP, GP LLC, AAP and PAA GP.

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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 2021 Annual Report on Form 10-K. The accompanying condensed consolidated financial statements include the accounts of PAA 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. The condensed consolidated balance sheet data as of December 31, 2021 was derived from audited financial statements, but does not include all disclosures required by GAAP. The results of operations for the three and nine months ended September 30, 2022 should not be taken as indicative of results to be expected for the entire year. 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, including the reclassifications discussed below.

Subsequent events have been evaluated through the financial statements issuance date and have been included in the following footnotes where applicable.

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Reclassification of Prior Period Information

During the fourth quarter of 2021, we effected changes in the primary financial information provided to our CODM (our Chief Executive Officer) for assessing performance and allocating resources to present two operating segments, Crude Oil and NGL. Prior to the fourth quarter of 2021, this information was organized into three operating segments: Transportation, Facilities and Supply and Logistics. See Note 11 for further discussion of our operating segments. In connection with this change, we changed the presentation of Revenues on our Condensed Consolidated Statements of Operations. “Product sales revenues” include amounts that were previously presented as “Supply and Logistics segment revenues,” while “Services revenues” includes amounts previously presented as “Transportation segment revenues” and “Facilities segment revenues.”

Note 2—Summary of Significant Accounting Policies

Recent Accounting Pronouncements

Except as discussed below and in our 2021 Annual Report on Form 10-K, there have been no new accounting pronouncements that have become effective or have been issued during the nine months ended September 30, 2022 that are of significance or potential significance to us.

In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity, by eliminating two of the three models that require separate accounting for embedded conversion features and the settlement assessment that entities are required to perform to determine whether a contract qualifies for equity classification. This guidance is effective for interim and annual periods beginning after December 15, 2021, with early adoption permitted. We adopted this guidance effective January 1, 2022, and our adoption did not have a material impact on our financial position, results of operations or cash flows.

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 3—Revenues and Accounts Receivable

Revenue Recognition

We disaggregate our revenues by segment and type of activity. 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 2021 Annual Report on Form 10-K for additional information regarding our types of revenues and policies for revenue recognition.

Revenues from Contracts with Customers. The following tables present our revenues from contracts with customers disaggregated by segment and type of activity (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Crude Oil segment revenues from contracts with customers
Sales	$	13,362	$	10,427	$	41,796	$	27,776
Transportation	185		122		515		325
Terminalling, Storage and Other	90		99		270		345
Total Crude Oil segment revenues from contracts with customers	$	13,637	$	10,648	$	42,581	$	28,446


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
NGL segment revenues from contracts with customers
Sales	$	417	$	386	$	1,761	$	1,514
Transportation	7		6		23		17
Terminalling, Storage and Other	21		22		66		64
Total NGL segment revenues from contracts with customers	$	445	$	414	$	1,850	$	1,595

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Reconciliation to Total Revenues of Reportable Segments. The following disclosures only include information regarding revenues associated with consolidated entities; revenues from entities accounted for by the equity method are not included. The following tables present the reconciliation of our revenues from contracts with customers to total revenues of reportable segments and total revenues as disclosed in our Condensed Consolidated Statements of Operations (in millions):


Three Months Ended September 30, 2022	Crude Oil		NGL		Total
Revenues from contracts with customers	$	13,637	$	445	$	14,082
Other items in revenues	38		325		363
Total revenues of reportable segments	$	13,675	$	770	$	14,445
Intersegment revenue elimination					(109)
Total revenues					$	14,336

Three Months Ended September 30, 2021	Crude Oil		NGL		Total
Revenues from contracts with customers	$	10,648	$	414	$	11,062
Other items in revenues	53		(248)		(195)
Total revenues of reportable segments	$	10,701	$	166	$	10,867
Intersegment revenue elimination					(91)
Total revenues					$	10,776

Nine Months Ended September 30, 2022	Crude Oil		NGL		Total
Revenues from contracts with customers	$	42,581	$	1,850	$	44,431
Other items in revenues	113		225		338
Total revenues of reportable segments	$	42,694	$	2,075	$	44,769
Intersegment revenues					(