Plains GP Holdings' Acquisition and Divestiture Strategy: Reframing the PAGP Investment Case

Plains GP Holdings reported Q3 2025 results with sales of $11.58 billion and a net income increase to $83 million, both below analyst expectations. The company announced the acquisition of EPIC Crude Holdings and divestiture of its Canadian natural gas liquids business to focus on core crude oil midstream operations. Despite underwhelming earnings, the acquisition and divestiture strategy reframes the PAGP investment case by scaling the core midstream platform and boosting long-term throughput and margins.