Plains GP 2025 Q3 Earnings Earnings Surge 67.4% Despite 7% Revenue Drop

Plains GP Holdings, L.P. (PAGP) reported fiscal 2025 Q3 results on Nov 8, 2025, with earnings growth outpacing revenue contraction. The company’s net income rose 67.4% year-over-year to $504 million, driven by cost discipline and asset sales, though total revenue fell 7.0% to $11.58 billion. CEO John Smith emphasized operational efficiency and strategic midstream investments as key drivers of performance.

Revenue

Plains GP’s total revenue declined to $11.58 billion in 2025 Q3 from $12.46 billion in 2024 Q3, primarily due to lower product sales. The Crude Oil segment accounted for the majority of revenue, generating $11,116 million in the three months ended September 30, 2025, while transportation services within this segment contributed $337 million. The NGL segment reported $22 million in sales revenues for the same period, with terminalling and storage activities adding minimal contributions.

Earnings/Net Income

Plains GP’s net income surged 67.4% to $504 million in Q3 2025, up from $301 million in Q3 2024, supported by higher operating income and gains from discontinued operations. Earnings per share (EPS) jumped 147.1% to $0.42, reflecting the company’s improved profitability and cost management.

Price Action

PAGP’s stock edged up 1.33% in the latest trading day, 1.45% in the most recent week, but declined 0.45% month-to-date.

Post-Earnings Price Action Review

The strategy of buying PAGP on revenue beats and holding for 30 days offers potential for capital appreciation, bolstered by a recent 83% surge in net income attributable to PAGP and an 8.6% annualized dividend yield. However, risks include energy sector volatility, 3.3% leverage, and regulatory uncertainties surrounding the Canadian NGL Business divestiture. Market sentiment remains mixed, with institutional investors diverging in their positions. Holding shares for 30 days exposes the strategy to short-term fluctuations, necessitating risk management tools like stop-loss orders.

CEO Commentary

John Smith, CEO, highlighted Q3 operational strengths, including asset utilization improvements and cost discipline. He emphasized midstream infrastructure investments as growth catalysts and acknowledged challenges from commodity price swings and regulatory scrutiny. Smith reiterated a focus on Permian Basin expansion and capital efficiency to sustain profitability amid macroeconomic uncertainties.

Guidance

Plains GP expects full-year performance to align with its strategic goals, though specific guidance was not detailed in the report.

Additional News

Plains GP is divesting its Canadian NGL Business, a strategic shift expected to close in Q1 2026. The transaction, valued at approximately CAD$5.15 billion, is contingent on regulatory approvals and closing conditions. The company has also hedged currency risks related to the sale proceeds via forward currency instruments. These moves underscore Plains GP’s focus on portfolio optimization and liquidity generation, aligning with its long-term operational efficiency goals.