Fourth Quarter and Full-Year 2025 Results
Fourth-quarter and full-year 2025 Net income attributable to PAA of $342 million and $1.435 billion, respectively, and 2025 Net cash provided by operating activities of $785 million and $2.94 billion, respectively
Delivered fourth-quarter and full-year 2025 Adjusted EBITDA attributable to PAA of $738 million and $2.833 billion, respectively
Pro forma leverage ratio of 3.9x at year-end 2025; expect to return toward the midpoint of the target range of 3.25 to 3.75x following anticipated closing of the NGL divestiture toward the end of the first quarter 2026
In November, Plains successfully raised $750 million in aggregate senior unsecured notes with proceeds allocated toward the reduction of commercial paper and funding the EPIC acquisition (now Cactus III)
In November, Plains also paid off a $1.1 billion EPIC term loan assumed as part of the EPIC acquisition by issuing a $1.1 billion senior unsecured term loan at PAA
2026 Outlook and Key Highlights
Expect full-year 2026 Adjusted EBITDA attributable to PAA midpoint of $2.75 billion +/- $75 million (assumes one quarter of NGL contribution of $100 million)
Capture efficiency initiatives of approximately $100 million of cost savings through 2027 (with approximately half realized in 2026); coupled with $50 million of synergies expected on Cactus III, these initiatives create self-help growth opportunities despite expectation of a relatively flat Permian production profile for 2026
Announced annualized distribution increase of $0.15 per unit payable February 13, 2026, representing a 10% aggregate increase in the annualized distribution rate versus 2025 levels (new annualized distribution rate of $1.67 per unit)
Distribution Coverage ratio threshold lowered from 160% to 150% reflecting more predictable cash flow and providing multi-year runway for targeted annual distribution growth of $0.15 per unit
Expect strong Adjusted Free Cash flow generation of approximately $1.80 billion (excluding changes in Assets & Liabilities and anticipated cash proceeds from the NGL divestiture)
Remain focused on disciplined capital investments, anticipating full-year 2026 Growth Capital of +/- $350 million and Maintenance Capital of +/- $165 million net to Plains
"Last year we took significant steps to transition the company toward becoming the premier North American pure play crude oil midstream provider, including the announced sale of our Canadian NGL business and the acquisition of Cactus III. For 2026, the team is focused on closing the pending NGL sale, realizing synergies on the Cactus III acquisition and driving efficiency initiatives throughout the organization. These self-help actions provide levers for efficient growth in an otherwise volatile near-term oil macro environment. We also remain committed to our multi-year capital allocation framework and returning cash to unitholders as evidenced by the recent $0.15 per unit increase in our annualized distribution rate, bringing the distribution yield to ~8.5%. In addition, we have elected to lower our Distribution Coverage ratio threshold from 160% to 150%, thereby paving the way for additional return of capital to unitholders. I'm pleased with the progress being made as we transition into a more focused, streamlined organization that should be well positioned for improving oil market fundamentals into the future," said Willie Chiang, Chairman, CEO and President.
Financial Reporting Considerations for Pending Sale of Canadian NGL Business
On June 17, 2025, we entered into a definitive agreement to sell substantially all of our NGL business in Canada (the "Canadian NGL Business") to Keyera Corp. This transaction is expected to close toward the end of the first quarter of 2026 and is subject to the satisfaction or waiver of customary closing conditions, including receipt of regulatory approvals. While we will divest the Canadian NGL Business as part of the transaction, we will retain substantially all NGL assets in the United States and will also retain all crude oil assets in Canada.
We have determined that the operations of the Canadian NGL Business meet the criteria for classification as held for sale and for discontinued operations reporting and have applied these changes retrospectively to all periods presented. Results throughout this release specify if they are presented from continuing operations (which exclude the results of the Canadian NGL Business) and/or discontinued operations.
Plains All American Pipeline Summary Financial Information (unaudited) (in millions, except per unit data)
Three Months Ended December 31,
%
Twelve Months Ended December 31,
%
GAAP Results (1)
2025
2024
Change
2025
2024
Change
Net income attributable to PAA (2)
$
342
$
36
**
$
1,435
$
772
86
%
Diluted net income/(loss) per common unit
$
0.41
$
(0.04
)
**
$
1.66
$
0.73
127
%
Diluted weighted average common units outstanding
706
704
—
%
704
702
—
%
Net cash provided by operating activities
$
785
$
726
8
%
$
2,936
$
2,490
18
%
Distribution per common unit declared for the period
$
0.4175
$
0.3800
10
%
$
1.5575
$
1.3325
17
%
Three Months EndedDecember 31,
%
Twelve Months EndedDecember 31,
%
Non-GAAP Results (1) (3)
2025
2024
Change
2025
2024
Change
Adjusted net income attributable to PAA (2)
$
334
$
357
(6
) %
$
1,352
$
1,318
3
%
Diluted adjusted net income per common unit
$
0.40
$
0.42
(5
) %
$
1.54
$
1.51
2
%
Adjusted EBITDA
$
875
$
867
1
%
$
3,374
$
3,326
1
%
Adjusted EBITDA attributable to PAA (2)
$
738
$
729
1
%
$
2,833
$
2,779
2
%
Implied DCF per common unit and common unit equivalent
$
0.68
$
0.64
6
%
$
2.61
$
2.49
5
%
Adjusted Free Cash Flow (4)
$
(1,219
)
$
365
**
$
(875
)
$
1,247
**
Adjusted Free Cash Flow after Distributions (4)
$
(1,541
)
$
79
**
$
(2,170
)
$
102
**
Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) (4)
$
(1,222
)
$
134
**
$
(821
)
$
1,173
**
Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities) (4)
$
(1,544
)
$
(152
)
**
$
(2,116
)
$
28
**
________________________
** Indicates that variance as a percentage is not meaningful.
(1) Includes results from continuing operations and discontinued operations for all periods presented. See the tables attached hereto for additional information.(2) Excludes amounts attributable to noncontrolling interests in the Plains Oryx Permian Basin LLC (the "Permian JV"), Cactus II Pipeline LLC and Red River Pipeline LLC joint ventures.(3) See the section of this release entitled "Non-GAAP Financial Measures and Selected Items Impacting Comparability" and the tables attached hereto for information regarding our Non-GAAP financial measures, including their reconciliation to the most directly comparable measures as reported in accordance with GAAP, and certain selected items that PAA believes impact comparability of financial results between reporting periods.(4) Fourth-quarter and full-year 2025 includes the impact of a net cash outflow of $1.786 billion and $2.651 billion, respectively, for acquisitions, including our Cactus III acquisition completed during the fourth quarter of 2025.
Disaggregation of Adjusted EBITDA by Product (1) (2) (unaudited) (in millions)
Adjusted EBITDAfrom Crude Oil
Adjusted EBITDAfrom NGL
Three Months Ended December 31, 2025
$
611
$
122
Three Months Ended December 31, 2024
$
569
$
154
Percentage change versus 2024 period
7
%
(21
)%
Adjusted EBITDAfrom Crude Oil
Adjusted EBITDAfrom NGL
Twelve Months Ended December 31, 2025
$
2,344
$
469
Twelve Months Ended December 31, 2024
$
2,276
$
480
Percentage change versus 2024 period
3
%
(2
)%
________________________
(1) Includes results from continuing operations and discontinued operations for all periods presented.(2) See the section of this release entitled "Non-GAAP Financial Measures and Selected Items Impacting Comparability" and the tables attached hereto for information regarding our Non-GAAP financial measures, including their reconciliation to the most directly comparable measures as reported in accordance with GAAP, and certain selected items that PAA believes impact comparability of financial results between reporting periods.
Fourth-quarter 2025 Adjusted EBITDA from Crude Oil increased 7% versus comparable 2024 results. Favorable results in the 2025 period from (i) contributions from recently completed bolt-on acquisitions, including our Cactus III pipeline acquisition, (ii) higher volumes on our pipelines and (iii) tariff escalations were offset by the impact of (iv) certain Permian long-haul pipeline contract rate resets and (v) lower commodity prices.
Fourth-quarter 2025 Adjusted EBITDA from NGL decreased 21% versus comparable 2024 results primarily due to lower sales volumes and lower weighted average frac spreads.
Plains GP Holdings
PAGP owns an indirect non-economic controlling interest in PAA's general partner and an indirect limited partner interest in PAA. As the control entity of PAA, PAGP consolidates PAA's results into its financial statements, which is reflected in the condensed consolidating balance sheet and income statement tables attached hereto.
Conference Call and Webcast Instructions
PAA and PAGP will hold a joint conference call at 9:00 a.m. CT on Friday, February 6, 2026 to discuss fourth-quarter performance and related items.
To access the internet webcast, please go to https://edge.media-server.com/mmc/p/3ksb2gmv/.
Alternatively, the webcast can be accessed on our website at https://ir.plains.com/news-events/events-presentations. Following the live webcast, an audio replay will be available on our website and will be accessible for a period of 365 days. Slides will be posted prior to the call at the above referenced website.
Non-GAAP Financial Measures and Selected Items Impacting Comparability
To supplement our financial information presented in accordance with GAAP, management uses additional measures known as "non-GAAP financial measures" in its evaluation of past performance and prospects for the future and to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. The primary additional measures used by management are Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied Distributable Cash Flow ("DCF"), Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions.
Our definition and calculation of certain non-GAAP financial measures may not be comparable to similarly-titled measures of other companies. Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied DCF and certain other non-GAAP financial performance measures are reconciled to Net Income, and Adjusted Free Cash Flow, Adjusted Free Cash Flow after Distributions and certain other non-GAAP financial liquidity measures are reconciled to Net Cash Provided by Operating Activities (the most directly comparable measures as reported in accordance with GAAP) for the historical periods presented in the tables attached to this release, and should be viewed in addition to, and not in lieu of, our Consolidated Financial Statements and accompanying notes. In addition, we encourage you to visit the Investor Relations section of our website at www.plains.com (navigate to the "Financials" tab, then click on "Quarterly Results"), which presents a reconciliation of our commonly used non-GAAP and supplemental financial measures. We do not reconcile non-GAAP financial measures on a forward-looking basis as it is impractical to do so without unreasonable effort.
Non-GAAP Financial Performance Measures
Adjusted EBITDA is defined as earnings from continuing operations and discontinued operations before (i) interest expense, (ii) income tax (expense)/benefit from continuing operations and discontinued operations, (iii) depreciation and amortization (including our proportionate share of depreciation and amortization, including write-downs related to cancelled projects and impairments, of unconsolidated entities) from continuing operations and discontinued operations, (iv) gains and losses on asset sales, asset impairments and other, net from continuing operations and discontinued operations, (v) gains on investments in unconsolidated entities, net and (vi) interest income on promissory notes by and among certain Plains entities, and (vii) adjusted for certain selected items impacting comparability. Adjusted EBITDA attributable to PAA excludes the portion of Adjusted EBITDA that is attributable to noncontrolling interests. Adjusted EBITDA disaggregated by product (e.g., Adjusted EBITDA from Crude Oil and Adjusted EBITDA from NGL) excludes amounts related to Other income/(expense).
Management believes that the presentation of Adjusted EBITDA, Adjusted EBITDA attributable to PAA and Implied DCF provides useful information to investors regarding our performance and results of operations because these measures, when used to supplement related GAAP financial measures, (i) provide additional information about our operating performance and ability to fund distributions to our unitholders through cash generated by our operations and (ii) provide investors with the same financial analytical framework upon which management bases financial, operational, compensation and planning/budgeting decisions. We also present these and additional non-GAAP financial measures, including adjusted net income attributable to PAA and basic and diluted adjusted net income per common unit, as they are measures that investors, rating agencies and debt holders have indicated are useful in assessing us and our results of operations. These non-GAAP financial performance measures may exclude, for example, (i) charges for obligations that are expected to be settled with the issuance of equity instruments, (ii) gains and losses on derivative instruments that are related to underlying activities in another period (or the reversal of such adjustments from a prior period), gains and losses on derivatives that are either related to investing activities (such as the purchase of linefill) or purchases of long-term inventory, and inventory valuation adjustments, as applicable, (iii) long-term inventory costing adjustments, (iv) items that are not indicative of our operating results and/or (v) other items that we believe should be excluded in understanding our operating performance. These measures may be further adjusted to include amounts related to deficiencies associated with minimum volume commitments whereby we have billed the counterparties for their deficiency obligation and such amounts are recognized as deferred revenue in "Other current liabilities" in our Consolidated Financial Statements. We also adjust for amounts billed by our equity method investees related to deficiencies under minimum volume commitments. Such amounts are presented net of applicable amounts subsequently recognized into revenue. Furthermore, the calculation of these measures contemplates tax effects as a separate reconciling item, where applicable. We have defined all such items as "selected items impacting comparability." Due to the nature of the selected items, certain selected items impacting comparability may impact certain non-GAAP financial measures, referred to as adjusted results, but not impact other non-GAAP financial measures. We do not necessarily consider all of our selected items impacting comparability to be non-recurring, infrequent or unusual, but we believe that an understanding of these selected items impacting comparability is material to the evaluation of our operating results and prospects.
Although we present selected items impacting comparability that management considers in evaluating our performance, you should also be aware that the items presented do not represent all items that affect comparability between the periods presented. Variations in our operating results are also caused by changes in volumes, prices, exchange rates, mechanical interruptions, acquisitions, divestitures, investment capital projects and numerous other factors. These types of variations may not be separately identified in this release, but will be discussed, as applicable, in management's discussion and analysis of operating results in our Annual Report on Form 10-K.
Non-GAAP Financial Liquidity Measures
Management uses the non-GAAP financial liquidity measures Adjusted Free Cash Flow and Adjusted Free Cash Flow after Distributions to assess the amount of cash that is available for distributions, debt repayments, common equity repurchases and other general partnership purposes. Adjusted Free Cash Flow is defined as Net Cash Provided by Operating Activities, less Net Cash Provided by/(Used in) Investing Activities, which primarily includes acquisition, investment and maintenance capital expenditures, investments in unconsolidated entities and related party notes and the impact from the purchase and sale of linefill, net of proceeds from the sales of assets and further impacted by distributions to and contributions from noncontrolling interests and proceeds from the issuance of related party notes. Adjusted Free Cash Flow is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions.
We also present these measures and additional non-GAAP financial liquidity measures as they are measures that investors have indicated are useful. We present Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) for use in assessing our underlying business liquidity and cash flow generating capacity excluding fluctuations caused by timing of when amounts earned or incurred were collected, received or paid from period to period. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is defined as Adjusted Free Cash Flow excluding the impact of "Changes in assets and liabilities, net of acquisitions" on our Condensed Consolidated Statements of Cash Flows. Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities) is further reduced by cash distributions paid to our preferred and common unitholders to arrive at Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities).
Non-GAAP Financial Measures and Discontinued Operations
Management believes that the presentation of certain Non-GAAP financial performance measures, such as Adjusted EBITDA, Adjusted EBITDA attributable to PAA, Implied DCF, Adjusted Net Income attributable to PAA, Adjusted Net Income per Common Unit, Adjusted EBITDA from Crude Oil and Adjusted EBITDA from NGL, and certain Non-GAAP financial liquidity measures, such as Adjusted Free Cash Flow and Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities), on a consolidated basis (e.g., the aggregate of continuing operations and discontinued operations) provides more relevant and useful information regarding our performance and results of operations than presenting such metrics only on a continuing operations or discontinued operations basis. In addition, as the potential sale of the Canadian NGL Business is not anticipated to close until the end of the first quarter of 2026, management continues to view the Canadian NGL Business as a component of our overall company performance and ability to fund distributions to our unitholders in the near term.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per unit data)
Three Months EndedDecember 31,
Twelve Months EndedDecember 31,
2025
2024
2025
2024
REVENUES
$
10,565
$
12,035
$
44,262
$
48,889
COSTS AND EXPENSES
Purchases and related costs
9,571
11,076
40,433
45,162
Field operating costs (1)
281
510
1,154
1,471
General and administrative expenses
92
81
342
328
Depreciation and amortization
257
227
953
901
(Gains)/losses on asset sales, asset impairments and other, net
9
157
(54
)
159
Total costs and expenses
10,210
12,051
42,828
48,021
OPERATING INCOME
355
(16
)
1,434
868
OTHER INCOME/(EXPENSE)
Equity earnings in unconsolidated entities
89
154
382
452
Gain on investments in unconsolidated entities, net
—
15
31
15
Interest expense, net (2)
(159
)
(112
)
(554
)
(430
)
Other income, net (2)
38
20
108
64
INCOME FROM CONTINUING OPERATIONS BEFORE TAX
323
61
1,401
969
Current income tax benefit/(expense) from continuing operations
10
(10
)
(1
)
(82
)
Deferred income tax expense from continuing operations
(8
)
(6
)
(14
)
(5
)
INCOME FROM CONTINUING OPERATIONS, NET OF TAX
325
45
1,386
882
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX
102
74
383
231
NET INCOME
427
119
1,769
1,113
Net income attributable to noncontrolling interests
(85
)
(83
)
(334
)
(341
)
NET INCOME ATTRIBUTABLE TO PAA
$
342
$
36
$
1,435
$
772
NET INCOME/(LOSS) PER COMMON UNIT:
Net income/(loss) allocated to common unitholders, Basic and Diluted
Continuing operations
$
187
$
(101
)
$
786
$
283
Discontinued operations
102
74
383
231
Net income/(loss) allocated to common unitholders, Basic and Diluted
$
289
$
(27
)
$
1,169
$
514
Basic and diluted weighted average common units outstanding
706
704
704
702
Basic and diluted net income/(loss) per common unit:
Continuing operations
$
0.26
$
(0.15
)
$
1.12
$
0.40
Discontinued operations
$
0.15
$
0.11
$
0.54
$
0.33
Basic and diluted net income/(loss) per common unit
$
0.41
$
(0.04
)
$
1.66
$
0.73
________________________
(1) For the three and twelve months ended December 31, 2024, Field operating costs include $225 million and $345 million, respectively, resulting from adjustments related to the Line 901 incident that occurred in May 2015, including the write-off of a receivable for Line 901 insurance proceeds in the fourth quarter of 2024 and settlements in the third quarter of 2024.(2) Certain Plains entities have issued promissory notes by and among such entities to facilitate financing. "Interest expense, net" and "Other income, net" each include $22 million and $87 million for the three and twelve months ended December 31, 2025, respectively, and $17 million and $48 million for the three and twelve months ended December 31, 2024, respectively, related to interest on such related party promissory notes. These amounts offset and do not impact Net Income or Non-GAAP metrics such as Adjusted EBITDA, Implied DCF and Adjusted Free Cash Flow.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
CONDENSED CONSOLIDATED BALANCE SHEET DATA (in millions)
December 31,2025
December 31,2024
ASSETS
Current assets (including Cash and cash equivalents of $328 and $348, respectively) (1)
$
4,733
$
4,802
Property and equipment, net
16,860
13,446
Investments in unconsolidated entities
2,846
2,811
Intangible assets, net
1,754
1,677
Linefill
900
904
Long-term operating lease right-of-use assets, net
198
189
Long-term inventory
214
242
Long-term assets of discontinued operations
2,557
2,349
Other long-term assets, net
107
142
Total assets
$
30,169
$
26,562
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities (2)
$
4,931
$
4,950
Senior notes, net
9,118
7,141
Other long-term debt, net
1,578
70
Long-term operating lease liabilities
202
192
Long-term liabilities of discontinued operations
606
576
Other long-term liabilities and deferred credits
654
537
Total liabilities
17,089
13,466
Partners' capital excluding noncontrolling interests
9,836
9,813
Noncontrolling interests
3,244
3,283
Total partners' capital
13,080
13,096
Total liabilities and partners' capital
$
30,169
$
26,562
________________________
(1) Includes current assets of discontinued operations of $479 million and $415 million as of December 31, 2025 and December 31, 2024, respectively.
(2) Includes current liabilities of discontinued operations of $382 million and $350 million as of December 31, 2025 and December 31, 2024, respectively.
DEBT CAPITALIZATION RATIOS (1) (in millions, except percentages)
December 31,2025
December 31,2024
Short-term debt
$
564
$
408
Long-term debt
10,698
7,213
Total debt
$
11,262
$
7,621
Long-term debt
$
10,698
$
7,213
Partners' capital excluding noncontrolling interests
9,836
9,813
Total book capitalization excluding noncontrolling interests ("Total book capitalization")
$
20,534
$
17,026
Total book capitalization, including short-term debt
$
21,098
$
17,434
Long-term debt-to-total book capitalization
52
%
42
%
Total debt-to-total book capitalization, including short-term debt
53
%
44
%
________________________
(1) Includes results from continuing operations and discontinued operations for all periods presented.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
COMPUTATION OF BASIC AND DILUTED NET INCOME/(LOSS) PER COMMON UNIT (in millions, except per unit data)
Three Months EndedDecember 31,
Twelve Months EndedDecember 31,
2025
2024
2025
2024
Basic and Diluted Net Income/(Loss) per Common Unit
Continuing Operations:
Income from continuing operations, net of tax
$
325
$
45
$
1,386
$
882
Net income attributable to noncontrolling interests
(85
)
(83
)
(334
)
(341
)
Net income from continuing operations attributable to PAA
$
240
$
(38
)
$
1,052
$
541
Distributions to Series A preferred unitholders
(36
)
(44
)
(146
)
(175
)
Distributions to Series B preferred unitholders
(17
)
(19
)
(70
)
(78
)
Amounts allocated to participating securities
(1
)
(1
)
(11
)
(10
)
Impact from repurchase of Series A preferred units (1)
—
—
(43
)
—
Other
1
1
4
5
Net income/(loss) from continuing operations allocated to common unitholders - Basic and Diluted (2)
$
187
$
(101
)
$
786
$
283
Discontinued Operations:
Net income from discontinued operations allocated to common unitholders - Basic and Diluted (3)
$
102
$
74
$
383
$
231
Net income/(loss) allocated to common unitholders - Basic and Diluted
$
289
$
(27
)
$
1,169
$
514
Basic and diluted weighted average common units outstanding (4) (5)
706
704
704
702
Basic and diluted net income/(loss) per common unit
Continuing operations
$
0.26
$
(0.15
)
$
1.12
$
0.40
Discontinued operations
$
0.15
$
0.11
$
0.54
$
0.33
Basic and diluted net income/(loss) per common unit
$
0.41
$
(0.04
)
$
1.66
$
0.73
________________________
(1) We repurchased approximately 12.7 million Series A preferred units on January 31, 2025. The difference between the cash we paid for the repurchase of such units and their carrying value on our balance sheet is considered a return to Series A preferred unitholders for the calculation of net income from continuing operations allocated to common unitholders.(2) We calculate net income/(loss) from continuing operations allocated to common unitholders based on the distributions pertaining to the current period's net income. After adjusting for the appropriate period's distributions, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to common unitholders and participating securities in accordance with the contractual terms of our partnership agreement in effect for the period and as further prescribed under the two-class method.(3) Net income from discontinued operations allocated to common unitholders is Income from discontinued operations, net of tax as presented on our Condensed Consolidated Statements of Operations.(4) The possible conversion of our Series A preferred units was excluded from the calculation of diluted net income/(loss) per common unit from continuing operations for each of the three and twelve months ended December 31, 2025 and 2024 as the effect was antidilutive.(5) Our equity-indexed compensation plan awards that contemplate the issuance of common units are considered potentially dilutive unless (i) they become vested only upon the satisfaction of a performance condition and (ii) that performance condition has yet to be satisfied. Equity-indexed compensation plan awards that are deemed to be dilutive are reduced by a hypothetical common unit repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
CONDENSED CONSOLIDATED CASH FLOW DATA (in millions)
Twelve Months EndedDecember 31,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income
$
1,769
$
1,113
Reconciliation of net income to net cash provided by operating activities:
Income from discontinued operations, net of tax
(383
)
(231
)
Depreciation and amortization
953
901
(Gains)/losses on asset sales, asset impairments and other, net
(54
)
159
Equity-indexed compensation expense
49
50
Deferred income tax expense
14
5
(Gain)/loss on foreign currency revaluation
13
(12
)
Settlement of terminated interest rate hedging instruments
37
57
Equity earnings in unconsolidated entities
(382
)
(452
)
Distributions on earnings from unconsolidated entities
486
505
Gain on investments in unconsolidated entities, net
(31
)
(15
)
Other
15
17
Changes in assets and liabilities, net of acquisitions
(34
)
139
Cash provided by operating activities - continuing operations
2,452
2,236
Cash provided by operating activities - discontinued operations
484
254
Net cash provided by operating activities
2,936
2,490
CASH FLOWS FROM INVESTING ACTIVITIES
Cash used in investing activities - continuing operations
(3,572
)
(1,334
)
Cash used in investing activities - discontinued operations
(197
)
(170
)
Net cash used in investing activities (1) (2)
(3,769
)
(1,504
)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by/(used in) financing activities (1)
799
(1,077
)
Effect of translation adjustment - continuing operations
14
(13
)
Effect of translation adjustment - discontinued operations
—
2
Net decrease in cash and cash equivalents and restricted cash
(20
)
(102
)
Cash and cash equivalents and restricted cash, beginning of period
348
450
Cash and cash equivalents and restricted cash, end of period
$
328
$
348
________________________
(1) Certain Plains entities have issued promissory notes by and among such entities to facilitate financing. For the twelve months ended December 31, 2025 and 2024, "Net cash used in investing activities" includes a cash outflow of approximately $330 million and $629 million, respectively, associated with our investment in related party notes. An equal and offsetting cash inflow associated with our issuance of related party notes is included in "Net cash provided by/(used in) financing activities."(2) The 2025 period includes a net cash outflow of $2.651 billion for acquisitions, including our Cactus III acquisition completed during the fourth quarter of 2025.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
CAPITAL EXPENDITURES (1) (in millions)
Net to PAA(2)
Consolidated
Three MonthsEnded December 31,
Twelve MonthsEnded December 31,
Three MonthsEnded December 31,
Twelve MonthsEnded December 31,
2025
2024
2025
2024
2025
2024
2025
2024
Investment capital expenditures:
Crude Oil
$
96
$
55
$
409
$
214
$
115
$
80
$
520
$
300
NGL(3)
11
41
99
115
11
41
99
115
Total Investment capital expenditures
107
96
508
329
126
121
619
415
Total Maintenance capital expenditures(4)
62
68
211
242
65
73
226
261
Total Investment and Maintenance capital expenditures
$
169
$
164
$
719
$
571
$
191
$
194
$
845
$
676
________________________
(1) Includes results from continuing operations and discontinued operations for all periods presented.(2) Excludes expenditures attributable to noncontrolling interests.(3) See the "Discontinued Operations Detail" section for amounts attributable to discontinued operations.(4) See the "Selected Financial Data by NGL" section for amounts attributable to discontinued operations.
PLAINS ALL AMERICAN PIPELINE, L.P. AND SUBSIDIARIES FINANCIAL SUMMARY (unaudited)
NON-GAAP RECONCILIATIONS
(in millions, except per unit and ratio data)
Computation of Basic and Diluted Adjusted Net Income Per Common Unit (1) (2):
Three Months Ended December 31,
Twelve ...
