PAAHIGH SIGNALFINANCIAL10-K

Plains All American Pipeline agreed to sell its Canadian NGL business to Keyera Corp for approximately $3.75 billion USD, with the transaction expected to close in Q1 2026.

This represents a major strategic divestiture that will significantly reshape PAA's business profile, as the company is exiting substantially all of its Canadian NGL operations while retaining US-based assets. The substantial cash proceeds from this sale should provide considerable financial flexibility for debt reduction, growth investments, or shareholder returns.

Comparing 2026-02-27 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

PAA delivered strong profitability with net income substantially higher year-over-year despite an 11.6% decline in revenue, indicating improved operational efficiency and margins. Operating cash flow grew meaningfully to $2.9 billion, while total debt increased 48.3% to $10.7 billion and total assets expanded 13.6% to $30.2 billion. The combination of lower revenue but substantially higher earnings, alongside increased debt levels, reflects the transitional nature of the business as it prepares for the major Canadian asset divestiture.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+85.9%
$772.0M→$1.4B

Net income grew 85.9% — bottom-line growth signals improving overall business health.

Inventory
Balance Sheet
-51.9%
$439.0M→$211.0M

Inventory drawn down 51.9% — strong sell-through or deliberate destocking; watch for supply constraints.

Total Debt
Balance Sheet
+48.3%
$7.2B→$10.7B

Debt increased 48.3% — substantial leverage increase; assess whether deployed for growth or covering losses.

Operating Income
P&L
+21.7%
$1.2B→$1.4B

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Operating Cash Flow
Cash Flow
+17.9%
$2.5B→$2.9B

Operating cash flow grew 17.9% — strong conversion of earnings to cash, healthy business fundamentals.

Total Assets
Balance Sheet
+13.6%
$26.6B→$30.2B

Asset base grew 13.6% — expansion through organic growth, acquisitions, or capital deployment.

Revenue
P&L
-11.6%
$50.1B→$44.3B

Revenue softened 11.6% — monitor whether this is cyclical or structural.

Total Liabilities
Balance Sheet
+11.4%
$8.2B→$9.1B

Liabilities increased 11.4% — monitor debt-to-equity ratio and interest coverage.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-28
ADDED
As of February 20, 2026, there were 705,531,683 Common Units outstanding.
In June 2025, we entered into a definitive Share Purchase Agreement ( SPA ) with Keyera Corp.
( Keyera ), an Alberta corporation, pursuant to which Keyera agreed to acquire all of the issued and outstanding shares of Plains Midstream Canada ULC, our wholly-owned subsidiary that owns substantially all of our NGL business in Canada (the Canadian NGL Business ), for cash consideration of approximately $5.15 billion CAD (approximately $3.75 billion USD), subject to certain post-closing adjustments, as defined in the SPA.
This transaction is expected to close around the end of the first quarter of 2026, subject to the satisfaction or waiver of customary closing conditions, including receipt of regulatory approvals.
The operations of the Canadian NGL Business meet the criteria for classification as held for sale and for discontinued operations reporting.
We will divest the Canadian NGL Business as part of the sale, which includes substantially all of our NGL assets; the assets that we will retain are located in the United States.
As we continue to position ourselves for the future, we strive to be the premier North American crude oil midstream provider as we transition to a crude oil pure play business, pending the completion of the Canadian NGL Business divestiture.
We are a party to more than 25 joint ventures and/or joint ownership arrangements with strategic partners that support the success of the applicable project or investment.
Additionally, since 2016 we have completed more than $5.0 billion of divestitures of non-core assets and/or strategic sales of partial interests in selected assets, and we anticipate the pending Canadian NGL Business divestiture to close in the first quarter of 2026.
At December 31, 2025, our publicly-traded senior notes comprised approximately 85% of our long-term debt.
REMOVED
As of February 14, 2025, there were 703,775,950 Common Units outstanding.
Our assets and the services we provide are primarily focused on crude oil and NGL.
(2) On January 31, 2025, the Partnership repurchased approximately 12.7 million Series A Preferred Units.
See Note 11 to our Consolidated Financial Statements for additional information regarding this repurchase.
We are a party to more than 25 joint ventures and/or joint ownership arrangements (including the Permian JV that was formed in October 2021) with strategic partners that support the success of the applicable project or investment.
Additionally, since 2016 we have completed more than $4.9 billion of divestitures of non-core assets and/or strategic sales of partial interests in selected assets.
At December 31, 2024, our publicly-traded senior notes comprised approximately 99% of our long-term debt.
In addition, our Health, Safety, Environmental and Sustainability ( HSES ) Board Committee provides additional oversight and perspectives with respect to HSES matters.
References to sustainability in this report incorporate ESG factors.
The Permian JV acquired an additional Delaware Basin gathering system in January 2025.
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