01—Abstract
Summary
Summary of the 10-Q filed August 8, 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 $653 milliona for the six months ended June 30, 2025, compared with $515 million in the first six months of 2024.
For the three months ended June 30, 2025, net income attributable to PAA was $210 millionb, versus $250 million a year earlier. Total revenues for the six months were $22.12 billion, against $24.40 billion, with product sales revenues down 10% as lower commodity prices were partially offset by higher crude oil sales volumes. Adjusted EBITDA for the six months was $1.69 billion, and Implied DCF was $1.04 billion, while Adjusted Free Cash Flow after Distributions was negative $612 million, as distributions paid to common and preferred unitholders exceeded free cash flow in the period.
The most significant development is the pending sale of the Canadian NGL Business to Keyera Corp. under a Share Purchase Agreement dated June 17, 2025, for approximately CAD$5.15 billionc (approximately $3.75 billion), expected to close in the first quarter of 2026. The Canadian NGL Business is presented as discontinued operations, and income from discontinued operations rose to $206 million for the six months from $42 million. The company also hedged the deal's currency exposure with a CAD$4.5 billion forward instrument carrying a $49 million liability, and estimated that a liability of approximately $45 million would arise from a related frac spread guarantee if the sale closed in the first quarter of 2026.
Balance sheet activity included $1.0 billiond of 5.95% senior notes due 2035 issued in January 2025, the repurchase of about 12.7 million Series A preferred units for approximately $333 million, and total debt rising to $8.68 billion from $7.62 billion at year-end 2024. The company reported a working capital surplus of $9 million and approximately $2.7 billion of liquidity. Line 901 remains the largest legal and environmental matter, with total estimated costs of approximately $870 million, and the company stated it has accrued adequate amounts for probable and reasonably estimable costs.
02—Key points
Key Highlights
- Net income attributable to PAA was $653 million for the six months ended June 30, 2025, up from $515 million in the prior-year period; for the quarter it was $210 million versus $250 million.
- Pending sale of the Canadian NGL Business to Keyera Corp. for approximately CAD$5.15 billion (about $3.75 billion), expected to close in Q1 2026; the business is reported as discontinued operations.
- Income from discontinued operations, net of tax, was $206 million for the six months versus $42 million a year earlier.
- Adjusted EBITDA was $1.69 billion for the six months (up from $1.65 billion) and Implied DCF was $1.04 billion (up from $1.00 billion).
- Adjusted Free Cash Flow after Distributions was negative $612 million for the six months, compared with negative $92 million in the prior-year period.
- Total debt increased to $8.68 billion at June 30, 2025 from $7.62 billion at December 31, 2024, following issuance of $1.0 billion of 5.95% senior notes due 2035.
- Line 901 incident estimated aggregate total costs of approximately $870 million, with $275 million of the $500 million 2015 insurance program collected to date.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2025, Plains All American Pipeline kept $0.02.
- Revenue$10.64B100.0%
- Cost of revenue−$9.76B91.7%
- Gross profit$884.0M8.3%
- Operating costs−$645.0M6.1%
- Operating income$239.0M2.2%
- Interest, other & tax−$29.0M0.3%
- Net income$210.0M2.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 8, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $10.64B$12.76B | −16.6% |
| Cost of Revenue | $9.76B$11.84B | −17.6% |
| Gross Profit | $884.00M$919.00M | −3.8% |
| Operating Expenses | $10.40B$12.43B | −16.3% |
| Operating Income | $239.00M$332.00M | −28.0% |
| Net Income | $210.00M$250.00M | −16.0% |
05—Questions
Frequently Asked Questions
What is the status of the Canadian NGL Business sale?
On June 17, 2025, Plains entered into a definitive Share Purchase Agreement with Keyera Corp. to sell Plains Midstream Canada ULC for approximately CAD$5.15 billion (about $3.75 billion), subject to post-closing adjustments. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions including regulatory approvals. Plains will retain substantially all U.S. NGL assets and all Canadian crude oil assets.
How did results from continuing operations compare year over year?
Income from continuing operations, net of tax, was $607 million for the six months ended June 30, 2025, compared with $639 million in 2024, and $227 million for the quarter versus $298 million. Operating income was $594 million for the six months versus $688 million, with interest expense rising to $260 million from $205 million, driven by the January 2025 senior notes issuance and related party notes.
What is the company's liquidity position?
As of June 30, 2025, Plains reported a working capital surplus of $9 million and approximately $2.7 billion of liquidity, including $459 million of cash, $1.35 billion of availability under its senior unsecured revolving credit facility, and $1.31 billion under its senior secured hedged inventory facility, less $462 million of commercial paper outstanding.
What distributions were declared for the upcoming payment period?
On August 14, 2025, Plains will pay a quarterly cash distribution of $0.38 per common unit ($1.52 annualized) and approximately $0.615 per Series A preferred unit. On August 15, 2025, it will pay approximately $22.23 per Series B preferred unit. The filing also reports that cash distributions paid to common unitholders were $535 million for the six months, and the company repurchased 0.5 million common units for $8 million under its repurchase program.
What are the main legal and environmental exposures?
The Line 901 incident from May 2015 carries estimated aggregate total costs of approximately $870 million as of June 30, 2025, accrued within field operating costs, and the remaining undiscounted gross liability was approximately $20 million. One remaining Line 901 lawsuit alleging stigma-related property damage is being vigorously defended. Other matters include a Line 48 release in March 2025 with estimated remediation costs of approximately $20 million, and a Louisiana coastal erosion lawsuit that the company believes lacks merit.
06—Continue