Plains GP 2025 Q2 Earnings Net Income Declines 10.4%

Plains GP (PAGP) reported its fiscal 2025 Q2 earnings on August 8, 2025. The results showed a notable decline in key financial metrics, including revenue and net income, despite the company maintaining strong EBITDA guidance. The company announced a strategic shift by selling its NGL segment, which is being reclassified as discontinued operations, while reaffirming its long-term crude-focused growth strategy.

Plains GP's performance for 2025 Q2 fell in line with expectations, as the company navigated challenging market conditions. Although revenue and net income both declined, the firm reaffirmed its full-year EBITDA guidance and outlined plans to use $3 billion in net proceeds from the NGL sale for capital optimization, M&A, and buybacks. CEO Wilfred C.W. Chiang emphasized the transaction’s strategic benefits and the company’s commitment to long-term crude growth.

Revenue
Total revenue for Plains GP declined by 16.6% to $10.64 billion in 2025 Q2, compared to $12.76 billion in the same period of 2024. This decline was driven primarily by the transportation segment, which brought in $10.65 billion, slightly offset by the crude oil segment, which generated $10.62 billion. The NGL segment contributed $26 million, while intersegment revenues elimination reduced the total by $6 million.

Earnings/Net Income
Plains GP’s earnings reflected the revenue decline, with net income dropping to $283 million in 2025 Q2, a 10.4% decrease from $316 million in the prior year. Earnings per share (EPS) also fell by 25.0%, from $0.20 in 2024 Q2 to $0.15 in 2025 Q2. This performance indicates that the company’s cost and operational efficiencies were not sufficient to offset the drop in revenue.

Price Action
The stock price of Plains GP edged up 0.73% during the latest trading day but experienced a 0.00% change over the most recent full trading week and a 1.69% decline month-to-date.

Post-Earnings Price Action Review
A review of historical performance shows that buying Plains GP shares after a positive earnings report and holding for 30 days historically yielded a 63.57% return over the past three years. This outperformed the benchmark return of 47.10%, demonstrating the strategy's effectiveness. The approach also showed a Sharpe ratio of 0.73, a CAGR of 18.49%, and a volatility of 25.16%, with no maximum drawdown recorded.

CEO Commentary
CEO Wilfred C.W. Chiang highlighted Plains’ adjusted EBITDA of $672 million in Q2 and emphasized the strategic sale of the NGL business as a “win-win” for both Plains and Keyera. He reiterated the company’s disciplined approach to bolt-on acquisitions and plans to redeploy $3 billion in net proceeds for M&A, capital structure optimization, and unit buybacks. Chiang expressed optimism about the long-term demand for crude oil, citing global population and economic growth, while acknowledging near-term market volatility.

Guidance
Plains GP reaffirmed its 2025 full-year EBITDA guidance of $2.8 billion to $2.95 billion, with EBITDA and Permian growth expected to fall in the lower half of the range. The company anticipates $870 million in adjusted free cash flow, with growth capital spending rising to $475 million due to new projects in Permian and South Texas. Maintenance capital is trending below initial forecasts. The NGL segment has been reclassified as discontinued operations, and all guidance metrics are detailed in the earnings presentation.

Additional News
Recent developments include Plains GP’s strategic sale of its NGL segment and its commitment to crude-focused growth. The company announced plans to redeploy $3 billion in net proceeds toward M&A, capital structure optimization, and buybacks. CEO Wilfred C.W. Chiang emphasized the long-term demand for crude oil and the company’s strong position in the energy transition. Plains GP also highlighted its recent acquisition of a 20% interest in the BridgeTex Pipeline and its focus on disciplined acquisitions and infrastructure expansion.