01—Abstract
Summary
Summary of the 8-K filed February 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Plains All American Pipeline, L.P.
(Nasdaq: PAA) reported fourth-quarter and full-year 2025 results on February 6, 2026, alongside 2026 guidance. For the full year 2025, net income attributable to PAA was $1.435 billiona (versus $772 million in 2024, up 86%), and Adjusted EBITDA attributable to PAA was $2.833 billion (up 2% from $2.779 billion). Fourth-quarter net income attributable to PAA was $342 million and Adjusted EBITDA attributable to PAA was $738 million.
The pro forma leverage ratio was 3.9x at year-end 2025, with management expecting a return toward the midpoint of its 3.25x to 3.75x target range after the anticipated closing of the Canadian NGL divestiture toward the end of the first quarter of 2026. The Canadian NGL business is presented as discontinued operations. For 2026, the company guides to full-year Adjusted EBITDA attributable to PAA with a midpoint of $2.75 billionb, plus or minus $75 million, assuming one quarter of NGL contribution of $100 million.
Management cites roughly $100 millionc of cost savings through 2027 (about half realized in 2026) and $50 million of expected synergies on the Cactus III acquisition, against an expectation of a relatively flat Permian production profile. Anticipated 2026 Adjusted Free Cash Flow is approximately $1.80 billion, with Growth Capital of plus or minus $350 million and Maintenance Capital of plus or minus $165 million net to Plains. On distributions, the company announced an annualized distribution increase of $0.15 per unit, payable February 13, 2026, bringing the new annualized rate to $1.67 per unit, a 10% aggregate increase versus 2025 levels.
The Distribution Coverage ratio threshold was lowered from 160% to 150%. Full-year 2025 Adjusted Free Cash Flow was negative $875 milliond, reflecting a net cash outflow of $2.651 billion for acquisitions, including Cactus III, which was completed in the fourth quarter of 2025.
02—Key points
Key Highlights
- Full-year 2025 net income attributable to PAA of $1.435 billion, up from $772 million in 2024; fourth-quarter 2025 net income attributable to PAA of $342 million.
- Full-year 2025 Adjusted EBITDA attributable to PAA of $2.833 billion versus $2.779 billion in 2024; fourth-quarter 2025 figure of $738 million.
- Pro forma leverage ratio of 3.9x at year-end 2025, with a target return toward the midpoint of the 3.25x to 3.75x range after the NGL divestiture closes.
- 2026 Adjusted EBITDA attributable to PAA guidance midpoint of $2.75 billion, plus or minus $75 million, including one quarter of NGL contribution of $100 million.
- Annualized distribution raised by $0.15 per unit to a new rate of $1.67 per unit, a 10% aggregate increase versus 2025 levels; Distribution Coverage threshold lowered from 160% to 150%.
- Expected 2026 Adjusted Free Cash Flow of approximately $1.80 billion, excluding changes in assets and liabilities and NGL divestiture proceeds.
- Full-year 2025 Adjusted Free Cash Flow of negative $875 million, reflecting $2.651 billion of net cash outflow for acquisitions including Cactus III.
03—Questions
Frequently Asked Questions
What drove the increase in net income attributable to PAA in 2025?
Net income attributable to PAA rose to $1.435 billion in 2025 from $772 million in 2024, an 86% increase. The filing's GAAP table shows operating income of $1.434 billion in 2025 versus $868 million in 2024, with the 2024 period including a $345 million Line 901 incident charge in field operating costs and a $159 million loss on asset sales, impairments and other.
What is the status of the Canadian NGL divestiture?
The company entered a definitive agreement on June 17, 2025 to sell substantially all of its Canadian NGL business to Keyera Corp. The transaction is expected to close toward the end of the first quarter of 2026, subject to customary closing conditions including regulatory approvals. The company will retain substantially all U.S. NGL assets and all Canadian crude oil assets.
How is the company's distribution changing?
The company announced an annualized distribution increase of $0.15 per unit, payable February 13, 2026, bringing the new annualized rate to $1.67 per unit. The filing states this is a 10% aggregate increase versus 2025 levels. The Distribution Coverage ratio threshold was also lowered from 160% to 150%, which management says provides a multi-year runway for targeted annual distribution growth of $0.15 per unit.
What are the key 2026 outlook assumptions?
Guidance calls for full-year 2026 Adjusted EBITDA attributable to PAA of $2.75 billion at the midpoint, plus or minus $75 million, assuming one quarter of NGL contribution of $100 million. Management expects about $100 million of efficiency cost savings through 2027, roughly half realized in 2026, plus $50 million of Cactus III synergies, despite an expected relatively flat Permian production profile. Growth Capital is guided at plus or minus $350 million and Maintenance Capital at plus or minus $165 million net to Plains.
04—Continue