Plains GP 2025 Q3 Earnings Net Income Surges 67.4% Despite Revenue Drop

Plains GP (PAGP) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with a 147.1% surge in EPS to $0.42 and $504 million net income, driven by gains on asset sales and cost reductions. The revenue decline to $11.58 billion (-7.0%) reflects lower product sales, but strategic cost management offset this drag.

Revenue

Plains GP’s total revenue fell to $11.58 billion in Q3 2025, a 7.0% decrease from $12.46 billion in the prior-year period, primarily due to reduced product sales. The Crude Oil segment generated $11,116 million in sales for the three months ended September 30, 2025, with transportation revenues of $337 million. Meanwhile, the NGL segment reported $22 million in sales, alongside $2 million in terminalling, storage, and other revenues.

Earnings/Net Income

The company’s net income surged to $504 million in Q3 2025, a 67.4% increase from $301 million in the prior-year period. This growth was fueled by gains on asset sales and reduced operating costs, with basic net income per Class A share rising to $0.42 (+147.1% YoY). The earnings strength underscores improved profitability despite the revenue contraction.

Post-Earnings Price Action Review

The strategy of buying PAGP shares on earnings release and holding for 30 days yielded a 2.5% return over three years, modest compared to the S&P 500’s 20% gain. While the holding period mitigated some volatility, the stock’s prolonged bearish trend limited performance. Despite stable earnings, the approach prioritized stability over growth, making it suitable for low-risk investors but suboptimal for aggressive strategies.

Additional News

Plains GP announced the sale of its Canadian NGL Business, expected to close in Q1 2026. The segment, classified as held for sale, has contributed $88 million in sales over nine months ending September 30, 2025. This strategic shift aligns with the company’s focus on core operations and liquidity optimization. The transaction will reclassify the business as discontinued operations, impacting future financial reporting.