Plains GP Holdings (PAGP) Q4 2025 earnings summary

Executive summary

• Achieved Q4 and full-year 2025 adjusted EBITDA of $738 million and $2.833 billion, with 2026 guidance at $2.75 billion (+/- $75 million), amid a challenging market and strategic transition to a pure-play crude company through NGL divestiture and Cactus III (EPIC) pipeline acquisition.

• Announced a 10% annualized distribution increase, raising the annualized rate by $0.15 per unit to $1.67, and lowered the coverage ratio target from 160% to 150%.

• 2026 initiatives include closing the NGL divestiture, integrating Cactus III, and streamlining operations for efficiency, targeting $100 million in annual cost savings by 2027, with half expected in 2026.

• Achieved best-ever safety performance in 2025.

Financial highlights

• Q4 crude oil segment adjusted EBITDA: $611 million, including two months of Cactus 3 contribution; NGL segment adjusted EBITDA: $122 million, with seasonal uptick moderated by warm weather and weak frac spreads.

• 2026 adjusted EBITDA guidance: $2.75 billion at midpoint, with crude segment EBITDA up 13% year-over-year and NGL segment expected to contribute $100 million, assuming divestiture closes Q1.

• 2026 expected free cash flow: $1.8 billion, excluding NGL sale proceeds and working capital changes.

• Distribution per common unit for 2025 was $1.5575, a 17% increase year-over-year.

Outlook and guidance

• Permian crude production expected flat year-over-year in 2026, with growth resuming in 2027; 2026 production expected at ~6.6 million barrels per day.

• 2026 growth capital: $350 million; maintenance capital: $165 million.

• Annualized distribution increased to $1.67 per unit (8.5% yield), with targeted $0.15 per unit annual growth.

• Distribution coverage ratio threshold reduced from 160% to 150%, with 2026 targeted at +/- 155%.

• Special distribution of $0.15 per unit or less expected post-NGL sale, pending board approval.