PAGPHIGH SIGNALOPERATIONAL10-K

PAGP is divesting its entire Canadian NGL business to Keyera Corp for approximately $3.75 billion USD, fundamentally reshaping the company's geographic footprint and asset base.

This represents a major strategic shift as PAGP exits Canada entirely and refocuses on U.S.-only operations, with the divestiture classified as discontinued operations. The transaction provides substantial cash proceeds that could be used for debt reduction, shareholder returns, or U.S. asset expansion, while simplifying the company's operational complexity.

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

The financial profile shows mixed signals with operating income growing modestly to $1.4B and operating cash flow expanding to $2.9B, while revenue declined to $44.3B. Total debt increased meaningfully to $10.7B, though this appears related to the pending asset sale transition, and inventory levels were substantially reduced. The overall picture suggests a company in transition, with improving operational efficiency but higher leverage as it prepares for the major Canadian divestiture.

FINANCIAL STATEMENT CHANGES
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
+21.8%
$1.2B$1.4B

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

Operating Cash Flow
Cash Flow
+18%
$2.5B$2.9B

Operating cash flow grew 18% — strong conversion of earnings to cash, healthy business fundamentals.

Total Assets
Balance Sheet
+12.7%
$27.8B$31.3B

Asset base grew 12.7% — 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.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-28
ADDED
As of February 20, 2026, there were 197,904,124 Class A shares outstanding.
In June 2025, a subsidiary of PAA 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, PAA s 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.
We believe PAA s successful execution of this strategy will enable it to generate and grow sustainable earnings and cash flow, and will position PAA to maintain an investment grade credit profile and increase returns to equity holders over time.
As PAA continues to position itself for the future, PAA strives to be the premier North American crude oil midstream provider as it transitions to a crude oil pure play business, pending the completion of the Canadian NGL Business divestiture.
PAA is 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.
We have entered into an Omnibus Agreement with the Plains Entities which provides for (i) our ability to issue additional Class A shares and use the net proceeds therefrom to purchase a like number of AAP units from AAP, and the corresponding ability of AAP to use the net proceeds therefrom to purchase a like number of PAA common units from PAA and (ii) our ability to lend proceeds of any future indebtedness we incur to AAP, and AAP s corresponding ability to lend such proceeds to PAA, in each case on substantially the same terms as we incur.
REMOVED
As of February 14, 2025, there were 197,743,624 Class A shares outstanding.
PAA s assets and the services it provides are primarily focused on crude oil and NGL.
The Class C shares function as a pass-through voting mechanism through which PAA votes at the direction of and as proxy for the PAA common unitholders (other than AAP) and Series A preferred unitholders on the election of directors.
(2) On January 31, 2025, PAA repurchased approximately 12.7 million Series A Preferred Units.
See Note 11 to our Consolidated Financial Statements for additional information regarding this repurchase.
PAA s Competitive Strengths We believe that the following competitive strengths position PAA to successfully execute its principal business strategy: PAA owns a strategically located, geographically diverse and interconnected large-scale asset base that provides operational flexibility and commercial optionality.
PAA is 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.
Accordingly, we may access the equity capital markets from time to time to enhance the financial position of PAA and its ability to compete for incremental capital opportunities (including organic investments and third-party acquisitions) to drive future growth.
Additionally, since 2016 PAA has 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, PAA s publicly-traded senior notes comprised approximately 99% of its long-term debt.
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