Plains GP Tops Q1 Profit Estimates, Bolsters Growth with Strategic Acquisitions and Strong Cash Flow
Plains GP Holdings posted Q1 revenue of $12.01 billion, driven by strong operational performance. The company expanded its footprint with key acquisitions and reaffirmed its focus on cash returns and financial discipline.
Plains GP Holdings LP (NYSE: PAGP) reported first-quarter earnings of $84 million, or 42 cents per share, beating market expectations. The Houston-based oil and gas holding company generated $12.01 billion in revenue during the quarter.
Net income attributable to Plains All American Pipeline (PAA) was $443 million, while net cash provided by operating activities totaled $639 million. The company delivered adjusted EBITDA of $754 million attributable to PAA.
“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 coupled with a strong balance sheet positions us well through a time of market volatility and uncertainty."
The company paid a quarterly cash distribution of $0.38 per unit, or $1.52 annualized, representing a current distribution yield of approximately 9%.
The company made strategic moves during the quarter, including acquiring the remaining 50% interest in Cheyenne Pipeline, enhancing its integration from the Guernsey market to pipelines supplying Cushing, Oklahoma. Additionally, Plains completed the $55 million acquisition of Black Knight Midstream’s Permian Basin crude oil gathering business, effective May 1, 2025.
The company also placed into service its 30 Mb/d Fort Saskatchewan fractionation complex debottleneck project in Canada, boosting its fee-based cash flow. Plains increased its 2025 C3+ spec product sales hedge profile to approximately 80% at $0.70 per gallon.
“Our commitment to financial discipline and financial flexibility remains unchanged while continuing to return cash to unitholders through a strong distribution payout,” Chiang added.
Candorium Free Members
Join Candorium to access the full article and more