HOUSTON, Feb. 06, 2026 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported fourth-quarter and full-year 2025 results, announced 2026 guidance and provided the following highlights:
Fourth Quarter and Full-Year 2025 Results
-- Fourth-quarter and full-year 2025 Net income attributable to PAA of $342
million and $1.435 billion, respectively, and 2025 Net cash provided by
operating activities of $785 million and $2.94 billion, respectively
-- Delivered fourth-quarter and full-year 2025 Adjusted EBITDA attributable
to PAA of $738 million and $2.833 billion, respectively
-- Pro forma leverage ratio of 3.9x at year-end 2025; expect to return
toward the midpoint of the target range of 3.25 to 3.75x following
anticipated closing of the NGL divestiture toward the end of the first
quarter 2026
-- In November, Plains successfully raised $750 million in aggregate senior
unsecured notes with proceeds allocated toward the reduction of
commercial paper and funding the EPIC acquisition (now Cactus III)
-- In November, Plains also paid off a $1.1 billion EPIC term loan assumed
as part of the EPIC acquisition by issuing a $1.1 billion senior
unsecured term loan at PAA
2026 Outlook and Key Highlights
-- Expect full-year 2026 Adjusted EBITDA attributable to PAA midpoint of
$2.75 billion +/- $75 million (assumes one quarter of NGL contribution of
$100 million)
-- Capture efficiency initiatives of approximately $100 million of cost
savings through 2027 (with approximately half realized in 2026); coupled
with $50 million of synergies expected on Cactus III, these initiatives
create self-help growth opportunities despite expectation of a relatively
flat Permian production profile for 2026
-- Announced annualized distribution increase of $0.15 per unit payable
February 13, 2026, representing a 10% aggregate increase in the
annualized distribution rate versus 2025 levels (new annualized
distribution rate of $1.67 per unit)
-- Distribution Coverage ratio threshold lowered from 160% to 150%
reflecting more predictable cash flow and providing multi-year runway for
targeted annual distribution growth of $0.15 per unit
-- Expect strong Adjusted Free Cash flow generation of approximately $1.80
billion (excluding changes in Assets & Liabilities and anticipated cash
proceeds from the NGL divestiture)
-- Remain focused on disciplined capital investments, anticipating full-year
2026 Growth Capital of +/- $350 million and Maintenance Capital of +/-
$165 million net to Plains
"Last year we took significant steps to transition the company toward becoming the premier North American pure play crude oil midstream provider, including the announced sale of our Canadian NGL business and the acquisition of Cactus III. For 2026, the team is focused on closing the pending NGL sale, realizing synergies on the Cactus III acquisition and driving efficiency initiatives throughout the organization. These self-help actions provide levers for efficient growth in an otherwise volatile near-term oil macro environment. We also remain committed to our multi-year capital allocation framework and returning cash to unitholders as evidenced by the recent $0.15 per unit increase in our annualized distribution rate, bringing the distribution yield to 8.5%. In addition, we have elected to lower our Distribution Coverage ratio threshold from 160% to 150%, thereby paving the way for additional return of capital to unitholders. I'm pleased with the progress being made as we transition into a more focused, streamlined organization that should be well positioned for improving oil market fundamentals into the future," said Willie Chiang, Chairman, CEO and President.
Financial Reporting Considerations for Pending Sale of Canadian NGL Business
On June 17, 2025, we entered into a definitive agreement to sell substantially all of our NGL business in Canada (the "Canadian NGL Business") to Keyera Corp. This transaction is expected to close toward the end of the first quarter of 2026 and is subject to the satisfaction or waiver of customary closing conditions, including receipt of regulatory approvals. While we will divest the Canadian NGL Business as part of the transaction, we will retain substantially all NGL assets in the United States and will also retain all crude oil assets in Canada.
We have determined that the operations of the Canadian NGL Business meet the criteria for classification as held for sale and for discontinued operations reporting and have applied these changes retrospectively to all periods presented. Results throughout this release specify if they are presented from continuing operations (which exclude the results of the Canadian NGL Business) and/or discontinued operations.
Plains All American Pipeline
Summary Financial Information (unaudited)
(in millions, except per unit data)
Three Months Twelve Months
Ended December Ended December
31, % 31, %
----------------- ----------------
GAAP Results
(1) 2025 2024 Change 2025 2024 Change
-------------- ------ ------ -------- ------ ------ --------
Net income
attributable
to PAA (2) $ 342 $ 36 ** $ 1,435 $ 772 86%
Diluted net
income/(loss)
per common
unit $ 0.41 $ (0.04) ** $ 1.66 $ 0.73 127%
Diluted
weighted
average common
units
outstanding 706 704 --% 704 702 --%
Net cash
provided by
operating
activities $ 785 $ 726 8% $ 2,936 $ 2,490 18%
Distribution
per common
unit declared
for the
period $0.4175 $0.3800 10% $1.5575 $1.3325 17%
Three Months Twelve Months
Ended December Ended December
31, % 31, %
---------------- ----------------
Non-GAAP Results
(1) (3) 2025 2024 Change 2025 2024 Change
------------------- ------ ---- -------- ------ ----- --------
Adjusted net income
attributable to PAA
(2) $ 334 $ 357 (6 ) % $ 1,352 $1,318 3%
Diluted adjusted net
income per common
unit $ 0.40 $0.42 (5 ) % $ 1.54 $ 1.51 2%
Adjusted EBITDA $ 875 $ 867 1% $ 3,374 $3,326 1%
Adjusted EBITDA
attributable to PAA
(2) $ 738 $ 729 1% $ 2,833 $2,779 2%
Implied DCF per
common unit and
common unit
equivalent $ 0.68 $0.64 6% $ 2.61 $ 2.49 5%
Adjusted Free Cash
Flow (4) $(1,219) $ 365 ** $ (875) $1,247 **
Adjusted Free Cash
Flow after
Distributions (4) $(1,541) $ 79 ** $(2,170) $ 102 **
Adjusted Free Cash
Flow (Excluding
Changes in Assets &
Liabilities) (4) $(1,222) $ 134 ** $ (821) $1,173 **
Adjusted Free Cash
Flow after
Distributions
(Excluding Changes
in Assets &
Liabilities) (4) $(1,544) $(152) ** $(2,116) $ 28 **
________________________
** Indicates that variance as a percentage is not meaningful.
(1) Includes results from continuing operations and discontinued operations for all periods presented. See the tables attached hereto for additional information.
(2) Excludes amounts attributable to noncontrolling interests in the Plains Oryx Permian Basin LLC (the "Permian JV"), Cactus II Pipeline LLC and Red River Pipeline LLC joint ventures.
(3) See the section of this release entitled "Non-GAAP Financial Measures and Selected Items Impacting Comparability" and the tables attached hereto for information regarding our Non-GAAP financial measures, including their reconciliation to the most directly comparable measures as reported in accordance with GAAP, and certain selected items that PAA believes impact comparability of financial results between reporting periods.
(4) Fourth-quarter and full-year 2025 includes the impact of a net cash outflow of $1.786 billion and $2.651 billion, respectively, for acquisitions, including our Cactus III acquisition completed during the fourth quarter of 2025.
Disaggregation of Adjusted EBITDA by Product (1) (2) (unaudited)
(in millions)
Adjusted EBITDA Adjusted EBITDA
from Crude Oil from NGL
------------------- -------------------
Three Months Ended December 31,
2025 $ 611 $ 122
========== === === =======
Three Months Ended December 31,
2024 $ 569 $ 154
========== === === ======= =====
Percentage change versus 2024
period 7% (21)%
===
Adjusted EBITDA Adjusted EBITDA
from Crude Oil from NGL
------------------- -------------------
Twelve Months Ended December 31,
2025 $ 2,344 $ 469
========== === === ======= =====
Twelve Months Ended December 31,
2024 $ 2,276 $ 480
========== === === ======= =====
Percentage change versus 2024
period 3% (2)%
========== ============ ===
________________________
(1) Includes results from continuing operations and discontinued operations for all periods presented.
(2) See the section of this release entitled "Non-GAAP Financial Measures and Selected Items Impacting Comparability" and the tables attached hereto for information regarding our Non-GAAP financial measures, including their reconciliation to the most directly comparable measures as reported in accordance with GAAP, and certain selected items that PAA believes impact comparability of financial results between reporting periods.
Fourth-quarter 2025 Adjusted EBITDA from Crude Oil increased 7% versus comparable 2024 results. Favorable results in the 2025 period from (i) contributions from recently completed bolt-on acquisitions, including our Cactus III pipeline acquisition, (ii) higher volumes on our pipelines and (iii) tariff escalations were offset by the impact of (iv) certain Permian long-haul pipeline contract rate resets and (v) lower commodity prices.
Fourth-quarter 2025 Adjusted EBITDA from NGL decreased 21% versus comparable 2024 results primarily due to lower sales volumes and lower weighted average frac spreads.
Plains GP Holdings
PAGP owns an indirect non-economic controlling interest in PAA's general partner and an indirect limited partner interest in PAA. As the control entity of PAA, PAGP consolidates PAA's results into its financial statements, which is reflected in the condensed consolidating balance sheet and income statement tables attached hereto.
Conference Call and Webcast Instructions
PAA and PAGP will hold a joint conference call at 9:00 a.m. CT on Friday, February 6, 2026 to discuss fourth-quarter performance and related items.
To access the internet webcast, please go to https://edge.media-server.com/mmc/p/3ksb2gmv/.
Alternatively, the webcast can be accessed on our website at https://ir.plains.com/news-events/events-presentations. Following the live webcast, an audio replay will be available on our website and will be accessible for a period of 365 days. Slides will be posted prior to the call at the above referenced website.
Non-GAAP Financial Measures and Selected Items Impacting Comparability
To supplement our financial information presented in accordance with GAAP, management uses additional measures known as "non-GAAP financial measures" in its evaluation of past performance and prospects for the future and to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. The primary additional measures used by management are Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied Distributable Cash Flow ("DCF"), Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions.
Our definition and calculation of certain non-GAAP financial measures may not be comparable to similarly-titled measures of other companies. Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied DCF and certain other non-GAAP financial performance measures are reconciled to Net Income, and Adjusted Free Cash Flow, Adjusted Free Cash Flow after Distributions and certain other non-GAAP financial liquidity measures are reconciled to Net Cash Provided by Operating Activities (the most directly comparable measures as reported in accordance with GAAP) for the historical periods presented in the tables attached to this release, and should be viewed in addition to, and not in lieu of, our Consolidated Financial Statements and accompanying notes. In addition, we encourage you to visit the Investor Relations section of our website at www.plains.com (navigate to the "Financials" tab, then click on "Quarterly Results"), which presents a reconciliation of our commonly used non-GAAP and supplemental financial measures. We do not reconcile non-GAAP financial measures on a forward-looking basis as it is impractical to do so without unreasonable effort.
Non-GAAP Financial Performance Measures
Adjusted EBITDA is defined as earnings from continuing operations and discontinued operations before (i) interest expense, (ii) income tax (expense)/benefit from continuing operations and discontinued operations, (iii) depreciation and amortization (including our proportionate share of depreciation and amortization, including write-downs related to cancelled projects and impairments, of unconsolidated entities) from continuing operations and discontinued operations, (iv) gains and losses on asset sales, asset impairments and other, net from continuing operations and discontinued operations, (v) gains on investments in unconsolidated entities, net and (vi) interest income on promissory notes by and among certain Plains entities, and (vii) adjusted for certain selected items impacting comparability. Adjusted EBITDA attributable to PAA excludes the portion of Adjusted EBITDA that is attributable to noncontrolling interests. Adjusted EBITDA disaggregated by product (e.g., Adjusted EBITDA from Crude Oil and Adjusted EBITDA from NGL) excludes amounts related to Other income/(expense).
Management believes that the presentation of Adjusted EBITDA, Adjusted EBITDA attributable to PAA and Implied DCF provides useful information to investors regarding our performance and results of operations because these measures, when used to supplement related GAAP financial measures, (i) provide additional information about our operating performance and ability to fund distributions to our unitholders through cash generated by our operations and (ii) provide investors with the same financial analytical framework upon which management bases financial, operational, compensation and planning/budgeting decisions. We also present these and additional non-GAAP financial measures, including adjusted net income attributable to PAA and basic and diluted adjusted net income per common unit, as they are measures that investors, rating agencies and debt holders have indicated are useful in assessing us and our results of operations. These non-GAAP financial performance measures may exclude, for example, (i) charges for obligations that are expected to be settled with the issuance of equity instruments, (ii) gains and losses on derivative instruments that are related to underlying activities in another period (or the reversal of such adjustments from a prior period), gains and losses on derivatives that are either related to investing activities (such as the purchase of linefill) or purchases of long-term inventory, and inventory valuation adjustments, as applicable, (iii) long-term inventory costing adjustments, (iv) items that are not indicative of our operating results and/or (v) other items that we believe should be excluded in understanding our operating performance. These measures may be further adjusted to include amounts related to deficiencies associated with minimum volume commitments whereby we have billed the counterparties for their deficiency obligation and such amounts are recognized as deferred revenue in "Other current liabilities" in our Consolidated Financial Statements. We also adjust for amounts billed by our equity method investees related to deficiencies under minimum volume commitments. Such amounts are presented net of applicable amounts subsequently recognized into revenue. Furthermore, the calculation of these measures contemplates tax effects as a separate reconciling item, where applicable. We have defined all such items as "selected items impacting comparability." Due to the nature of the selected items, certain selected items impacting comparability may impact certain non-GAAP financial measures, referred to as adjusted results, but not impact other non-GAAP financial measures. We do not necessarily consider all of our selected items impacting comparability to be non-recurring, infrequent or unusual, but we believe that an understanding of these selected items impacting comparability is material to the evaluation of our operating results and prospects.
Although we present selected items impacting comparability that management considers in evaluating our performance, you should also be aware that the items presented do not represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices, exchange rates, mechanical interruptions, acquisitions, divestitures, investment capital projects and numerous other factors. These types of variations may not be separately identified in this release, but will be discussed, as applicable, in management's discussion and analysis of operating results in our Annual Report on Form 10-K.
Non-GAAP Financial Liquidity Measures
Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. Adjusted Free Cash Flow is defined as Net Cash Provided by Operating Activities, less Net Cash Provided by/(Used in) Investing Activities, which primarily includes acquisition, investment and maintenance capital expenditures, investments in unconsolidated entities and related party notes and the impact from the purchase and sale of linefill, net of proceeds from the sales of assets and further impacted by distributions to and contributions from noncontrolling interests and proceeds from the issuance of related party notes. Adjusted Free Cash Flow is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions.
We also present these measures and additional non-GAAP financial liquidity measures as they are measures that investors have indicated are useful. We present Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) for use in assessing our underlying business liquidity and cash flow generating capacity excluding fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is defined as Adjusted Free Cash Flow excluding the impact of "Changes in assets and liabilities, net of acquisitions" on our Condensed Consolidated Statements of Cash Flows. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities).
Non-GAAP Financial Measures and Discontinued Operations
Management believes that the presentation of certain Non-GAAP financial performance measures, such as Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied DCF, Adjusted Net Income attributable to PAA, Adjusted Net Income per Common Unit, Adjusted EBITDA from Crude Oil and Adjusted EBITDA from NGL, and certain Non-GAAP financial liquidity measures, such as Adjusted Free Cash Flow and Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities), on a consolidated basis (e.g., the aggregate of continuing operations and discontinued operations) provides more relevant and useful information regarding our performance and results of operations than presenting such metrics only on a continuing operations or discontinued operations basis. In addition, as the potential sale of the Canadian NGL Business is not anticipated to close until the end of the first quarter of 2026, management continues to view the Canadian NGL Business as a component of our overall company performance and ability to fund distributions to our unitholders in the near term.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per unit data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ --------------------
2025 2024 2025 2024
------ ------
REVENUES $10,565 $12,035 $44,262 $48,889
COSTS AND EXPENSES
Purchases and
related costs 9,571 11,076 40,433 45,162
Field operating
costs (1) 281 510 1,154 1,471
General and
administrative
expenses 92 81 342 328
Depreciation and
amortization 257 227 953 901
(Gains)/losses on
asset sales,
asset impairments
and other, net 9 157 (54) 159
Total costs and
expenses 10,210 12,051 42,828 48,021
OPERATING INCOME 355 (16) 1,434 868
OTHER
INCOME/(EXPENSE)
Equity earnings in
unconsolidated
entities 89 154 382 452
Gain on
investments in
unconsolidated
entities, net -- 15 31 15
Interest expense,
net (2) (159) (112) (554) (430)
Other income, net
(2) 38 20 108 64
------ ------ ------ ------
INCOME FROM
CONTINUING
OPERATIONS BEFORE
TAX 323 61 1,401 969
Current income tax
benefit/(expense)
from continuing
operations 10 (10) (1) (82)
Deferred income
tax expense from
continuing
operations (8) (6) (14) (5)
------ ------ ------ ------
INCOME FROM
CONTINUING
OPERATIONS, NET
OF TAX 325 45 1,386 882
INCOME FROM
DISCONTINUED
OPERATIONS, NET
OF TAX 102 74 383 231
NET INCOME 427 119 1,769 1,113
Net income
attributable to
noncontrolling
interests (85) (83) (334) (341)
------ ------ ------ ------
NET INCOME
ATTRIBUTABLE TO
PAA $ 342 $ 36 $ 1,435 $ 772
====== ====== ====== ======
NET INCOME/(LOSS)
PER COMMON UNIT:
Net
income/(loss)
allocated to
common
unitholders --
Basic and
Diluted
Continuing
operations $ 187 $ (101) $ 786 $ 283
Discontinued
operations 102 74 383 231
------ ------ ------ ------
Net
income/(loss)
allocated to
common
unitholders --
Basic and
Diluted $ 289 $ (27) $ 1,169 $ 514
====== ====== ====== ======
Basic and
diluted
weighted
average common
units
outstanding 706 704 704 702
Basic and
diluted net
income/(loss)
per common
unit:
Continuing
operations $ 0.26 $ (0.15) $ 1.12 $ 0.40
Discontinued
operations $ 0.15 $ 0.11 $ 0.54 $ 0.33
------ ------ ------ ------
Basic and
diluted net
income/(loss)
per common
unit $ 0.41 $ (0.04) $ 1.66 $ 0.73
====== ====== ====== ======
________________________
(1) For the three and twelve months ended December 31, 2024, Field operating costs include $225 million and $345 million, respectively, resulting from adjustments related to the Line 901 incident that occurred in May 2015, including the write-off of a receivable for Line 901 insurance proceeds in the fourth quarter of 2024 and settlements in the third quarter of 2024.
(2) Certain Plains entities have issued promissory notes by and among such entities to facilitate financing. "Interest expense, net" and "Other income, net" each include $22 million and $87 million for the three and twelve months ended December 31, 2025, respectively, and $17 million and $48 million for the three and twelve months ended December 31, 2024, respectively, related to interest on such related party promissory notes. These amounts offset and do not impact Net Income or Non-GAAP metrics such as Adjusted EBITDA, Implied DCF and Adjusted Free Cash Flow.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED CONSOLIDATED BALANCE SHEET DATA
(in millions)
December 31, December 31,
2025 2024
-------------- ----------------
ASSETS
Current assets (including Cash and cash
equivalents of $328 and $348,
respectively) (1) $ 4,733 $ 4,802
Property and equipment, net 16,860 13,446
Investments in unconsolidated entities 2,846 2,811
Intangible assets, net 1,754 1,677
Linefill 900 904
Long-term operating lease right-of-use
assets, net 198 189
Long-term inventory 214 242
Long-term assets of discontinued
operations 2,557 2,349
Other long-term assets, net 107 142
---------- ----------
Total assets $ 30,169 $ 26,562
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities (2) $ 4,931 $ 4,950
Senior notes, net 9,118 7,141
Other long-term debt, net 1,578 70
Long-term operating lease liabilities 202 192
Long-term liabilities of discontinued
operations 606 576
Other long-term liabilities and deferred
credits 654 537
---------- ----------
Total liabilities 17,089 13,466
Partners' capital excluding
noncontrolling interests 9,836 9,813
Noncontrolling interests 3,244 3,283
---------- ----------
Total partners' capital 13,080 13,096
---------- ----------
Total liabilities and partners'
capital $ 30,169 $ 26,562
========== ==========
________________________
(1) Includes current assets of discontinued operations of $479 million and $415 million as of December 31, 2025 and December 31, 2024, respectively.
(2) Includes current liabilities of discontinued operations of $382 million and $350 million as of December 31, 2025 and December 31, 2024, respectively.
DEBT CAPITALIZATION RATIOS (1)
(in millions, except percentages)
December 31, December 31,
2025 2024
---------------- ----------------
Short-term debt $ 564 $ 408
Long-term debt 10,698 7,213
-------- --------
Total debt $ 11,262 $ 7,621
======== ========
Long-term debt $ 10,698 $ 7,213
Partners' capital excluding
noncontrolling interests 9,836 9,813
-------- --------
Total book capitalization excluding
noncontrolling interests ("Total book
capitalization") $ 20,534 $ 17,026
======== ========
Total book capitalization,
including short-term debt $ 21,098 $ 17,434
======== ========
Long-term debt-to-total book
capitalization 52% 42%
Total debt-to-total book capitalization,
including short-term debt 53% 44%
________________________
(1) Includes results from continuing operations and discontinued operations for all periods presented.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
COMPUTATION OF BASIC AND DILUTED NET INCOME/(LOSS) PER COMMON UNIT
(in millions, except per unit data)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------
2025 2024 2025 2024
----- ----- ----
Basic and Diluted
Net Income/(Loss)
per Common Unit
Continuing
Operations:
Income from
continuing
operations, net
of tax $ 325 $ 45 $ 1,386 $ 882
Net income
attributable to
noncontrolling
interests (85) (83) (334) (341)
---- ----- ----- ----
Net income from
continuing
operations
attributable to
PAA $ 240 $ (38) $ 1,052 $ 541
Distributions to
Series A
preferred
unitholders (36) (44) (146) (175)
Distributions to
Series B
preferred
unitholders (17) (19) (70) (78)
Amounts
allocated to
participating
securities (1) (1) (11) (10)
Impact from
repurchase of
Series A
preferred units
(1) -- -- (43) --
Other 1 1 4 5
---- ----- ----- ----
Net
income/(loss)
from
continuing
operations
allocated to
common
unitholders -
Basic and
Diluted (2) $ 187 $ (101) $ 786 $ 283
Discontinued
Operations:
Net income
from
discontinued
operations
allocated to
common
unitholders -
Basic and
Diluted (3) $ 102 $ 74 $ 383 $ 231
Net income/(loss)
allocated to
common
unitholders -
Basic and
Diluted $ 289 $ (27) $ 1,169 $ 514
==== ===== ===== ====
Basic and diluted
weighted average
common units
outstanding (4)
(5) 706 704 704 702
Basic and diluted
net income/(loss)
per common unit
Continuing
operations $ 0.26 $(0.15) $ 1.12 $0.40
Discontinued
operations $ 0.15 $ 0.11 $ 0.54 $0.33
---- ----- ----- ----
Basic and
diluted net
income/(loss)
per common
unit $ 0.41 $(0.04) $ 1.66 $0.73
==== ===== ===== ====
________________________
(1) We repurchased approximately 12.7 million Series A preferred units on January 31, 2025. The difference between the cash we paid for the repurchase of such units and their carrying value on our balance sheet is considered a return to Series A preferred unitholders for the calculation of net income from continuing operations allocated to common unitholders.
(2) We calculate net income/(loss) from continuing operations allocated to common unitholders based on the distributions pertaining to the current period's net income. After adjusting for the appropriate period's distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.
(3) Net income from discontinued operations allocated to common unitholders is Income from discontinued operations, net of tax as presented on our Condensed Consolidated Statements of Operations.
(4) The possible conversion of our Series A preferred units was excluded from the calculation of diluted net income/(loss) per common unit from continuing operations for each of the three and twelve months ended December 31, 2025 and 2024 as the effect was antidilutive.
(5) Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered potentially dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED CONSOLIDATED CASH FLOW DATA
(in millions)
Twelve Months Ended
December 31,
-------------------------
2025 2024
-------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,769 $ 1,113
Reconciliation of net income to net cash
provided by operating activities:
Income from discontinued operations, net of
tax (383) (231)
Depreciation and amortization 953 901
(Gains)/losses on asset sales, asset
impairments and other, net (54) 159
Equity-indexed compensation expense 49 50
Deferred income tax expense 14 5
(Gain)/loss on foreign currency revaluation 13 (12)
Settlement of terminated interest rate
hedging instruments 37 57
Equity earnings in unconsolidated entities (382) (452)
Distributions on earnings from
unconsolidated entities 486 505
Gain on investments in unconsolidated
entities, net (31) (15)
Other 15 17
Changes in assets and liabilities, net of
acquisitions (34) 139
------- -------
Cash provided by operating activities -
continuing operations 2,452 2,236
Cash provided by operating activities -
discontinued operations 484 254
------- -------
Net cash provided by operating activities 2,936 2,490
CASH FLOWS FROM INVESTING ACTIVITIES
Cash used in investing activities -
continuing operations (3,572) (1,334)
Cash used in investing activities -
discontinued operations (197) (170)
------- -------
Net cash used in investing activities (1)
(2) (3,769) (1,504)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by/(used in) financing
activities (1) 799 (1,077)
Effect of translation adjustment -
continuing operations 14 (13)
Effect of translation adjustment -
discontinued operations -- 2
Net decrease in cash and cash equivalents and
restricted cash (20) (102)
Cash and cash equivalents and restricted
cash, beginning of period 348 450
------- -------
Cash and cash equivalents and restricted
cash, end of period $ 328 $ 348
======= =======
________________________
(1) Certain Plains entities have issued promissory notes by and among such entities to facilitate financing. For the twelve months ended December 31, 2025 and 2024, "Net cash used in investing activities" includes a cash outflow of approximately $330 million and $629 million, respectively, associated with our investment in related party notes. An equal and offsetting cash inflow associated with our issuance of related party notes is included in "Net cash provided by/(used in) financing activities."
(2) The 2025 period includes a net cash outflow of $2.651 billion for acquisitions, including our Cactus III acquisition completed during the fourth quarter of 2025.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CAPITAL EXPENDITURES (1)
(in millions)
Net to PAA(2) Consolidated
---------------------- ------------------------
Three Twelve Three
Months Months Months Twelve
Ended Ended Ended Months Ended
December December December December
31, 31, 31, 31,
----------
2025 2024 2025 2024 2025 2024 2025 2024
---- ---- ---- ---- ---- ---- ---- ------
Investment
capital
expenditures:
Crude Oil $ 96 $ 55 $409 $214 $115 $ 80 $520 $300
NGL(3) 11 41 99 115 11 41 99 115
--- --- --- --- --- --- --- ---
Total Investment
capital
expenditures 107 96 508 329 126 121 619 415
Total
Maintenance
capital
expenditures(4) 62 68 211 242 65 73 226 261
--- --- --- --- --- --- --- ---
Total Investment
and Maintenance
capital
expenditures $169 $164 $719 $571 $191 $194 $845 $676
=== === === === === === === ===
________________________
(1) Includes results from continuing operations and discontinued operations for all periods presented.
(2) Excludes expenditures attributable to noncontrolling interests.
(3) See the "Discontinued Operations Detail" section for amounts attributable to discontinued operations.
(4) See the "Selected Financial Data by NGL" section for amounts attributable to discontinued operations.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
NON-GAAP RECONCILIATIONS
(in millions, except per unit and ratio data)
Computation of Basic and Diluted Adjusted Net Income Per Common Unit (1) (2) :
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------------
2025 2024 2025 2024
----- ------
Basic and
Diluted Adjusted
Net Income per
Common Unit
Net income
attributable to
PAA $ 342 $ 36 $ 1,435 $ 772
Selected items
impacting
comparability
- Adjusted
net income
attributable
to PAA (3) (8) 321 (83) 546
----- ----- ----- ------
Adjusted net
income
attributable to
PAA $ 334 $ 357 $ 1,352 $ 1,318
Distributions
to Series A
preferred
unitholders (36) (44) (146) (175)
Distributions
to Series B
preferred
unitholders (17) (19) (70) (78)
Amounts
allocated to
participating
securities (1) (1) (11) (11)
Impact from
repurchase of
Series A
preferred
units (4) -- -- (43) --
Other 1 1 4 5
----- ----- ----- ------
Adjusted net
income
allocated to
common
unitholders $ 281 $ 294 $ 1,086 $ 1,059
===== ===== ===== ======
Basic and
diluted
weighted
average common
units
outstanding (5)
(6) 706 704 704 702
Basic and
diluted
adjusted net
income per
common unit $ 0.40 $ 0.42 $ 1.54 $ 1.51
===== ===== ===== ======
________________________
(1) We calculate adjusted net income allocated to common unitholders based on the distributions pertaining to the current period's net income. After adjusting for the appropriate period's distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.
(2) Includes results from continuing operations and discontinued operations for all periods presented.
(3) See the "Selected Items Impacting Comparability" table for additional information.
(4) We repurchased approximately 12.7 million Series A preferred units on January 31, 2025. The difference between the cash we paid for the repurchase of such units and their carrying value on our balance sheet is considered a return to Series A preferred unitholders for the calculation of adjusted net income allocated to common unitholders.
(5) The possible conversion of our Series A preferred units was excluded from the calculation of diluted adjusted net income per common unit for each of the three and twelve months ended December 31, 2025 and 2024 as the effect was antidilutive.
(6) Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered potentially dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.
Net Income/(Loss) Per Common Unit to Adjusted Net Income Per Common Unit Reconciliation (1) :
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- -------------------------
2025 2024 2025 2024
------ ------
Basic and
diluted net
income/(loss)
per common
unit $ 0.41 $ (0.04) $ 1.66 $ 0.73
Selected items
impacting
comparability
per common
unit (2) (0.01) 0.46 (0.12) 0.78
------ ------ ------ ------
Basic and
diluted
adjusted net
income per
common unit $ 0.40 $ 0.42 $ 1.54 $ 1.51
====== ====== ====== ======
________________________
(1) Includes results from continuing operations and discontinued operations for all periods presented.
(2) See the "Selected Items Impacting Comparability" and the "Computation of Basic and Diluted Adjusted Net Income/(Loss) Per Common Unit" tables for additional information.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation:
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ --------------------
2025 2024 2025 2024
------ ------
Net Income (1) $ 427 $ 119 $ 1,769 $ 1,113
Interest expense,
net of certain
items (2) 137 95 467 382
Income tax
(benefit)/expense
from continuing
operations (2) 16 15 87
Income tax expense
from discontinued
operations 43 29 139 80
Depreciation and
amortization from
continuing
operations 257 227 953 901
Depreciation and
amortization from
discontinued
operations -- 31 57 125
(Gains)/losses on
asset sales,
asset impairments
and other, net
from continuing
operations 9 157 (54) 159
Losses on asset
sales, asset
impairments and
other, net from
discontinued
operations 6 2 21 1
Gain on
investments in
unconsolidated
entities, net -- (15) (31) (15)
Depreciation and
amortization of
unconsolidated
entities (3) 22 26 84 84
Selected items
impacting
comparability -
Adjusted EBITDA
(1) (4) (24) 180 (46) 409
------ ------ ------ ------
Adjusted EBITDA (1) $ 875 $ 867 $ 3,374 $ 3,326
Adjusted EBITDA
attributable to
noncontrolling
interests (137) (138) (541) (547)
------ ------ ------ ------
Adjusted EBITDA
attributable to PAA
(1) $ 738 $ 729 $ 2,833 $ 2,779
====== ====== ====== ======
Adjusted EBITDA (1) $ 875 $ 867 $ 3,374 $ 3,326
Interest expense,
net of certain
non-cash and
other items (5) (132) (92) (452) (365)
Maintenance
capital from
continuing
operations (45) (48) (156) (187)
Maintenance
capital from
discontinued
operations (20) (25) (70) (74)
Investment capital
of noncontrolling
interests (6) (19) (24) (108) (86)
Current income tax
expense from
continuing
operations 10 (10) (1) (82)
Current income tax
expense from
discontinued
operations (38) (42) (99) (113)
Distributions from
unconsolidated
entities in
excess of/(less
than) adjusted
equity earnings
(7) 12 -- 22 11
Distributions to
noncontrolling
interests (8) (108) (114) (447) (425)
------ ------ ------ ------
Implied DCF (1) $ 535 $ 512 $ 2,063 $ 2,005
Preferred unit
cash
distributions
paid (8) (54) (63) (225) (254)
------ ------ ------ ------
Implied DCF
Available to Common
Unitholders (1) $ 481 $ 449 $ 1,838 $ 1,751
====== ====== ====== ======
Weighted Average
Common Units
Outstanding 706 704 704 702
Weighted Average
Common Units and
Common Unit
Equivalents 764 775 763 773
Implied DCF per
Common Unit (1)
(9) $ 0.68 $ 0.64 $ 2.61 $ 2.49
Implied DCF per
Common Unit and
Common Unit
Equivalent (1)
(10) $ 0.68 $ 0.64 $ 2.61 $ 2.49
Cash Distribution
Paid per Common
Unit $0.3800 $0.3175 $1.5200 $1.2700
Common Unit Cash
Distributions (8) $ 268 $ 223 $ 1,070 $ 891
Common Unit
Distribution
Coverage Ratio (1) 1.79x 2.01x 1.72x 1.97x
Implied DCF Excess
(1) $ 213 $ 226 $ 768 $ 860
________________________
(1) Includes results from continuing operations and discontinued operations for all periods presented.
(2) Represents "Interest expense, net" as reported on our Condensed Consolidated Statements of Operations, net of interest income associated with promissory notes by and among certain Plains entities.
(3) Adjustment to exclude our proportionate share of depreciation and amortization expense (including write-downs related to cancelled projects and impairments) of unconsolidated entities.
(4) See the "Selected Items Impacting Comparability" table for additional information.
(5) Amount excludes certain non-cash items impacting interest expense such as amortization of debt issuance costs and terminated interest rate swaps and is net of interest income associated with promissory notes by and among certain Plains entities.
(6) Investment capital expenditures attributable to noncontrolling interests that reduce Implied DCF available to PAA common unitholders.
(7) Comprised of cash distributions received from unconsolidated entities less equity earnings in unconsolidated entities (adjusted for our proportionate share of depreciation and amortization, including write-downs related to cancelled projects and impairments, and selected items impacting comparability of unconsolidated entities)
(8) Cash distributions paid during the period presented.
(9) Implied DCF Available to Common Unitholders for the period divided by the weighted average common units outstanding for the period.
(10) Implied DCF Available to Common Unitholders for the period, adjusted for Series A preferred unit cash distributions paid, divided by the weighted average common units and common unit equivalents outstanding for the period. Our Series A preferred units are convertible into common units, generally on a one-for-one basis and subject to customary anti-dilution adjustments, in whole or in part, subject to certain minimum conversion amounts.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
Net Income/(Loss) Per Common Unit to Implied DCF Per Common Unit and Common Unit Equivalent Reconciliation (1) :
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- -------------------------
2025 2024 2025 2024
------- -------
Basic net
income/(loss)
per common
unit $ 0.41 $ (0.04) $ 1.66 $ 0.73
Reconciling
items per
common unit
(2) (3) 0.27 0.68 0.95 1.76
------ ------- ------ -------
Implied DCF
per common
unit $ 0.68 $ 0.64 $ 2.61 $ 2.49
====== ======= ====== =======
Basic net
income/(loss)
per common
unit $ 0.41 $ (0.04) $ 1.66 $ 0.73
Reconciling
items per
common unit
and common
unit
equivalent
(2) (4) 0.27 0.68 0.95 1.76
------ ------- ------ -------
Implied DCF
per common
unit and
common unit
equivalent $ 0.68 $ 0.64 $ 2.61 $ 2.49
====== ======= ====== =======
________________________
(1) Includes results from continuing operations and discontinued operations for all periods presented.
(2) Represents adjustments to Net Income to calculate Implied DCF Available to Common Unitholders. See the "Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation" table for additional information.
(3) Based on weighted average common units outstanding for the periods of 706 million, 704 million, 704 million and 702 million, respectively.
(4) Based on weighted average common units outstanding for the periods, as well as weighted average Series A preferred units outstanding of 58 million, 71 million, 59 million and 71 million, for the periods presented, respectively.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
Net Cash Provided by Operating Activities to Non-GAAP Financial Liquidity Measures Reconciliation:
Three Months
Ended December Twelve Months Ended
31, December 31,
---------------- --------------------
2025 2024 2025 2024
---- ------
Net cash provided
by operating
activities (1) $ 785 $ 726 $ 2,936 $ 2,490
Adjustments to
reconcile Net cash
provided by
operating
activities to
Adjusted Free Cash
Flow:
Net cash used in
investing
activities (1)
(2) (3) (1,937) (264) (3,769) (1,504)
Cash
contributions
from
noncontrolling
interests 41 17 75 57
Cash
distributions
paid to
noncontrolling
interests (4) (108) (114) (447) (425)
Proceeds from the
issuance of
related party
notes (2) -- -- 330 629
------ ---- ------ ------
Adjusted Free Cash
Flow (1) (5) $(1,219) $ 365 $ (875) $ 1,247
====== ==== ====== ======
Cash
distributions
(6) (322) (286) (1,295) (1,145)
------ ---- ------ ------
Adjusted Free Cash
Flow after
Distributions (1)
(5) (7) $(1,541) $ 79 $(2,170) $ 102
====== ==== ====== ======
Three Months
Ended December Twelve Months Ended
31, December 31,
---------------- --------------------
2025 2024 2025 2024
------ ---- ------ ------
Adjusted Free Cash
Flow (1) (5) $(1,219) $ 365 $ (875) $ 1,247
Changes in assets
and liabilities,
net of
acquisitions (1)
(8) (3) (231) 54 (74)
------ ---- ------ ------
Adjusted Free Cash
Flow (Excluding
Changes in Assets
& Liabilities) (1)
(9) (10) $(1,222) $ 134 $ (821) $ 1,173
====== ==== ====== ======
Cash
distributions
(6) (322) (286) (1,295) (1,145)
------ ---- ------ ------
Adjusted Free Cash
Flow after
Distributions
(Excluding Changes
in Assets &
Liabilities) (1)
(9) (10) $(1,544) $(152) $(2,116) $ 28
====== ==== ====== ======
________________________
(1) Includes results from continuing operations and discontinued operations for all periods presented.
(2) Certain Plains entities have issued promissory notes by and among such entities to facilitate financing. "Proceeds from the issuance of related party notes" has an equal and offsetting cash outflow associated with our investment in related party notes, which is included as a component of "Net cash used in investing activities."
(3) The three and twelve months ended December 31, 2025 includes a net cash outflow of $1.786 billion and $2.651 billion, respectively, for acquisitions, including our Cactus III acquisition completed during the fourth quarter of 2025.
(4) Cash distributions paid during the period presented.
(5) Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. Adjusted Free Cash Flow after Distributions shortages, if any, may be funded from previously established reserves, cash on hand or from borrowings under our credit facilities or commercial paper program.
(6) Cash distributions paid to preferred and common unitholders during the period.
(7) Excess Adjusted Free Cash Flow after Distributions is retained to establish reserves for future distributions, capital expenditures, debt reduction and other partnership purposes. Adjusted Free Cash Flow after Distributions shortages may be funded from previously established reserves, cash on hand or from borrowings under our credit facilities or commercial paper program.
(8) See the "Condensed Consolidated Cash Flow Data" table.
(9) Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) and Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) to assess the underlying business liquidity and cash flow generating capacity excluding fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period.
(10) Fourth-quarter and full-year 2024 Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) includes the negative impact of a $225 million charge resulting from the write-off of a receivable for Line 901 insurance proceeds.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
SELECTED ITEMS IMPACTING COMPARABILITY
(in millions)
Three Months
Ended December Twelve Months Ended
31, December 31,
----------------- -----------------------
2025 2024 2025 2024
---- -----
Selected Items
Impacting
Comparability: (1)
(2)
Derivative
activities and
inventory valuation
adjustments (3) $ 33 $ (6) $ 108 $ (85)
Long-term inventory
costing adjustments
(4) (18) 17 (48) 9
Deficiencies under
minimum volume
commitments, net
(5) 17 41 38 31
Rail fleet
amortization
expense related to
discontinued
operations (6) 8 -- 18 --
Equity-indexed
compensation
expense (7) (9) (8) (37) (36)
Foreign currency
revaluation (8) 3 1 (16) 17
Line 901 incident
(9) -- (225) -- (345)
Transaction-related
expenses (10) (10) -- (17) --
Selected items
impacting
comparability -
Adjusted EBITDA $ 24 $(180) $ 46 $ (409)
Gain on investments
in unconsolidated
entities, net -- 15 31 15
Gains/(losses) on
asset sales, asset
impairments and
other, net (11) (15) (159) 33 (160)
Tax effect on
selected items
impacting
comparability (1) 3 (21) 13
Aggregate selected
items impacting
noncontrolling
interests -- -- (6) (5)
---- ---- ---- -----
Selected items
impacting
comparability -
Adjusted net
income
attributable to
PAA $ 8 $(321) $ 83 $ (546)
==== ==== ==== =====
________________________
(1) Certain of our non-GAAP financial measures may not be impacted by each of the selected items impacting comparability. See the "Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation" and "Computation of Basic and Diluted Adjusted Net Income Per Common Unit" tables for additional details on how these selected items impacting comparability affect such measures.
(2) Includes results from continuing operations and discontinued operations for all periods presented.
(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 adjusted results such that the earnings from the derivative instruments and the underlying transactions impact adjusted results 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 treat 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 as a selected item impacting comparability.
(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 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 or equity earnings, as a selected item impacting comparability. We believe the inclusion of the contractually committed revenues associated with that period is meaningful to investors 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) Depreciation and amortization on the long-lived assets of the Canadian NGL Business disposal group ceased upon meeting the criteria to be classified as assets held for sale. Management believes that the presentation of Adjusted EBITDA and Implied DCF on a consolidated basis (e.g., the aggregate of continuing operations and discontinued operations) provides more relevant and useful information regarding our performance and results of operations than presenting such metrics only on a continuing operations or discontinued operations basis. We therefore include an adjustment for the impact of amortization of the rail fleet associated with the Canadian NGL Business.
(7) Our total equity-indexed compensation expense includes expense associated with awards that will be settled in units and awards that will be settled in cash. The awards that will be settled in units are included in our diluted net income per unit calculation when the applicable performance criteria have been met. We consider the compensation expense associated with these awards as a selected item impacting comparability as the dilutive impact of the outstanding awards is included in our diluted net income per unit calculation, as applicable. The portion of compensation expense associated with awards that will be settled in cash is not considered a selected item impacting comparability.
(8) During the periods presented, there were fluctuations in the value of the Canadian dollar to the U.S. dollar, 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. The associated gains and losses are not integral to our results and were thus classified as a selected item impacting comparability.
(9) 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. For the 2024 periods, includes the write-off of a receivable for Line 901 insurance proceeds in the fourth quarter of 2024 and the impact of settlements in the third quarter of 2024.
(10) Primarily related to deal-specific costs incurred during the period.
(11) For the 2024 periods, primarily includes non-cash charges related to the write-down of two U.S. NGL terminals.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
SELECTED FINANCIAL DATA BY CRUDE OIL
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- ----------------------
2025 2024 2025 2024
Revenues (1) $10,512 $ 11,959 $ 44,131 $ 48,720
Purchases and related
costs (1) (9,521) (11,019) (40,323) (45,033)
Field operating costs
(2) (3) (275) (503) (1,127) (1,440)
Segment general and
administrative
expenses (2) (4) (86) (74) (314) (298)
Equity earnings in
unconsolidated
entities 89 154 382 452
Adjustments: (5)
Depreciation and
amortization of
unconsolidated
entities 22 26 84 84
Derivative
activities and
inventory valuation
adjustments (20) (16) (23) 5
Long-term inventory
costing
adjustments 18 (9) 45 1
Deficiencies under
minimum volume
commitments, net (17) (41) (38) (31)
Equity-indexed
compensation
expense 9 8 37 36
Foreign currency
revaluation 6 (4) 12 (22)
Line 901 incident -- 225 -- 345
Transaction-related
expenses 10 -- 17 --
Segment amounts
attributable to
noncontrolling
interests (6) (136) (137) (539) (543)
------ ------- ------- -------
Crude Oil Segment
Adjusted EBITDA /
Adjusted EBITDA from
Crude Oil $ 611 $ 569 $ 2,344 $ 2,276
====== ======= ======= =======
Crude Oil maintenance
capital expenditures $ 44 $ 48 $ 153 $ 183
====== ======= ======= =======
________________________
(1) Includes intersegment amounts.
(2) Field operating costs and Segment general and administrative expenses include equity-indexed compensation expense.
(3) Field operating costs for the three and twelve months ended December 31, 2024 include higher expenses related to (i) $225 million resulting from the write-off of a receivable for Line 901 insurance proceeds and (ii) an increase in estimated costs for long-term environmental remediation obligations. The twelve months ended December 31, 2024 also includes the impact of $120 million associated with settlements in the third quarter of 2024 related to the Line 901 incident that occurred in May 2015.
(4) Segment general and administrative expenses reflect direct costs attributable to each segment and an allocation of other expenses to the segments. The proportional allocations by segment require judgment by management and are based on the business activities that exist during each period.
(5) Represents adjustments utilized by our CODM in the evaluation of segment results. Many of these adjustments are also considered selected items impacting comparability when calculating consolidated non-GAAP financial measures such as Adjusted EBITDA. See the "Selected Items Impacting Comparability" table for additional discussion.
(6) Reflects amounts attributable to noncontrolling interests in the Permian JV, Cactus II Pipeline LLC and Red River Pipeline LLC.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
SELECTED FINANCIAL DATA BY NGL
(in millions)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- ------------------------
2025 2024 2025 2024
Revenues (1) $ 59 $ 81 $ 151 $ 187
Purchases and
related costs
(1) (56) (62) (130) (147)
Field operating
costs (2) (6) (7) (27) (31)
Segment general
and
administrative
expenses (2)
(3) (6) (7) (28) (30)
NGL Segment
Adjusted
EBITDA (4) $ (9) $ 5 $ (34) $ (21)
Adjusted
EBITDA from
NGL
Discontinued
Operations
(5) 131 149 503 501
----- ----- ----- -----
Adjusted EBITDA
from NGL $ 122 $ 154 $ 469 $ 480
===== ===== ===== =====
Maintenance
capital
expenditures
from NGL
continuing
operations $ 1 $ -- $ 3 $ 4
Maintenance
capital
expenditures
from NGL
discontinued
operations 20 25 70 74
----- ----- ----- -----
NGL
maintenance
capital
expenditures $ 21 $ 25 $ 73 $ 78
===== ===== ===== =====
________________________
(1) Includes intersegment amounts.
(2) Field operating costs and Segment general and administrative expenses include certain costs that are part of the overhead of continuing operations, including information technology, insurance and other shared services costs.
(3) Segment general and administrative expenses reflect direct costs attributable to each segment and an allocation of other expenses to the segments. The proportional allocations by segment require judgment by management and are based on the business activities that exist during each period.
(4) Includes results from continuing operations and excludes amounts related to discontinued operations for all periods presented.
(5) See the "Reconciliation of Adjusted EBITDA from NGL Discontinued Operations" table for a reconciliation to the most directly comparable measure as reported in accordance with GAAP.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
DISCONTINUED OPERATIONS DETAIL
(in millions)
Components of Income from Discontinued Operations, Net of Tax:
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------ ------------------------
2025 2024 2025 2024
----- -----
Revenues $ 397 $ 367 $ 1,317 $1,184
Cost and Expenses:
Purchases and
related costs 166 151 411 398
Field operating
costs 69 68 259 297
General and
administrative
expenses 11 12 47 53
Depreciation and
amortization -- 31 57 125
Losses on asset
sales, net 6 2 21 1
---- ----- ----- -----
Total costs
and expenses 252 264 795 874
Other income, net -- -- -- 1
---- ----- ----- -----
Income from
discontinued
operations before
tax 145 103 522 311
Current income tax
expense (38) (42) (99) (113)
Deferred income
tax
(expense)/benefit (5) 13 (40) 33
---- ----- ----- -----
Income from
discontinued
operations, net
of tax $ 102 $ 74 $ 383 $ 231
==== ===== ===== =====
Reconciliation of Adjusted EBITDA from NGL Discontinued Operations:
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- ------------------------
2025 2024 2025 2024
----- -----
Income from
discontinued
operations, net
of tax $ 102 $ 74 $ 383 $ 231
Income tax
expense from
discontinued
operations 43 29 139 80
Depreciation and
amortization
from
discontinued
operations -- 31 57 125
Other income, net
from
discontinued
operations -- -- -- (1)
Losses on asset
sales, net from
discontinued
operations 6 2 21 1
Adjustments
attributable to
discontinued
operations (1) :
Derivative
activities and
inventory
valuation
adjustments (13) 22 (85) 80
Long-term
inventory
costing
adjustments -- (8) 3 (10)
Rail fleet
amortization
expense
related to
discontinued
operations (8) -- (18) --
Foreign
currency
revaluation 1 (1) 3 (5)
----- ----- ----- -----
Adjusted
EBITDA from
NGL
Discontinued
Operations $ 131 $ 149 $ 503 $ 501
===== ===== ===== =====
________________________
(1) See the "Selected Items Impacting Comparability" table for additional information.
Investment Capital from NGL Discontinued Operations:
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------------
2025 2024 2025 2024
------ -------
NGL investment
capital
expenditures
from
discontinued
operations $ 11 $ 41 $ 99 $ 115
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
OPERATING DATA (1)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- -----------------------
2025 2024 2025 2024
---------- -------- ---------- -----------
Crude Oil Volumes
Crude oil
pipeline tariff
(by region)
Permian Basin
(2) 7,738 6,846 7,333 6,731
South Texas /
Eagle Ford
(2) 510 421 521 403
Mid-Continent
(2) 555 478 518 506
Gulf Coast (2) 220 214 220 218
Rocky Mountain
(2) 450 461 475 474
Western 248 259 267 256
Canada 358 349 346 346
---------- -------- ---------- ---------
Total crude oil
pipeline tariff
(2) 10,079 9,028 9,680 8,934
NGL Volumes (3)
NGL fractionation 150 138 147 132
NGL pipeline tariff 241 224 228 213
Propane and butane
sales 126 127 94 92
________________________
(1) Average volumes in thousands of barrels per day calculated as the total volumes (attributable to our interest for assets owned by unconsolidated entities or through undivided joint interests) for the period divided by the number of days in the period. Volumes associated with assets acquired during the period represent total volumes for the number of days we actually owned the assets divided by the number of days in the period.
(2) Includes volumes (attributable to our interest) from assets owned by unconsolidated entities.
(3) Includes volumes from assets associated with continuing operations and discontinued operations.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
SUPPLEMENTAL NON-GAAP RECONCILIATIONS
(in millions)
Supplemental Adjusted EBITDA attributable to PAA Reconciliation:
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------- -------------------------
2025 2024 2025 2024
----- ------
Crude Oil
Segment
Adjusted
EBITDA $ 611 $ 569 $ 2,344 $ 2,276
NGL Segment
Adjusted
EBITDA (9) 5 (34) (21)
Adjusted EBITDA
from NGL
Discontinued
Operations (1) 131 149 503 501
Adjusted other
income, net
(2) 5 6 20 23
----- ----- ----- ------
Adjusted
EBITDA
attributable
to PAA (3) $ 738 $ 729 $ 2,833 $ 2,779
===== ===== ===== ======
________________________
(1) See the "Reconciliation of Adjusted EBITDA from NGL Discontinued Operations" table for a reconciliation to the most directly comparable measure as reported in accordance with GAAP.
(2) Represents "Other income, net" as reported on our Condensed Consolidated Statements of Operations, excluding interest income on promissory notes by and among certain Plains entities, as well as other income, net attributable to noncontrolling interests, adjusted for selected items impacting comparability. See the "Selected Items Impacting Comparability" table for additional information.
(3) See the "Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation" table for reconciliation to Net Income.
PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(in millions, except per share data)
Three Months Ended Three Months Ended
December 31, 2025 December 31, 2024
------------------------------------- ---------------------------------------
Consolidating Consolidating
PAA Adjustments (1) PAGP PAA Adjustments (1) PAGP
-------- ----------------- -------- -------- ----------------- ----------
REVENUES $10,565 $ -- $10,565 $12,035 $ -- $12,035
COSTS AND EXPENSES
Purchases and
related costs 9,571 -- 9,571 11,076 -- 11,076
Field operating
costs 281 -- 281 510 -- 510
General and
administrative
expenses 92 1 93 81 1 82
Depreciation and
amortization 257 -- 257 227 -- 227
Losses on asset
sales, asset
impairments and
other, net 9 -- 9 157 -- 157
Total costs and
expenses 10,210 1 10,211 12,051 1 12,052
OPERATING
INCOME/(LOSS) 355 (1) 354 (16) (1) (17)
OTHER
INCOME/(EXPENSE)
Equity earnings in
unconsolidated
entities 89 -- 89 154 -- 154
Gain on
investments in
unconsolidated
entities, net -- -- -- 15 -- 15
Interest expense,
net (159) 22 (137) (112) 17 (95)
Other income, net 38 (22) 16 20 (17) 3
------ --- ------ --- ------ ------ --- ----- ---- ------
INCOME FROM
CONTINUING
OPERATIONS BEFORE
TAX 323 (1) 322 61 (1) 60
Current income tax
benefit/(expense)
from continuing
operations 10 -- 10 (10) -- (10)
Deferred income
tax expense from
continuing
operations (8) (18) (26) (6) (2) (8)
------ --- ------ --- ------ ------ --- ----- ---- ------
INCOME FROM
CONTINUING
OPERATIONS, NET
OF TAX 325 (19) 306 45 (3) 42
INCOME FROM
DISCONTINUED
OPERATIONS, NET
OF TAX 102 -- 102 74 -- 74
------ --- ------ ---- ------ ------ --- ----- ----- ------
NET INCOME 427 (19) 408 119 (3) 116
Net income
attributable to
noncontrolling
interests (85) (261) (346) (83) (44) (127)
------ --- ------ --- ------ ------ --- ----- ---- ------
NET INCOME/(LOSS)
ATTRIBUTABLE TO
PAGP $ 342 $ (280) $ 62 $ 36 $ (47) $ (11)
====== === ====== === ====== ====== === ===== ==== ======
Basic and diluted net
income/(loss) per Class A
share (2) :
Continuing
operations $ 0.17 $ (0.16)
Discontinued
operations $ 0.14 $ 0.11
------ ------
Basic net income/(loss) per Class A share $ 0.31 $ (0.05)
====== ======
________________________
(1) Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.
(2) See the "Computation of Basic and Diluted Net Income/(Loss) Per Class A Share" table for additional information.
PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS
(in millions, except per share data)
Twelve Months Ended Twelve Months Ended
December 31, 2025 December 31, 2024
------------------------------------- ---------------------------------------
Consolidating Consolidating
PAA Adjustments (1) PAGP PAA Adjustments (1) PAGP
-------- ----------------- -------- -------- ----------------- ----------
REVENUES $44,262 $ -- $44,262 $48,889 $ -- $48,889
COSTS AND
EXPENSES
Purchases and
related costs 40,433 -- 40,433 45,162 -- 45,162
Field operating
costs 1,154 -- 1,154 1,471 -- 1,471
General and
administrative
expenses 342 6 348 328 6 334
Depreciation and
amortization 953 -- 953 901 -- 901
(Gains)/losses on
asset sales,
asset
impairments and
other, net (54) -- (54) 159 -- 159
Total costs and
expenses 42,828 6 42,834 48,021 6 48,027
OPERATING INCOME 1,434 (6) 1,428 868 (6) 862
OTHER
INCOME/(EXPENSE)
Equity earnings
in
unconsolidated
entities 382 -- 382 452 -- 452
Gain on
investments in
unconsolidated
entities, net 31 -- 31 15 -- 15
Interest expense,
net (554) 87 (467) (430) 48 (382)
Other income, net 108 (87) 21 64 (48) 16
------ ------- --- ------ ------ --- ------ --- ------
INCOME FROM
CONTINUING
OPERATIONS
BEFORE TAX 1,401 (6) 1,395 969 (6) 963
Current income
tax expense from
continuing
operations (1) -- (1) (82) -- (82)
Deferred income
tax expense from
continuing
operations (14) (77) (91) (5) (37) (42)
------ ------- --- ------ ------ --- ------ --- ------
INCOME FROM
CONTINUING
OPERATIONS, NET
OF TAX 1,386 (83) 1,303 882 (43) 839
INCOME FROM
DISCONTINUED
OPERATIONS, NET
OF TAX 383 -- 383 231 -- 231
------ ------- ---- ------ ------ --- ------ ---- ------
NET INCOME 1,769 (83) 1,686 1,113 (43) 1,070
Net income
attributable
to
noncontrolling
interests (334) (1,092) (1,426) (341) (626) (967)
------ ------- --- ------ ------ --- ------ --- ------
NET INCOME
ATTRIBUTABLE TO
PAGP $ 1,435 $ (1,175) $ 260 $ 772 $ (669) $ 103
====== ======= === ====== ====== === ====== === ======
Basic net income per Class
A share (2) :
Continuing operations $ 0.77 $ 0.19
Discontinued operations $ 0.54 $ 0.33
------ ------
Basic net income per Class A share $ 1.31 $ 0.52
====== ======
Diluted net income per
Class A share (2) :
Continuing operations $ 0.77 $ 0.19
Discontinued operations $ 0.53 $ 0.32
------ ------
Diluted net income per Class A share $ 1.30 $ 0.51
====== ======
________________________
(1) Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.
(2) See the "Computation of Basic and Diluted Net Income/(Loss) Per Class A Share" table for additional information.
PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
CONDENSED CONSOLIDATING BALANCE SHEET DATA
(in millions)
December 31, 2025 December 31, 2024
----------------------------------- -------------------------------------
Consolidating Consolidating
PAA Adjustments (1) PAGP PAA Adjustments (1) PAGP
------- ----------------- ------- ------- ----------------- -------
ASSETS
Current assets
(2) $ 4,733 $ (29) $ 4,704 $ 4,802 $ (26) $ 4,776
Property and
equipment,
net 16,860 -- 16,860 13,446 -- 13,446
Investments in
unconsolidated
entities 2,846 -- 2,846 2,811 -- 2,811
Intangible
assets, net 1,754 -- 1,754 1,677 -- 1,677
Deferred tax
asset -- 1,136 1,136 -- 1,220 1,220
Linefill 900 -- 900 904 -- 904
Long-term
operating
lease
right-of-use
assets, net 198 -- 198 189 -- 189
Long-term
inventory 214 -- 214 242 -- 242
Long-term
assets of
discontinued
operations 2,557 -- 2,557 2,349 -- 2,349
Other long-term
assets, net 107 -- 107 142 -- 142
------ ------- ---- ------ ------ ------- ---- ------
Total assets $30,169 $ 1,107 $31,276 $26,562 $ 1,194 $27,756
====== ======= ==== ====== ====== ======= ==== ======
LIABILITIES AND
PARTNERS'
CAPITAL
Current
liabilities
(3) $ 4,931 $ (29) $ 4,902 $ 4,950 $ (26) $ 4,924
Senior notes,
net 9,118 -- 9,118 7,141 -- 7,141
Other long-term
debt, net 1,578 -- 1,578 70 -- 70
Long-term
operating
lease
liabilities 202 -- 202 192 -- 192
Long-term
liabilities of
discontinued
operations 606 -- 606 576 -- 576
Other long-term
liabilities
and deferred
credits 654 -- 654 537 -- 537
------ ------- ---- ------ ------ ------- ---- ------
Total
liabilities 17,089 (29) 17,060 13,466 (26) 13,440
Partners'
capital
excluding
noncontrolling
interests 9,836 (8,491) 1,345 9,813 (8,462) 1,351
Noncontrolling
interests 3,244 9,627 12,871 3,283 9,682 12,965
------ ------- ---- ------ ------ ------- ---- ------
Total partners'
capital 13,080 1,136 14,216 13,096 1,220 14,316
------ ------- ---- ------ ------ ------- ---- ------
Total
liabilities
and
partners'
capital $30,169 $ 1,107 $31,276 $26,562 $ 1,194 $27,756
====== ======= ==== ====== ====== ======= ==== ======
________________________
(1) Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP.
(2) Includes current assets of discontinued operations of $479 million and $415 million as of December 31, 2025 and December 31, 2024, respectively.
(3) Includes current liabilities of discontinued operations of $382 million and $350 million as of December 31, 2025 and December 31, 2024, respectively.
PLAINS GP HOLDINGS AND SUBSIDIARIES
FINANCIAL SUMMARY (unaudited)
COMPUTATION OF BASIC AND DILUTED NET INCOME/(LOSS) PER CLASS A SHARE
(in millions, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
-------------------- ------------------------
2025 2024 2025 2024
------ ------
Basic Net
Income/(Loss)
per Class A
Share
Net
income/(loss)
attributable to
PAGP from
continuing
operations $ 33 $ (31) $ 152 $ 39
Net income
attributable to
PAGP from
discontinued
operations $ 29 $ 20 $ 108 $ 64
Basic weighted
average Class A
shares
outstanding 198 197 198 197
Basic Net
Income/(Loss)
per Class A
Share:
Continuing
operations $ 0.17 $ (0.16) $ 0.77 $ 0.19
Discontinued
operations 0.14 0.11 0.54 0.33
------ ------ ------ ------
Basic net
income/(loss)
per Class A
share $ 0.31 $ (0.05) $ 1.31 $ 0.52
====== ====== ====== ======
Diluted Net
Income/(Loss)
per Class A
Share
Net
income/(loss)
attributable to
PAGP from
continuing
operations $ 33 $ (31) $ 152 $ 39
Net income
attributable to
PAGP from
discontinued
operations $ 29 $ 20 $ 108 $ 64
Incremental
net income
attributable
to PAGP
resulting
from assumed
exchange of
AAP
Management
Units -- -- 15 9
------ ------ ------ ------
Net income
attributable to
PAGP from
discontinued
operations
including
incremental net
income from
assumed
exchange of AAP
Management
Units $ 29 $ 20 $ 123 $ 73
====== ====== ====== ======
Basic weighted
average Class A
shares
outstanding 198 197 198 197
Dilutive
shares
resulting
from assumed
exchange of
AAP
Management
Units -- -- 35 35
------ ------ ------ ------
Diluted weighted
average Class A
shares
outstanding 198 197 233 232
====== ====== ====== ======
Diluted Net
Income/(Loss)
per Class A
Share:
Continuing
operations $ 0.17 $ (0.16) $ 0.77 $ 0.19
Discontinued
operations 0.14 0.11 0.53 0.32
------ ------ ------ ------
Diluted net
income/(loss)
per Class A
share $ 0.31 $ (0.05) $ 1.30 $ 0.51
====== ====== ====== ======
Forward-Looking Statements
Except for the historical information contained herein, the matters discussed in this release consist of forward-looking statements that involve certain risks and uncertainties that could cause actual results or outcomes to differ materially from results or outcomes anticipated in the forward-looking statements. These risks and uncertainties include, among other things, the following:
-- risks related to the Canadian NGL Business divestiture (as defined
herein), including the risk that the Canadian NGL Business divestiture is
not consummated on the terms expected or on the anticipated schedule, or
at all, and the effect of the announcement or pendency of the Canadian
NGL Business divestiture on our business relationships, operating results,
employees, stakeholders and business generally;
-- general economic, market or business conditions in the United States and
elsewhere (including the potential for a recession or significant
slowdown in economic activity levels, the risk of persistently high
inflation and supply chain issues, the impact of global public health
events, such as pandemics, on demand and growth, and the timing, pace and
extent of economic recovery) that impact (i) demand for crude oil,
drilling and production activities and therefore the demand for the
midstream services we provide and (ii) commercial opportunities available
to us;
-- declines in global crude oil demand and/or crude oil prices or other
factors that correspondingly lead to a significant reduction of North
American crude oil and NGL production (whether due to reduced producer
cash flow to fund drilling activities or the inability of producers to
access capital, or both, the unavailability of pipeline and/or storage
capacity, the shutting-in of production by producers, government-mandated
pro-ration orders, or other factors), which in turn could result in
significant declines in the actual or expected volume of crude oil and
NGL shipped, processed, purchased, stored, fractionated and/or gathered
at or through the use of our assets and/or the reduction of the margins
we can earn or the commercial opportunities that might otherwise be
available to us;
-- fluctuations in refinery capacity and other factors affecting demand for
various grades of crude oil and NGL and resulting changes in pricing
conditions or transportation throughput requirements;
-- unanticipated changes in crude oil and NGL market structure, grade
differentials and volatility (or lack thereof);
-- the effects of competition and capacity overbuild in areas where we
operate, including downward pressure on rates, volumes and margins,
contract renewal risk and the risk of loss of business to other midstream
operators who are willing or under pressure to aggressively reduce
transportation rates in order to capture or preserve customers;
-- the availability of, and our ability to consummate, acquisitions,
divestitures, joint ventures or other strategic opportunities and realize
benefits therefrom, including the Canadian NGL Business divestiture (as
defined herein);
-- the successful operation of joint ventures and joint operating
arrangements we enter into from time to time, whether relating to assets
operated by us or by third parties, and the successful integration and
future performance of acquired assets or businesses;
-- environmental liabilities, litigation or other events that are not
covered by an indemnity, insurance or existing reserves;
-- negative societal sentiment regarding the hydrocarbon energy industry and
the continued development and consumption of hydrocarbons, which could
influence consumer preferences and governmental or regulatory actions
that adversely impact our business;
-- the occurrence of a natural disaster, catastrophe, terrorist attack
(including eco-terrorist attacks) or other event that materially impacts
our operations, including cyber or other attacks on our or our service
providers' electronic and computer systems;
-- weather interference with business operations or project construction,
including the impact of extreme weather events or conditions (including
hurricanes, floods, wildfires and drought);
-- the impact of current and future laws, rulings, legislation, governmental
regulations, executive orders, trade policies, trade tariffs, accounting
standards and statements, and related interpretations that (i) prohibit,
restrict or regulate the development of oil and gas resources and the
related infrastructure on lands dedicated to or served by our pipelines
or (ii) negatively impact our ability to develop, operate or repair
midstream assets, or (iii) otherwise negatively impact our business or
increase our exposure to risk;
-- negative impacts on production levels in the Permian Basin or elsewhere
due to issues associated with (or laws, rules or regulations relating to)
hydraulic fracturing and related activities (including wastewater
injection or disposal), including earthquakes, subsidence, expansion or
other issues;
-- the pace of development of natural gas or other infrastructure and its
impact on expected crude oil production growth in the Permian Basin;
-- the refusal or inability of our customers or counterparties to perform
their obligations under their contracts with us (including commercial
contracts, asset sale agreements and other agreements), whether justified
or not and whether due to financial constraints (such as reduced
creditworthiness, liquidity issues or insolvency), market constraints,
legal constraints (including governmental orders or guidance), the
exercise of contractual or common law rights that allegedly excuse their
performance (such as force majeure or similar claims) or other factors;
-- loss of key personnel and inability to attract and retain new talent;
-- disruptions to futures markets for crude oil, NGL and other petroleum
products, which may impair our ability to execute our commercial or
hedging strategies;
-- the effectiveness of our risk management activities;
-- shortages or cost increases of supplies, materials or labor;
-- maintenance of our credit ratings and ability to receive open credit from
our suppliers and trade counterparties;
-- our inability to perform our obligations under our contracts, whether due
to non-performance by third parties, including our customers or
counterparties, market constraints, third-party constraints, supply chain
issues, legal constraints (including governmental orders or guidance), or
other factors or events;
-- the incurrence of costs and expenses related to unexpected or unplanned
capital or maintenance expenditures, third-party claims or other factors;
-- failure to implement or capitalize, or delays in implementing or
capitalizing, on investment capital projects, whether due to permitting
delays, permitting withdrawals or other factors;
-- tightened capital markets or other factors that increase our cost of
capital or limit our ability to obtain debt or equity financing on
satisfactory terms to fund additional acquisitions, investment capital
projects, working capital requirements and the repayment or refinancing
of indebtedness;
-- the amplification of other risks caused by volatile or closed financial
markets, capital constraints, liquidity concerns and inflation;
-- the use or availability of third-party assets upon which our operations
depend and over which we have little or no control;
-- the currency exchange rate of the Canadian dollar to the United States
dollar;
-- the deferral of current revenue recognition attributable to deficiency
payments received from customers who fail to ship or move their minimum
contracted volumes;
-- significant under-utilization of our assets and facilities;
-- increased costs, or lack of availability, of insurance;
-- fluctuations in the debt and equity markets, including the price of our
units at the time of vesting under our long-term incentive plans;
-- risks related to the development and operation of our assets; and
-- other factors and uncertainties inherent in the transportation, storage,
terminalling and marketing of crude oil, as well as in the processing,
transportation, fractionation, storage and marketing of NGL as discussed
in the Partnerships' filings with the Securities and Exchange Commission.
About Plains:
PAA is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil and natural gas liquids ("NGL"). PAA owns an extensive network of pipeline gathering and transportation systems, in addition to terminalling, storage, processing, fractionation and other infrastructure assets serving key producing basins, transportation corridors and major market hubs and export outlets in the United States and Canada. On average, PAA handles over 9 million barrels per day of crude oil and NGL.
PAGP is a publicly traded entity that owns an indirect, non-economic controlling general partner interest in PAA and an indirect limited partner interest in PAA, one of the largest energy infrastructure and logistics companies in North America.
PAA and PAGP are headquartered in Houston, Texas. For more information, please visit www.plains.com.
Contacts:
Blake Fernandez
Vice President, Investor Relations
(866) 809-1291
Ross Hovde
Director, Investor Relations
(866) 809-1291
(END) Dow Jones Newswires
February 06, 2026 07:30 ET (12:30 GMT)