PLAINS ALL AMERICAN PIPELINE LP [PAA] Filings

10-Q 1 paa-20220630.htm 10-Q paa-20220630

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 June 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 July 29, 2022, there were 697,939,946 Common Units outstanding.

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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 June 30, 2022 and December 31, 2021			3
Condensed Consolidated Statements of Operations: For the three and six months ended June 30, 2022 and 2021			4
Condensed Consolidated Statements of Comprehensive Income /(Loss): For the three and six months ended June 30, 2022 and 2021			5
Condensed Consolidated Statements of Changes in Accumulated Other Comprehensive Income/(Loss): For the three and six months ended June 30, 2022 and 2021			5
Condensed Consolidated Statements of Cash Flows: For the six months ended June 30, 2022 and 2021			6
Condensed Consolidated Statements of Changes in Partners’ Capital: For the three and six months ended June 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			25
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			56
Item 4. CONTROLS AND PROCEDURES			57

PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS			58
Item 1A. RISK FACTORS			58
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			58
Item 3. DEFAULTS UPON SENIOR SECURITIES			58
Item 4. MINE SAFETY DISCLOSURES			58
Item 5. OTHER INFORMATION			59
Item 6. EXHIBITS			60
SIGNATURES			64

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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)


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

CURRENT ASSETS
Cash and cash equivalents	$	267	$	449

Trade accounts receivable and other receivables, net	5,581		4,705
Inventory	528		783
Other current assets	285		200
Total current assets	6,661		6,137

PROPERTY AND EQUIPMENT	19,329		19,257
Accumulated depreciation	(4,656)		(4,354)
Property and equipment, net	14,673		14,903

OTHER ASSETS
Investments in unconsolidated entities	3,773		3,805
Intangible assets, net	1,839		1,960
Linefill	931		907
Long-term operating lease right-of-use assets, net	365		393
Long-term inventory	378		253
Other long-term assets, net	266		251
Total assets	$	28,886	$	28,609

LIABILITIES AND PARTNERS’ CAPITAL

CURRENT LIABILITIES
Trade accounts payable	$	5,421	$	4,810
Short-term debt	630		822
Other current liabilities	823		600
Total current liabilities	6,874		6,232

LONG-TERM LIABILITIES
Senior notes, net	7,933		8,329
Other long-term debt, net	53		69
Long-term operating lease liabilities	316		339
Other long-term liabilities and deferred credits	991		830
Total long-term liabilities	9,293		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 (697,939,946 and 704,991,540 units outstanding, respectively)	7,639		7,680
Total partners’ capital excluding noncontrolling interests	9,931		9,972
Noncontrolling interests	2,788		2,838
Total partners’ capital	12,719		12,810
Total liabilities and partners’ capital	$	28,886	$	28,609

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

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PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per unit data)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(unaudited)				(unaudited)
REVENUES
Product sales revenues	$	16,007	$	9,623	$	29,388	$	17,706
Services revenues	352		307		665		607
Total revenues	16,359		9,930		30,053		18,313

COSTS AND EXPENSES
Purchases and related costs	15,324		9,277		28,109		16,669
Field operating costs	307		252		653		471
General and administrative expenses	78		72		160		139
Depreciation and amortization	242		196		473		374
(Gains)/losses on asset sales and asset impairments, net	(3)		369		(46)		370
Total costs and expenses	15,948		10,166		29,349		18,023

OPERATING INCOME/(LOSS)	411		(236)		704		290

OTHER INCOME/(EXPENSE)
Equity earnings in unconsolidated entities	104		33		201		121

Interest expense (net of capitalized interest of $1, $5, $2 and $10, respectively)	(99)		(107)		(206)		(213)
Other income/(expense), net	(118)		84		(155)		23

INCOME/(LOSS) BEFORE TAX	298		(226)		544		221
Current income tax expense	(30)		(1)		(48)		(3)
Deferred income tax (expense)/benefit	(17)		11		(20)		(11)

NET INCOME/(LOSS)	251		(216)		476		207
Net income attributable to noncontrolling interests	(48)		(4)		(86)		(5)
NET INCOME/(LOSS) ATTRIBUTABLE TO PAA	$	203	$	(220)	$	390	$	202

NET INCOME/(LOSS) PER COMMON UNIT (NOTE 4):
Net income/(loss) allocated to common unitholders — Basic and Diluted	$	153	$	(269)	$	290	$	103
Basic and diluted weighted average common units outstanding	702		720		703		721
Basic and diluted net income/(loss) per common unit	$	0.22	$	(0.37)	$	0.41	$	0.14

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

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PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(in millions)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
	(unaudited)				(unaudited)
Net income/(loss)	$	251	$	(216)	$	476	$	207
Other comprehensive income/(loss)	(52)		—		22		108
Comprehensive income/(loss)	199		(216)		498		315
Comprehensive income attributable to noncontrolling interests	(48)		(4)		(86)		(5)
Comprehensive income/(loss) attributable to PAA	$	151	$	(220)	$	412	$	310

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	6		—		—		6
Unrealized gain on hedges	68		—		—		68
Currency translation adjustments	—		(50)		—		(50)
Other	—		—		(2)		(2)
Total period activity	74		(50)		(2)		22
Balance at June 30, 2022	$	(134)	$	(692)	$	(5)	$	(831)


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

Reclassification adjustments	6		—		—		6
Unrealized gain on hedges	29		—		—		29
Currency translation adjustments	—		73		—		73

Total period activity	35		73		—		108
Balance at June 30, 2021	$	(223)	$	(584)	$	(3)	$	(810)

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

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PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)


	Six Months Ended June 30,
	2022		2021
	(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	476	$	207
Reconciliation of net income to net cash provided by operating activities:
Depreciation and amortization	473		374
(Gains)/losses on asset sales and asset impairments, net	(46)		370


Deferred income tax expense	20		11
Gains on sales of linefill	(30)		—
(Gain)/loss on foreign currency revaluation	10		(15)

Change in fair value of Preferred Distribution Rate Reset Option (Note 8)	147		(9)
Equity earnings in unconsolidated entities	(201)		(121)
Distributions on earnings from unconsolidated entities	224		211

Other	27		27
Changes in assets and liabilities, net of acquisitions	32		(29)
Net cash provided by operating activities	1,132		1,026

CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid in connection with acquisitions, net of cash acquired	—		(32)
Investments in unconsolidated entities	(4)		(71)
Additions to property, equipment and other	(190)		(182)
Cash paid for purchases of linefill	(60)		(23)
Proceeds from sales of assets	57		22

Cash received from sales of linefill	61		3
Other investing activities	13		—
Net cash used in investing activities	(123)		(283)

CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings/(repayments) under commercial paper program (Note 6)	115		(159)

Net repayments under senior secured hedged inventory facility (Note 6)	—		(167)


Repayments of senior notes	(750)		—

Repurchase of common units (Note 7)	(74)		(53)
Distributions paid to Series A preferred unitholders (Note 7)	(74)		(74)
Distributions paid to Series B preferred unitholders (Note 7)	(25)		(25)
Distributions paid to common unitholders (Note 7)	(280)		(260)
Distributions paid to noncontrolling interests (Note 7)	(121)		(6)



Other financing activities	13		(30)
Net cash used in financing activities	(1,196)		(774)

Effect of translation adjustment	1		2

Net decrease in cash and cash equivalents and restricted cash	(186)		(29)
Cash and cash equivalents and restricted cash, beginning of period	453		60
Cash and cash equivalents and restricted cash, end of period	$	267	$	31

Cash paid for:
Interest, net of amounts capitalized	$	201	$	202
Income taxes, net of amounts refunded	$	39	$	27

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

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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	74		25		291		390		86		476
Distributions (Note 7)	(74)		(25)		(280)		(379)		(121)		(500)
Other comprehensive income	—		—		22		22		—		22
Repurchase of common units (Note 7)	—		—		(74)		(74)		—		(74)

Other	—		—		—		—		(15)		(15)
Balance at June 30, 2022	$	1,505	$	787	$	7,639	$	9,931	$	2,788	$	12,719

	Limited Partners						Partners’ Capital Excluding Noncontrolling Interests		Noncontrolling Interests		Total Partners’ Capital
	Preferred Unitholders				Common Unitholders
	Series A		Series B
	(unaudited)
Balance at March 31, 2022	$	1,505	$	787	$	7,751	$	10,043	$	2,811	$	12,854
Net income	37		12		154		203		48		251
Distributions (Note 7)	(37)		(12)		(153)		(202)		(62)		(264)
Other comprehensive loss	—		—		(52)		(52)		—		(52)
Repurchase of common units (Note 7)	—		—		(49)		(49)		—		(49)


Other	—		—		(12)		(12)		(9)		(21)
Balance at June 30, 2022	$	1,505	$	787	$	7,639	$	9,931	$	2,788	$	12,719

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

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	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	74		25		103		202		5		207
Distributions	(74)		(25)		(260)		(359)		(6)		(365)
Other comprehensive income	—		—		108		108		—		108
Repurchase of common units (Note 7)	—		—		(53)		(53)		—		(53)

Other	—		—		4		4		1		5
Balance at June 30, 2021	$	1,505	$	787	$	7,203	$	9,495	$	145	$	9,640

	Limited Partners						Partners’ Capital Excluding Noncontrolling Interests		Noncontrolling Interests		Total Partners’ Capital
	Preferred Unitholders				Common Unitholders
	Series A		Series B
	(unaudited)
Balance at March 31, 2021	$	1,505	$	787	$	7,651	$	9,943	$	141	$	10,084
Net income/(loss)	37		12		(269)		(220)		4		(216)
Distributions	(37)		(12)		(130)		(179)		—		(179)

Repurchase of common units (Note 7)	—		—		(50)		(50)		—		(50)

Other	—		—		1		1		—		1
Balance at June 30, 2021	$	1,505	$	787	$	7,203	$	9,495	$	145	$	9,640

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

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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 June 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 June 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.

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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 six months ended June 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.

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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 six months ended June 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.

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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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Crude Oil segment revenues from contracts with customers
Sales	$	15,576	$	9,623	$	28,433	$	17,349
Transportation	175		113		330		203
Terminalling, Storage and Other	90		116		180		246
Total Crude Oil segment revenues from contracts with customers	$	15,841	$	9,852	$	28,943	$	17,798


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
NGL segment revenues from contracts with customers
Sales	$	499	$	355	$	1,344	$	1,128
Transportation	7		5		16		12
Terminalling, Storage and Other	20		21		45		42
Total NGL segment revenues from contracts with customers	$	526	$	381	$	1,405	$	1,182

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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 June 30, 2022	Crude Oil		NGL		Total
Revenues from contracts with customers	$	15,841	$	526	$	16,367
Other items in revenues	99		44		143
Total revenues of reportable segments	$	15,940	$	570	$	16,510
Intersegment revenue elimination					(151)
Total revenues					$	16,359

Three Months Ended June 30, 2021	Crude Oil		NGL		Total
Revenues from contracts with customers	$	9,852	$	381	$	10,233
Other items in revenues	(73)		(151)		(224)
Total revenues of reportable segments	$	9,779	$	230	$	10,009
Intersegment revenue elimination					(79)
Total revenues					$	9,930

Six Months Ended June 30, 2022	Crude Oil		NGL		Total
Revenues from contracts with customers	$	28,943	$	1,405	$	30,348
Other items in revenues	76		(101)		(25)
Total revenues of reportable segments	$	29,019	$	1,304	$	30,323
Intersegment revenues					(270)
Total revenues					$	30,053

Six Months Ended June 30, 2021	Crude Oil		NGL		Total
Revenues from contracts with customers	$	17,798	$	1,182	$	18,980
Other items in revenues	(166)		(313)		(479)
Total revenues of reportable segments	$	17,632	$	869	$	18,501
Intersegment revenues					(188)
Total revenues					$	18,313

Minimum Volume Commitments. We have certain agreements that require counterparties to transport or throughput a minimum volume over an agreed upon period. The following table presents counterparty deficiencies associated with contracts with customers and buy/sell arrangements that include minimum volume commitments for which we had remaining performance obligations and the customers still had the ability to meet their obligations (in millions):


Counterparty Deficiencies	Financial Statement Classification	June 30, 2022		December 31, 2021
Billed and collected	Liability	$	65	$	63
Unbilled (1)	N/A	10		16
Total		$	75	$	79

(1)Amounts were related to deficiencies for which the counterparties had not met their contractual minimum commitments and are not reflected in our Condensed Consolidated Financial Statements as we had not yet billed or collected such amounts.

Table of Contents

PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES

NOTES TO THE UNAUDITED 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 liability balance associated with contracts with customers (in millions):


	Contract Liabilities
Balance at December 31, 2021	$	141
Amounts recognized as revenue	(22)

Additions