Skip to content
AnalystLens

Plains All American Pipeline 8-K Report, Financial Results (May 9, 2025)

Reports
Earnings & Results·Regulation FD·Exhibits & Filings
Filing Date
Filed May 9, 2025
Period End
May 9, 2025
Securities
PAAPAAPU
In the record · 2016–202610-K1110-Q328-K167

PAA filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 167 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’17Oct ’17
  2. Leadership change8-K · Sep ’20Sep ’20
  3. Material agreement8-K · Aug ’22Aug ’22
  4. Leadership change8-K · Sep ’26Sep ’26

01—Abstract

Summary

Summary of the 8-K filed May 9, 2025. Cited figures are marked; the original filing is the authoritative source.

Plains All American Pipeline, L.P.

(Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) reported first-quarter 2025 results on May 9, 2025, as furnished in Exhibit 99.1. PAA reported net income attributable to PAA of $443 milliona, up from $266 million a year earlier, and net cash provided by operating activities of $639 million, compared with $419 million. Adjusted EBITDA attributable to PAA was $754 million, versus $718 million in the prior-year period.

Management said the company exited the quarter with a 3.3x leverage ratio, toward the low end of its 3.25x to 3.75x target range, including previously announced and closed transactions. Cash flow was weighed by acquisitions. The quarter included a net cash outflow of $624 millionb for bolt-on acquisitions, and Adjusted Free Cash Flow was negative $308 million, compared with $70 million a year earlier.

Adjusted Free Cash Flow after Distributions was negative $639 millionc. The filing states that the Series A preferred units repurchase and the cash distribution of $0.38 per unit (described as a current distribution yield of about 9.0%) were paid during the period. Long-term debt-to-total book capitalization rose to 46% from 42% at year-end 2024, and senior notes, net increased to $8,131 million from $7,141 million.

Segment results were mixed. Crude Oil Segment Adjusted EBITDA was $559 milliond, roughly flat versus $553 million, as higher tariff volumes, tariff escalations and bolt-on contributions were offset by higher operating expenses and refinery downtime.

NGL Segment Adjusted EBITDA rose to $189 million from $159 million, driven by higher weighted average frac spreads and NGL sales volumes. Management described its focus on efficient growth and financial discipline, and highlighted the Cheyenne Pipeline acquisition, the Black Knight Permian gathering acquisition for approximately $55 million, and the Fort Saskatchewan fractionation debottleneck placed into service.

02—Key points

Key Highlights

  1. Net income attributable to PAA rose to $443 million from $266 million, and diluted net income per common unit was $0.49 versus $0.29.
  2. Adjusted EBITDA attributable to PAA was $754 million, up from $718 million, while adjusted net income attributable to PAA was $375 million versus $354 million.
  3. Adjusted Free Cash Flow was negative $308 million, compared with positive $70 million, reflecting a net cash outflow of $624 million for bolt-on acquisitions.
  4. Leverage ended the quarter at 3.3x, toward the low end of the 3.25x to 3.75x target range, and long-term debt-to-total book capitalization increased to 46% from 42%.
  5. Crude Oil Segment Adjusted EBITDA was $559 million, roughly in line with $553 million, while NGL Segment Adjusted EBITDA increased 19% to $189 million.
  6. The quarterly distribution was $0.38 per unit, or $1.52 annualized, which the company described as a current distribution yield of about 9.0%.
  7. Acquisitions included the remaining 50% interest in Cheyenne Pipeline (closed February 28, 2025) and Black Knight Midstream's Permian Basin crude oil gathering business for about $55 million (effective May 1, 2025).

03—Questions

Frequently Asked Questions

  1. How did Plains perform financially in the first quarter of 2025?

    Net income attributable to PAA was $443 million, up from $266 million, and Adjusted EBITDA attributable to PAA was $754 million, up from $718 million. Net cash provided by operating activities increased to $639 million from $419 million.

  2. Why was free cash flow negative this quarter?

    Adjusted Free Cash Flow was negative $308 million, largely because of a net cash outflow of $624 million for bolt-on acquisitions. Net cash used in investing activities was $1,149 million, including about $330 million invested in related party notes, which was offset by an equal inflow from related party note issuance in financing activities.

  3. How did the business segments perform?

    Crude Oil Segment Adjusted EBITDA was $559 million, compared with $553 million, as tariff volume growth, tariff escalations and bolt-on contributions were offset by higher operating expenses and refinery downtime. NGL Segment Adjusted EBITDA rose 19% to $189 million on higher frac spreads and NGL sales volumes.

  4. What is the company's balance sheet and leverage position?

    The company reported a 3.3x leverage ratio, toward the low end of its 3.25x to 3.75x target range. Total debt was $8,682 million at March 31, 2025, up from $7,621 million at December 31, 2024, and long-term debt-to-total book capitalization was 46%, compared with 42%.

  5. What acquisitions and growth projects did the company highlight?

    The company acquired the remaining 50% interest in Cheyenne Pipeline, which closed February 28, 2025, and Black Knight Midstream's Permian Basin crude oil gathering business for approximately $55 million, effective May 1, 2025. The Fort Saskatchewan fractionation complex debottleneck project, adding 30 Mb/d, was placed into service.

04—Continue

← View all 8-K filings