Plains GP Holdings (PAGP) Q4 2025 earnings summary

Executive summary

• Reported Q4 2025 adjusted EBITDA of $738 million and full-year 2025 adjusted EBITDA of $2.833 billion, with 2026 guidance at $2.75 billion (+/- $75 million), despite a challenging market.

• Transitioned to a pure-play crude company by selling the NGL business and acquiring the Cactus III (EPIC) pipeline, streamlining operations and improving cash flow quality.

• Announced a 10% annualized distribution increase to $1.67 per unit and lowered the coverage ratio target from 160% to 150%.

• 2026 initiatives include closing the NGL divestiture, integrating Cactus III, and achieving $100–$150 million in annual cost savings by 2027, with half expected in 2026.

• Achieved best-ever safety performance in 2025, with record low TRIR and lost workdays.

Financial highlights

• Q4 2025 crude oil segment adjusted EBITDA was $611 million, including two months of Cactus III contribution.

• NGL segment Q4 adjusted EBITDA was $122 million, with seasonal uptick moderated by warm weather and weak frac spreads.

• 2026 adjusted EBITDA guidance is $2.75 billion at midpoint, with oil segment EBITDA of $2.64 billion, implying 13% year-over-year growth in crude.

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

• Full-year 2025 revenue was $44.26 billion, down from $48.89 billion in 2024.

Outlook and guidance

• 2026 guidance assumes NGL divestiture closes by end of Q1, with $100 million EBITDA from NGL and $10 million other income.

• Permian crude production forecasted flat year-over-year in 2026, with growth expected to resume in 2027.

• Annualized distribution increased to $1.67 per unit, with targeted annual growth of $0.15 per unit and a reduced coverage ratio threshold of 150%.

• Leverage ratio expected to return to the 3.25–3.75x target range post-NGL sale.

• Growth capital for 2026 guided at $350 million, maintenance capital at $165 million.