01—Abstract
Summary
Summary of the 10-Q filed May 9, 2025. Cited figures are marked; the original filing is the authoritative source.
Plains All American Pipeline, L.P. reported net income attributable to PAA of $443 milliona for the three months ended March 31, 2025, up from $266 million a year earlier, and net income of $516 million compared with $351 million.
The filing attributes the increase largely to fluctuations in derivative mark-to-market valuations, along with higher Segment Adjusted EBITDA from the Crude Oil and NGL segments. Consolidated Adjusted EBITDA was $881 millionb versus $847 million, and Adjusted EBITDA attributable to PAA was $754 million versus $718 million. Operating cash flow rose to $639 million from $419 million, but Adjusted Free Cash Flow was negative at $(308) million, compared with $70 million in the prior-year quarter, largely reflecting acquisition and capital spending.
First-quarter capital activity was heavy. Total capital expenditures were $867 millionc, including $665 million of acquisition capital, primarily for the Ironwood Midstream gathering system (about $481 million in cash) and the Medallion Midstream acquisition ($163 million, or about $106 million net to the Partnership's 65% interest in the Permian JV). The Partnership also acquired the remaining 50% interest in Cheyenne Pipeline LLC, which produced a $31 million gain.
Total debt rose to $8.68 billiond from $7.62 billion after the issuance of $1.0 billion of 5.95% senior notes due 2035, which funded acquisitions and the repurchase of about 12.7 million Series A preferred units for approximately $333 million plus accrued distributions. Coverage and liquidity remain central to the investment case. Implied DCF was $526 million versus $534 million, and Implied DCF Available to Common Unitholders was $462 million versus $470 million.
Common unit cash distributions of $267 million produced Implied DCF Excess of $195 million, compared with $247 million a year earlier. The Partnership reported approximately $2.6 billion of liquidity, a working capital surplus of $44 million, and a Line 901 cost estimate of approximately $870 million, of which $275 million of the $500 million 2015 insurance program has been collected.
02—Key points
Key Highlights
- Net income attributable to PAA was $443 million, compared with $266 million for the first quarter of 2024; basic and diluted net income per common unit was $0.49, compared with $0.29.
- Adjusted EBITDA was $881 million, compared with $847 million, and Adjusted EBITDA attributable to PAA was $754 million, compared with $718 million.
- Implied DCF was $526 million, compared with $534 million; Implied DCF Excess after common unit distributions was $195 million, compared with $247 million.
- Net cash provided by operating activities was $639 million, compared with $419 million, while Adjusted Free Cash Flow was $(308) million versus $70 million, reflecting $1,149 million of net cash used in investing activities.
- Acquisitions included Ironwood Midstream (approximately $481 million in cash), Medallion Midstream ($163 million), and the remaining 50% of Cheyenne Pipeline LLC, which generated a $31 million gain.
- In January 2025 the Partnership issued $1.0 billion of 5.95% senior notes due 2035 and repurchased about 12.7 million Series A preferred units (18% of the outstanding Series A units) for approximately $333 million plus accrued distributions.
- Total liquidity was approximately $2.6 billion, and the Partnership reported a working capital surplus of $44 million; a $0.38 per common unit distribution is payable May 15, 2025.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2025, Plains All American Pipeline kept $0.04.
- Revenue$11.48B100.0%
- Cost of revenue−$10.52B91.6%
- Gross profit$960.0M8.4%
- Operating costs−$604.0M5.3%
- Operating income$356.0M3.1%
- Interest, other & tax$87.0M0.8%
- Net income$443.0M3.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2025filed May 9, 2025Financial Statements
Q1 FY2025 against Q1 FY2024
| Line item | Q1 FY2025Q1 FY2024 | Change |
|---|---|---|
| Revenue | $11.48B$11.64B | −1.4% |
| Cost of Revenue | $10.52B$10.92B | −3.7% |
| Gross Profit | $960.00M$722.00M | +33.0% |
| Operating Expenses | $11.12B$11.63B | −4.3% |
| Operating Income | $356.00M$356.00M | 0.0% |
| Net Income | $443.00M$266.00M | +66.5% |
05—Questions
Frequently Asked Questions
What drove the increase in net income attributable to PAA?
The filing states that the increase in net income attributable to PAA, to $443 million from $266 million, was largely driven by fluctuations of derivative mark-to-market valuations, as well as higher Segment Adjusted EBITDA in the 2025 period from more favorable results in the Crude Oil and NGL segments.
How did the Crude Oil and NGL segments perform?
Crude Oil Segment Adjusted EBITDA was $559 million, compared with $553 million, and the filing describes it as in line with the prior year, with tariff volume growth and acquisition contributions largely offset by higher operating expenses. NGL Segment Adjusted EBITDA was $189 million, compared with $159 million, an increase the filing attributes primarily to higher NGL sales volumes, higher realized frac spreads and lower field operating costs.
Is the distribution covered by cash flow this quarter?
Implied DCF was $526 million and Implied DCF Available to Common Unitholders was $462 million, compared with common unit cash distributions of $267 million, leaving Implied DCF Excess of $195 million. Adjusted Free Cash Flow after Distributions, however, was $(639) million, because investing outflows for acquisitions and capital exceeded operating cash flow. The filing notes that shortages, if any, may be funded from reserves, cash on hand or borrowings.
How has the Partnership's debt and liquidity changed?
Total debt was $8.68 billion at March 31, 2025, up from $7.62 billion at December 31, 2024, mainly reflecting the $1.0 billion senior notes issuance. Liquidity was approximately $2.6 billion, including $1,350 million of unsecured revolver availability, $1,315 million of hedged inventory facility availability, $464 million of commercial paper outstanding and $426 million of cash. The filing states the Partnership was in compliance with its covenants.
What is the status of the Line 901 incident?
The Partnership estimates total aggregate costs of approximately $870 million for the Line 901 incident as of March 31, 2025. It has collected $275 million of the $500 million available under its 2015 insurance program, and it has submitted claims exceeding the remaining $225 million of coverage that it has not accrued as receivables. The remaining liability was approximately $4 million, and the filing states that the Partnership is vigorously defending the remaining lawsuits.
06—Continue