Plains All American Q2 net income $210mln, EBITDA $672mln.

• Plains All American Pipeline reports Q2 net income of $210 million • Net cash provided by operating activities at $694 million • Adjusted EBITDA at $672 million • Leverage ratio at 3.3x, near target range of 3.25x-3.75x • Agreements to divest substantially all NGL business for $5.15 billion CAD • Proceeds to be used for bolt-on M&A, preferred unit repurchases, and common unit repurchases • NGL sale expected to close in Q1 2026 pending regulatory approval.

Houston, Aug. 08, 2025 (GLOBE NEWSWIRE) — Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) reported strong second-quarter 2025 results, highlighting a robust performance despite a volatile macro environment. The company reported net income attributable to PAA of $210 million and net cash provided by operating activities of $694 million. Adjusted EBITDA attributable to PAA stood at $672 million, while the leverage ratio of 3.3x was near the target range of 3.25x to 3.75x.

A significant highlight of the quarter was the agreement to divest substantially all of the company's NGL business for approximately $5.15 billion CAD (approximately $3.75 billion USD). The proceeds from this sale, expected to close in the first quarter of 2026 pending regulatory approval, will be prioritized towards bolt-on M&A, preferred unit repurchases, and opportunistic common unit repurchases. The sale of the NGL business, which includes operations in Canada, is expected to improve the company's free cash durability and financial flexibility.

The company also announced an additional 20% interest acquisition in BridgeTex Pipeline Company, LLC, bringing PAA's total interest to 40%. This acquisition further strengthens the company's Permian footprint and demonstrates its commitment to capital disciplined growth and optimizing its crude oil-focused asset base.

Willie Chiang, Chairman, CEO, and President of Plains All American Pipeline, stated, "We continue to advance our strategic initiatives and delivered solid second-quarter performance in a volatile macro environment. 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."

Financial reporting considerations for the pending sale of the Canadian NGL business were also noted. The operations of the Canadian NGL Business meet the criteria for classification as held for sale and presentation as discontinued operations, with changes applied retrospectively to all periods presented. The company will retain substantially all NGL assets in the United States and all crude oil assets in Canada.

The company's summary financial information (unaudited) for the three months ended June 30, 2025, shows a net income attributable to PAA of $210 million, a 16% decrease from $250 million in the same period last year. Adjusted EBITDA from crude oil was in line with comparable 2024 results, while adjusted EBITDA from NGL decreased by 7% primarily due to lower iso-to-normal butane spread benefits in the second quarter of 2025.

The company's Adjusted Free Cash Flow (AFCF) was $348 million for the three months ended June 30, 2025, a 15% decrease from $411 million in the same period last year. Adjusted Free Cash Flow after Distributions (AFCFAD) was $28 million, a 78% decrease from $125 million in the same period last year. The leverage ratio of 3.3x was near the target range of 3.25x to 3.75x.

Plains All American Pipeline will hold a joint conference call at 9:00 a.m. CT on Friday, August 8, 2025, to discuss the second-quarter performance and related items. The webcast can be accessed at https://edge.media-server.com/mmc/p/tcbbtc6e/ or on the company's website at https://ir.plains.com/news-events/events-presentations.

References:
[1] https://www.marketscreener.com/news/plains-all-american-reports-second-quarter-2025-results-ce7c5eddd98cf622