The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are mining, oil and gas exploration and services, pipelines, refining, and utilities.

Fortune Sector Leaders: Energy

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-074-Plains GP Holdings

The publicly traded company that operates pipelines and infrastructure for crude oil, natural gas liquids, and natural gas climbed 14 spots on the Fortune 500 this year. 
<ul> 
 	<li>At No. 74 on this year’s ranking, Plains GP Holdings brought in $57 billion in revenue—a 36% increase from the previous year.</li> 
 	<li>Willie Chiang, chairman and CEO, said he expects continued growth in 2023 in the company's joint venture in Texas's Permian Basin, the nation’s biggest shale oil basin.</li> 
</ul>

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

This year’s Fortune 500 marks the 68th running of the list.

Plains GP Holdings operates over 18,000 miles of pipeline and provides other energy infrastructure and logistics services for crude oil, natural gas liquids, and natural gas in the U.S. and Canada. The company jumped 39 spots on the Fortune 500 list, driven largely by fast-rising oil prices and Plains GP’s ability to profit from the revival of oil and gas production in Texas’ Permian Basin.

This year’s Fortune 500 marks the 67th running of the list.

The pipeline operator, based in Houston, Texas, is a master limited partnership focused on the transportation, processing, and storage of crude oil and natural gas liquids and related products throughout the U.S. and Canada.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

Plains GP Holdings is the parent of Plains All American Pipeline (PAA), which provides infrastructure and logistics services for crude oil, natural gas, and natural gas liquids (like ethane and propane) in the U.S. and Canada. Revenues shrank by 1% last year, to $33.7 billion, and profits dipped by roughly the same rate. And the coronavirus-related shutdowns this year, which have clobbered demand for oil and gas, aren't making things easier for 2020. One immediate setback: A planned joint venture between Plains and Phillips 66 to create Red Oak Pipeline—intended to transport crude oil from Cushing, Oklahoma, and the Permian Basin to key markets along the Texas Gulf Coast—has been deferred, as economic activity has slowed across the board. To keep more cash in its coffers, PAA has reduced its capital spending program and cut distributions to shareholders by half. The company also plans to sell off a total of $440 million in assets this year.

This year's Fortune 500 marks the 66th running of the list.

Plains GP Holdings is the parent of Plains All American Pipeline (PAA), which provides infrastructure and logistics services for crude oil, natural gas, and natural gas liquids (like ethane and propane) in the U.S. and Canada. Revenues shrank by 1% last year, to $33.7 billion, pushing it down four spots on the Fortune 500, and profits dipped by roughly the same rate. And the coronavirus-related shutdowns this year, which have clobbered demand for oil and gas, aren't making things easier for 2020. One immediate setback: A planned joint venture between Plains and Phillips 66 to create Red Oak Pipeline—intended to transport crude oil from Cushing, Oklahoma, and the Permian Basin to key markets along the Texas Gulf Coast—has been deferred, as economic activity has slowed across the board. To keep more cash in its coffers, PAA has reduced its capital spending program and cut distributions to shareholders by half. The company also plans to sell off a total of $440 million in assets this year.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

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Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Plains GP Holdings is a midstream energy company that stores, transports, and processes natural gas and oil, connecting suppliers with distributors. Based in Houston, with a Canadian headquarters in Calgary, it operates pipelines, railcars, and storage facilities for both crude oil and natural gas, as well as natural gas processing facilities. Many of its ownership interests are joint ventures with other companies.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q3 2024

Plains GP Holdings (PAGP): Company Profile, Stock Price, News, Rankings

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Plains GP Holdings

plains gp holdings

Good day, and thank you for standing by. Welcome to the PAA and PAGP First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Blake Fernandez, Vice President of Investor Relations. Please go ahead.

Thank you, Michelle. Good morning, and welcome to Plains All American First Quarter twenty twenty five Earnings Call. Today's slide presentation is posted on the Investor Relations website under the News and Events section at ir.plains.com. An audio replay will also be available following today's call. Important disclosures regarding forward looking statements and non GAAP financial measures are provided on Slide two.

An overview of today's call is provided on Slide three. A condensed consolidating balance sheet for PAGP and other reference materials are in the appendix. Today's call will be hosted by Willie Chang, Chairman and CEO Al Swanson, Executive Vice President and CFO, along with other members of the management team. With that, I will turn the call over to Willie.

Thank you, Blake. Good morning, everyone, and thank you for joining us. This morning, we reported solid first quarter performance with an adjusted EBITDA attributable to Plains of $754,000,000 which Al will cover in more detail. Before providing an update on our efficient growth initiatives, I'd like to offer some thoughts on the current market and policy environment. The ongoing uncertainty on trade tariffs is weighing on economic forecasts and creating significant volatility.

Additionally, the dissension among OPEC members and the prospects of incremental supply coming to market has resulted in a lower priced commodity than anticipated at the beginning of the year. Nevertheless, we believe a lower price environment will ultimately reinforce the cyclical nature of the commodity markets, leading to a constructive medium to long term outlook. Slide four outlines several supply and demand dynamics that we believe will contribute to a supportive backdrop over time. Despite the given and the current market volatility, our business remains resilient. Assuming a $60 to $65 WTI environment persists for the remainder of the year, we would expect both our 2025 EBITDA guidance and Permian growth outlook could be in the lower half of the respective ranges.

Our NGL segment remains largely insulated from lower commodity prices with approximately 80% of our estimated C3 plus spec products sales hedged for 2025. In this environment, we believe it's important more important than ever to remain focused on what we can control. As a result, we continue to execute on our efficient growth strategy, generating significant free cash flow, maintaining a highly flexible balance sheet where our leverage ratio remains towards the low end of our target range and returning capital to our unitholders. Turning to a few highlights. In our NGL segment, our transition to more fee based earnings continues with our 30,000 barrel a day fractionation bottleneck project at Fort Sask having been placed into service during the second quarter along with other expansions of our NGL and condensate gathering systems being completed throughout the year.

These projects are supported by long term customer commitments and enhance our integrated NGL value chain. In our Crude segment, we had two small strategic transactions. We acquired the remaining 50% equity in the Cheyenne Pipeline in the Rockies. This asset serves as a vital connection between Guernsey and downstream crude oil pipelines, Saddlehorn and Whites Cliffs, which Plains owns an equity interest in. In May, we acquired Black Knight Midstream, a Midland Basin crude gathering system for approximately $55,000,000 Both transactions complement our existing asset base and build upon our track record of successful bolt on transactions.

As shown on Slide five, over the last several years, we've successfully deployed approximately $1,300,000,000 into bolt on acquisitions. We continue to believe these opportunities present attractive risk adjusted returns, and our balance sheet flexibility provides financial capacity to continue to progressing the opportunity set. Before turning the call over to Al, I do want to say thank you and acknowledge our colleague, Harry Pofonis, our President and Co Founder of the company. Harry's played an integral part in building Plains since its inception decades ago. We're very thankful for his relentless focus on developing lasting relationships, customer service, and operational excellence, together with an unwavering commitment to integrity, accountability and teamwork.

We wish Harry the very, very best in his retirement. With that, I'll turn the call over to you, Al.

Thanks, Willie. We reported first quarter crude oil segment adjusted EBITDA of $559,000,000 which was impacted by winter weather and higher than expected refinery downtime. These events drove volumes below expectations in the quarter.

However, we have seen a recovery in April and May with a healthy ramp in our gathering volumes across our system. Moving to our NGL segment, we reported segment adjusted EBITDA of $189,000,000

which benefited from higher frac spreads and NGL sales volumes driven by stronger border flows. Slides six and seven in today's presentation contain segment adjusted EBITDA walks that provide additional details on our first quarter performance. With regard to trade tariffs, I would like to provide an update since our last earnings call. Currently, the energy products imported into The United States from our Canadian operations are exempt under the USMCA limiting the direct impact of tariffs on our business. While there is a fair amount of uncertainty in the markets today, you will see on slide eight, we left our key assumptions unchanged for the year, including a $75 per barrel WTI price and 200,000 to 300,000 barrels per day of year over year Permian growth.

Key sensitivities are provided within the slide allowing investors to analyze various scenarios. As illustrated on slide nine, we expect to generate strong cash flow this year with adjusted free cash flow of about $1,100,000,000 which excludes changes in assets and liabilities and is reduced by approximately $635,000,000 for acquisitions. With that, I'll turn the call back to Willie.

Thank you, Al. We're off to a solid start for the year, albeit in a more volatile and uncertain market. As shown on Slide 10, we continue to make progress on our key financial objectives and are well positioned execute our strategy in a highly volatile environment. In summary, our strong balance sheet offers financial capacity and flexibility. We continue to demonstrate capital discipline while executing on our efficient growth strategy, including our focus on bolt on acquisitions and we remain committed to returning cash to our unitholders.

Before we hand back to Blake, Harry, would you like to make a few comments? Yes, thank you, Willie. Appreciate that.

to thank Willie for his kind remarks and his leadership. I've enjoyed working with him over these last ten years. He has a great team and I can tell you the team is as strong as it's ever been. I'd also like to thank all of you for joining us on our quarterly earnings call and your continued interest in Plains.

And with that, I'll turn it over to Blake to lead

Thanks Harry and again congrats. As we enter the Q and A session, please limit yourself to two questions. For those with additional questions, please feel free to return to the queue. This will allow us to address questions from as many participants as possible in our available time this morning. The IR team will also be available after the call to address additional questions.

Michelle, I think we're ready to go to the Q and A session, please.

Thank you. Our first question is going to come from the line of Gabriel Marine with Mizuho. Your line is open. Please go ahead.

Hey, good morning, everyone, and congrats to Harry on the retirement and an excellent career at Plains. Wanted to ask first about capital allocation in the current environment. It seems like you're still committed to the distribution growth in 2026, but given volatility in the unit price and the like, I was wondering if there's any thoughts in the shift shifting of a mindset to maybe spend more on buybacks versus distribution growth, again, given all the volatility out there?

Gabe, this is Al. I'll take a shot at it. No really change in our view with regard. Focus will continue to be on distribution growth as the primary method for returning cash to shareholders. Unit repurchases are a component of our capital allocation.

No change there, opportunistic and market dislocation. We did buy a small amount in April, just as we're going into blackout, it was only about $7,500,000 worth. I think it was about 475,000 units. It's a component, but I want to say there's been no change in our thinking around opportunistic and market dislocation. So we'll see what the future brings.

Got it. Thanks, Al. Appreciate that. And then maybe if I could ask sort of on the M and A landscape, you've clearly been had continued success here with these tuck in deals. Just with all the volatility out there, the latest you're seeing in terms of whether that volatility is kind of a catalyst to do more deals or you think it's kind of been an impediment to price discovery in the current environment?

Yes. Gabe, this is Willie. I'll take that one. Clearly, more volatile markets create a little more questions. And what I would tell you is that good deals always take time to get to win win.

And I think we're positioned very well to be able

the nature of where we sit in the value chain. We think we still have a pretty ample supply of opportunities out there and we continue to chase them. And we'll maybe the only other thing to mention is in an environment like this, capital discipline is absolutely critical and we've taken a real hard look at risk adjusted returns, but we expect to be able to get to more win win deals throughout the year.

Thank you. One moment for our next question. Our next question will come from the line of Manav Gupta with UBS. Your line is open. Please go ahead.

Good morning. Looks like you were able to bring up your fractionation complex in Canada. So help us understand the cadence of earnings in Canada now this that this plant is up and running?

Manav, it's Chris Chandler. So yes, we're excited to bring up the expanded capacity of 30,000 barrels a day at our PFS facility in Edmonton, Alberta. We brought it up just ahead of our new commercial contracts taking effect. They don't all ramp to full volume immediately. They'll ramp over the remainder of this year and a little into next year.

This is also part of a multi project effort where we're doing some additional connectivity and gathering investments along that value chain that will also come online throughout 2025. So I think you'll see that gradually contribute throughout the year and on a kind of full run rate basis starting in 2026.

Perfect. Can we get a few more details about the Black Knight Midstream Permian Basin, the deal you did for about $55,000,000 the benefits of the deal and why you decided to go ahead with that one? Thank you.

Sure. It's right in the middle of our Northern Midland Basin gathering footprint. It's a position that we operated on behalf of the producer and their affiliate. And we negotiated a transaction with them. It's got some long term capital synergies helping us to get to other positions that are on the other side of that.

It's in the absolute core of the Northern Midland Basin. The producer on the system is one of their top assets. So we feel very comfortable with the rock, the resource, the inventory, purchasing multiple that we did, and it's a good, as Willie said, win win, it's a good win for our private equity partner that developed the asset. And it's a great win for Plains longer term to own this asset.

Thank you. One moment for our next question. Our next question is going to come from the line of Michael Blum with Wells Fargo. Your line is open. Please go ahead.

Thanks. Good morning, everyone. Wondering if you can give us your latest thoughts on conversations with producers, what they're telling you and just your latest outlook on Permian volumes? I realize you kept the guidance at 2,000 to 300,000 barrels, but curious if where you think that's sort of really trending and also for '26? Thanks.

Sure, Michael, I'll pick the '25. But what I can tell you is you've already grown over 100,000 barrels a day from the end of last year to now. So the 200,000 barrels a day does not seem very Herculean as a growth expectation for this. I'd say by and large, the producers are very in a very similar situation. It's a bit of wait and see the volatility just started a month ago.

And so you don't make two or three year plans based on one month of activity. And you've seen some rebound in it. So I think in the next three months, it's a function of time and it's a function of flat price. And so it's a short period of time at this price. If it sustains for a longer period of time here, you will see some flattening out.

If it goes below this below $55 barely heard from the producer community, you would start to go to flat and maybe even decline. If it gets above $65 for an extended period of time, you'll see it go the other way, you'll see it back to growth. So from our standpoint, there's a bit of wait and see at this point, you're right in this position where you shouldn't see much difference in activity for the next three to six months, six plus months, you might see some deferral completions and maybe some rigs go down. But it's very consistent what you've heard from the upstream community. That's what they're telling us as well.

So like I said, our guidance here is just predicated on what could happen in the price range, but the volatility literally started a month ago. So it's a function of time and price.

And Michael, this is Willie. I think the key point in this is when you think about '25 with the sensitivities that we've given, the impacts to us are very modest, could be very modest. And really the broader thing is to stay engaged and understand what's going on in the rest of the world. Is going be a 26 plus issue if becomes an issue. But as we've outlined on our slide deck, I actually think we, this just going to reinforce the cyclicality, the cyclability in the cycles of commodities.

As prices go lower, tend to bring more activity in and prices go higher, it's the other way around.

Great, understood. Appreciate that. And then second question, just wanted to ask how should we think about the acquisition multiples you paid for the two bolt on deals this quarter? Thanks.

Jeremy, go ahead and take that. So as opposed to multiples, they both hit our return thresholds or higher. Willie mentioned, capital discipline. The first was a reduction in future MVCs in exchange for taking ownership of the asset from a partner. And we priced in our rates of return there.

And we've done as well or better filling the pipeline after the fact that the so that's the first one, gathering transaction. Once again, our goal is to earn our base return with limited synergy allocation and then compress that multiple with synergies. So I'd say both of them fit the model of the previous 12 acquisitions.

Thank you. One moment for our next Our next question is going to come from the line of Jeremy Tonet with JPMorgan. Your line is open. Please go ahead.

Hey, good morning. This is Bravan Reddy on for Jeremy. The materials highlighted expectations for 300,000,000 to $400,000,000 of annual growth CapEx. Maybe just wondering how you think about CapEx spend at this point and how much might be locked in for 2026?

Hi, Robin, this is Chris Chandler. We left our investment capital guidance for 2025 unchanged at $400,000,000 net to Plains. We just wrapped up the expansion project at Fort Sass that we mentioned and we have some related NGL supply and connectivity projects that will happen later this year. On the Permian side where the rest of our capital is largely allocated, that connection capital and gathering spend is designed to pace our producers. But we do typically schedule that work six to twelve months out.

So we're nearly in the 2026 on that segment. But if we were to see a large change in activity from the producers, we could adjust our capital and would obviously do so in response to anything that happens in that area. As for 2026, we haven't and won't provide guidance yet, but we are feeling comfortable that that capital spend will be in our long term capital guidance range of 300,000,000 to $400,000,000 net to Plains.

Got it. Thank you. And then on the frac spread for the hedging, it looks like stepped up to 80%. And just wondering if we could get your latest thoughts on the hedging philosophy this year and moving forward.

Jeremy? Yeah, it's consistent. We take a fundamental view, we recognize the need to maintain steady cash flow, we set targets, and we continue to execute. So we're opportunistic around hedging. Because of the backwardated market, we're more hedged in the front end than the back end, but that's been consistent with the last several years.

So I don't think anything's changed in the last several years in the strategy.

Thank you. And one moment for our next question. Our next question is going to come from the line of Sunil Sibal with Seaport Global. Your line is open. Please go ahead.

Yeah. Hi. Good morning, everybody, and congrats to Harry on a successful career at Plains. My first question was related to the sensitivity that was provided with regard to the Permian production. I was curious, is the underlying assumption there that the marginal barrel is moving to a particular market, I.

E. Cushing or Houston and that's kind of primary driver of that sensitivity? And then is that sensitivity based on your full year volumes or obviously you have almost four months plus of twenty twenty five already in. So we should think about that sensitivity on full year volumes or more like eight month volumes?

Sunil, this is Jeremy. That guidance was for the full year. And like I said earlier, we've already grown over 100,000 barrels a day. So the view of 200 to 300 still stands for exit to exit '24 to '25. As to the Permian Basin, the supply push the market's going to price where the marginal barrel goes.

So we don't necessarily have assumptions upfront that prices will dictate that. But it's a supply push market and they have a $60 to $80 commodity, they're moving that last $0.50 is just going be dictated by the consumer, not necessarily the producer.

Okay, thanks for that. And then one clarification. So for full year 2025, you're guiding in the NGL segment 45,000 barrels per day of spec sales. I presume there is a fair bit of seasonality in that. So how much of that should date in Q1?

Sunil, I think that's a follow-up question for the IR team. But the seasonality, we use our 8,000,000 barrels of storage to optimize when we sell. So the market tells us to set when to sell So we produce the spec sales, condensate is sold ratably, butane and propane are the two that are sold seasonally. But that's a function of price and timing and maximizing value.

But that's probably a better follow-up question for the IR team.

And Sunil, this is Willie. You'll remember the typical saddle that we have with colder months, obviously more propane is typically sold. Again, IR team can follow-up with you on that. Thanks for that. Thank you.

Thank you. One moment for our next question. Our next question will be from the line of A. J. O'Donnell with TPH.

Good morning, everyone. I was just wondering if I could start on some of the prepared comments about the volume recovery in April and May. Just wondering if you could provide some additional details around that, where you're seeing that along your system and maybe how that could translate into higher long haul throughput for the remainder of the year? Thanks.

AJ, hi, this is Jeremy. Thanks for the question. Some of that recovery was you had a strong fourth quarter, then you had weather events in January and February, which kept production down. So some of that was just production coming back online, also with deferral of completions just to get around the weather. So this is very typical, you have the best weather periods here in the spring and the fall.

And so you see a lot of completions. That surge of completions. So as we said earlier, the impact of prices, we really haven't seen any impact of prices so far, and we don't expect it for the next month or two. So I think Al was just stating that while volumes were a little bit down in the first quarter, that was really a function of intra basin, which is the lowest margin part of our value chain. And that's really feeding some of the long haul and that was the long haul down there was driven by downstream demand.

So to get to your question on long haul, as you get to the summer driving season and refineries ramp back up, you're going to see a pickup in those refining markets and their demand for crude, so you'll see more crude. So it's an interrelated question.

Okay, I appreciate the detail there. And then maybe just one more on kind of the longer term outlook. Granted, like, we're all kind of theorizing about what's going to happen over the next six to twelve months here with all the backdrop of volatility. But just curious if you guys could provide maybe some updated views about how you're thinking around total Permian long haul utilization filling up. I know there were some materials provided in the previous investor deck where you're talking about that 80% threshold and pipes hitting that.

Yeah, just any comments about how you're thinking about the forward market there?

AJ, that's really a function of production. So I think everybody has their own views of production. Think Willie said it in the beginning, which is, this is probably not a pause, this is not the stop of growth. Hear different views on that. But our view is the world's going to need this crude oil for a period of time.

There's a great resource. There's very well capitalized producers. They're saying pause at the 55 to 60 range and you've seen prices pause, which means as you see things recover on the demand side and you get more certainty around investment and decisions associated with the tariffs and all that settles out, You see demand recovery, you see the need for more crude oil recover. This is all related. So we're not going to make long term statements.

Utilization of pipelines is related to volumes, but longer term, our longer term growth profile and expectation for the Permian hasn't changed. So I don't think that's changed materially. It just might be a timing thing.

AJ, I just reinforce that it's when you think about the current volatility, you've got the tariffs, tariffs and OPEC, right? Those are the two things that are the catalyst for volatility. I think a lot of our business plan and everyone else's business plan is gonna really rest on when that ultimately gets resolved and no one knows the answer to that. So we'll just have to keep following it.

Thank you. And one moment for our next question. Our next question is gonna be from the line of John Mackey with Goldman Sachs. Your line is open. Please go ahead.

Hey, team. Thanks for the time. We've talked a lot about the upstream side, but you guys are also really tied in on the demand side as well. I'd just be curious if you have any read on kind of real time demand signals and any sign of slowdown specifically you're seeing either on the refining side or on the export side? Thanks.

Yeah, so those are two different questions. I'd say that it's very healthy as the global refining markets. And candidly, you haven't seen gasoline prices move much, but you've seen crude prices go down. So crack spreads are very strong. And we're seeing all the refineries come out of turnarounds and run very strong.

So I'd say that's a part of the reason for lower volumes in the first quarter was driven by lower movements to refineries. That's all picking up. So that part of the business is very healthy. On the export side that changes month to month and even within one week periods within given months. You've seen some slowdown on movements internationally, the price the barrels have to move so they get priced to move.

I said, the Permian is $60 to $80 commodity and that's going

to price to be sold. So I'd say we're seeing healthy margins globally for refining. So that's the thing to pay attention to on a forward basis that demand appears to be healthy.

I appreciate that. Thanks. And maybe just going back to I think it was Gabe's question, and Will, you commented a little bit more here. But just on capital allocation, I think now at the end

the bottom end of the leverage range. Just curious how you guys are thinking about kind of managing within that range, given the potential for the backdrop on the macro side to get a little softer. Is that changing your view at all and where you want to be in that specifically?

John, I'll start and Al can certainly add. But we've been very clear about our capital allocation plan. One, we're going to we're committed to returning cash to unitholders and we've got our targeted increase to a coverage limit that we've announced years ago and we're going to execute on that. We are also very optimistic and continue to work on the bolt ons. And we think that opportunity set us out there and that is really the primary focus on the highest return options for cash.

So, those two are going to drive it. Our leverage is at the lower end. If there were some transactions that made sense, we've always said that we would allow the leverage to go up with the understanding that in the planning that it doesn't stay up. So we're using that leverage range really to our benefit as we think about what we be able to do as far as growing in a capital discipline way. Alan, anything to add?

The only thing I would add is, it is a range, the leverage range. We don't have the stated desire to be at the bottom end or below on a sustained basis. So we do look at the ability to use some of that capacity for strategic quality investments as we look go ahead. We just recently, in the last year, got BBB rated at all three agencies. We do not view and have no interest in putting leverage at a point that would jeopardize any of those ratings.

Thank you. And one moment for our next question. Our next question is going to come from the line of Theresa Chen with Barclays. Your line is open. Please go ahead.

Plains GP Holdings (PAGP) Q1 2025 Earnings Call Transcript

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