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- **Strategic Pivot Complete**: Acquired 100% of EPIC Crude for $1.3B, renaming it Cactus III to integrate with existing long-haul network. 2026 EBITDA multiple of 10x, targeting mid-teens returns.
- **Financial Strength**: Narrowed 2025 EBITDA guidance to $2.84-2.89B, issuing $1.25B in notes to refinance debt and fund EPIC.
- **Distribution Confidence**: Plan to continue $0.15 annual increases until 1.6x DCF coverage, redeploying NGL sale proceeds into accretive bolt-ons.
- **Operational Leverage**: $40M annual cost savings from EPIC integration, optimizing flows across 3 Permian pipelines to Corpus Christi.
- **Long-Term Growth**: Bullish on North American crude demand, with focus on connecting Canadian barrels to Gulf Coast via existing infrastructure.

**【CEO Summary Section】**
- Reported third-quarter adjusted EBITDA attributable to Plains of $669 million, driven by the acquisition of the remaining 45% interest in EPIC Crude Holdings for $1.3 billion (including $500 million debt) and the 55% nonoperating interest acquired earlier in the quarter.
- The EPIC acquisition is expected to generate a mid-teens unlevered return with a 2026 EBITDA multiple of ~10x, improving over time. Plains will rename the pipeline system "Cactus III" to align with its integrated long-haul network.
- Management emphasized becoming a pure-play crude midstream company with the pending sale of NGL assets expected to close by Q1 2026, redeploying proceeds into accretive bolt-ons while maintaining leverage within the target range of 3.0-3.5x.
- Near-term benefits include contractual volume step-ups, reduced operating costs, and flexibility to expand EPIC capacity based on market demand by 2028.

**【CFO Financial Commentary】**
- Crude Oil segment EBITDA: $593 million (up 12% vs. Q2 2025) due to higher volumes, bolt-on acquisitions, and annual tariff escalations, partially offset by lower Permian contract rates.
- NGL segment EBITDA: $70 million (down 17% vs. Q2) due to temporary third-party pipeline downtime and LNG Canada startup costs.
- Full-year 2025 adjusted EBITDA guidance narrowed to $2.84-2.89 billion (prior: $2.80-2.90 billion) to reflect lower realized crude prices and $40 million EPIC contribution for the remainder of 2025.
- Capital spending: ~$490 million (growth: $490M, maintenance: $215M), with $1.25 billion of senior unsecured notes issued in September to repay maturing debt and fund EPIC acquisitions.

**【Q&A Highlights】**
- **EPIC Synergies**: ~$40 million annual cost savings through overhead consolidation, capital spending reductions, and operational efficiencies. Expansion opportunities could add 100,000+ barrels/day of capacity to Corpus Christi.
- **Distribution Growth**: Expect to continue $0.15 annual distribution increases until reaching 1.6x DCF coverage, with flexibility to look through short-term noise.
- **Canadian NGL Sale**: Proceeds will be used to reduce debt and maintain leverage within target range. FX risk hedged at transaction execution.
- **2026 Outlook**: Permian volumes expected to grow despite lower contract rates, with focus on optimizing operating leverage across the integrated system.
- **Canadian Crude Egress**: Exploring opportunities to connect Canadian barrels to U.S. Gulf Coast via existing infrastructure like the Capline pipeline.


Plains All American Pipeline, L.P. Common Units (PAA) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

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Income (Loss) from Associates

Income (Loss) from Joint ventures

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Gain (Loss) on Change in Fair Value

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Net Interest Expense

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Net Income from Continuing Operations

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Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

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Total Comprehensive Income Attributable to Owners of the Company

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PAA

PAA fundamentals

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