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NEW YORK - Plains GP Holdings (NASDAQ:PAGP) reported second-quarter 2025 earnings that fell short of analyst expectations, though shares edged up 0.6% following the announcement as investors focused on the company’s strategic initiatives.
The energy infrastructure company posted earnings per share of $0.15, missing the analyst consensus of $0.33 by $0.18. Revenue came in at $10.64 billion, below the $12.87 billion analysts had expected.
Despite these misses, the company reported net income attributable to PAA of $210 million and delivered Adjusted EBITDA attributable to PAA of $672 million.
The company’s shares moved slightly higher by 0.6% following the results, suggesting investors were looking beyond the quarterly miss to longer-term strategic developments.
"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.
"Our previously announced NGL divestiture is expected to close in the first quarter of 2026 and will improve our free cash durability, provide substantial financial flexibility and drive opportunities to streamline the business."
The company highlighted its agreement to divest substantially all of its NGL business for approximately $3.75 billion USD, with proceeds expected to be directed toward bolt-on acquisitions, preferred unit repurchases, and opportunistic common unit repurchases.
Additionally, Plains acquired an additional 20% interest in BridgeTex Pipeline Company, bringing its total interest to 40%.
Second-quarter Adjusted EBITDA from crude oil operations was in line with 2024 results at $580 million, up 1% YoY, while Adjusted EBITDA from NGL decreased 7% to $87 million due to lower iso-to-normal butane spread benefits.
The company reported a leverage ratio of 3.3x, toward the low end of its target range of 3.25x to 3.75x, indicating a relatively strong balance sheet position as it continues to execute on its strategic initiatives.
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