Plains All American anticipates record Permian crude output in 2024

Crude output: Plains All American announced on Friday its projection for a surge in crude production within the Permian basin, the leading US oilfield, estimating an increase between 200,000 and 300,000 barrels per day (bpd) to reach a record by year-end.

The pipeline and storage operator forecasts a rise in oil output from the basin to 6.4 million bpd, up from 6.1 million bpd by the close of 2023. 

Independent analysts have similarly predicted Permian growth ranging between 290,000 bpd to as high as 360,000 bpd.

This growth is anticipated primarily from the Delaware basin in the Permian and is based on an average of 300 to 320 rigs, according to Willie Chiang, the company's chief executive officer. 

Baker Hughes' recent estimate reports 313 active rigs in the Permian basin.

Plains All American also provided its full-year 2024 adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) forecast, ranging between $2.63 billion and $2.73 billion. This follows the company's reported income of $2.71 billion for 2023.

The company reported a 12 per cent increase in crude oil segment profit in the fourth quarter, driven by a 10 per cent rise in total crude oil pipeline volumes, along with contributions from acquisitions and tariff escalations.

Adjusted net income for the quarter amounted to 42 cents per share, surpassing analysts' average estimate of 37 cents, as reported by investment firm LSEG. 

Plains All American's positive outlook reflects the company's robust position amidst the evolving dynamics of the energy sector.

(With Reuters Inputs)