Plains All American Pipeline(PAA) - 2025 Q3 - Quarterly Results

Financial Performance - Reported net income attributable to Plains All American of $441 million for Q3 2025, a 100% increase from $220 million in Q3 2024[4] - Adjusted EBITDA attributable to Plains was $669 million for Q3 2025, up 2% from $659 million in Q3 2024[7] - Revenues for the three months ended September 30, 2025, were $11,578 million, a decrease of 7.0% from $12,456 million in the same period of 2024[26] - Operating income for the three months ended September 30, 2025, was $484 million, compared to $196 million for the same period in 2024, representing a significant increase of 146.9%[26] - Net income attributable to PAA for the three months ended September 30, 2025, was $441 million, up from $220 million in the same period of 2024, reflecting an increase of 100.5%[26] - Basic and diluted net income per common unit for the three months ended September 30, 2025, was $0.55, compared to $0.22 for the same period in 2024, representing an increase of 150%[26] - Net income for the three months ended September 30, 2025, was $529 million, compared to $312 million in the same period of 2024, representing a 69.9% increase[37] - Adjusted EBITDA attributable to PAA for Q3 2025 was $669 million, compared to $659 million in Q3 2024, an increase of 1.5%[56] Cash Flow and Distributions - Adjusted Free Cash Flow for Q3 2025 was $303 million, a 24% decrease from $401 million in Q3 2024[7] - Cash distributions paid to common unit holders for the three months ended September 30, 2025, totaled $267 million, compared to $223 million in 2024, a 19.7% increase[37] - The common unit distribution coverage ratio for the three months ended September 30, 2025, was 1.61x, down from 1.92x in 2024[37] - Adjusted Free Cash Flow after Distributions for the nine months ended September 30, 2025, is calculated to assess cash available for distributions, debt repayments, and other purposes[22] - Net cash provided by operating activities for the three months ended September 30, 2025, was $817 million, compared to $692 million in 2024, marking an 18.1% increase[42] - Net cash provided by financing activities for the nine months ended September 30, 2025, was $500 million, a turnaround from a cash outflow of $330 million in 2024[30] Acquisitions and Divestitures - Plains completed the acquisition of a 100% equity interest in EPIC, with a total purchase price of approximately $1.33 billion, including $500 million of debt[4] - The acquisition of EPIC is expected to yield solid mid-teens returns with a 2026 EBITDA multiple of approximately 10x[4] - Plains plans to divest its Canadian NGL business, with the transaction expected to close in Q1 2026[5] - The Canadian NGL Business is expected to remain a component of overall company performance until its anticipated sale in the first quarter of 2026[24] Assets and Liabilities - Total assets as of September 30, 2025, were $28,101 million, an increase from $26,562 million as of December 31, 2024, indicating growth of 5.8%[27] - Total liabilities as of September 30, 2025, were $15,112 million, compared to $13,466 million as of December 31, 2024, reflecting an increase of 12.2%[27] - Long-term debt-to-total book capitalization ratio increased to 46% as of September 30, 2025, from 42% as of December 31, 2024[28] - Current assets, including cash and cash equivalents, increased to $5,583 million as of September 30, 2025, from $4,802 million as of December 31, 2024[27] Operational Metrics - Adjusted EBITDA from Crude Oil for Q3 2025 was $593 million, a 3% increase from $577 million in Q3 2024[9] - Crude Oil Segment Adjusted EBITDA for Q3 2025 was $593 million, up from $577 million in Q3 2024, representing a growth of 2.8%[56] - NGL Segment Adjusted EBITDA for the three months ended September 30, 2025, was $70 million, slightly down from $73 million in 2024[49] - Total crude oil pipeline tariff for Q3 2025 was $9,883 million, an increase of 7.8% from $9,166 million in Q3 2024[54] Risks and Strategic Focus - Economic conditions, including potential recession and high inflation, could affect demand for crude oil and midstream services provided by the company[63] - The company faces risks related to fluctuations in crude oil prices and production levels, particularly in the North American market[63] - Competition in the midstream sector may exert downward pressure on rates, volumes, and margins for PAA[63] - The successful integration and performance of acquired assets, such as the EPIC acquisition, are critical for future growth[63] - Environmental liabilities and regulatory changes could negatively impact the company's operations and financial performance[63] - The company is exposed to risks from natural disasters and cyber attacks that could disrupt operations[63] - PAA's ability to maintain credit ratings and secure financing is essential for funding acquisitions and capital projects[63] - The company is focused on strategic opportunities, including acquisitions and joint ventures, to enhance its market position[63]