Why is the Canadian NGL business shown as discontinued operations?

The company determined that the Canadian NGL business meets the criteria for held-for-sale classification and presentation as discontinued operations. Prior periods have been restated on that basis, so continuing-operations results exclude the Canadian NGL business while consolidated non-GAAP measures include it.

What happens to the company's NGL and crude oil assets after the sale?

The company will divest the Canadian NGL business but retain substantially all NGL assets in the United States and all crude oil assets in Canada.

How did free cash flow change in the quarter?

Adjusted Free Cash Flow was $348 million in Q2 2025 versus $411 million in Q2 2024, and Adjusted Free Cash Flow after Distributions was $28 million versus $125 million. For the six months, Adjusted Free Cash Flow after Distributions was a shortfall of $612 million, compared with a shortfall of $92 million a year earlier, and the filing notes a $681 million net cash outflow for bolt-on acquisitions in that period.

What drove the change in NGL segment results?

The filing states that Q2 2025 Adjusted EBITDA from NGL decreased 7% versus the prior year, primarily due to lower iso-to-normal butane spread benefits. Adjusted EBITDA from Crude Oil was in line with the prior-year period, with higher tariff volumes, tariff escalations and bolt-on contributions largely offset by fewer market opportunities and lower commodity prices.

PAA/PAAPU 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

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

Plains All American Pipeline, L.P.

(Nasdaq: PAA) reported second-quarter 2025 results on August 8, 2025, in a press release furnished as Exhibit 99.1. The company reported net income attributable to PAA of $210 million^a and net cash provided by operating activities of $694 million for the quarter, with Adjusted EBITDA attributable to PAA of $672 million. The company exited the quarter with a 3.3x leverage ratio, toward the low end of its 3.25x to 3.75x target range.

For the six months ended June 30, 2025, net income attributable to PAA was $653 million^b, compared with $515 million in the prior-year period. The most significant development is the agreement, signed June 17, 2025, to sell substantially all of the company's Canadian NGL business to Keyera Corp. The filing describes total cash consideration of approximately $5.15 billion CAD ($3.75 billion USD), with expected closing in the first quarter of 2026, subject to regulatory approval. The company states that NGL sale proceeds of roughly $3.0 billion net USD will be prioritized toward bolt-on M&A, preferred unit repurchases and opportunistic common unit repurchases.

The Canadian NGL business has been classified as held for sale and presented as discontinued operations, with prior periods restated. Other developments include the July 22, 2025 acquisition of an additional 20% interest in BridgeTex Pipeline Company, LLC, which brings PAA's total interest to 40%. Quarterly distributions declared per common unit were $0.3800^c, compared with $0.3175 a year earlier, and Adjusted Free Cash Flow after Distributions was $28 million for the quarter, versus $125 million in the prior-year quarter.

02—Key points

Key Highlights

Net income attributable to PAA was $210 million for Q2 2025, down from $250 million in Q2 2024; six-month net income attributable to PAA rose to $653 million from $515 million.
Adjusted EBITDA attributable to PAA was $672 million in Q2 2025, essentially flat versus $674 million in Q2 2024.
Net cash provided by operating activities was $694 million for the quarter, up from $653 million a year earlier.
Agreed to sell substantially all of the Canadian NGL business to Keyera Corp. for approximately $5.15 billion CAD ($3.75 billion USD), with closing expected in Q1 2026 pending regulatory approval.
Expected net NGL sale proceeds of about $3.0 billion USD are earmarked for bolt-on M&A, preferred unit repurchases and opportunistic common unit repurchases.
Exited the quarter at a 3.3x leverage ratio, toward the low end of the 3.25x to 3.75x target range.
Acquired an additional 20% interest in BridgeTex Pipeline on July 22, 2025, bringing PAA's total interest to 40%; declared distribution per common unit rose to $0.3800 from $0.3175.

03—Questions

Frequently Asked Questions

Why is the Canadian NGL business shown as discontinued operations?
The company determined that the Canadian NGL business meets the criteria for held-for-sale classification and presentation as discontinued operations. Prior periods have been restated on that basis, so continuing-operations results exclude the Canadian NGL business while consolidated non-GAAP measures include it.
What happens to the company's NGL and crude oil assets after the sale?
The company will divest the Canadian NGL business but retain substantially all NGL assets in the United States and all crude oil assets in Canada.
How did free cash flow change in the quarter?
Adjusted Free Cash Flow was $348 million in Q2 2025 versus $411 million in Q2 2024, and Adjusted Free Cash Flow after Distributions was $28 million versus $125 million. For the six months, Adjusted Free Cash Flow after Distributions was a shortfall of $612 million, compared with a shortfall of $92 million a year earlier, and the filing notes a $681 million net cash outflow for bolt-on acquisitions in that period.
What drove the change in NGL segment results?
The filing states that Q2 2025 Adjusted EBITDA from NGL decreased 7% versus the prior year, primarily due to lower iso-to-normal butane spread benefits. Adjusted EBITDA from Crude Oil was in line with the prior-year period, with higher tariff volumes, tariff escalations and bolt-on contributions largely offset by fewer market opportunities and lower commodity prices.

04—Continue

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