Group 1 - The immediate reaction to price drops is often skepticism, leading to hesitation in buying on the dip [1] Group 2 - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [2] - Berzins has contributed to institutionalizing the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [2] - His policy work includes developing national SOE financing guidelines and frameworks for channeling private capital into affordable housing [2]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This part presents the unaudited condensed consolidated financial statements, management's discussion, and market risk disclosures [Item 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=4&type=section&id=Item%201.%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the unaudited condensed consolidated financial statements for Q1 2025 and 2024, including key financial statements and detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and partners' capital at specific dates | ASSETS (in millions) | March 31, 2025 | December 31, 2024 | | :------------------- | :------------- | :---------------- | | Cash and cash equivalents | $429 | $349 | | Total current assets | $4,729 | $4,776 | | Property and equipment, net | $16,062 | $15,424 | | Total assets | $28,252 | $27,756 | | LIABILITIES AND PARTNERS' CAPITAL (in millions) | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Total current liabilities | $4,684 | $4,924 | | Total long-term liabilities | $9,508 | $8,516 | | Total partners' capital | $14,060 | $14,316 | | Total liabilities and partners' capital | $28,252 | $27,756 | - Total assets increased by **$496 million** from December 31, 2024, to March 31, 2025, primarily driven by an increase in Property and equipment, net, and Cash and cash equivalents[10](index=10&type=chunk) - Total liabilities increased by **$752 million**, mainly due to a significant rise in Senior notes, net, from **$7,141 million to $8,131 million**[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's financial performance over the three-month periods, detailing revenues, expenses, and net income | (in millions, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Total revenues | $12,011 | $11,995 | | Total costs and expenses | $11,479 | $11,626 | | Operating income | $532 | $369 | | Net income | $492 | $336 | | Net income attributable to PAGP | $84 | $42 | | Basic and diluted net income per Class A share | $0.42 | $0.21 | - Net income attributable to PAGP **doubled from $42 million in Q1 2024 to $84 million in Q1 2025**[12](index=12&type=chunk) - Operating income increased significantly by **$163 million**, from **$369 million in Q1 2024 to $532 million in Q1 2025**[12](index=12&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section reports the total comprehensive income, including net income and other comprehensive income or loss components | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------ | :-------------------------------- | :-------------------------------- | | Net income | $492 | $336 | | Other comprehensive income/(loss) | $5 | $(71) | | Comprehensive income | $497 | $265 | | Comprehensive income attributable to PAGP | $85 | $22 | - Comprehensive income attributable to PAGP increased nearly **fourfold from $22 million in Q1 2024 to $85 million in Q1 2025**, driven by a positive shift in other comprehensive income[14](index=14&type=chunk) [Condensed Consolidated Statements of Changes in Accumulated Other Comprehensive Income/(Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Accumulated%20Other%20Comprehensive%20Income%2F(Loss)) This section details the changes in accumulated other comprehensive income or loss, primarily from derivative instruments and translation adjustments | (in millions) | Balance at Dec 31, 2024 | Total Period Activity (Q1 2025) | Balance at Mar 31, 2025 | | :------------ | :---------------------- | :------------------------------ | :---------------------- | | Derivative Instruments | $(44) | $0 | $(44) | | Translation Adjustments | $(1,039) | $5 | $(1,034) | | Total | $(1,083) | $5 | $(1,078) | | (in millions) | Balance at Dec 31, 2023 | Total Period Activity (Q1 2024) | Balance at Mar 31, 2024 | | :------------ | :---------------------- | :------------------------------ | :---------------------- | | Derivative Instruments | $(81) | $15 | $(66) | | Translation Adjustments | $(755) | $(86) | $(841) | | Total | $(836) | $(71) | $(907) | - Accumulated Other Comprehensive Income/(Loss) improved from a loss of **$(1,083) million at December 31, 2024, to $(1,078) million at March 31, 2025**, primarily due to positive currency translation adjustments[16](index=16&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the cash inflows and outflows from operating, investing, and financing activities for the reported periods | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $638 | $418 | | Net cash used in investing activities | $(819) | $(261) | | Net cash provided by/(used in) financing activities | $262 | $(272) | | Net increase/(decrease) in cash and cash equivalents | $80 | $(119) | | Cash and cash equivalents, end of period | $429 | $334 | - Net cash provided by operating activities increased by **$220 million (52.6%)** year-over-year, reaching **$638 million in Q1 2025**[18](index=18&type=chunk) - Net cash used in investing activities significantly increased to **$(819) million in Q1 2025 from $(261) million in Q1 2024**, primarily due to higher cash paid for acquisitions[18](index=18&type=chunk) - Financing activities shifted from a net cash outflow of **$(272) million in Q1 2024 to a net cash inflow of $262 million in Q1 2025**, largely driven by proceeds from senior notes issuance[18](index=18&type=chunk) [Condensed Consolidated Statements of Changes in Partners' Capital](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Partners'%20Capital) This section details the changes in partners' capital, including net income, distributions, and unit repurchases | (in millions) | Balance at Dec 31, 2024 | Net Income | Distributions | Repurchase of Series A preferred units | Balance at Mar 31, 2025 | | :------------ | :---------------------- | :--------- | :------------ | :------------------------------------- | :---------------------- | | Class A Shareholders | $1,351 | $84 | $(75) | $(12) | $1,356 | | Noncontrolling Interests | $12,965 | $408 | $(381) | $(301) | $12,704 | | Total Partners' Capital | $14,316 | $492 | $(456) | $(313) | $14,060 | - Total partners' capital decreased from **$14,316 million at December 31, 2024, to $14,060 million at March 31, 2025**, primarily due to distributions and the repurchase of Series A preferred units[19](index=19&type=chunk) [Note 1. Organization and Basis of Consolidation and Presentation](index=9&type=section&id=Note%201.%20Organization%20and%20Basis%20of%20Consolidation%20and%20Presentation) This note describes the company's organizational structure, its relationship with subsidiaries, and the basis for financial statement consolidation - Plains GP Holdings, L.P. (PAGP) is a Delaware limited partnership taxed as a corporation, with its sole cash flow derived from an indirect investment in Plains All American Pipeline, L.P. (PAA)[21](index=21&type=chunk) - As of March 31, 2025, PAGP owned an approximate **85% limited partner interest in Plains AAP L.P. (AAP)**, which in turn owned approximately **31% of PAA's total outstanding common and Series A preferred units**[22](index=22&type=chunk) - PAA operates as one of North America's largest crude oil midstream service providers, with extensive pipeline, terminalling, storage, and gathering assets primarily focused on Crude Oil and NGL segments[23](index=23&type=chunk) - PAGP consolidates PAA and AAP, which are determined to be Variable Interest Entities (VIEs), as PAGP is the primary beneficiary with power to direct activities and absorb significant losses/benefits[29](index=29&type=chunk)[32](index=32&type=chunk) [Note 2. Revenues and Accounts Receivable](index=12&type=section&id=Note%202.%20Revenues%20and%20Accounts%20Receivable) This note details the company's revenue recognition from contracts with customers and provides information on remaining performance obligations | Revenues from Contracts with Customers (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Crude Oil segment revenues | $11,408 | $11,577 | | NGL segment revenues | $658 | $631 | | Total revenues from contracts with customers | $12,066 | $12,208 | - Total revenues from contracts with customers decreased slightly from **$12,208 million in Q1 2024 to $12,066 million in Q1 2025**[34](index=34&type=chunk) | Remaining Performance Obligations (in millions) | Remainder of 2025 | 2026 | 2027 | 2028 | 2029 | 2030 and Thereafter | | :-------------------------------------------- | :---------------- | :--- | :--- | :--- | :--- | :------------------ | | Pipeline revenues supported by minimum volume commitments and capacity agreements | $276 | $258 | $219 | $174 | $99 | $487 | | Terminalling, storage and other agreement revenues | $196 | $231 | $198 | $157 | $122 | $751 | | Total | $472 | $489 | $417 | $331 | $221 | $1,238 | - The company has significant remaining performance obligations, totaling **$3,968 million**, with a substantial portion extending to 2030 and thereafter[35](index=35&type=chunk) [Note 3. Net Income Per Class A Share](index=14&type=section&id=Note%203.%20Net%20Income%20Per%20Class%20A%20Share) This note provides the calculation of basic and diluted net income per Class A share for the reported periods | (in millions, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Net income attributable to PAGP | $84 | $42 | | Basic and diluted weighted average Class A shares outstanding | 198 | 197 | | Basic and diluted net income per Class A share | $0.42 | $0.21 | - Basic and diluted net income per Class A share **doubled to $0.42 in Q1 2025 from $0.21 in Q1 2024**[42](index=42&type=chunk) - Possible exchange of **35 million and 36 million AAP units** for Q1 2025 and Q1 2024, respectively, did not have a dilutive effect on basic net income per Class A share[41](index=41&type=chunk) [Note 4. Inventory, Linefill and Long-term Inventory](index=15&type=section&id=Note%204.%20Inventory,%20Linefill%20and%20Long-term%20Inventory) This note details the composition and valuation of inventory, linefill, and long-term inventory balances | (in millions) | March 31, 2025 | December 31, 2024 | | :------------ | :------------- | :---------------- | | Inventory subtotal | $335 | $439 | | Linefill subtotal | $988 | $968 | | Long-term inventory subtotal | $289 | $280 | | Total | $1,612 | $1,687 | - Total inventory, linefill, and long-term inventory decreased from **$1,687 million at December 31, 2024, to $1,612 million at March 31, 2025**[43](index=43&type=chunk) - Crude oil inventory decreased from **3,911 thousand barrels ($259 million) to 3,399 thousand barrels ($221 million)**, while NGL inventory decreased from **6,985 thousand barrels ($166 million) to 3,410 thousand barrels ($102 million)**[43](index=43&type=chunk) [Note 5. Debt](index=16&type=section&id=Note%205.%20Debt) This note provides details on the company's short-term and long-term debt, including recent issuances and outstanding letters of credit | (in millions) | March 31, 2025 | December 31, 2024 | | :------------ | :------------- | :---------------- | | Total short-term debt | $478 | $408 | | Total long-term debt | $8,204 | $7,213 | | Total debt | $8,682 | $7,621 | - Total debt increased by **$1,061 million** from December 31, 2024, to March 31, 2025, primarily due to an increase in long-term debt[44](index=44&type=chunk) - In January 2025, PAA issued **$1.0 billion of 5.95% senior notes due June 2035**[45](index=45&type=chunk) - Outstanding letters of credit decreased from **$90 million at December 31, 2024, to $78 million at March 31, 2025**[47](index=47&type=chunk) [Note 6. Partners' Capital and Distributions](index=17&type=section&id=Note%206.%20Partners'%20Capital%20and%20Distributions) This note outlines changes in outstanding shares, distributions to Class A shareholders, and details of noncontrolling interests | Shares Outstanding | December 31, 2024 | March 31, 2025 | | :----------------- | :---------------- | :------------- | | Class A Shares | 197,465,699 | 197,743,624 | | Class B Shares | 35,390,231 | 35,112,306 | | Class C Shares | 542,004,838 | 529,331,928 | - Class A shares outstanding increased by **277,925** due to Exchange Right exercises, while Class B and C shares decreased[48](index=48&type=chunk) | Distributions to Class A Shareholders | Quarter Ended March 31, 2025 | | :------------------------------------ | :--------------------------- | | Cash Distribution | $75 million |\n| Distribution per Unit | $0.38 | - PAA repurchased approximately **12.7 million Series A preferred units for $333 million** in January 2025[51](index=51&type=chunk) - Noncontrolling interests in subsidiaries include **69% of PAA's common and Series A preferred units, 100% of PAA's Series B preferred units, 15% of AAP, 35% of Permian JV, 30% of Cactus II, and 33% of Red River**[50](index=50&type=chunk)[163](index=163&type=chunk) [Note 7. Derivatives and Risk Management Activities](index=19&type=section&id=Note%207.%20Derivatives%20and%20Risk%20Management%20Activities) This note describes the company's use of derivative instruments to manage commodity price and interest rate risks, along with their financial impact - The company uses derivative instruments to manage commodity price risk and interest rate risk, with a policy against speculating on price changes[54](index=54&type=chunk) | Commodity Derivative Impact on Earnings (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Product sales revenues | $(34) | $(173) | | Field operating costs | $(12) | $(16) | | Net loss from commodity derivative activity | $(46) | $(189) | - Net loss from commodity derivative activity significantly decreased from **$(189) million in Q1 2024 to $(46) million in Q1 2025**[61](index=61&type=chunk) | Net Derivative Asset/(Liability) (in millions) | March 31, 2025 | December 31, 2024 | | :--------------------------------------------- | :------------- | :---------------- | | Commodity derivatives | $(43) | $(76) | | Interest rate derivatives | $25 | $27 | | Total net derivative asset/(liability) | $(18) | $(49) | - The total net derivative asset/(liability) improved from a net liability of **$(49) million at December 31, 2024, to $(18) million at March 31, 2025**[66](index=66&type=chunk) [Note 8. Related Party Transactions](index=24&type=section&id=Note%208.%20Related%20Party%20Transactions) This note discloses revenues, purchases, and accounts receivable/payable arising from transactions with related parties - The company recognized **$11 million in revenues** from related parties and incurred **$97 million in purchases and related costs** from related parties for both Q1 2025 and Q1 2024[71](index=71&type=chunk) - Trade accounts receivable from related parties were **$39 million at March 31, 2025, and $40 million at December 31, 2024**[71](index=71&type=chunk) - Trade accounts payable to related parties were **$68 million at March 31, 2025, and $66 million at December 31, 2024**[71](index=71&type=chunk) [Note 9. Commitments and Contingencies](index=24&type=section&id=Note%209.%20Commitments%20and%20Contingencies) This note details the company's legal and environmental liabilities, including accruals for probable losses and disclosures of reasonably possible material losses - The company accrues undiscounted liabilities for probable and reasonably estimable losses, including legal fees, and discloses reasonably possible material losses[72](index=72&type=chunk)[73](index=73&type=chunk) | Estimated Undiscounted Environmental Liabilities (in millions) | March 31, 2025 | December 31, 2024 | | :----------------------------------------------------------- | :------------- | :---------------- | | Other current liabilities | $29 | $15 | | Other long-term liabilities and deferred credits | $87 | $81 | | Total | $116 | $96 | - The estimated total costs for the Line 901 incident are approximately **$870 million as of March 31, 2025**, with a remaining undiscounted gross liability of approximately **$4 million**[81](index=81&type=chunk)[82](index=82&type=chunk) - In March 2025, a crude oil release occurred on the Line 48 pipeline in Carson, California, with an estimated clean-up and remediation cost of approximately **$20 million**, of which **$12 million was incurred by March 31, 2025**[85](index=85&type=chunk) - The company settled a lawsuit with Hartree Natural Gas Storage, LLC in early 2025, with confidential terms and an immaterial payment[86](index=86&type=chunk) [Note 10. Segment Information](index=28&type=section&id=Note%2010.%20Segment%20Information) This note provides financial data for the company's two reportable segments, Crude Oil and NGL, and defines Segment Adjusted EBITDA - The company operates through two reportable segments: Crude Oil and NGL, with performance evaluated based on Segment Adjusted EBITDA[88](index=88&type=chunk) - Segment Adjusted EBITDA is defined as revenues and equity earnings in unconsolidated entities less significant segment expenses, adjusted for certain selected items impacting comparability and excluding amounts attributable to noncontrolling interests[89](index=89&type=chunk) | Segment Adjusted EBITDA (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Crude Oil Segment Adjusted EBITDA | $559 | $553 | | NGL Segment Adjusted EBITDA | $189 | $159 | | Total Segment Adjusted EBITDA | $748 | $712 | - Total Segment Adjusted EBITDA increased by **$36 million (5.1%)** year-over-year, reaching **$748 million in Q1 2025**[95](index=95&type=chunk) [Note 11. Acquisitions](index=32&type=section&id=Note%2011.%20Acquisitions) This note details the company's acquisition activities during the reporting period, including the purchase of midstream assets - On January 31, 2025, the company acquired Ironwood Midstream Energy Partners II, LLC for approximately **$481 million in cash**, adding a gathering system in the Eagle Ford Basin to its Crude Oil segment[96](index=96&type=chunk) - In January 2025, the company also acquired EMG Medallion 2 Holdings, LLC (Medallion Midstream) for **$163 million**, expanding its crude oil gathering and transportation business in the Delaware Basin[100](index=100&type=chunk) - In February 2025, the company acquired the remaining **50% interest in Cheyenne Pipeline LLC** through a non-monetary transaction, resulting in a net gain of approximately **$31 million**[101](index=101&type=chunk) [Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=32&type=section&id=Item%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the company's financial performance and condition for Q1 2025 compared to Q1 2024, covering consolidated results, segment performance, liquidity, and capital resources [Introduction](index=34&type=section&id=Introduction) This introduction sets the context for the management's discussion and analysis of the company's financial condition and results of operations - The discussion provides an understanding of the company's financial condition and results of operations, to be read in conjunction with the 2024 Annual Report on Form 10-K[102](index=102&type=chunk) [Executive Summary](index=34&type=section&id=Executive%20Summary) This summary highlights key aspects of the company's structure, operations, and overall financial performance for the period - PAGP's sole cash-generating assets are an approximate **85% limited partner interest in AAP**, which in turn owns a limited partner interest in PAA[103](index=103&type=chunk) - PAA is a major crude oil midstream service provider in North America, focusing on crude oil and NGL pipeline transportation, terminalling, storage, and gathering assets[104](index=104&type=chunk) - Net income increased to **$492 million for Q1 2025 from $336 million for Q1 2024**, driven by derivative mark-to-market valuations and higher Segment Adjusted EBITDA from Crude Oil and NGL segments[105](index=105&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) This section analyzes the consolidated financial results, detailing changes in revenues, expenses, and profitability drivers between the periods | (in millions, except per share data) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Variance ($) | Variance (%) | | :----------------------------------- | :-------------------------------- | :-------------------------------- | :----------- | :----------- | | Product sales revenues | $11,544 | $11,546 | $(2) | — % | | Services revenues | $467 | $449 | $18 | 4 % | | Purchases and related costs | $(10,761) | $(10,917) | $156 | 1 % | | Field operating costs | $(368) | $(358) | $(10) | (3)% | | General and administrative expenses | $(101) | $(97) | $(4) | (4)% | | Depreciation and amortization | $(262) | $(254) | $(8) | (3)% | | Gain on asset sales, net | $13 | — | $13 | N/A | | Equity earnings in unconsolidated entities | $103 | $95 | $8 | 8 % | | Gain on investments in unconsolidated entities, net | $31 | — | $31 | N/A | | Interest expense, net | $(107) | $(95) | $(12) | (13)% | | Other income/(expense), net | $6 | $(5) | $11 | ** | | Income tax expense | $(73) | $(28) | $(45) | (161)% | | Net income | $492 | $336 | $156 | 46 % | | Net income attributable to PAGP | $84 | $42 | $42 | 100 % | | Basic and diluted net income per Class A share | $0.42 | $0.21 | $0.21 | 100 % | - Net income attributable to PAGP increased by **100%** year-over-year, from **$42 million in Q1 2024 to $84 million in Q1 2025**[107](index=107&type=chunk) - The increase in general and administrative expenses was primarily due to transaction costs associated with recent acquisitions[112](index=112&type=chunk) - Interest expense, net, increased by **$12 million (13%)** due to PAA's issuance of **$1.0 billion, 5.95% senior notes** in January 2025[115](index=115&type=chunk) - Income tax expense increased significantly by **$45 million (161%)** due to higher year-over-year income in Canadian operations and higher PAA earnings attributable to PAGP[117](index=117&type=chunk) [Non-GAAP Financial Measures](index=37&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the use of non-GAAP financial measures, specifically Adjusted EBITDA, to provide additional insights into core operating performance - Management uses Adjusted EBITDA and Adjusted EBITDA attributable to PAA as non-GAAP financial measures to evaluate performance, providing additional information about core operating performance[118](index=118&type=chunk)[121](index=121&type=chunk) | (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Variance ($) | Variance (%) | | :------------------------------------ | :-------------------------------- | :-------------------------------- | :----------- | :----------- | | Adjusted EBITDA | $881 | $847 | $34 | 4 % | | Adjusted EBITDA attributable to PAA | $754 | $718 | $36 | 5 % | - Adjusted EBITDA increased by **4% to $881 million in Q1 2025**, and Adjusted EBITDA attributable to PAA increased by **5% to $754 million**[123](index=123&type=chunk) [Analysis of Operating Segments](index=39&type=section&id=Analysis%20of%20Operating%20Segments) This section provides a detailed analysis of the financial performance of the Crude Oil and NGL operating segments, highlighting key drivers of change - The Crude Oil segment's Adjusted EBITDA was **$559 million in Q1 2025**, a **1% increase from $553 million in Q1 2024**, driven by higher tariff volumes and acquisitions, offset by higher operating expenses[127](index=127&type=chunk)[129](index=129&type=chunk) - Crude oil pipeline tariff volumes increased by **6% overall**, with Permian Basin volumes up **7%** and South Texas / Eagle Ford up **30%**[128](index=128&type=chunk)[131](index=131&type=chunk) - The NGL segment's Adjusted EBITDA increased by **19% to $189 million in Q1 2025 from $159 million in Q1 2024**, primarily due to higher NGL sales volumes, higher realized frac spreads, and lower field operating costs[138](index=138&type=chunk)[139](index=139&type=chunk) - NGL fractionation volumes increased by **23%**, NGL pipeline tariff volumes by **9%**, and Propane and butane sales by **15%** in Q1 2025 compared to Q1 2024[138](index=138&type=chunk) [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's sources of liquidity, capital expenditures, debt activities, and future financial obligations - Primary liquidity sources are cash flow from operating activities and borrowings under PAA's credit facilities or commercial paper program[143](index=143&type=chunk) | Liquidity (in millions) | As of March 31, 2025 | | :---------------------- | :------------------- | | Availability under PAA senior unsecured revolving credit facility | $1,350 | | Availability under PAA senior secured hedged inventory facility | $1,315 | | Amounts outstanding under PAA commercial paper program | $(464) | | Subtotal | $2,201 | | Cash and cash equivalents | $428 | | Total | $2,629 | - Net cash provided by operating activities increased to **$638 million in Q1 2025 from $418 million in Q1 2024**[149](index=149&type=chunk) | Capital Expenditures (in millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Investment capital | $161 | $104 | | Maintenance capital | $41 | $57 | | Acquisition capital | $665 | $93 | | Total | $867 | $254 | - Total capital expenditures significantly increased to **$867 million in Q1 2025 from $254 million in Q1 2024**, primarily due to higher acquisition capital[153](index=153&type=chunk) - PAA issued **$1.0 billion of 5.95% senior notes** in January 2025, using proceeds to fund acquisitions, repurchase Series A preferred units, and repay debt[157](index=157&type=chunk) - The company will pay a quarterly cash distribution of **$0.38 per Class A share** on May 15, 2025[162](index=162&type=chunk) - Purchase obligations for crude oil, NGL, and other products are estimated at **$111,079 million as of March 31, 2025**, with **$18,061 million due in the remainder of 2025**[169](index=169&type=chunk) [Recent Accounting Pronouncements](index=47&type=section&id=Recent%20Accounting%20Pronouncements) This section provides an update on the adoption and impact of recent accounting pronouncements - No new significant accounting pronouncements became effective or were issued during Q1 2025[31](index=31&type=chunk)[171](index=171&type=chunk) [FORWARD-LOOKING STATEMENTS](index=47&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section highlights that the report contains forward-looking statements subject to various risks and uncertainties that could impact future results - The report contains forward-looking statements regarding future events, business strategy, plans, and objectives, which are subject to various risks and uncertainties[173](index=173&type=chunk) - Key risk factors include general economic conditions, crude oil demand/prices, fluctuations in refinery capacity, competition, successful operation of joint ventures, environmental liabilities, and regulatory changes[173](index=173&type=chunk)[174](index=174&type=chunk) [Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=47&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the company's exposure to market risks, specifically commodity price and interest rate risks, and outlines mitigation strategies [Commodity Price Risk](index=49&type=section&id=Commodity%20Price%20Risk) This section describes the company's exposure to commodity price fluctuations and its use of derivative instruments to manage this risk - The company uses derivative instruments to hedge price risk for crude oil, natural gas, NGL, and other commodities, managing exposures related to inventory, anticipated purchases/sales, and basis differentials[177](index=177&type=chunk)[179](index=179&type=chunk) | Commodity (in millions) | Fair Value (Mar 31, 2025) | Effect of 10% Price Increase | Effect of 10% Price Decrease | | :---------------------- | :------------------------ | :--------------------------- | :--------------------------- | | Crude oil | $20 | $19 | $(17) | | Natural gas | $7 | $7 | $(7) | | NGL and other | $(70) | $(28) | $28 | | Total fair value | $(43) | | | - A **10% price increase** would result in a **$19 million increase in crude oil derivative fair value** and a **$7 million increase for natural gas**, while NGL and other derivatives would decrease by **$28 million**[180](index=180&type=chunk) [Interest Rate Risk](index=50&type=section&id=Interest%20Rate%20Risk) This section discusses the company's exposure to interest rate fluctuations and its use of derivative instruments to hedge this risk - The company uses interest rate derivatives (forward starting interest rate swaps and treasury locks) to hedge interest rate risk associated with variable rate debt and forecasted fixed rate debt issuances[181](index=181&type=chunk) - As of March 31, 2025, the fair value of interest rate derivatives was a net asset of **$25 million**[181](index=181&type=chunk) - A **10% increase or decrease in the forward SOFR curve** would result in a **$19 million increase or decrease**, respectively, in the fair value of interest rate derivatives[181](index=181&type=chunk) - A **100 basis point change in interest rates** would increase or decrease annual distributions on PAA's Series B preferred units by approximately **$8 million**[182](index=182&type=chunk) [Item 4. CONTROLS AND PROCEDURES](index=51&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) This section confirms the effectiveness of the company's disclosure controls and procedures and reports no material changes in internal control over financial reporting - Management, with CEO and CFO participation, concluded that the company's disclosure controls and procedures (DCP) were effective as of March 31, 2025[184](index=184&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2025 that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[185](index=185&type=chunk) [PART II. OTHER INFORMATION](index=49&type=section&id=PART%20II.%20OTHER%20INFORMATION) This part addresses legal proceedings, risk factors, equity sales, defaults, and other miscellaneous information and exhibits [Item 1. LEGAL PROCEEDINGS](index=49&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) This section incorporates by reference the detailed discussion of legal proceedings from Note 9 to the Condensed Consolidated Financial Statements - Information regarding legal proceedings is included in Note 9 to the Condensed Consolidated Financial Statements[188](index=188&type=chunk) [Item 1A. RISK FACTORS](index=49&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the comprehensive discussion of risk factors in the company's 2024 Annual Report on Form 10-K, noting potential adverse impacts - For a discussion of risk factors, refer to Item 1A of the 2024 Annual Report on Form 10-K[189](index=189&type=chunk) [Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=49&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section states that there were no unregistered sales of equity securities or issuer purchases of equity securities during the reporting period - No unregistered sales of equity securities occurred during the period[190](index=190&type=chunk) - No issuer purchases of equity securities occurred during the period[191](index=191&type=chunk) [Item 3. DEFAULTS UPON SENIOR SECURITIES](index=49&type=section&id=Item%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section confirms that there were no defaults upon senior securities during the reporting period - No defaults upon senior securities occurred during the period[192](index=192&type=chunk) [Item 4. MINE SAFETY DISCLOSURES](index=50&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) This section indicates that mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable[193](index=193&type=chunk) [Item 5. OTHER INFORMATION](index=50&type=section&id=Item%205.%20OTHER%20INFORMATION) This section states that no directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - No directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025[194](index=194&type=chunk) [Item 6. EXHIBITS](index=51&type=section&id=Item%206.%20EXHIBITS) This section lists all exhibits filed with the Form 10-Q, including organizational documents, indentures for senior notes, and certifications - The exhibits include various organizational documents, such as the Certificate of Limited Partnership and Amended and Restated Agreements for Plains GP Holdings, L.P. and its subsidiaries[196](index=196&type=chunk) - Numerous supplemental indentures for PAA's senior notes, including the Thirty-Fourth Supplemental Indenture for **5.950% Senior Notes due 2035**, are listed[196](index=196&type=chunk)[197](index=197&type=chunk) - Certifications from the Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1, 32.2) are filed or furnished with the report[197](index=197&type=chunk) [SIGNATURES](index=54&type=section&id=SIGNATURES) This section contains the duly authorized signatures of the registrant's Principal Executive Officer, Principal Financial Officer, and Principal Accounting Officer - The report is signed by Willie Chiang (Chairman and CEO), Al Swanson (EVP and CFO), and Chris Herbold (SVP, Finance and Chief Accounting Officer) of PAA GP Holdings LLC, as general partner of Plains GP Holdings, L.P.[203](index=203&type=chunk)

Exhibit 99.1 Plains All American Reports First-Quarter 2025 Results Houston, TX – May 9, 2025 – Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported first-quarter 2025 results and provided the following highlights: First-Quarter Results Business Highlights "Plains delivered another quarter of solid operational and financial performance," said Willie Chiang, Chairman and CEO. "Substantial cash flow generation from our integrated Crude Oil and NGL footprints co ...

Financial Performance - Plains All American Pipeline (PAA) reported $754 million in Adjusted EBITDA attributable to PAA for 1Q25[5] - The company reaffirmed its full-year Adjusted EBITDA guidance of $2.80 - $2.95 billion[5] - PAA's leverage ratio stood at 3.3x in 1Q25[5] - Distributable Cash Flow available to Common Unitholders is $1.875 billion, with a Common Unit Distribution Ratio Coverage of 175%[22] - Adjusted Free Cash Flow (excluding changes in Assets & Liabilities) is +/- $1.095 billion[22, 26] Segment Performance - The Crude Oil segment contributed $559 million to Adjusted EBITDA in 1Q25[5] - The NGL segment contributed $189 million to Adjusted EBITDA in 1Q25[5] - The company anticipates $2.41 billion in Adjusted EBITDA from the Crude Oil segment and $450 million from the NGL segment for the full year 2025[22] Growth Strategy - Plains has invested approximately $1.3 billion in bolt-on acquisitions since the second half of 2022, targeting a return threshold of 15%+[11] - The company expects $300 - $400 million of annual growth capex[10] - The company is targeting ~$0.15/unit annual distribution growth from 2026 until ~160% common unit coverage is reached[26]

Core Insights - Plains All American Pipeline reported strong operational and financial performance for Q1 2025, with significant cash flow generation and a focus on efficient growth through acquisitions and projects [3][5][4]. Financial Performance - Net income attributable to Plains All American Pipeline (PAA) was $443 million for Q1 2025, a 67% increase from $266 million in Q1 2024 [4][5]. - Diluted net income per common unit rose to $0.49, up 69% from $0.29 in the previous year [4][5]. - Net cash provided by operating activities increased by 53% to $639 million compared to $419 million in Q1 2024 [4][5]. - The company declared a distribution of $0.38 per common unit, representing a 20% increase from $0.3175 in the same period last year [4][5]. Segment Performance - Crude Oil Segment Adjusted EBITDA was $559 million, a slight increase of 1% from $553 million in Q1 2024, driven by higher tariff volumes and contributions from acquisitions [10]. - NGL Segment Adjusted EBITDA increased by 19% to $189 million, primarily due to higher frac spreads and sales volumes [11]. Strategic Developments - Plains acquired the remaining 50% interest in Cheyenne Pipeline, enhancing integration from the Guernsey market to Cushing, Oklahoma [5]. - The company also acquired Black Knight Midstream's Permian Basin crude oil gathering business for approximately $55 million [5]. - The Fort Saskatchewan fractionation complex debottleneck project was placed into service, enhancing fee-based cash flow in Canada [5]. Capital Structure - The leverage ratio at the end of Q1 2025 was 3.3x, within the target range of 3.25x - 3.75x [5]. - Total assets increased to $27.059 billion from $26.562 billion year-over-year [25][27]. Cash Flow and Expenditures - Adjusted Free Cash Flow was reported at $(308) million, a decrease from $70 million in Q1 2024, influenced by significant cash outflows for acquisitions [54][56]. - Total investment capital expenditures for Q1 2025 were $130 million, up from $79 million in Q1 2024 [36].

Core Viewpoint - Plains All American Pipeline, L.P. (PAA) and Plains GP Holdings (PAGP) announced their quarterly distributions for Q1 2025 and the timing for their earnings release [1][2][3]. Distribution Declaration - PAA Common Units will have a cash distribution of $0.38 per unit, unchanged from February 2025, equating to an annualized rate of $1.52 per unit [6]. - PAGP Class A Shares will also have a cash distribution of $0.38 per share, unchanged from February 2025, with an annualized rate of $1.52 per share [6]. - PAA Series A Preferred Units will distribute $0.61524 per unit, approximately $2.46 on an annualized basis [6]. - PAA Series B Preferred Units will distribute $21.49 per unit, based on the applicable quarterly floating rate [6]. Earnings Timing - PAA and PAGP will release their Q1 2025 earnings before market open on May 9, 2025 [3]. - A conference call for analysts and investors will be held at 9:00 a.m. CT (10 a.m. ET) to discuss the earnings, which will be webcast live [3]. Company Overview - PAA operates midstream energy infrastructure and logistics services for crude oil and natural gas liquids (NGL), handling approximately eight million barrels per day [4]. - PAGP holds an indirect, non-economic controlling general partner interest in PAA and is one of the largest energy infrastructure and logistics companies in North America [5].

Financial Position and Debt Management - As of December 31, 2024, PAA's long-term debt comprised approximately 99% of its publicly-traded senior notes[38] - PAA targets a leverage multiple averaging between 3.25x to 3.75x, with a long-term debt-to-Adjusted EBITDA multiple of between 2.5x and 3.0x[38] - Total investment capital for the year ending December 31, 2025 is projected to be approximately $500 million, with over half associated with the Permian JV[115] - Maintenance capital for 2025 is projected to be approximately $260 million[115] - The company may face limitations on cash distributions due to restrictions in PAA's credit facilities and other financial obligations[208] Crude Oil Segment Operations - The Crude Oil segment includes 18,800 miles of active crude oil transportation pipelines and gathering systems, with an average daily volume transported of 8,934 thousand barrels per day for the year ended December 31, 2024[51] - PAA has a commercial crude oil storage capacity of 72 million barrels at its terminalling and storage locations[51] - The Crude Oil segment's gathering pipelines in the Permian Basin represent approximately 3.8 million barrels per day of pipeline capacity[56] - PAA's intra-basin pipeline system in the Permian Basin has a capacity of approximately 3.1 million barrels per day[57] - The long-haul pipelines from the Permian Basin have a combined operational takeaway capacity of approximately 2.1 million barrels per day[58] - The Eagle Ford Pipeline has a total capacity of approximately 660,000 barrels per day, connecting production from the Permian Basin and Eagle Ford area to Corpus Christi, Texas refiners and terminals[65] - The Eagle Ford Corpus Christi terminal has a dock capacity to export crude oil and approximately one million barrels of commercial storage capacity[66] - The Cushing terminal has a commercial storage capacity of 27 million barrels and is connected to long-haul pipelines from the Permian Basin and Rocky Mountain regions[73] - The Diamond Pipeline has a total capacity of approximately 200,000 barrels per day, extending from the Cushing Terminal to Valero's refinery in Memphis, Tennessee[78] NGL Segment Operations - The NGL segment includes four natural gas processing plants and seven fractionation plants with an aggregate usable capacity of approximately 172,000 barrels per day[88] - The company operates approximately 1,775 miles of active NGL transportation pipelines and has NGL storage facilities with approximately 23 million barrels of capacity[88] - The White Cliffs Pipeline system includes a crude oil pipeline with approximately 100,000 barrels per day capacity and an NGL pipeline with approximately 90,000 barrels per day capacity[86] - The Empress facility processes natural gas to extract ethane and NGL mix, with the capacity to fractionate or transport the NGL mix for further processing[92] - Empress plants have a processing capacity of up to 5.7 Bcf of natural gas per day, typically operating in the 3.5 to 4.5 Bcf range, producing 65,000 to 100,000 barrels per day of ethane and 40,000 to 60,000 barrels per day of NGL mix[93] - The Fort Saskatchewan facility has an inlet design capacity of 88,400 barrels per day, producing approximately 44,500 barrels per day of propane, butane, and condensate[95] - The Sarnia fractionator processes an average of approximately 100,000 barrels per day of NGL products, with ownership stakes ranging from 61% to 85%[96] Market and Revenue Concentration - In 2024, WTI prices fluctuated between approximately $66 and $87 per barrel, indicating significant price volatility in crude oil and NGL markets[97] - ExxonMobil accounted for 30%, 26%, and 20% of revenues for the years ended December 31, 2024, 2023, and 2022, respectively, highlighting customer concentration risk[105] Strategic Transactions and Investments - Since 1998, the company has completed acquisitions totaling approximately $3.0 billion and asset sales exceeding $4.9 billion, indicating a strong focus on strategic transactions[113] - The 2025 capital plan includes capital-efficient projects aimed at addressing industry needs and expanding the existing asset base[114] Regulatory and Compliance Risks - The company is subject to extensive legal requirements and regulations that could increase operational costs and affect profitability[116] - Future air compliance obligations may have a material adverse effect on the company's financial condition or results of operations[134] - The company faces potential increased operating costs due to climate change initiatives and regulations aimed at limiting greenhouse gas emissions[135] - The U.S. Clean Water Act imposes strict controls on pollutant discharge, with penalties for non-compliance[140] - The U.S. Oil Pollution Act subjects facility owners to significant liability for oil spill containment and removal costs[141] - The Endangered Species Act may restrict exploration and production activities affecting endangered species, impacting project viability[146] Employee and Operational Management - As of December 31, 2024, GP LLC and PMC ULC employed approximately 4,200 people in North America, with about 69% (approximately 2,900 employees) being field employees[165] - The company prioritizes employee health and safety, investing in training and resources, and has performance-based bonuses tied to safety and environmental targets[166] - The company offers comprehensive benefits, including health insurance, retirement savings plans, and mental health resources, to attract and retain employees[168] - The company operates training programs to develop leadership skills and prepare employees for critical roles[167] Tax and Financial Reporting - The company had a gross deferred tax asset of approximately $1.3 billion as of December 31, 2024[225] - Distributions on Class A shares may not qualify as dividends for U.S. federal income tax purposes, potentially affecting tax treatment for U.S. holders[174] - Non-U.S. holders may be subject to a U.S. withholding tax at a rate of 30% on distributions unless an applicable income tax treaty provides for a lower rate[182] Risks Related to Shareholder Structure - PAA's partnership structure carries inherent risks, including tax risks and credit risks from customers and counterparties[201] - The market price of Class A shares may be volatile, influenced by factors unrelated to operating performance[220] - The issuance of additional Class A shares could dilute existing shareholders' ownership and decrease cash available for distribution[213] - Conflicts of interest may arise due to the organizational structure and relationships among the company, PAA, and the Legacy Owners[228]

Core Viewpoint - Plains GP Holdings, L.P. Class A Shares (NASDAQ: PAGP) is identified as an attractive income stock with a current yield exceeding 7%, significantly higher than its peers, and is projected to grow at approximately 10% annually [1] Summary by Relevant Categories Financial Performance - The current yield of PAGP is above 7%, which is considerably higher than that of its competitors [1] - The company is expected to continue its growth trajectory at around 10% per year [1] Investment Strategy - The investment strategy focuses on cyclical industries, which are believed to offer substantial returns during economic recovery and growth phases [1] - The portfolio is diversified, including bonds, commodities, and forex, to balance risk [1]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $729 million for Q4 2024 and $2.78 billion for the full year, exceeding initial guidance by approximately $105 million or 4% [6][12] - For 2025, adjusted EBITDA guidance is set between $2.8 billion to $2.95 billion, indicating approximately 3% growth year-over-year at the midpoint [7][15] Business Line Data and Key Metrics Changes - The crude oil segment is expected to see year-over-year growth driven by bolt-on acquisitions, volume growth, and pipeline tariff escalation, while the NGL segment is anticipated to contribute slightly less due to a shift to approximately 45% fee-based revenue [15][16] - The NGL segment benefited from higher-than-expected order flows leading to increased C3+ back product sales [13] Market Data and Key Metrics Changes - Permian crude production is projected to grow by 200,000 to 300,000 barrels per day from year-end 2024 to year-end 2025, with overall basin volumes expected to reach approximately 6.7 million barrels per day by the end of 2025 [8] - The company expects continued high utilization of its Corpus Christi-bound assets and increased volumes on basin pipelines [8] Company Strategy and Development Direction - The company is focused on expanding its integrated asset base through bolt-on acquisitions while maintaining capital discipline [11][22] - Recent acquisitions, including Ironwood Midstream Energy and the remaining interest in Midway Pipeline, are part of the strategy to enhance operational efficiency and generate attractive returns for unitholders [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the new administration's focus on energy security and independence, believing that North American energy will remain essential for maintaining living standards [23] - The company is well-positioned to support domestic energy growth with critical infrastructure connecting supply to demand centers across North America [23] Other Important Information - The company announced a 20% increase in quarterly distributions, raising the annual distribution to $1.52 per unit, representing a yield of approximately 7.5% based on current equity prices [12] - A $140 million noncash impairment related to two US NGL terminal assets was recorded, which is excluded from adjusted results [19] Q&A Session Summary Question: Background on recent acquisitions and future opportunities - Management indicated that the recent acquisitions were the result of ongoing efforts to identify opportunities and that more bolt-on acquisitions are expected in the future, focusing on capital discipline and strategic needs [29][32] Question: Impact of potential tariffs on business - Management stated that they have been scenario planning for potential tariffs and believe their guidance range accounts for probable outcomes, indicating readiness for any impacts [34][36] Question: Factors driving 2025 guidance - Management highlighted volume growth and oil prices as key drivers for 2025, with expectations of increased activity and productivity from producers [42][43] Question: Update on operational efficiency initiatives - Management noted that cost and efficiency improvements are ongoing and integrated into their daily operations, with expectations for continuous progress [58][59] Question: M&A strategy and growth opportunities - Management discussed the importance of synergies from bolt-on acquisitions and the flexibility of their system to adapt to various growth opportunities across different regions [66][72] Question: Long-haul contract positions and distribution growth - Management confirmed that long-haul contracts are largely contracted, with incremental demand factored into guidance, and indicated that bolt-on acquisitions could enhance distribution growth potential [100][102] Question: Volume guidance in the Permian - Management stated that production growth in the Permian is expected to be consistent with previous years, with no significant variations anticipated based on the guidance range [112][114] Question: NGL business positioning - Management expressed confidence in their unique assets in the NGL market, indicating that competitive changes in Canada would not significantly impact their positioning [116] Question: Timing of Eastern Eagle Ford opportunities - Management indicated that integration of the Ironwood acquisition would take time, with potential opportunities expected to materialize more in the next year [136] Question: Capital allocation and buyback strategy - Management reiterated that any buybacks would be opportunistic and dependent on market conditions, with a preference for returning cash to shareholders through distributions [138][139]

4Q24 Earnings Call February 7, 2025 Forward-Looking Statements & Non-GAAP Financial Measures Disclosure Investor Relations Contacts Blake Fernandez Vice President, Investor Relations Blake.Fernandez@plains.com Michael Gladstein Director, Investor Relations Michael.Gladstein@plains.com Investor Relations 866-809-1291 plainsIR@plains.com 2 ▪ This presentation contains forward-looking statements, including, in particular, statements about the performance, plans, strategies and objectives for future operations ...