PLAINS GP HOLDINGS LP

Note 5—Debt

Debt consisted of the following (in millions):

(1)We classified these PAA commercial paper notes as short-term as of December 31, 2023, 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)As of December 31, 2023, we classified PAA’s $750 million,3.60% senior notes due November 2024 as long-term based on our ability and intent to refinance the notes on a long-term basis at that time. PAA redeemed these senior notes on November 1, 2024.

(3)PAA’s fixed-rate senior notes had a face value of approximately $7.9 billion and $7.3 billion as of September 30, 2024 and December 31, 2023, respectively. We estimated the aggregate fair value of these notes as of September 30, 2024 and December 31, 2023 to be approximately $7.7 billion and $6.9 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 program are based upon observable market data and are classified in Level 2 of the fair value hierarchy.

Senior Notes

In June 2024, PAA completed the offering of $650 million,5.70% senior notes due September 2034 at a public offering price of 99.953%. Interest payments are due on March 15 and September 15 of each year, commencing on March 15, 2025.

Credit Facilities

In August 2024, PAA amended its credit facility agreements to, among other things, extend the maturity dates of its senior secured hedged inventory facility and senior unsecured revolving credit facility byone year to August 2027 and August 2029, respectively, for each extending lender. The maturity dates with respect to the non-extending lender under PAA’s senior secured hedged inventory facility and senior unsecured revolving credit facility (which represents a commitment of approximately $64 million out of total commitments of $1.35 billion from all lenders under each facility) remain August 2026 and August 2027, respectively.

Borrowings and Repayments

Total borrowings under the PAA commercial paper program for the nine months ended September 30, 2024 and 2023 were approximately $20.7 billion and $4.9 billion, respectively. Total repayments under the PAA commercial paper program were approximately $21.1 billion and $4.9 billion for the nine months ended September 30, 2024 and 2023, 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.

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 September 30, 2024 and December 31, 2023, we had outstanding letters of credit of $108 million and $205 million, respectively.