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08-08-2025
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Plains All American Reports Second-Quarter 2025 Results
HOUSTON, Aug. 08, 2025 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported solid second-quarter 2025 results and provided the following highlights: Second-Quarter Results Reported net income attributable to PAA of $210 million and net cash provided by operating activities of $694 million Delivered Adjusted EBITDA attributable to PAA of $672 million Exited the quarter with 3.3x leverage ratio, toward the low-end of our target range of 3.25x - 3.75x Highlights and Recent Announcements Executed agreements to divest substantially all of our NGL business for total cash consideration of approximately $5.15 billion CAD ($3.75 billion USD) with expected closing first quarter 2026 pending regulatory approval NGL sale proceeds (~$3.0 billion net USD) will be prioritized toward bolt-on M&A, preferred unit repurchases, and opportunistic common unit repurchases On July 22, 2025, Plains acquired an additional 20% interest in BridgeTex Pipeline Company, LLC, bringing PAA's total interest to 40% 'We continue to advance our strategic initiatives and delivered solid second-quarter performance in a volatile macro environment,' said Willie Chiang, Chairman, CEO and President. 'Our previously announced NGL divestiture is expected to close in the first quarter of 2026 and will improve our free cash durability, provide substantial financial flexibility and drive opportunities to streamline the business. Separately, we continue to execute on our bolt-on acquisition opportunity set by acquiring an incremental interest in the BridgeTex Pipeline joint venture, which further strengthens our Permian footprint. We remain well-positioned and highly focused on additional bolt-ons and optimizing our crude oil focused asset base in a capital disciplined manner while continuing to return cash to unitholders.' Financial Reporting Considerations for Pending Sale of Canadian NGL BusinessOn 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 in 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 presentation as discontinued operations 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 EndedJune 30, % Six Months EndedJune 30, % 2025 2024 Change 2025 2024 Change Net income attributable to PAA (2) $ 210 $ 250 (16 )% $ 653 $ 515 27 % Diluted net income per common unit $ 0.21 $ 0.26 (19 )% $ 0.70 $ 0.55 27 % Diluted weighted average common units outstanding 703 701 — % 704 701 — % Net cash provided by operating activities $ 694 $ 653 6 % $ 1,333 $ 1,072 24 % Distribution per common unit declared for the period $ 0.3800 $ 0.3175 20 % $ 0.7600 $ 0.6350 20 % Three Months EndedJune 30, % Six Months EndedJune 30, % 2025 2024 Change 2025 2024 Change Adjusted net income attributable to PAA (2) $ 312 $ 288 8 % $ 687 $ 642 7 % Diluted adjusted net income per common unit $ 0.36 $ 0.31 16 % $ 0.75 $ 0.72 4 % Adjusted EBITDA $ 812 $ 807 1 % $ 1,693 $ 1,654 2 % Adjusted EBITDA attributable to PAA (2) $ 672 $ 674 — % $ 1,426 $ 1,391 3 % Implied DCF per common unit and common unit equivalent $ 0.66 $ 0.58 14 % $ 1.32 $ 1.25 6 % Adjusted Free Cash Flow (4) $ 348 $ 411 (15 )% $ 40 $ 480 (92 )% Adjusted Free Cash Flow after Distributions (4) $ 28 $ 125 (78 )% $ (612 ) $ (92 ) ** Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) (4) $ 342 $ 421 (19 )% $ 174 $ 681 (74 )% Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) (4) $ 22 $ 135 (84 )% $ (478 ) $ 109 ** ______________________________ ** 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) The six months ended June 30, 2025 includes the impact of a net cash outflow of $681 million for bolt-on acquisitions. Disaggregation of Adjusted EBITDA by Product (1) (2) (unaudited)(in millions) Adjusted EBITDA from Crude Oil Adjusted EBITDA from NGL Three Months Ended June 30, 2025 $ 580 $ 87 Three Months Ended June 30, 2024 $ 576 $ 94 Adjusted EBITDA from Crude Oil Adjusted EBITDA from NGL Six Months Ended June 30, 2025 $ 1,140 $ 276 Six Months Ended June 30, 2024 $ 1,130 $ 253 ______________________________ ** Indicates that variance as a percentage is not meaningful. (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. Second-quarter 2025 Adjusted EBITDA from Crude Oil was in line with comparable 2024 results. Favorable results in the 2025 period from (i) higher tariff volumes on our pipelines, (ii) tariff escalations and (iii) contributions from recently completed bolt-on acquisitions were largely offset by (iv) fewer market opportunities and (v) lower commodity prices. Second-quarter 2025 Adjusted EBITDA from NGL decreased 7% versus comparable 2024 results primarily due to lower iso-to-normal butane spread benefits in the second quarter of 2025. Plains GP HoldingsPAGP 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. PAA and PAGP will hold a joint conference call at 9:00 a.m. CT on Friday, August 8, 2025 to discuss second-quarter performance and related items. To access the internet webcast, please go to Alternatively, the webcast can be accessed on our website at 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. 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 Condensed Consolidated Financial Statements and accompanying notes. In addition, we encourage you to visit our website at (in particular the section under 'Financial Information' entitled 'Non-GAAP Reconciliations' within the Investor Relations tab), 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 MeasuresAdjusted 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) exclude 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 Condensed 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 Quarterly Report on Form 10-Q. Non-GAAP Financial Liquidity MeasuresManagement 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 OperationsManagement 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 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 SUBSIDIARIESFINANCIAL SUMMARY (unaudited) CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in millions, except per unit data) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 REVENUES $ 10,642 $ 12,757 $ 22,119 $ 24,396 COSTS AND EXPENSES Purchases and related costs 9,758 11,838 20,277 22,543 Field operating costs 286 280 585 553 General and administrative expenses 82 79 168 160 Depreciation and amortization 235 226 466 449 Losses on asset sales, net 42 2 29 3 Total costs and expenses 10,403 12,425 21,525 23,708 OPERATING INCOME 239 332 594 688 OTHER INCOME/(EXPENSE) Equity earnings in unconsolidated entities 94 106 196 201 Gain on investments in unconsolidated entities, net — — 31 — Interest expense, net (1) (133 ) (111 ) (260 ) (205 ) Other income, net (1) 31 23 57 18 INCOME FROM CONTINUING OPERATIONS BEFORE TAX 231 350 618 702 Current income tax expense from continuing operations (1 ) (52 ) (6 ) (68 ) Deferred income tax (expense)/benefit from continuing operations (3 ) — (5 ) 5 INCOME FROM CONTINUING OPERATIONS, NET OF TAX 227 298 607 639 INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX 70 32 206 42 NET INCOME 297 330 813 681 Net income attributable to noncontrolling interests (87 ) (80 ) (160 ) (166 ) NET INCOME ATTRIBUTABLE TO PAA $ 210 $ 250 $ 653 $ 515 NET INCOME PER COMMON UNIT: Net income allocated to common unitholders — Basic and Diluted: Continuing operations $ 80 $ 148 $ 287 $ 340 Discontinued operations 70 32 206 42 Net income allocated to common unitholders — Basic and Diluted $ 150 $ 180 $ 493 $ 382 Basic and diluted weighted average common units outstanding 703 701 704 701 Basic and diluted net income per common unit: Continuing operations $ 0.11 $ 0.21 $ 0.41 $ 0.49 Discontinued operations $ 0.10 $ 0.05 $ 0.29 $ 0.06 Basic and diluted net income per common unit $ 0.21 $ 0.26 $ 0.70 $ 0.55 ___________________________________ (1) Certain Plains entities have issued promissory notes by and among such entities to facilitate financing. 'Interest expense, net' and 'Other income, net' each include $23 million and $43 million for the three and six months ended June 30, 2025, respectively, and $15 million for the three and six months ended June 30, 2024 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 SUBSIDIARIESFINANCIAL SUMMARY (unaudited) CONDENSED CONSOLIDATED BALANCE SHEET DATA(in millions) June 30,2025 December 31,2024 ASSETS Current assets (including cash and cash equivalents of $459 and $348, respectively) (1) $ 4,688 $ 4,802 Property and equipment, net 14,177 13,446 Investments in unconsolidated entities 2,709 2,811 Intangible assets, net 1,636 1,677 Linefill 940 904 Long-term operating lease right-of-use assets, net 182 189 Long-term inventory 234 242 Long-term assets of discontinued operations 2,482 2,349 Other long-term assets, net 107 142 Total assets $ 27,155 $ 26,562 LIABILITIES AND PARTNERS' CAPITAL Current liabilities (2) $ 4,679 $ 4,950 Senior notes, net 8,133 7,141 Other long-term debt, net 71 70 Long-term operating lease liabilities 190 192 Long-term liabilities of discontinued operations 598 576 Other long-term liabilities and deferred credits 535 537 Total liabilities 14,206 13,466 Partners' capital excluding noncontrolling interests 9,706 9,813 Noncontrolling interests 3,243 3,283 Total partners' capital 12,949 13,096 Total liabilities and partners' capital $ 27,155 $ 26,562__________________________________ (1) Includes current assets of discontinued operations of $385 million and $415 million as of June 30, 2025 and December 31, 2024, respectively. (2) Includes current liabilities of discontinued operations of $313 million and $350 million as of June 30, 2025 and December 31, 2024, respectively. DEBT CAPITALIZATION RATIOS (1)(in millions, except percentages) June 30,2025 December 31,2024 Short-term debt $ 476 $ 408 Long-term debt 8,206 7,213 Total debt $ 8,682 $ 7,621 Long-term debt $ 8,206 $ 7,213 Partners' capital excluding noncontrolling interests 9,706 9,813 Total book capitalization excluding noncontrolling interests ('Total book capitalization') $ 17,912 $ 17,026 Total book capitalization, including short-term debt $ 18,388 $ 17,434 Long-term debt-to-total book capitalization 46 % 42 % Total debt-to-total book capitalization, including short-term debt 47 % 44 %_______________________________ (1) Includes results from continuing operations and discontinued operations for all periods presented. PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIESFINANCIAL SUMMARY (unaudited) COMPUTATION OF BASIC AND DILUTED NET INCOME PER COMMON UNIT(in millions, except per unit data) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Basic and Diluted Net Income per Common Unit Continuing Operations: Income from continuing operations, net of tax $ 227 $ 298 $ 607 $ 639 Net income attributable to noncontrolling interests (87 ) (80 ) (160 ) (166 ) Net income from continuing operations attributable to PAA $ 140 $ 218 $ 447 $ 473 Distributions to Series A preferred unitholders (36 ) (44 ) (75 ) (88 ) Distributions to Series B preferred unitholders (18 ) (19 ) (35 ) (39 ) Amounts allocated to participating securities (7 ) (8 ) (9 ) (9 ) Impact from repurchase of Series A preferred units (1) — — (43 ) — Other 1 1 2 3 Net income from continuing operations allocated to common unitholders - Basic and Diluted (2) $ 80 $ 148 $ 287 $ 340 Discontinued Operations: Net income from discontinued operations allocated to common unitholders - Basic and Diluted (3) $ 70 $ 32 $ 206 $ 42 Net income allocated to common unitholders — Basic and Diluted $ 150 $ 180 $ 493 $ 382 Basic and diluted weighted average common units outstanding (4) (5) 703 701 704 701 Basic and diluted net income per common unit: Continuing operations $ 0.11 $ 0.21 $ 0.41 $ 0.49 Discontinued operations $ 0.10 $ 0.05 $ 0.29 $ 0.06 Basic and diluted net income per common unit $ 0.21 $ 0.26 $ 0.70 $ 0.55 _______________________________ (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 allocated to common unitholders. (2) We calculate net income 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 per common unit for each of the three and six months ended June 30, 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) Six Months EndedJune 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 813 $ 681 Reconciliation of net income to net cash provided by operating activities: Income from discontinued operations, net of tax (206 ) (42 ) Depreciation and amortization 466 449 Losses on asset sales, net 29 3 Deferred income tax expense/(benefit) 5 (5 ) (Gain)/loss on foreign currency revaluation 4 (15 ) Settlement of terminated interest rate hedging instruments — 57 Equity earnings in unconsolidated entities (196 ) (201 ) Distributions on earnings from unconsolidated entities 256 250 Gain on investments in unconsolidated entities, net (31 ) — Other 32 37 Changes in assets and liabilities, net of acquisitions (140 ) (222 ) Cash provided by operating activities - continuing operations 1,032 992 Cash provided by operating activities - discontinued operations 301 80 Net cash provided by operating activities 1,333 1,072 CASH FLOWS FROM INVESTING ACTIVITIES Cash used in investing activities - continuing operations (1,317 ) (357 ) Cash used in investing activities - discontinued operations (106 ) (61 ) Net cash used in investing activities (1) (2) (1,423 ) (418 ) CASH FLOWS FROM FINANCING ACTIVITIES Net cash provided by/(used in) financing activities (1) 182 (545 ) Effect of translation adjustment - continuing operations 8 (5 ) Effect of translation adjustment - discontinued operations 11 (1 ) Net increase in cash and cash equivalents and restricted cash 111 103 Cash and cash equivalents and restricted cash, beginning of period 348 450 Cash and cash equivalents and restricted cash, end of period $ 459 $ 553 _______________________________ (1) Certain Plains entities have issued promissory notes by and among such entities to facilitate financing. For the six months ended June 30, 2025, 'Net cash used in investing activities' includes a cash outflow of approximately $330 million 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 $681 million for bolt-on acquisitions. PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited) CAPITAL EXPENDITURES (1)(in millions) Net to PAA (2) Consolidated Three Months EndedJune 30, Six Months EndedJune 30, Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 2025 2024 2025 2024 Investment capital expenditures: Crude Oil $ 126 $ 42 $ 215 $ 107 $ 160 $ 58 $ 280 $ 148 NGL (3) 27 23 68 37 27 23 68 37 Total Investment capital expenditures 153 65 283 144 187 81 348 185 Total Maintenance capital expenditures (4) 58 56 97 109 64 61 105 118 Total Investment and Maintenance capital expenditures $ 211 $ 121 $ 380 $ 253 $ 251 $ 142 $ 453 $ 303_________________________ (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 EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Basic and Diluted Adjusted Net Income per Common Unit Net income attributable to PAA $ 210 $ 250 $ 653 $ 515 Selected items impacting comparability - Adjusted net income attributable to PAA (3) 102 38 34 127 Adjusted net income attributable to PAA $ 312 $ 288 $ 687 $ 642 Distributions to Series A preferred unitholders (36 ) (44 ) (75 ) (88 ) Distributions to Series B preferred unitholders (18 ) (19 ) (35 ) (39 ) Amounts allocated to participating securities (7 ) (8 ) (9 ) (10 ) Impact from repurchase of Series A preferred units (4) — — (43 ) — Other 1 1 2 3 Adjusted net income allocated to common unitholders $ 252 $ 218 $ 527 $ 508 Basic and diluted weighted average common units outstanding (5) (6) 703 701 704 701 Basic and diluted adjusted net income per common unit $ 0.36 $ 0.31 $ 0.75 $ 0.72 ____________________________________ (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 six months ended June 30, 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 Per Common Unit to Adjusted Net Income Per Common Unit Reconciliation (1): Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Basic and diluted net income per common unit $ 0.21 $ 0.26 $ 0.70 $ 0.55 Selected items impacting comparability per common unit (2) 0.15 0.05 0.05 0.17 Basic and diluted adjusted net income per common unit $ 0.36 $ 0.31 $ 0.75 $ 0.72____________________________________ (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 Per Common Unit' tables for additional information. PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIESFINANCIAL SUMMARY (unaudited) Net Income to Adjusted EBITDA attributable to PAA and Implied DCF Reconciliation: Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Net income (1) $ 297 $ 330 $ 813 $ 681 Interest expense, net of certain items (2) 110 96 217 190 Income tax expense from continuing operations 4 52 11 63 Income tax expense from discontinued operations 26 10 69 14 Depreciation and amortization from continuing operations 235 226 466 449 Depreciation and amortization from discontinued operations 27 31 57 62 Losses on asset sales, net from continuing operations 42 2 29 3 (Gains)/losses on asset sales, net from discontinued operations 13 (1 ) 13 (2 ) Gain on investments in unconsolidated entities, net — — (31 ) — Depreciation and amortization of unconsolidated entities (3) 20 17 40 37 Selected items impacting comparability - Adjusted EBITDA (1) (4) 38 44 9 157 Adjusted EBITDA (1) $ 812 $ 807 $ 1,693 $ 1,654 Adjusted EBITDA attributable to noncontrolling interests (140 ) (133 ) (267 ) (263 ) Adjusted EBITDA attributable to PAA (1) $ 672 $ 674 $ 1,426 $ 1,391 Adjusted EBITDA (1) $ 812 $ 807 $ 1,693 $ 1,654 Interest expense, net of certain non-cash and other items (5) (107 ) (91 ) (211 ) (180 ) Maintenance capital from continuing operations (44 ) (43 ) (77 ) (90 ) Maintenance capital from discontinued operations (20 ) (18 ) (28 ) (28 ) Investment capital of noncontrolling interests (6) (33 ) (17 ) (64 ) (41 ) Current income tax expense from continuing operations (1 ) (52 ) (6 ) (68 ) Current income tax expense from discontinued operations (14 ) (17 ) (54 ) (55 ) Distributions from unconsolidated entities in excess of/(less than) adjusted equity earnings (7) 22 (5 ) 19 7 Distributions to noncontrolling interests (8) (97 ) (97 ) (229 ) (198 ) Implied DCF (1) $ 518 $ 467 $ 1,043 $ 1,001 Preferred unit distributions paid (8) (53 ) (63 ) (117 ) (127 ) Implied DCF Available to Common Unitholders (1) $ 465 $ 404 $ 926 $ 874 Weighted Average Common Units Outstanding 703 701 704 701 Weighted Average Common Units and Common Unit Equivalents 761 772 764 772 Implied DCF per Common Unit (1) (9) $ 0.66 $ 0.58 $ 1.32 $ 1.25 Implied DCF per Common Unit and Common Unit Equivalent (1) (10) $ 0.66 $ 0.58 $ 1.32 $ 1.25 Cash Distribution Paid per Common Unit $ 0.3800 $ 0.3175 $ 0.7600 $ 0.6350 Common Unit Cash Distributions (8) $ 267 $ 223 $ 535 $ 445 Common Unit Distribution Coverage Ratio (1) 1.74x 1.81x 1.73x 1.96x Implied DCF Excess (1) $ 198 $ 181 $ 391 $ 429 _____________________________________ (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 SUBSIDIARIESFINANCIAL SUMMARY (unaudited) Net Income Per Common Unit to Implied DCF Per Common Unit and Common Unit Equivalent Reconciliation (1): Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Basic net income per common unit $ 0.21 $ 0.26 $ 0.70 $ 0.55 Reconciling items per common unit (2) (3) 0.45 0.32 0.62 0.70 Implied DCF per common unit $ 0.66 $ 0.58 $ 1.32 $ 1.25 Basic net income per common unit $ 0.21 $ 0.26 $ 0.70 $ 0.55 Reconciling items per common unit and common unit equivalent (2) (4) 0.45 0.32 0.62 0.70 Implied DCF per common unit and common unit equivalent $ 0.66 $ 0.58 $ 1.32 $ 1.25______________________________ (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 703 million, 701 million, 704 million and 701 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, 60 million and 71 million for the periods presented, respectively. PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIESFINANCIAL SUMMARY (unaudited) Net Cash Provided by Operating Activities to Non-GAAP Financial Liquidity Measures Reconciliation: Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Net cash provided by operating activities (1) $ 694 $ 653 $ 1,333 $ 1,072 Adjustments to reconcile Net cash provided by operating activities to Adjusted Free Cash Flow: Net cash used in investing activities (1) (2) (3) (274 ) (157 ) (1,423 ) (418 ) Cash contributions from noncontrolling interests 25 12 29 24 Cash distributions paid to noncontrolling interests (4) (97 ) (97 ) (229 ) (198 ) Proceeds from the issuance of related party notes (2) — — 330 — Adjusted Free Cash Flow (1) (5) $ 348 $ 411 $ 40 $ 480 Cash distributions (6) (320 ) (286 ) (652 ) (572 ) Adjusted Free Cash Flow after Distributions (1) (5) (7) $ 28 $ 125 $ (612 ) $ (92 ) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Adjusted Free Cash Flow (1) (5) $ 348 $ 411 $ 40 $ 480 Changes in assets and liabilities, net of acquisitions (1) (8) (6 ) 10 134 201 Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) (1) (9) $ 342 $ 421 $ 174 $ 681 Cash distributions (6) (320 ) (286 ) (652 ) (572 ) Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) (1) (9) $ 22 $ 135 $ (478 ) $ 109 _________________________________ (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 six months ended June 30, 2025 includes a net cash outflow of $681 million for bolt-on acquisitions. (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. PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIESFINANCIAL SUMMARY (unaudited) SELECTED ITEMS IMPACTING COMPARABILITY(in millions) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Selected Items Impacting Comparability: (1) (2) Derivative activities and inventory valuation adjustments (3) $ (8 ) $ (24 ) $ 27 $ (184 ) Long-term inventory costing adjustments (4) (19 ) (10 ) (17 ) 24 Deficiencies under minimum volume commitments, net (5) 9 (7 ) 16 5 Equity-indexed compensation expense (6) (8 ) (10 ) (18 ) (19 ) Foreign currency revaluation (7) (9 ) 7 (9 ) 17 Transaction-related expenses (8) (3 ) — (8 ) — Selected items impacting comparability - Adjusted EBITDA $ (38 ) $ (44 ) $ (9 ) $ (157 ) Gain on investments in unconsolidated entities, net — — 31 — Losses on asset sales, net (55 ) (1 ) (42 ) (1 ) Tax effect on selected items impacting comparability (9 ) 8 (12 ) 37 Aggregate selected items impacting noncontrolling interests — (1 ) (2 ) (6 ) Selected items impacting comparability - Adjusted net income attributable to PAA $ (102 ) $ (38 ) $ (34 ) $ (127 )___________________________________ (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. For applicable periods, we excluded gains and losses from the mark-to-market of the embedded derivative associated with the Preferred Distribution Rate Reset Option of our Series A preferred units. (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) 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. (7) 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. (8) Primarily related to acquisitions completed during the first half of 2025. PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIESFINANCIAL SUMMARY (unaudited) SELECTED FINANCIAL DATA BY CRUDE OIL(in millions) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Revenues (1) $ 10,622 $ 12,735 $ 22,061 $ 24,317 Purchases and related costs (1) (9,742 ) (11,820 ) (20,231 ) (22,484 ) Field operating costs (2) (279 ) (272 ) (571 ) (538 ) Segment general and administrative expenses (2) (3) (75 ) (72 ) (155 ) (146 ) Equity earnings in unconsolidated entities 94 106 196 201 Adjustments: (4) Depreciation and amortization of unconsolidated entities 20 17 40 37 Derivative activities and inventory valuation adjustments 52 (4 ) 28 34 Long-term inventory costing adjustments 17 4 18 (25 ) Deficiencies under minimum volume commitments, net (9 ) 7 (16 ) (5 ) Equity-indexed compensation expense 8 10 18 19 Foreign currency revaluation 9 (2 ) 9 (19 ) Transaction-related expenses 3 — 8 — Segment amounts attributable to noncontrolling interests (5) (140 ) (133 ) (265 ) (261 ) Crude Oil Segment Adjusted EBITDA / Adjusted EBITDA from Crude Oil $ 580 $ 576 $ 1,140 $ 1,130 Crude Oil maintenance capital expenditures $ 43 $ 41 $ 74 $ 87 ____________________________ (1) Includes intersegment amounts. (2) Field operating costs and Segment general and administrative expenses include equity-indexed compensation expense. (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) 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. (5) 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 SUBSIDIARIESFINANCIAL SUMMARY (unaudited) SELECTED FINANCIAL DATA BY NGL(in millions) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Revenues (1) $ 26 $ 25 $ 67 $ 86 Purchases and related costs (1) (22 ) (21 ) (55 ) (66 ) Field operating costs (2) (7 ) (8 ) (14 ) (15 ) Segment general and administrative expenses (2) (3) (7 ) (7 ) (13 ) (14 ) NGL Segment Adjusted EBITDA (4) $ (10 ) $ (11 ) $ (15 ) $ (9 ) Adjusted EBITDA from NGL Discontinued Operations (5) 97 105 291 262 Adjusted EBITDA from NGL $ 87 $ 94 $ 276 $ 253 Maintenance capital expenditures from NGL continuing operations $ 1 $ 2 $ 3 $ 3 Maintenance capital expenditures from NGL discontinued operations 20 18 28 28 NGL maintenance capital expenditures $ 21 $ 20 $ 31 $ 31 _______________________________ (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 SUBSIDIARIESFINANCIAL SUMMARY (unaudited) DISCONTINUED OPERATIONS DETAIL(in millions) Components of Income from Discontinued Operations, Net of Tax: Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Revenues $ 211 $ 176 $ 745 $ 532 Cost and Expenses: Purchases and related costs 10 20 252 232 Field operating costs 53 70 122 155 General and administrative expenses 12 14 26 29 Depreciation and amortization 27 31 57 62 (Gains)/losses on asset sales, net 13 (1 ) 13 (2 ) Total costs and expenses 115 134 470 476 Income from discontinued operations before tax 96 42 275 56 Current income tax expense (14 ) (17 ) (54 ) (55 ) Deferred income tax (expense)/benefit (12 ) 7 (15 ) 41 Income from discontinued operations, net of tax $ 70 $ 32 $ 206 $ 42 Reconciliation of Adjusted EBITDA from NGL Discontinued Operations: Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Income from discontinued operations, net of tax $ 70 $ 32 $ 206 $ 42 Income tax expense from discontinued operations 26 10 69 14 Depreciation and amortization from discontinued operations 27 31 57 62 (Gains)/losses on asset sales, net from discontinued operations 13 (1 ) 13 (2 ) Adjustments attributable to discontinued operations (1): Derivative activities and inventory valuation adjustments (44 ) 28 (55 ) 150 Long-term inventory costing adjustments 2 6 (1 ) 1 Foreign currency revaluation 3 (1 ) 2 (5 ) Adjusted EBITDA from NGL Discontinued Operations $ 97 $ 105 $ 291 $ 262 _____________________________ (1) See the 'Selected Items Impacting Comparability' table for additional information. Investment Capital from NGL Discontinued Operations: Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 NGL investment capital expenditures from discontinued operations $ 27 $ 23 $ 68 $ 37PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIESFINANCIAL SUMMARY (unaudited) OPERATING DATA (1) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Crude Oil Volumes Crude oil pipeline tariff (by region) Permian Basin (2) 7,223 6,701 7,047 6,565 South Texas / Eagle Ford (2) 542 395 517 386 Mid-Continent (2) 537 530 477 508 Gulf Coast (2) 219 223 216 213 Rocky Mountain (2) 508 495 501 497 Western 289 245 268 252 Canada 341 349 348 348 Total crude oil pipeline tariff (2) 9,659 8,938 9,374 8,769 NGL Volumes (3) NGL fractionation 151 129 154 128 NGL pipeline tariff 225 221 230 217 Propane and butane sales 54 54 100 91______________________________ (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 SUBSIDIARIESFINANCIAL SUMMARY (unaudited) SUPPLEMENTAL NON-GAAP RECONCILIATIONS(in millions) Supplemental Adjusted EBITDA attributable to PAA Reconciliation: Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Crude Oil Segment Adjusted EBITDA $ 580 $ 576 $ 1,140 $ 1,130 NGL Segment Adjusted EBITDA (10 ) (11 ) (15 ) (9 ) Adjusted EBITDA from NGL Discontinued Operations (1) 97 105 291 262 Adjusted other income, net (2) 5 4 10 8 Adjusted EBITDA attributable to PAA (3) $ 672 $ 674 $ 1,426 $ 1,391 _____________________________ (1) See the 'Reconciliation of Adjusted EBITDA from NGL Discontinued Operations Reconciliation' 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 SUBSIDIARIESFINANCIAL SUMMARY (unaudited) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS(in millions, except per share data) Three Months EndedJune 30, 2025 Three Months EndedJune 30, 2024 Consolidating Consolidating PAA Adjustments (1) PAGP PAA Adjustments (1) PAGP REVENUES $ 10,642 $ — $ 10,642 $ 12,757 $ — $ 12,757 COSTS AND EXPENSES Purchases and related costs 9,758 — 9,758 11,838 — 11,838 Field operating costs 286 — 286 280 — 280 General and administrative expenses 82 2 84 79 2 81 Depreciation and amortization 235 — 235 226 — 226 Losses on asset sales, net 42 — 42 2 — 2 Total costs and expenses 10,403 2 10,405 12,425 2 12,427 OPERATING INCOME 239 (2 ) 237 332 (2 ) 330 OTHER INCOME/(EXPENSE) Equity earnings in unconsolidated entities 94 — 94 106 — 106 Interest expense, net (133 ) 23 (110 ) (111 ) 15 (96 ) Other income, net 31 (23 ) 8 23 (15 ) 8 INCOME FROM CONTINUING OPERATIONS BEFORE TAX 231 (2 ) 229 350 (2 ) 348 Current income tax expense from continuing operations (1 ) — (1 ) (52 ) — (52 ) Deferred income tax expense from continuing operations (3 ) (12 ) (15 ) — (12 ) (12 ) INCOME FROM CONTINUING OPERATIONS, NET OF TAX 227 (14 ) 213 298 (14 ) 284 INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX 70 — 70 32 — 32 NET INCOME 297 (14 ) 283 330 (14 ) 316 Net income attributable to noncontrolling interests (87 ) (166 ) (253 ) (80 ) (197 ) (277 ) NET INCOME ATTRIBUTABLE TO PAGP $ 210 $ (180 ) $ 30 $ 250 $ (211 ) $ 39 Basic net income per Class A share (2): Continuing operations $ 0.05 $ 0.15 Discontinued operations $ 0.10 $ 0.05 Basic net income per Class A share $ 0.15 $ 0.20 Diluted net income per Class A share (2): Continuing operations $ 0.05 $ 0.15 Discontinued operations $ 0.10 $ 0.04 Diluted net income per Class A share $ 0.15 $ 0.19 _________________________________ (1) Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP. (2) See the 'Computation of Basic and Diluted Net Income Per Class A Share' table for additional information. PLAINS GP HOLDINGS AND SUBSIDIARIESFINANCIAL SUMMARY (unaudited) CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS(in millions, except per share data) Six Months EndedJune 30, 2025 Six Months EndedJune 30, 2024 Consolidating Consolidating PAA Adjustments (1) PAGP PAA Adjustments (1) PAGP REVENUES $ 22,119 $ — $ 22,119 $ 24,396 $ — $ 24,396 COSTS AND EXPENSES Purchases and related costs 20,277 — 20,277 22,543 — 22,543 Field operating costs 585 — 585 553 — 553 General and administrative expenses 168 3 171 160 3 163 Depreciation and amortization 466 — 466 449 — 449 Losses on asset sales, net 29 — 29 3 — 3 Total costs and expenses 21,525 3 21,528 23,708 3 23,711 OPERATING INCOME 594 (3 ) 591 688 (3 ) 685 OTHER INCOME/(EXPENSE) Equity earnings in unconsolidated entities 196 — 196 201 — 201 Gain on investments in unconsolidated entities, net 31 — 31 — — — Interest expense, net (260 ) 43 (217 ) (205 ) 15 (190 ) Other income, net 57 (43 ) 14 18 (15 ) 3 INCOME FROM CONTINUING OPERATIONS BEFORE TAX 618 (3 ) 615 702 (3 ) 699 Current income tax expense from continuing operations (6 ) — (6 ) (68 ) — (68 ) Deferred income tax (expense)/benefit from continuing operations (5 ) (35 ) (40 ) 5 (25 ) (20 ) INCOME FROM CONTINUING OPERATIONS, NET OF TAX 607 (38 ) 569 639 (28 ) 611 INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX 206 — 206 42 — 42 NET INCOME 813 (38 ) 775 681 (28 ) 653 Net income attributable to noncontrolling interests (160 ) (501 ) (661 ) (166 ) (406 ) (572 ) NET INCOME ATTRIBUTABLE TO PAGP $ 653 $ (539 ) $ 114 $ 515 $ (434 ) $ 81 Basic net income per Class A share (2): Continuing operations $ 0.29 $ 0.35 Discontinued operations $ 0.29 $ 0.06 Basic net income per Class A share $ 0.58 $ 0.41 Diluted net income per Class A share (2): Continuing operations $ 0.29 $ 0.35 Discontinued operations $ 0.28 $ 0.06 Diluted net income per Class A share $ 0.57 $ 0.41 _________________________________ (1) Represents the aggregate consolidating adjustments necessary to produce consolidated financial statements for PAGP. (2) See the 'Computation of Basic and Diluted Net Income Per Class A Share' table for additional information. PLAINS GP HOLDINGS AND SUBSIDIARIESFINANCIAL SUMMARY (unaudited) CONDENSED CONSOLIDATING BALANCE SHEET DATA(in millions) June 30, 2025 December 31, 2024 Consolidating Consolidating PAA Adjustments (1) PAGP PAA Adjustments (1) PAGP ASSETS Current assets (2) $ 4,688 $ (30 ) $ 4,658 $ 4,802 $ (26 ) $ 4,776 Property and equipment, net 14,177 — 14,177 13,446 — 13,446 Investments in unconsolidated entities 2,709 — 2,709 2,811 — 2,811 Intangible assets, net 1,636 — 1,636 1,677 — 1,677 Deferred tax asset — 1,175 1,175 — 1,220 1,220 Linefill 940 — 940 904 — 904 Long-term operating lease right-of-use assets, net 182 — 182 189 — 189 Long-term inventory 234 — 234 242 — 242 Long-term assets of discontinued operations 2,482 — 2,482 2,349 — 2,349 Other long-term assets, net 107 — 107 142 — 142 Total assets $ 27,155 $ 1,145 $ 28,300 $ 26,562 $ 1,194 $ 27,756 LIABILITIES AND PARTNERS' CAPITAL Current liabilities (3) $ 4,679 $ (31 ) $ 4,648 $ 4,950 $ (26 ) $ 4,924 Senior notes, net 8,133 — 8,133 7,141 — 7,141 Other long-term debt, net 71 — 71 70 — 70 Long-term operating lease liabilities 190 — 190 192 — 192 Long-term liabilities of discontinued operations 598 — 598 576 — 576 Other long-term liabilities and deferred credits 535 — 535 537 — 537 Total liabilities 14,206 (31 ) 14,175 13,466 (26 ) 13,440 Partners' capital excluding noncontrolling interests 9,706 (8,352 ) 1,354 9,813 (8,462 ) 1,351 Noncontrolling interests 3,243 9,528 12,771 3,283 9,682 12,965 Total partners' capital 12,949 1,176 14,125 13,096 1,220 14,316 Total liabilities and partners' capital $ 27,155 $ 1,145 $ 28,300 $ 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 $385 million and $415 million as of June 30, 2025 and December 31, 2024, respectively. (3) Includes current liabilities of discontinued operations of $313 million and $350 million as of June 30, 2025 and December 31, 2024, respectively. PLAINS GP HOLDINGS AND SUBSIDIARIESFINANCIAL SUMMARY (unaudited) COMPUTATION OF BASIC AND DILUTED NET INCOME PER CLASS A SHARE(in millions, except per share data) Three Months EndedJune 30, Six Months EndedJune 30, 2025 2024 2025 2024 Basic Net Income per Class A Share Net income attributable to PAGP from continuing operations $ 10 $ 30 $ 56 $ 69 Net income attributable to PAGP from discontinued operations $ 20 $ 9 $ 58 $ 12 Basic weighted average Class A shares outstanding 198 197 198 197 Basic Net Income per Class A Share: Continuing operations $ 0.05 $ 0.15 $ 0.29 $ 0.35 Discontinued operations $ 0.10 $ 0.05 $ 0.29 $ 0.06 Basic net income per Class A share $ 0.15 $ 0.20 $ 0.58 $ 0.41 Diluted Net Income per Class A Share Net income attributable to PAGP from continuing operations $ 10 $ 30 $ 56 $ 69 Net income attributable to PAGP from discontinued operations $ 20 $ 9 $ 58 $ 12 Incremental net income attributable to PAGP resulting from assumed exchange of AAP Management Units — 1 8 — Net income attributable to PAGP from discontinued operations including incremental net income from assumed exchange of AAP Management Units $ 20 $ 10 $ 66 $ 12 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 198 232 233 197 Diluted Net Income per Class A Share: Continuing operations $ 0.05 $ 0.15 $ 0.29 $ 0.35 Discontinued operations $ 0.10 $ 0.04 $ 0.28 $ 0.06 Diluted net income per Class A share $ 0.15 $ 0.19 $ 0.57 $ 0.41 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: 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 (including the pending divestiture of our Canadian NGL Business), joint ventures or other strategic opportunities and realize benefits therefrom; 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 Contacts: Blake Fernandez Vice President, Investor Relations (866) 809-1291 Michael Gladstein Director, Investor Relations (866) 809-1291
Business Insider
12-05-2025
- Business
- Business Insider
Wells Fargo Remains a Hold on Plains GP Holdings (PAGP)
Wells Fargo analyst Michael Blum maintained a Hold rating on Plains GP Holdings (PAGP – Research Report) on May 9 and set a price target of $19.00. The company's shares closed last Friday at $17.74. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Blum covers the Energy sector, focusing on stocks such as Venture Global, Inc. Class A, Genesis Energy, and Kinder Morgan. According to TipRanks, Blum has an average return of 9.1% and a 62.15% success rate on recommended stocks. Plains GP Holdings has an analyst consensus of Moderate Sell, with a price target consensus of $20.00. The company has a one-year high of $22.31 and a one-year low of $16.61. Currently, Plains GP Holdings has an average volume of 1.65M.
Yahoo
01-05-2025
- Business
- Yahoo
Is Plains GP Holdings, L.P. (PAGP) a Small-Cap Energy Stock Hedge Funds Are Buying?
We recently published a list of the 15 Small-Cap Energy Stocks Hedge Funds Are Buying. In this article, we are going to take a look at where Plains GP Holdings, L.P. (NASDAQ:PAGP) stands against other small-cap energy stocks. On April 12, Bill Perkins, Skylar Capital Management CEO, appeared on 'Closing Bell Overtime' on CNBC to talk about how the energy sector is struggling due to fears of decreased fuel demand. Perkins discussed that the trade policy majorly drives the sentiment across the energy landscape and hence affects natural gas, energy stocks, bonds, and other related assets. Noting the difficulty in predicting the long-term outcome of these policies, he questioned whether the tariffs are temporary. The conversation then shifted to the impact of recent tariff announcements. Perkins acknowledged that natural gas prices initially performed better than other commodities following the announcements, which gives rise to speculations that LNG could become a key bargaining chip in future trade negotiations. He explained that, at the time, natural gas fundamentals were strong, and the US had the potential to use LNG exports as a diplomatic tool to help reduce trade deficits with other countries. However, Perkins acknowledged that the overarching macroeconomic fear of a global slowdown soon overshadowed these fundamentals, which affected both the crude oil and natural gas markets. As a result, prices dropped to levels that might stimulate some demand and offer a buffer against further declines, particularly if the tariff conflict drags on and risks pushing the economy into a recession or even a depression. Perkins also addressed the effect of price pressure on production, specifically referencing West Texas Intermediate (WTI) crude oil. He pointed out that WTI prices had reached a threshold (~$60 per barrel) where growth in the Permian Basin would likely halt or even decline. At these price levels, producers become reluctant to invest in new drilling, especially given the backwardated crude curve, which showed future prices at $58 to $59 per barrel. This scenario would not only limit oil production growth in the Permian but also reduce the output of associated natural gas from the region. Perkins described this production restraint as a bullish factor that could help offset some of the prevailing uncertainty. Perkins predicted that oil and gas executives would adopt a cautious tone in their commentary. He explained that, due to the unpredictability of the global macro environment, executives would likely let market signals guide their decisions about ramping up or scaling back drilling programs. We first sifted through the Finviz stock screener and Insider Monkey's Q4 2024 hedge funds database. For this article, we define small-cap stocks as those that trade between $10 billion and $30 billion. We then selected the top 15 stocks according to hedge funds and ranked them in ascending order of the number of hedge funds that have stakes in them. In cases where an equal number of hedge funds held two or more stocks, we used the market cap as a tiebreaker. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). An oil tanker moving across the open ocean, showing the scope of the midstream energy infrastructure. Market Capitalization as of April 25: $14.74 billion Number of Hedge Fund Holders: 22 Plains GP Holdings, L.P. (NASDAQ:PAGP) owns midstream infrastructure systems in the US and Canada. It has two segments: Crude Oil and Natural Gas Liquids (NGLs). It gathers and transports crude oil using pipelines, trucks, and barges/railcars. It also provides terminalling, storage, and other related services. The company's All American Pipeline's Crude Oil segment benefited from higher volumes transported and pipeline tariff escalation in 2024, which contributed to the company's full-year adjusted EBITDA of $2.78 billion. In 2025, Plains anticipates growth in this Crude Oil segment from bolt-on acquisitions (like Ironwood Midstream Energy and Midway Pipeline). Plains GP Holdings, L.P. (NASDAQ:PAGP) expects Permian crude production to grow by 200,000-300,000 barrels a day year-over-year in 2025. This would lead to increased utilization of the company's long-haul assets, particularly those serving Corpus Christi and the Basin Pipeline. In January, Plains announced three bolt-on acquisitions that totaled $670 million net. This includes Ironwood Midstream's Eagle Ford assets and Medallion Midstream's Delaware Basin operations. Overall, PAGP ranks 11th on our list of the small-cap energy stocks hedge funds are buying. While we acknowledge the growth potential of PAGP as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PAGP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
