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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 March 31, 2022
 
or
 
      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Commission File Number: 1-36132
________________________________________________________________

PLAINS GP HOLDINGS, L.P.
(Exact name of registrant as specified in its charter)
Delaware 90-1005472
(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 classTrading Symbol(s)Name of each exchange on which registered
Class A SharesPAGPNasdaq

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 April 29, 2022, there were 194,228,477 Class A Shares outstanding.



PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
TABLE OF CONTENTS
 Page
 
 
 
 
 
 
 
 

2

PART I. FINANCIAL INFORMATION

Item 1.    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share data)
March 31,
2022
December 31,
2021
 (unaudited)
ASSETS
 
CURRENT ASSETS
  
Cash and cash equivalents
$117 $452 
Trade accounts receivable and other receivables, net
7,136 4,705 
Inventory
527 783 
Other current assets
320 200 
Total current assets
8,100 6,140 
PROPERTY AND EQUIPMENT
19,434 19,292 
Accumulated depreciation
(4,565)(4,383)
Property and equipment, net
14,869 14,909 
OTHER ASSETS
  
Investments in unconsolidated entities
3,807 3,805 
Intangible assets, net1,901 1,960 
Deferred tax asset
1,341 1,362 
Linefill919 907 
Long-term operating lease right-of-use assets, net
387 393 
Long-term inventory
374 253 
Other long-term assets, net
293 249 
Total assets
$31,991 $29,978 
LIABILITIES AND PARTNERS’ CAPITAL
  
CURRENT LIABILITIES
  
Trade accounts payable
$6,871 $4,811 
Short-term debt
900 822 
Other current liabilities
801 601 
Total current liabilities
8,572 6,234 
LONG-TERM LIABILITIES
  
Senior notes, net
7,931 8,329 
Other long-term debt, net
55 69 
Long-term operating lease liabilities
331 339 
Other long-term liabilities and deferred credits
901 830 
Total long-term liabilities
9,218 9,567 
COMMITMENTS AND CONTINGENCIES (NOTE 10)
PARTNERS’ CAPITAL
  
Class A shareholders (194,228,477 and 194,192,777 shares outstanding, respectively)
1,540 1,533 
Noncontrolling interests
12,661 12,644 
Total partners’ capital
14,201 14,177 
Total liabilities and partners’ capital
$31,991 $29,978 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Three Months Ended
March 31,
 20222021
 (unaudited)
REVENUES
  
Product sales revenues$13,381 $8,083 
Services revenues313 300 
Total revenues
13,694 8,383 
COSTS AND EXPENSES
  
Purchases and related costs
12,785 7,392 
Field operating costs
346 219 
General and administrative expenses
83 68 
Depreciation and amortization
231 178 
(Gains)/losses on asset sales and asset impairments, net(42)2 
Total costs and expenses
13,403 7,859 
OPERATING INCOME291 524 
OTHER INCOME/(EXPENSE)
  
Equity earnings in unconsolidated entities
97 88 
Interest expense (net of capitalized interest of $1 and $5, respectively)
(107)(107)
Other expense, net(37)(60)
INCOME BEFORE TAX244 445 
Current income tax expense
(19)(1)
Deferred income tax expense(16)(52)
NET INCOME209 392 
Net income attributable to noncontrolling interests(187)(322)
NET INCOME ATTRIBUTABLE TO PAGP$22 $70 
BASIC AND DILUTED WEIGHTED AVERAGE CLASS A SHARES OUTSTANDING194 194 
BASIC AND DILUTED NET INCOME PER CLASS A SHARE$0.11 $0.36 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
 
Three Months Ended
March 31,
 20222021
 (unaudited)
Net income$209 $392 
Other comprehensive income74 108 
Comprehensive income283 500 
Comprehensive income attributable to noncontrolling interests(240)(401)
Comprehensive income attributable to PAGP$43 $99 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.


PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)
(in millions)

 
Derivative
Instruments
Translation
Adjustments
OtherTotal
 (unaudited)
Balance at December 31, 2021$(208)$(642)$(3)$(853)
Reclassification adjustments3 — — 3 
Unrealized gain on hedges32 — — 32 
Currency translation adjustments— 40 — 40 
Other— — (1)(1)
Total period activity35 40 (1)74 
Balance at March 31, 2022$(173)$(602)$(4)$(779)

Derivative
Instruments
Translation
Adjustments
OtherTotal
 (unaudited)
Balance at December 31, 2020$(258)$(657)$(3)$(918)
Reclassification adjustments3 — — 3 
Unrealized gain on hedges68 — — 68 
Currency translation adjustments— 37 — 37 
Total period activity71 37  108 
Balance at March 31, 2021$(187)$(620)$(3)$(810)
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
5

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)

 Three Months Ended
March 31,
 20222021
 (unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES  
Net income$209 $392 
Reconciliation of net income to net cash provided by operating activities:  
Depreciation and amortization231 178 
(Gains)/losses on asset sales and asset impairments, net(42)2 
Deferred income tax expense16 52 
Change in fair value of Preferred Distribution Rate Reset Option (Note 8)44 67 
Equity earnings in unconsolidated entities(97)(88)
Distributions on earnings from unconsolidated entities96 110 
Other4 6 
Changes in assets and liabilities, net of acquisitions(122)70 
Net cash provided by operating activities339 789 
CASH FLOWS FROM INVESTING ACTIVITIES  
Investments in unconsolidated entities(3)(35)
Additions to property, equipment and other(101)(97)
Proceeds from sales of assets53 21 
Cash paid for purchases of linefill(39) 
Other investing activities9 3 
Net cash used in investing activities(81)(108)
CASH FLOWS FROM FINANCING ACTIVITIES  
Net borrowings/(repayments) under PAA commercial paper program (Note 6)382 (410)
Net repayments under PAA senior secured hedged inventory facility (Note 6) (166)
Repayments of PAA senior notes(750) 
Repurchase of common units by a subsidiary (Note 7)(25)(3)
Distributions paid to Class A shareholders (Note 7)(35)(35)
Distributions paid to noncontrolling interests (Note 7)(188)(138)
Other financing activities20 66 
Net cash used in financing activities(596)(686)
Effect of translation adjustment3  
Net decrease in cash and cash equivalents and restricted cash(335)(5)
Cash and cash equivalents and restricted cash, beginning of period456 63 
Cash and cash equivalents and restricted cash, end of period$121 $58 
Cash paid for:  
Interest, net of amounts capitalized$74 $65 
Income taxes, net of amounts refunded$23 $24 

The accompanying notes are an integral part of these condensed consolidated financial statements.
6

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL
(in millions)

Class A
Shareholders
Noncontrolling
Interests
Total
Partners’ Capital
 (unaudited)
Balance at December 31, 2021$1,533 $12,644 $14,177 
Net income22 187 209 
Distributions (Note 7)(35)(200)(235)
Deferred tax asset(5) (5)
Other comprehensive income21 53 74 
Repurchase of common units by a subsidiary (Note 7) (25)(25)
Other4 2 6 
Balance at March 31, 2022$1,540 $12,661 $14,201 


Class A ShareholdersNoncontrolling InterestsTotal Partners’ Capital
(unaudited)
Balance at December 31, 2020$1,464 $9,726 $11,190 
Net income70 322 392 
Distributions(35)(150)(185)
Deferred tax asset(7) (7)
Other comprehensive income29 79 108 
Repurchase of common units by a subsidiary (Note 7) (3)(3)
Contributions from noncontrolling interests 1 1 
Other2 1 3 
Balance at March 31, 2021$1,523 $9,976 $11,499 

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



7

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
Note 1—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 March 31, 2022, 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 March 31, 2022, 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 81% limited partner interest in Plains AAP, L.P. (“AAP”) through our direct ownership of approximately 193.2 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 March 31, 2022, directly owned a limited partner interest in PAA through its ownership of approximately 241.5 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’s 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, PAA owns 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. PAA’s assets and the services it provides are primarily focused on and conducted through two operating segments: Crude Oil and NGL. See Note 11 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.
 

8

PLAINS GP HOLDINGS, 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 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. 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 months ended March 31, 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 further below.

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

9

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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 $1.341 billion and $1.362 billion as of March 31, 2022 and December 31, 2021, 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 three months ended March 31, 2022 or the year ended December 31, 2021. See Note 17 to our Consolidated Financial Statements included in Part IV of our 2021 Annual Report on Form 10-K for information regarding the Omnibus Agreement entered into by the Plains Entities on November 15, 2016.

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
 
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 Sheets that sum to the total of the amounts shown on our Condensed Consolidated Statements of Cash Flows (in millions):

March 31,
2022
December 31,
2021
Cash and cash equivalents$117 $452 
Restricted cash (1)
4 4 
Total cash and cash equivalents and restricted cash $121 $456 
10

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(1)Included in “Other current assets” on our Condensed Consolidated Balance Sheets.

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 three months ended March 31, 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.
 
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
March 31,
20222021
Crude Oil segment revenues from contracts with customers
Sales$12,857 $7,726 
Transportation155 90 
Terminalling, Storage and Other90 130 
Total Crude Oil segment revenues from contracts with customers$13,102 $7,946 

Three Months Ended
March 31,
20222021
NGL segment revenues from contracts with customers
Sales$845 $772 
Transportation9 7 
Terminalling, Storage and Other25 22 
Total NGL segment revenues from contracts with customers$879 $801 


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):
11

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended March 31, 2022Crude OilNGLTotal
Revenues from contracts with customers$13,102 $879 $13,981 
Other items in revenues(23)(144)(167)
Total revenues of reportable segments$13,079 $735 $13,814 
Intersegment revenue elimination(120)
Total revenues$13,694 
Three Months Ended March 31, 2021Crude OilNGLTotal
Revenues from contracts with customers$7,946 $801 $8,747 
Other items in revenues(93)(162)(255)
Total revenues of reportable segments$7,853 $639 $8,492 
Intersegment revenue elimination(109)
Total revenues$8,383 

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 DeficienciesFinancial Statement ClassificationMarch 31,
2022
December 31,
2021
Billed and collectedLiability$56 $63 
Unbilled (1)
N/A16 16 
Total$72 $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.

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(20)
Additions16 
Balance at March 31, 2022$137 


12

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Remaining Performance Obligations. The information below includes the amount of consideration allocated to partially and wholly unsatisfied remaining performance obligations under contracts that exist as of the end of the periods 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. 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 March 31, 2022 (in millions):

Remainder of 202220232024202520262027 and Thereafter
Pipeline revenues supported by minimum volume commitments and capacity agreements (1)
$132 $174 $158 $134 $87 $379 
Terminalling, storage and other agreement revenues201 223 173 81 61 517 
Total$333 $397 $331 $215 $148 $896 
(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 ASC 606 or do not meet the requirements for presentation as remaining performance obligations. The following are examples of contracts that are not included in the table above because they are not within the scope of ASC 606 or do not meet the requirements for presentation:

Minimum volume commitments on certain of our joint venture pipeline systems;
Acreage dedications;
Buy/sell arrangements with future committed volumes;
Short-term contracts and those with variable consideration, due to the election of practical expedients;
Contracts within the scope of ASC 842, Leases; and
Contracts within the scope of ASC 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. These purchasers include, but are not limited to, refiners, producers, marketing and trading companies and financial institutions. The majority of our accounts receivable relate to our crude oil merchant activities that can generally be described as high volume and low margin activities, in many cases involving exchanges of crude oil volumes.

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).
 
13

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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 March 31, 2022 and December 31, 2021, substantially all of our trade accounts receivable were less than 30 days past their invoice date. Our expected credit losses are immaterial. Although we consider our credit procedures to be adequate to mitigate any significant credit losses, 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):

March 31,
2022
December 31, 2021
Trade accounts receivable arising from revenues from contracts with customers
$5,496 $4,031 
Other trade accounts receivables and other receivables (1)
9,620 5,126 
Impact due to contractual rights of offset with counterparties(7,980)(4,452)
Trade accounts receivable and other receivables, net$7,136 $4,705 
(1)The balance is comprised primarily of accounts receivable associated with buy/sell arrangements that are not within the scope of ASC 606.

Note 4—Net Income Per Class A Share
 
Basic net income per Class A share is determined by dividing net income 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 per Class A share is determined by dividing net income 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 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) 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 2021 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 2021 Annual Report on Form 10-K for information regarding PAGP LTIP awards.

On a weighted-average basis, for the three months ended March 31, 2022 and 2021, the possible exchange of 47 million and 51 million AAP units, respectively, would not have had a dilutive effect on basic net income per Class A share. For each of the three months ended March 31, 2022 and 2021, the possible exchange of less than 1 million AAP Management Units would not have had a dilutive effect on basic net income per Class A share on a weighted-average basis. For the three months ended March 31, 2022 and 2021, our PAGP LTIP awards were dilutive; however, the LTIP awards did not change the presentation of diluted weighted average Class A shares outstanding or diluted net income per Class A share.

14

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following table sets forth the computation of basic and diluted net income per Class A share (in millions, except per share data):

 Three Months Ended
March 31,
 20222021
Basic and Diluted Net Income per Class A Share
Net income attributable to PAGP$22 $70 
Basic and diluted weighted average Class A shares outstanding194 194 
Basic and diluted net income per Class A share$0.11 $0.36 

Note 5—Inventory, Linefill and Long-term Inventory
 
Inventory, linefill and long-term inventory consisted of the following (barrels in thousands and carrying value in millions):

 March 31, 2022December 31, 2021
 VolumesUnit of
Measure
Carrying
Value
Price/
Unit (1)
VolumesUnit of
Measure
Carrying
Value
Price/
Unit (1)
Inventory        
Crude oil4,711 barrels$420 $89.15 8,041 barrels$544 $67.65 
NGL2,329 barrels102 $43.80 6,982 barrels234 $33.51 
OtherN/A 5 N/AN/A 5 N/A
Inventory subtotal  527    783  
Linefill        
Crude oil15,160 barrels872 $57.52 15,199 barrels862 $56.71 
NGL1,667 barrels47 $28.19 1,633 barrels45 $27.56 
Linefill subtotal  919    907  
Long-term inventory        
Crude oil3,289 barrels325 $98.81 2,973 barrels209 $70.30 
NGL1,071 barrels49 $45.75 1,135 barrels44 $38.77 
Long-term inventory subtotal  374    253  
Total  $1,820    $1,943  
(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.
15

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 6—Debt
     
Debt consisted of the following (in millions):

March 31,
2022
December 31,
2021
SHORT-TERM DEBT  
PAA commercial paper notes, bearing a weighted-average interest rate of 0.8% (1)
$382 $ 
PAA senior notes:
3.65% senior notes due June 2022 (2)
 750 
2.85% senior notes due January 2023
400  
Other118 72 
Total short-term debt900 822 
LONG-TERM DEBT
PAA senior notes, net of unamortized discounts and debt issuance costs of $52 and $54, respectively
7,931 8,329 
Other55 69 
Total long-term debt7,986 8,398 
Total debt (3)
$8,886 $9,220 
(1)We classified these PAA commercial paper notes as short-term as of March 31, 2022, as these notes 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)These senior notes were redeemed on March 1, 2022.
(3)PAA’s fixed-rate senior notes had a face value of approximately $8.4 billion and $9.1 billion as of March 31, 2022 and December 31, 2021, respectively. We estimated the aggregate fair value of these notes as of March 31, 2022 and December 31, 2021 to be approximately $8.4 billion and $9.9 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 commercial paper program approximates fair value as interest rates reflect current market rates. The fair value estimates for PAA’s senior notes and commercial paper notes are based upon observable market data and are classified in Level 2 of the fair value hierarchy.

Borrowings and Repayments
 
Total borrowings under the PAA credit facilities and commercial paper program for the three months ended March 31, 2022 and 2021 were approximately $5.6 billion and $14.2 billion, respectively. Total repayments under the PAA credit facilities and commercial paper program were approximately $5.2 billion and $14.8 billion for the three months ended March 31, 2022 and 2021, 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.

During the three months ended March 31, 2022, PAA redeemed its 3.65%, $750 million senior notes due June 2022.

Letters of Credit
 
In connection with our merchant activities, we provide certain suppliers with irrevocable standby letters of credit to secure our obligation for the purchase and transportation of crude oil and NGL. Additionally, we issue letters of credit to support insurance programs, derivative transactions, including hedging-related margin obligations, and construction activities. At March 31, 2022 and December 31, 2021, we had outstanding letters of credit of $34 million and $98 million, respectively.

16

PLAINS GP HOLDINGS, L.P. AND SUBSIDIARIES
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 7—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 SharesClass B SharesClass C Shares
Outstanding at December 31, 2021194,192,777 46,645,514 534,596,831 
Conversion of AAP Management Units (1)
— 205,024 — 
Exchange Right exercises (1)
35,700 (35,700)— 
Redemption Right exercises (1)
— (11,957)11,957 
Repurchase of common units by a subsidiary under the Common Equity Repurchase Program— — (2,375,299)
Other— — 51,937 
Outstanding at March 31, 2022194,228,477 46,802,881 532,285,426 
 
 Class A SharesClass B SharesClass C Shares
Outstanding at December 31, 2020194,051,436 50,640,192 547,717,762 
Conversion of AAP Management Units (1)
— 414,608 — 
Exchange Right exercises (1)
46,879 (46,879)— 
Redemption Right exercises (1)
— (229,931)229,931 
Repurchase of common units by a subsidiary under the Common Equity Repurchase Program— — (350,000)
Other— — 25,431 
Outstanding at March 31, 2021194,098,315 50,777,990 547,623,124 
(1)See Note 12 to our Consolidated Financial Statements included in Part IV of our 2021 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 three months of 2022 (in millions, except per share data):

Distribution Payment DateDistributions to
Class A Shareholders
Distributions per
Class A Share
May 13, 2022 (1)
$42 $0.2175 
February 14, 2022$35