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Sep 8, 2026, 6:16 PM ETEnergy

Plains All American Pipeline — Year Ended December 31, 2025 Earnings Summary

PAAPLAINS ALL AMERICAN PIPELINE LP
Source

Financial Performance

  • Reported pro forma combined revenues of $44,464 million for the year ended December 31, 2025, compared to PAA historical revenues of $44,262 million and EPIC historical revenues of $202 million.
  • Pro forma combined operating income was $1,524 million, an increase from PAA historical operating income of $1,434 million.
  • Pro forma net income attributable to PAA from continuing operations was $975 million, down from PAA historical net income of $1,052 million, primarily due to pro forma adjustments including $100 million in interest expense and $102 million in incremental depreciation and amortization.
  • Pro forma basic and diluted net income per common unit from continuing operations was $1.01, compared to $1.12 historically for PAA.
  • Pro forma combined interest expense was $721 million, reflecting PAA historical expense of $554 million, EPIC historical expense of $73 million, and $94 million in pro forma adjustments for financing obtained prior to January 1, 2025.
  • Pro forma combined depreciation and amortization expense was $1,055 million, including a $96 million elimination of EPIC's historical D&A and $102 million in incremental D&A ($47 million depreciation, $55 million amortization).
  • Pro forma combined total costs and expenses were $42,940 million.

Business Segments and Product Lines

  • The financial information reflects the acquisition of 100% of the equity interests in EPIC Crude Holdings, LP and 100% of the membership interests in EPIC GP, which owns and operates the Cactus III Pipeline.
  • The transaction involved purchasing a 55% non-operated equity interest from Diamondback Energy, Inc. and Kinetik Holdings Inc. subsidiaries, followed by the purchase of the remaining 45% interest from a subsidiary of Ares Management LLC.
  • PAA now serves as the operator of record of the Cactus III Pipeline.
  • EPIC Crude Holdings' historical financial statements were reclassified to align with PAA's presentation, including a $125 million reclassification of margin related to inventory exchanges from Revenue to Purchases and related costs.

Other Key Points

  • The EPIC Transactions were completed on October 31, 2025 (55% interest) and November 1, 2025 (45% interest), with the combined transaction accounted for as a business combination under ASC 805.
  • Pro forma adjustments include $1,901 million of financing assumed to be outstanding for the full year ended December 31, 2025, with an interest rate based on one-month SOFR plus 1.125% as of the Closing Date.
  • The pro forma financial information does not reflect anticipated synergies, integration costs, cost savings, or other potential impacts of combining the businesses.
  • No pro forma balance sheet is included as the transaction results are fully reflected in the audited consolidated balance sheet as of December 31, 2025.
  • The transaction did not involve the issuance or redemption of securities.