Plains All American prices $1.25 billion debt offering

HOUSTON - Plains All American Pipeline, L.P. (NASDAQ:PAA), a midstream energy company with a market capitalization of $12.4 billion, has priced a $1.25 billion public offering of senior unsecured notes, the company announced Wednesday. According to InvestingPro analysis, the company maintains a GOOD financial health score, suggesting strong operational stability.

The offering consists of $700 million in 4.70% notes due 2031 and $550 million in 5.60% notes due 2036, priced at 99.865% and 99.798% of face value, respectively.

The company plans to use the approximately $1.24 billion in net proceeds to redeem its 4.65% Senior Notes due October 2025 and to partially fund its acquisition of a 55% non-operated interest in EPIC Crude Holdings, LP. Any remaining funds will be directed to general partnership purposes.

The debt offering is expected to close on September 8, 2025, subject to customary closing conditions. The closing is not contingent on completing either the note redemption or the EPIC acquisition.

BofA Securities, Barclays Capital, PNC Capital Markets, TD Securities and Wells Fargo Securities are serving as joint book-running managers for the offering.

Plains All American Pipeline owns and operates midstream energy infrastructure, providing logistics services for crude oil and natural gas liquids. The company handles over 8 million barrels per day of crude oil and NGL through its network of pipeline, storage, processing and transportation assets across the United States and Canada. With annual revenues of $47.8 billion and a strong free cash flow yield of 17%, the company demonstrates robust operational performance. Discover more detailed financial metrics and expert analysis with InvestingPro, including exclusive ProTips and comprehensive valuation models.

The offering is being made pursuant to an effective shelf registration statement previously filed with the U.S. Securities and Exchange Commission, according to the company’s press release statement.

In other recent news, Plains All American Pipeline reported its second-quarter 2025 results, highlighting an adjusted EBITDA of $672 million. This figure surpassed the consensus expectations of $670.5 million and UBS’s estimate of $669.4 million. During the earnings call, the company emphasized strategic shifts, including the sale of its NGL business and increased capital expenditure for growth projects. UBS has reiterated its Buy rating for Plains All American, setting a price target of $25. Similarly, Stifel also maintained its Buy rating with a $23 price target, noting the company’s focus on creating unitholder value. In addition, Plains All American announced changes to executive compensation, extending a long-term incentive grant for CEO Willie Chiang. The board approved a five-year extension for Chiang’s 2018 grant, which consists of 500,000 phantom units with specific vesting terms. These developments reflect the company’s ongoing efforts to enhance its financial performance and strategic positioning.

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