Plains All American Pipeline (PAA) Q4 2025 earnings summary

Executive summary

• Reported Q4 2025 Adjusted EBITDA of $738 million and full-year 2025 Adjusted EBITDA of $2.833 billion, with 2026 guidance at $2.75 billion (+/- $75 million); net income attributable to unitholders was $1.435 billion for 2025.

• Transitioned to a pure-play crude company by selling the NGL business (expected to close by end of Q1 2026, generating ~$3.2 billion net proceeds) and acquiring the EPIC (Cactus III) Pipeline.

• Announced a 10% annualized distribution increase to $1.67 per unit, with a targeted annual growth of $0.15 per unit and a reduced coverage ratio threshold of 150%.

• Efficiency initiatives and Cactus III integration expected to drive $100–$150 million in annual cost savings by 2027, with half realized in 2026.

• Achieved best-ever safety performance, with lowest TRIR and lost workdays.

Financial highlights

• Q4 2025 crude oil segment Adjusted EBITDA was $611 million, including two months of Cactus III contribution; NGL segment Adjusted EBITDA was $122 million.

• Full-year 2025 net income rose 86% year-over-year to $1.435 billion; diluted net income per unit increased 127% to $1.66.

• 2026 Adjusted Free Cash Flow guidance is ~$1.8 billion, excluding NGL sale proceeds.

• Distribution per common unit for 2025 was $1.5575, up 17% from 2024; implied DCF per common unit for 2025 was $2.61, up 5%.

• Growth CAPEX for 2026 guided at $350 million, maintenance capital at $165 million.

Outlook and guidance

• 2026 Adjusted EBITDA guidance is $2.75 billion at midpoint, with $2.64 billion from crude oil and $100 million from NGL (assuming Q1 2026 close).

• Permian crude production expected to be flat in 2026 at ~6.6 Mb/d, with growth resuming in 2027.

• Distribution coverage ratio threshold lowered to 150% to support multi-year distribution growth.

• Anticipates strong Adjusted Free Cash Flow of ~$1.8 billion in 2026, excluding NGL sale proceeds.

• 2026 growth capital expected at ~$350 million and maintenance capital at ~$165 million.