Plains GP Holdings (PAGP) Q4 2025 Financial Results Summary

2026-02-06 · Stocks · QuoteReporter

Plains All American (PAA) Q4 2025 Financial Results Summary

Houston, TX – February 6, 2026 – Plains All American Pipeline, L.P. (Nasdaq: PAA) announced its fourth-quarter and full-year 2025 financial results today.

Key Highlights:

Net Income:
Fourth-Quarter: $342 million, up from $36 million (growth of <425%).
Full-Year: $1.435 billion, compared to $772 million (growth of 86%).
Net Cash from Operating Activities:
Fourth-Quarter: $785 million, an 8% increase from $726 million.
Full-Year: $2.936 billion, up 18% from $2.49 billion.
Adjusted EBITDA:
Fourth-Quarter: $738 million, an increase of 1% from $729 million.
Full-Year: $2.833 billion, up 2% from $2.779 billion.
Distribution per Common Unit:
Fourth-Quarter: $0.4175, up 10% from $0.3800.
Full-Year: $1.5575, an increase of 17% compared to $1.3325.
Earnings Metrics:
Diluted Earnings Per Common Unit:
- Fourth-Quarter: $0.41, up from a loss of $0.04.
- Full-Year: $1.66, compared to $0.73 (growth of 127%).
Operational Changes:
Pro forma leverage ratio at year-end 2025: 3.9x; expected to return to the target range of 3.25 to 3.75x post-NGL divestiture.
Debt Management:
Raised $750 million in senior unsecured notes for commercial paper reduction and acquisition funding.
Paid off a $1.1 billion EPIC term loan with the issuance of a new senior unsecured term loan.
2026 Outlook:
Anticipated Full-Year Adjusted EBITDA of approximately $2.75 billion, with a margin of ± $75 million.
Planned operational efficiency initiatives generating approximately $100 million in cost savings through 2027, with anticipated one-quarter NGL contribution of $100 million.
New annualized distribution rate to be $1.67 per unit, marking a 10% increase compared to 2025 levels.
Distribution Coverage ratio reduced from 160% to 150% to allow for steady cash flows and planned growth.

Additional Highlights:

Adjusted Free Cash Flow:
Expected to generate approximately $1.80 billion, excluding changes in assets and liabilities.
Capital Expenditures:
Full-Year 2026 Growth Capital anticipated at around $350 million and Maintenance Capital around $165 million.
Dividend Declaration:
An annualized distribution increase of $0.15 per unit has been declared, payable on February 13, 2026.
Performance by Segment:
Crude Oil Adjusted EBITDA:
- Fourth-Quarter: $611 million, up 7% from $569 million.
- Full-Year: $2.344 billion, a 3% increase from $2.276 billion.
NGL Adjusted EBITDA:
- Fourth-Quarter: $122 million, down 21% from $154 million.
- Full-Year: $469 million, decreased 2% from $480 million.
Restructuring:
On June 17, 2025, Plains entered an agreement to sell its Canadian NGL business, expected to close by the end of Q1 2026.

Summary

The financial results for Plains All American in Q4 2025 show substantial growth compared to the same quarter in the previous year. The company effectively increased its net income, operational efficiency, and overall market strategy, including a notable increase in its annual distribution rate as a commitment to its unitholders. With strong forecasts for 2026, Plains aims to focus on enhancing cash flows and operational efficiency amid the volatile oil market.

	Three Months Ended		Twelve Months Ended
	December 31, 2025	December 31, 2024	December 31, 2025	December 31, 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	9	157	-54	159
impairments and other, net
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	89	154	382	452
entities
Gain on investments in unconsolidated	—	15	31	15
entities, net
Interest expense, net(2)	-159	-112	-554	-430
Other income, net(2)	38	20	108	64
INCOME FROM CONTINUING OPERATIONS BEFORE	323	61	1,401	969
TAX
Current income tax benefit/(expense)	10	-10	-1	-82
from continuing operations
Deferred income tax expense from	-8	-6	-14	-5
continuing operations
INCOME FROM CONTINUING OPERATIONS, NET	325	45	1,386	882
OF TAX
INCOME FROM DISCONTINUED OPERATIONS, NET	102	74	383	231
OF TAX
NET INCOME	427	119	1,769	1,113
Net income attributable to	-85	-83	-334	-341
noncontrolling interests
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	$289	-27	$1,169	$514
unitholders — Basic and Diluted
Basic and diluted weighted average	706	704	704	702
common units outstanding
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	$0.41	-0.04	$1.66	$0.73
common unit

(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.

	December 31, 2025	December 31, 2024
ASSETS
Current assets (including Cash and cash	$4,733	$4,802
equivalents of $328 and $348,
respectively)(1)
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	198	189
assets, net
Long-term inventory	214	242
Long-term assets of discontinued	2,557	2,349
operations
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	606	576
operations
Other long-term liabilities and deferred	654	537
credits
Total liabilities	17,089	13,466
Partners’ capital excluding	9,836	9,813
noncontrolling interests
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.