Segment Information (Tables)

12 Months Ended

Dec. 31, 2022

The following tables reflect certain financial data for each segment (in millions):


	Crude Oil		NGL		Intersegment Revenues Elimination		Total
Year Ended December 31, 2022
Revenues (1):
Product sales	$	53,840	$	2,575	$	(467)	$	55,948
Services	1,240		186		(32)		1,394
Total revenues	$	55,080	$	2,761	$	(499)	$	57,342
Equity earnings in unconsolidated entities	$	403	$	—			$	403
Segment Adjusted EBITDA	$	1,986	$	518			$	2,504
Investment and acquisition capital expenditures (2) (3)	$	461	$	157			$	618
Maintenance capital expenditures (3)	$	112	$	99			$	211

As of December 31, 2022

Investments in unconsolidated entities	$	3,084	$	—			$	3,084


	Crude Oil		NGL		Intersegment Revenues Elimination		Total
Year Ended December 31, 2021
Revenues (1):
Product sales	$	39,395	$	1,829	$	(341)	$	40,883
Services	1,075		139		(19)		1,195
Total revenues	$	40,470	$	1,968	$	(360)	$	42,078
Equity earnings in unconsolidated entities	$	274	$	—			$	274
Segment Adjusted EBITDA	$	1,909	$	285			$	2,194
Investment and acquisition capital expenditures (2) (3)	$	212	$	57			$	269
Maintenance capital expenditures (3)	$	100	$	68			$	168

As of December 31, 2021

Investments in unconsolidated entities	$	3,805	$	—			$	3,805


	Crude Oil		NGL		Intersegment Revenues Elimination		Total
Year Ended December 31, 2020
Revenues (1):
Product sales	$	21,089	$	1,218	$	(249)	$	22,058
Services	1,110		142		(20)		1,232
Total revenues	$	22,199	$	1,360	$	(269)	$	23,290
Equity earnings in unconsolidated entities	$	355	$	—			$	355
Segment Adjusted EBITDA	$	2,216	$	327			$	2,543
Investment and acquisition capital expenditures (2) (3)	$	1,182	$	49			$	1,231
Maintenance capital expenditures (3)	$	171	$	45			$	216

As of December 31, 2020

Investments in unconsolidated entities	$	3,764	$	—			$	3,764

(1)Segment revenues include intersegment amounts that are eliminated in Purchases and related costs. Intersegment activities are conducted at posted tariff rates where applicable, or otherwise at rates similar to those charged to third parties or rates that we believe approximate market at the time the agreement is executed or renegotiated.

(2)Investment and acquisition capital expenditures, including investments in unconsolidated entities.

(3)These amounts combined represent total capital expenditures.

Summary of reconciliation of segment adjusted EBITDA to net income/(loss) attributable to PAGP

The following table reconciles Segment Adjusted EBITDA to Net income/(loss) attributable to PAGP (in millions):


	Year Ended December 31,
	2022		2021		2020
Segment Adjusted EBITDA	$	2,504	$	2,194	$	2,543
Adjustments (1):
Depreciation and amortization of unconsolidated entities (2)	(85)		(123)		(73)
Derivative activities and inventory valuation adjustments (3)	280		271		(480)
Long-term inventory costing adjustments (4)	4		94		(44)
Deficiencies under minimum volume commitments, net (5)	(7)		7		(74)
Equity-indexed compensation expense (6)	(32)		(19)		(19)
Foreign currency revaluation (7)	(4)		4		3
Line 901 incident (8)	(95)		(15)		—
Significant transaction-related expenses (9)	—		(16)		(3)
Adjusted EBITDA attributable to noncontrolling interests in consolidated joint ventures (10)	364		94		14
Unallocated general and administrative expenses (11)	(5)		(6)		(5)
Depreciation and amortization	(968)		(777)		(656)
Gains/(losses) on asset sales and asset impairments, net	(269)		(592)		(719)
Goodwill impairment loss	—		—		(2,515)
Gains (losses) on/(impairment of) investments in unconsolidated entities, net	346		2		(182)
Interest expense, net	(405)		(425)		(436)
Other income/(expense), net	(219)		19		39
Income/(loss) before tax	1,409		712		(2,607)
Income tax (expense)/benefit	(246)		(112)		167
Net income/(loss)	1,163		600		(2,440)
Net (income)/loss attributable to noncontrolling interests	(995)		(540)		1,872
Net income/(loss) attributable to PAGP	$	168	$	60	$	(568)

(1)Represents adjustments utilized by our CODM in the evaluation of segment results.

(2)Includes our proportionate share of the depreciation and amortization expense (including write-downs related to cancelled projects and impairments) of unconsolidated entities.

(3)We use derivative instruments for risk management purposes and our related processes include specific identification of hedging instruments to an underlying hedged transaction. Although we identify an underlying transaction for each derivative instrument we enter into, there may not be an accounting hedge relationship between the instrument and the underlying transaction. In the course of evaluating our results, we identify differences in the timing of earnings from the derivative instruments and the underlying transactions and exclude the related gains and losses in determining Segment Adjusted EBITDA such that the earnings from the derivative instruments and the underlying transactions impact Segment Adjusted EBITDA in the same period. In addition, we exclude gains and losses on derivatives that are related to (i) investing activities, such as the purchase of linefill, and (ii) purchases of long-term inventory. We also exclude the impact of corresponding inventory valuation adjustments, as applicable.

(4)We carry crude oil and NGL inventory that is comprised of minimum working inventory requirements in third-party assets and other working inventory that is needed for our commercial operations. We consider this inventory necessary to conduct our operations and we intend to carry this inventory for the foreseeable future. Therefore, we classify this inventory as long-term on our balance sheet and do not hedge the inventory with derivative instruments (similar to linefill in our own assets). We exclude the impact of changes in the average cost of the long-term inventory (that result from fluctuations in market prices) and write-downs of such inventory that result from price declines from Segment Adjusted EBITDA.

(5)We, and certain of our equity method investees, have certain agreements that require counterparties to deliver, transport or throughput a minimum volume over an agreed upon period. Substantially all of such agreements were entered into with counterparties to economically support the return on our capital expenditure necessary to construct the related asset. Some of these agreements include make-up rights if the minimum volume is not met. We record a receivable from the counterparty in the period that services are provided or when the transaction occurs, including amounts for deficiency obligations from counterparties associated with minimum volume commitments. If a counterparty has a make-up right associated with a deficiency, we defer the revenue attributable to the counterparty’s make-up right and subsequently recognize the revenue at the earlier of when the deficiency volume is delivered or shipped, when the make-up right expires or when it is determined that the counterparty’s ability to utilize the make-up right is remote. We include the impact of amounts billed to counterparties for their deficiency obligation, net of applicable amounts subsequently recognized into revenue, as a selected item impacting comparability. Our CODM views the inclusion of the contractually committed revenues associated with that period as meaningful to Segment Adjusted EBITDA as the related asset has been constructed, is standing ready to provide the committed service and the fixed operating costs are included in the current period results.

(6)Our total equity-indexed compensation expense includes expense associated with awards that will be settled in PAA common units and awards that will be settled in cash. The awards that will be settled in PAA common units are included in PAA’s diluted net income per unit calculation when the applicable performance criteria have been met. We exclude compensation expense associated with these awards in determining Segment Adjusted EBITDA as the dilutive impact of the outstanding awards is included in PAA’s diluted net income per unit calculation, as applicable. The portion of compensation expense associated with awards that will settle in cash is not excluded in determining Segment Adjusted EBITDA. See Note 18 for information regarding our equity-indexed compensation plans.

(7)During the periods presented, there were fluctuations in the value of CAD to USD, resulting in the realization of foreign exchange gains and losses on the settlement of foreign currency transactions as well as the revaluation of monetary assets and liabilities denominated in a foreign currency. These gains and losses are not integral to our core operating performance and were therefore excluded in determining Segment Adjusted EBITDA.

(8)Includes costs recognized during the period related to the Line 901 incident that occurred in May 2015, net of amounts we believe are probable of recovery from insurance. See Note 19 for additional information regarding the Line 901 incident.

(9)Includes expenses associated with the Permian JV transaction in 2021 and the Felix Midstream LLC acquisition in 2020. See Note 7 for additional discussion. An adjustment for these non-recurring expenses is included in the calculation of Segment Adjusted EBITDA for the years ended December 31, 2021 and 2020 as our CODM does not view such expenses as integral to understanding our core segment operating performance.

(10)Reflects amounts attributable to noncontrolling interests in the Permian JV (beginning October 2021), Cactus II (beginning November 2022) and Red River.

(11)Represents general and administrative expenses incremental to those of PAA, which are not allocated to our reporting segments in determining Segment Adjusted EBITDA.

Summary of revenues attributable to geographic areas

We have operations in the United States and Canada. Set forth below are revenues and long-lived assets attributable to these geographic areas (in millions):


	Year Ended December 31,
Revenues (1)	2022		2021		2020
United States	$	46,903	$	34,458	$	17,942
Canada	10,439		7,620		5,348
	$	57,342	$	42,078	$	23,290

(1)Revenues are primarily attributed to each region based on where the services are provided or the product is shipped

Summary of long-lived assets attributable to geographic areas


	December 31,
Long-Lived Assets (1)	2022		2021
United States	$	18,658	$	18,279
Canada	3,802		4,094
	$	22,460	$	22,373

(1)Excludes long-term derivative assets and long-term deferred tax assets.