Plains GP Holdings, L.P. (NYSE:PAGP) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 05:30 pm ET


Plains GP Holdings, L.P. (NYSE:PAGP) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, and welcome to the PAA and PAGP Second Quarter 2020 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Roy Lamoreaux. Please go ahead, sir.

Roy Lamoreaux

Thank you, Dan. Good afternoon, and welcome to Plains All American's second quarter earnings conference call. Today's slide presentation is posted on the Investor Relations News and Events section of our website at, where an audio replay will also be available following our call today. Later this evening, we plan to post our earnings package to the investor kit section of our IR website, which will include today's transcript and other reference materials.

Important disclosures regarding forward-looking statements and non-GAAP financial measures are provided on Slide 2 of today's presentation. A condensed consolidating balance sheet for PAGP and other reference materials are located in the appendix.

Today's call will be hosted by Willie Chang, Chairman and Chief Executive Officer; and Al Swanson, Executive Vice President and Chief Financial Officer. Additionally, Harry Pefanis, President and Chief Commercial Officer; Chris Chandler, Executive Vice President and Chief Operating Officer; Jeremy Goebel, Executive Vice President, Commercial; and Chris Herbold, Senior Vice President and Chief Accounting Officer; along with other members of our senior management team are available for the Q&A session of today's call.

With that, I'll turn the call over to Willie.

Willie Chiang

Thanks, Roy. Good afternoon to everyone, and thank you for joining us. I hope that you and your families are safe in what seems like a new normal environment for all of us. At PAA, our organization has adapted to additional COVID protocols in the field, social distancing and working remotely for those that can. We continue to operate safely, reliably, and I'm very proud of our team as we are having our best year-to-date safety metrics as measured as total recordable injury rate, and we are achieving levels that are better than half of where we were five years ago, both in safety and key environmental metrics.

This afternoon, we reported second quarter adjusted EBITDA of $524 million. These results reflect slightly favorable performance in our fee-based and supply and logistics segments, relative to the revised full-year guidance we furnished in May. A summary of our performance and an overview of our call is reflected on Slide 3.

Al will discuss our results in greater detail during his section. I wanted to take a few moments to provide context for today's call and to discuss our updated guidance. I also want to highlight our progress on increasing profitability and free cash flow through reducing costs, executing key projects and further optimizing our capital program. We continue to believe that long-term energy fundamentals are constructive.

That being said, as illustrated on Slide 4, in the near term, this continues to be a dynamic and unprecedented environment for our industry. As anticipated in response to COVID-induced demand destruction in the weeks following our first-quarter earnings call in May, North American producers responded aggressively by shutting