Plains GP Holdings Reports Q2 2025 EBITDA of $672M, Announces $3.75B NGL Business Sale to Keyera

Plains GP Holdings reported Q2 2025 adjusted EBITDA of $672 million and announced a $3.75 billion NGL business divestiture to Keyera, expected to close in 2026. The sale will sharpen Plains GP's focus on crude oil operations, increase financial flexibility, and enable capital allocation for bolt-on M&A. Management reaffirmed full-year 2025 adjusted EBITDA guidance of $2.8 billion to $2.95 billion.

Plains GP Holdings (PAGP) reported its second-quarter 2025 results, highlighting robust financial performance and strategic initiatives. The company reported an adjusted EBITDA of $672 million, indicating a strong operational performance in the quarter.

Significantly, Plains GP Holdings announced the divestiture of its NGL business to Keyera Corp. for a total cash consideration of approximately $3.75 billion USD. This transaction is expected to close in the first quarter of 2026, pending regulatory approval. The sale of the NGL business is aimed at improving the company's financial flexibility and enabling capital allocation for bolt-on mergers and acquisitions (M&A), as well as unit repurchases.

The divestiture will also sharpen Plains GP's focus on its core crude oil operations. The company's management reaffirmed its full-year 2025 adjusted EBITDA guidance of $2.8 billion to $2.95 billion, reflecting confidence in the company's ability to maintain strong financial performance.

The sale of the NGL business will result in a net cash inflow of approximately $3.0 billion USD, which will be prioritized towards bolt-on M&A, preferred unit repurchases, and opportunistic common unit repurchases. Additionally, Plains GP Holdings acquired an incremental interest in BridgeTex Pipeline Company, LLC, bringing its total interest to 40%. This acquisition further strengthens the company's Permian footprint and aligns with its strategy of optimizing its crude oil-focused asset base.

The company's management noted that the divestiture and acquisition activities are part of its broader strategic initiatives to deliver solid performance in a volatile macro environment. Willie Chiang, Chairman, CEO, and President of Plains GP Holdings, 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."

Plains GP Holdings' financial results for the second quarter 2025, including net income attributable to PAA of $210 million and net cash provided by operating activities of $694 million, reflect the company's ability to generate strong cash flows and maintain a healthy balance sheet. The company's leverage ratio of 3.3x is within its target range of 3.25x to 3.75x, indicating a disciplined approach to capital management.

In conclusion, Plains GP Holdings' strong Q2 2025 results and strategic initiatives, including the announced NGL divestiture, position the company well for continued growth and financial performance in the coming quarters.

References:
[1] https://ir.plains.com/news-releases/news-release-details/plains-all-american-reports-second-quarter-2025-results