Core Insights - The article focuses on Plains All American Pipeline, L.P. (PAA, PAGP) and its Master Limited Partnership (MLP) structure, which is favored by income-focused investors [1] - The author emphasizes a strategy of identifying undervalued companies with strong fundamentals and cash flows, particularly in the Oil & Gas sector [1] - Energy Transfer is highlighted as a company that has been overlooked but shows potential for substantial returns [1] Group 1 - The article discusses the appeal of MLPs to income-focused investors, particularly in the context of Plains All American Pipeline [1] - The author expresses a preference for long-term value investing while also exploring deal arbitrage opportunities in various sectors [1] - There is a noted skepticism towards investments in high-tech businesses and cryptocurrencies, indicating a focus on more traditional sectors [1]

Core Insights - Plains All American Pipeline (PAA) reported a revenue of $10.64 billion for the quarter ended June 2025, reflecting a year-over-year decline of 17.7% [1] - The earnings per share (EPS) for the same period was $0.36, an increase from $0.31 a year ago, resulting in an EPS surprise of +20% against the consensus estimate of $0.30 [1] - The reported revenue fell short of the Zacks Consensus Estimate of $12.05 billion by -11.68% [1] Financial Performance Metrics - Total crude oil pipeline tariff volumes were reported at 9,659 thousand barrels, compared to the estimated 10,382.16 thousand barrels by analysts [4] - Revenues from NGL (Natural Gas Liquids) were $26 million, significantly lower than the average estimate of $139.11 million, marking a year-over-year decline of -91.1% [4] - Segment Adjusted EBITDA for NGL was reported at $87 million, exceeding the average estimate of $68.82 million [4] - Segment Adjusted EBITDA for crude oil was $580 million, slightly below the average estimate of $598.78 million [4] Stock Performance - Shares of Plains All American have returned -4.7% over the past month, contrasting with the Zacks S&P 500 composite's +1.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

PART I. FINANCIAL INFORMATION [Item 1. Unaudited Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) The unaudited interim financial statements highlight the reclassification of the Canadian NGL business as discontinued operations [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in millions) | Balance Sheet Highlights (in millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $4,688 | $4,802 | | Property and equipment, net | $14,177 | $13,446 | | **Total assets** | **$27,155** | **$26,562** | | Total current liabilities | $4,679 | $4,950 | | Senior notes, net | $8,133 | $7,141 | | **Total liabilities** | **$14,206** | **$13,466** | | **Total partners' capital** | **$12,949** | **$13,096** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Income Statement Highlights (in millions, except per unit data) | Income Statement Highlights (in millions, except per unit data) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $10,642 | $12,757 | $22,119 | $24,396 | | Operating Income | $239 | $332 | $594 | $688 | | Income from Continuing Operations | $227 | $298 | $607 | $639 | | Income from Discontinued Operations | $70 | $32 | $206 | $42 | | **Net Income Attributable to PAA** | **$210** | **$250** | **$653** | **$515** | | **Basic and diluted net income per common unit** | **$0.21** | **$0.26** | **$0.70** | **$0.55** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Highlights (in millions) | Cash Flow Highlights (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,333 | $1,072 | | Net cash used in investing activities | ($1,423) | ($418) | | Net cash provided by/(used in) financing activities | $182 | ($545) | | **Net increase in cash and cash equivalents** | **$111** | **$103** | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Detailed disclosures cover the pending CAD$5.15 billion sale of the Canadian NGL business, recent acquisitions, and increased debt levels - On June 17, 2025, PAA entered into a definitive agreement to sell its Canadian NGL Business to Keyera Corp for approximately **CAD$5.15 billion** (about $3.75 billion)[31](index=31&type=chunk)[32](index=32&type=chunk) - Income from discontinued operations for the six months ended June 30, 2025, was **$206 million**, a significant increase from $42 million in the same period of 2024[40](index=40&type=chunk) - Total debt increased to **$8.68 billion** from $7.62 billion at year-end 2024, primarily due to a new **$1.0 billion senior notes offering** in January 2025[57](index=57&type=chunk)[58](index=58&type=chunk) - On January 31, 2025, the company repurchased approximately 12.7 million of its Series A preferred units for about **$333 million**[62](index=62&type=chunk) - The company entered into a forward currency instrument to hedge the proceeds from the Canadian NGL sale, recognizing a **$49 million loss** in Q2 2025[80](index=80&type=chunk) - The estimated aggregate total cost for the May 2015 Line 901 incident is approximately **$870 million**[100](index=100&type=chunk) - During the first half of 2025, the company completed several acquisitions, including Ironwood Midstream for approximately **$481 million** and Medallion Midstream for **$163 million**[117](index=117&type=chunk)[121](index=121&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=Item%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses financial performance, the strategic sale of the Canadian NGL business, and the company's strong liquidity position [Results of Operations](index=42&type=section&id=Results%20of%20Operations) - Net income attributable to PAA for the six months ended June 30, 2025, was **$653 million**, compared to $515 million for the same period in 2024[129](index=129&type=chunk)[131](index=131&type=chunk) - The decrease in product sales revenues for H1 2025 compared to H1 2024 was primarily due to **lower commodity prices**, partially offset by higher crude oil sales volumes[134](index=134&type=chunk) - Crude Oil Segment Adjusted EBITDA for H1 2025 was stable compared to H1 2024, as the benefit from **higher tariff volumes** and acquisitions was largely offset by fewer market-based opportunities and higher operating expenses[160](index=160&type=chunk) Non-GAAP Performance (in millions) | Non-GAAP Performance (in millions) | H1 2025 | H1 2024 | Variance % | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | $1,693 | $1,654 | 2% | | Adjusted EBITDA attributable to PAA | $1,426 | $1,391 | 3% | | Implied DCF | $1,043 | $1,001 | 4% | [Liquidity and Capital Resources](index=54&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, the company had approximately **$2.7 billion of available liquidity**, including cash and available capacity under its credit facilities[172](index=172&type=chunk) - Net cash from operating activities increased to **$1.33 billion** in H1 2025 from $1.07 billion in H1 2024[175](index=175&type=chunk) - Projected capital expenditures for the full year 2025 include approximately **$580 million** for investment capital and **$250 million** for maintenance capital[180](index=180&type=chunk) - In January 2025, the company issued **$1.0 billion of 5.95% senior notes** due 2035, using the proceeds to fund acquisitions, repurchase preferred units, and repay other borrowings[188](index=188&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=62&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company manages commodity, interest rate, and currency risks using derivatives, with significant exposure to USD/CAD exchange rate fluctuations - The company uses derivative instruments to manage exposure to commodity price risk (crude oil, power), interest rate risk, and currency exchange rate risk[206](index=206&type=chunk) - A **10% change in crude oil prices** would result in a **$6-7 million change** in the fair value of the company's crude oil derivatives[208](index=208&type=chunk) - A **10% change in the USD-to-CAD exchange rate** would result in a **$334 million change** in the fair value of the company's foreign currency derivatives, highlighting the significance of the hedge on the pending Canadian NGL business sale[211](index=211&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2025[213](index=213&type=chunk) - There were **no material changes** in internal control over financial reporting during the second quarter of 2025[214](index=214&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) This section incorporates by reference the detailed discussion of legal matters from Note 10 of the financial statements - Information regarding legal proceedings is incorporated by reference from Note 10 to the Condensed Consolidated Financial Statements[217](index=217&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20RISK%20FACTORS) This section refers to the comprehensive risk factor discussion in the 2024 Annual Report, noting no material changes - A full discussion of risk factors is available in Item 1A of the company's 2024 Annual Report on Form 10-K[218](index=218&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased approximately $8 million of its common units under its existing equity repurchase program during the quarter Common Unit Repurchases | Period | Total Units Purchased | Average Price Paid | Value of Remaining Authorization | | :--- | :--- | :--- | :--- | | April 1-30, 2025 | 476,695 | $15.74 | $190,043,261 | [Other Items (3, 4, 5)](index=64&type=section&id=Other%20Items%20(3,%204,%205)) The report confirms no defaults on senior securities, no mine safety disclosures, and no new insider trading arrangements - There were no defaults on senior securities, no mine safety disclosures to report, and no new Rule 10b5-1 trading arrangements for directors or officers during the quarter ended June 30, 2025[221](index=221&type=chunk)[222](index=222&type=chunk)[223](index=223&type=chunk) [Item 6. Exhibits](index=65&type=section&id=Item%206.%20EXHIBITS) This section lists filed exhibits, including the Share Purchase Agreement for the sale of the Canadian NGL business - A key exhibit filed with this report is the Share Purchase Agreement dated June 17, 2025, for the sale of the Canadian NGL business to Keyera Corp[224](index=224&type=chunk)

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA attributable to Plains of $672 million for Q2 2025, with a full-year EBITDA guidance range of $2.8 billion to $2.95 billion remaining intact [4][10] - The crude oil segment adjusted EBITDA was $580 million, benefiting from Permian volume growth and higher throughput from refiner customers [9] - The NGL segment reported adjusted EBITDA of $87 million, which decreased sequentially due to normal seasonality and lower frac spreads [9] Business Line Data and Key Metrics Changes - The company executed a definitive agreement to sell substantially all of its NGL business to Keyera for approximately $3.75 billion, expected to close in 2026, which will streamline operations and reduce commodity exposure [5][12] - Year-to-date, the company completed five bolt-on transactions totaling approximately $800 million, indicating a strong focus on expanding its crude oil portfolio [6] Market Data and Key Metrics Changes - The company anticipates that new OPEC+ supply will be absorbed, reducing spare capacity, and that limited long-lead project additions will increase reliance on North American onshore production [13] - Management noted improving diesel demand from refiners, with no signs of slowdown in demand, indicating a positive outlook for the refining sector [20][21] Company Strategy and Development Direction - The divestiture of the NGL business marks a significant strategic shift towards focusing on crude oil operations, enhancing financial flexibility and operational efficiency [12][13] - The company aims to redeploy approximately $3 billion from the NGL sale into bolt-on acquisitions and optimizing its capital structure, including potential unit buybacks [5][36] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market dynamics, expecting fundamentals to improve in the long term due to population and economic growth driving energy demand [13][22] - The company remains committed to being a vital infrastructure provider for reliable energy across global markets, despite short-term volatility [13] Other Important Information - The company expects to generate approximately $870 million of adjusted free cash flow for 2025, with growth capital guidance increased to $475 million [10][11] - Maintenance capital is trending closer to $230 million, which is $10 million below the initial forecast [11] Q&A Session Summary Question: How does the company factor in sensitivity to basin-level growth in its bolt-on strategies? - Management considers all factors, focusing on discounted cash flow and integrated networks, while evaluating opportunities across different basins [16][17] Question: Can you provide insights on real-time demand signals and any signs of slowdown? - Management noted strong diesel demand and no expected slowdown, with a positive outlook for refining demand continuing [20][22] Question: Can you discuss the BridgeTex deal and its fit within the business? - The company is consolidating its interest in BridgeTex with ONEOK, focusing on optimizing cost structures and filling the pipeline [27][28] Question: What is the outlook for growth CapEx and its relation to producer activity? - The increase in growth CapEx reflects new opportunities and capturing business not previously anticipated, with a focus on synergy capture [29][54] Question: Is there a shift in messaging regarding distribution growth? - Management clarified that there is no intended shift; the goal remains to grow distributions sustainably over multiple years [39][40] Question: What is the guidance for the second half of the year? - Management indicated that contract roll-offs will impact the second half, but growing production and other factors will help backfill those losses [44] Question: How will the company approach potential larger acquisitions with the proceeds from the NGL sale? - The company is positioned to explore various opportunities, maintaining financial flexibility to execute on small, medium, or large acquisitions as they arise [46]

Core Insights - Plains All American Pipeline, L.P. (PAA) reported second-quarter 2025 adjusted earnings of 36 cents per unit, exceeding the Zacks Consensus Estimate of 30 cents by 20% and up from 31 cents in the same quarter last year [1][8] PAA's Total Revenues - Net sales for the quarter were $10.64 billion, missing the Zacks Consensus Estimate of $12.05 billion by 11.7% and down 16.6% from $12.76 billion in the year-ago quarter [2] Highlights of PAA's Earnings Release - Total costs and expenses were $10.4 billion, a decrease of 16.3% year over year, attributed to lower purchases and related costs [3] - Net interest expenses rose to $133 million, an increase of 19.8% from the prior-year quarter [3] - The company agreed to divest substantially all of its NGL business for approximately $3.75 billion, with expected closing in Q1 2026, pending regulatory approval [3] PAA's Segmental Performance - The Crude Oil segment's adjusted EBITDA was $580 million, up 0.7% from the year-ago quarter, driven by higher tariff volumes and contributions from recent acquisitions, though offset by fewer market opportunities and lower commodity prices [4] Financial Update - As of June 30, 2025, cash and cash equivalents were $459 million, up from $348 million as of December 31, 2024 [6] - Long-term debt increased to $8.21 billion from $7.21 billion as of December 31, 2024, with long-term debt-to-total book capitalization rising to 46% from 42% [6] PAA's 2025 Guidance - For 2025, PAA expects adjusted EBITDA to be in the range of $2.80-$2.95 billion and adjusted free cash flow anticipated at $870 million, excluding changes in assets and liabilities [7][9]

Financial Performance - 2Q25 Adjusted EBITDA attributable to PAA was $672 million[5] - Crude Oil Adjusted EBITDA was $580 million in 2Q25[5] - NGL Adjusted EBITDA was $87 million in 2Q25[5] - The company reaffirmed its full-year Adjusted EBITDA guidance of $2.80 - $2.95 billion[5] - The leverage ratio was 3.3x in 2Q25[5] Strategic Initiatives - The company is divesting its NGL business for approximately $3.75 billion[5] - Net proceeds from the NGL divestiture are expected to be around $3.0 billion after taxes, transaction expenses, and potential special distribution[5,8] - The company acquired an additional 20% interest in the BridgeTex Pipeline, bringing its total ownership to 40%[5] Capital Allocation - The company is targeting approximately $0.15/unit annual distribution growth from 2026 onwards until approximately 160% common unit coverage is reached[26] - The company increased its annual distribution by $0.25/unit to $1.52/unit in 2025[26] - The company has invested approximately $1.4 billion in bolt-on acquisitions since the second half of 2022[11,30]

Exhibit 99.1 Plains All American Reports Second-Quarter 2025 Results Houston, TX – August 8, 2025 – Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported solid second-quarter 2025 results and provided the following highlights: Second-Quarter Results Highlights and Recent Announcements "We continue to advance our strategic initiatives and delivered solid second-quarter performance in a volatile macro environment," said Willie Chiang, Chairman, CEO and President ...

Core Insights - Plains All American Pipeline, L.P. and Plains GP Holdings reported solid second-quarter 2025 results despite a volatile macro environment, with a focus on strategic initiatives and financial flexibility [3][7]. Financial Performance - Net income attributable to Plains All American Pipeline for Q2 2025 was $210 million, a decrease of 16% from $250 million in Q2 2024 [6][29]. - Adjusted EBITDA attributable to Plains All American Pipeline was $672 million for Q2 2025, showing a slight decrease from $674 million in Q2 2024 [8][29]. - The company reported net cash provided by operating activities of $694 million for Q2 2025, up 6% from $653 million in Q2 2024 [8][29]. Strategic Initiatives - The company is advancing its strategic initiatives, including the divestiture of its Canadian NGL business, expected to close in Q1 2026 for approximately $5.15 billion CAD ($3.75 billion USD) [4][7]. - Proceeds from the NGL sale, estimated at around $3.0 billion net USD, will be prioritized for bolt-on M&A, preferred unit repurchases, and opportunistic common unit repurchases [7][8]. - Plains All American Pipeline acquired an additional 20% interest in the BridgeTex Pipeline joint venture, increasing its total interest to 40% [7][8]. Operational Metrics - The company exited Q2 2025 with a leverage ratio of 3.3x, towards the low end of its target range of 3.25x - 3.75x [7]. - Adjusted Free Cash Flow for Q2 2025 was $348 million, a decrease of 15% from $411 million in Q2 2024 [8][29]. - The company reported a distribution per common unit of $0.38 for Q2 2025, up 20% from $0.3175 in Q2 2024 [8][29]. Market Conditions - The second-quarter 2025 Adjusted EBITDA from crude oil was stable compared to the previous year, supported by higher tariff volumes and contributions from recent acquisitions, but offset by lower commodity prices [16]. - Adjusted EBITDA from NGL decreased by 7% year-over-year, primarily due to lower iso-to-normal butane spread benefits [17].

Group 1 - Plains All American Pipeline is set to release its Q2 earnings results on August 8, with expected earnings of 33 cents per share, an increase from 31 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $12.86 billion, slightly down from $12.93 billion a year earlier [1] - On June 17, Plains All American and Plains GP Holdings finalized agreements to sell their NGL business to Keyera for $3.75 billion [2] Group 2 - Mizuho analyst Gabriel Moreen maintained an Outperform rating and raised the price target from $20 to $22 [7] - JP Morgan analyst Jeremy Tonet maintained a Neutral rating and increased the price target from $19 to $20 [7] - Citigroup analyst Spiro Dounis maintained a Neutral rating and cut the price target from $21 to $18 [7] - Barclays analyst Theresa Chen maintained an Underweight rating and lowered the price target from $19 to $18 [7] - Morgan Stanley analyst Robert Kad maintained an Equal-Weight rating and increased the price target from $19 to $23 [7]

Core Viewpoint - Plains All American Pipeline, L.P. (PAA) is anticipated to report a decline in both earnings and revenues for the second quarter of 2025, with earnings per unit expected at 30 cents, reflecting a year-over-year decrease of 3.23%, and revenues projected at $12.05 billion, indicating a decline of 6.84% [1][2]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for PAA's second-quarter earnings per unit is 30 cents, which represents a year-over-year decline of 3.23% [2]. - The consensus estimate for PAA's second-quarter revenues is $12.05 billion, implying a year-over-year decline of 6.84% [2]. Group 2: Factors Influencing Earnings - PAA operates a vast network of pipelines and storage facilities in major oil-producing regions, which is expected to have positively influenced second-quarter earnings due to steady revenue flow from creditworthy customers [3][8]. - The midstream assets managed by PAA are essential for the U.S. energy sector, facilitating efficient crude oil transportation, which likely contributed to improved performance in the second quarter [4]. - A significant portion of PAA's cash flow is derived from fee-based contracts, providing consistent income streams that are less affected by short-term oil price fluctuations, which is expected to positively impact second-quarter results [5][8]. Group 3: Earnings Prediction Model - The Zacks model does not predict an earnings beat for PAA, as it has an Earnings ESP of -6.04% and a Zacks Rank of 4 (Sell) [6].