Plains GP Holdings extends CEO equity grant and awards retention grants to executives

Plains GP Holdings LP (NASDAQ:PAGP), a prominent $4.39 billion player in the Oil, Gas & Consumable Fuels industry, announced Monday that its board of directors has approved changes to executive compensation, according to a statement based on a recent SEC filing. According to InvestingPro analysis, the company currently trades below its Fair Value, suggesting potential upside opportunity for investors.

On August 14, 2025, the board extended the expiration date of a long-term equity award granted to Chief Executive Officer and President Willie Chiang in August 2018. The amendment moves the expiration date from October 2025 to October 2030. The other terms of the grant, which includes 500,000 phantom units, remain unchanged. Vesting of these units is tied to Plains All American Pipeline, L.P. (PAA) achieving certain distributable cash flow (DCF) per common unit thresholds. This comes as the company maintains a strong dividend program, with an impressive 8.07% yield and a track record of raising dividends for three consecutive years, as revealed by InvestingPro data.

Under the grant’s terms, 25% of the phantom units will vest when PAA achieves at least $3.00 DCF per common unit on a trailing four-quarter basis, while the remaining 75% will vest when DCF per common unit reaches $3.50 on the same basis. Distribution equivalent rights (DERs) linked to the grant vest in stages, with one-third having vested in May 2019 and additional vesting tied to DCF per unit milestones of $2.60 and $2.80. The phantom units and associated DERs may also vest upon certain types of employment termination, including death, disability, termination without cause, change of control, or board-approved retirement. Any units or DERs not vested by October 1, 2030, will expire.

Also on August 14, the board approved special retention long-term incentive awards for two other executives. Jeremy Goebel, Executive Vice President and Chief Commercial Officer, received a five-year award of 545,550 phantom units, while Chris Chandler, Executive Vice President and Chief Operating Officer, received a three-year award of 327,350 phantom units. The Goebel Grant will vest in August 2030 and the Chandler Grant in August 2028, subject to continued service. DERs associated with these grants vest in annual increments and are paid quarterly after vesting, with similar provisions for accelerated vesting upon certain employment terminations.

This information is based on a press release statement filed with the Securities and Exchange Commission. While the company reported $47.8 billion in revenue over the last twelve months, analysts maintain a positive outlook, with InvestingPro data showing multiple analysts revising their earnings estimates upward for the upcoming period. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report about PAGP’s financial health and market position.

In other recent news, Plains GP Holdings reported its second-quarter 2025 earnings, which fell short of expectations. The company announced an earnings per share (EPS) of $0.15, significantly below the anticipated $0.33, representing a 54.55% negative surprise. Additionally, revenue was reported at $10.64 billion, missing the forecasted $12.87 billion by 17.33%. These results indicate a substantial shortfall in both earnings and revenue projections. Meanwhile, Stifel has reiterated its Buy rating on Plains GP Holdings, setting a price target of $23.00. Analyst Selman Akyol from Stifel maintained a positive outlook on the company. These developments highlight mixed sentiments surrounding Plains GP Holdings, with disappointing earnings results contrasted by continued analyst confidence.

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