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); 2025 marked by major portfolio changes and operational streamlining.

• 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 Cactus III, enhancing cash flow quality and durability.

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

• Announced a 10% annualized distribution increase and lowered the coverage ratio target from 160% to 150%.

• Efficiency initiatives and Cactus III integration expected to drive $50 million incremental 2026 EBITDA and $100 million annual savings by 2027, with half realized in 2026.

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, with seasonal uptick moderated by warm weather and weak frac spreads.

• 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; annualized distribution increased to $1.67 per unit (10% rise), with targeted $0.15 per unit annual growth.

• 2026 capital investment: $350 million growth capital and $165 million maintenance capital.

Outlook and guidance

• 2026 Adjusted EBITDA guidance: $2.75 billion 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 million barrels/day, with growth resuming in 2027.

• Targeting $100 million in annual cost savings by 2027, with $50 million expected in 2026.

• 2026 distributable cash flow projected to increase ~1% despite headline EBITDA decline from NGL sale, due to lower taxes and maintenance capital.

• 2026 adjusted free cash flow expected at $1.8 billion, excluding asset/liability changes and NGL sale proceeds.