PAA

Plains All American is one of the largest crude-oil midstream operators in North America, with a pipeline, storage and gathering network concentrated in the prolific Permian Basin. FY2025 net income attributable to PAA jumped 85.9% to $1.44B from $772M, and operating income rose 65.2% to $1.43B, even as revenue declined 9.5% to $44.3B — a reminder that PAA's revenue is a high-volume, low-margin pass-through (5.2% gross margin) and that fee-based earnings, not the top line, drive value. Operating cash flow of $2.94B (+17.9%) against just $643M of capex underpins the partnership's stated strategy of 'generating meaningful multi-year free cash flow' and 'increasing returns of capital to equity holders, primarily through increased distributions.'

The near-term catalyst is the pending $3.2B (net) sale of the Canadian NGL business to Keyera, expected to close around the end of Q1 2026. Management is explicit that proceeds 'will be used to reduce leverage,' and the sale also 'supports our strategic objective to focus on our core midstream crude oil operations and to reduce exposure to commodity price fluctuations and seasonality' — a cleaner, more fee-based, lower-volatility entity. The company has been active refinancing debt (multiple 2031–2036 senior notes issued in 2025) and funded the November 2025 EPIC crude-pipeline acquisition through commercial paper, so deleveraging via the Keyera proceeds is well-timed.