Plains All American Pipeline Reports 16.6% Revenue Decline in Q2 2025

Plains All American Pipeline, L.P. reported a decline in financial performance for the second quarter of 2025, with total revenues of $10.6 billion, down 16.6% from $12.8 billion in the same period last year. The decrease was primarily driven by a 17% drop in product sales revenues, which fell to $10.2 billion from $12.4 billion. For the first half of 2025, total revenues were $22.1 billion, a decrease of 9.3% compared to $24.4 billion in the first half of 2024. The company’s net income attributable to Plains All American was $210 million for the quarter, down from $250 million a year earlier, while net income for the first half rose to $653 million from $515 million.

The company experienced a significant reduction in costs, with purchases and related costs decreasing by 18% to $9.8 billion for the quarter, and by 10% to $20.3 billion for the first half. This reduction in costs was attributed to lower commodity prices, which offset the impact of increased crude oil sales volumes. However, general and administrative expenses rose slightly, reflecting transaction costs associated with recent acquisitions. The company also reported a net loss from commodity derivative activities of $35 million for the quarter, compared to a loss of $5 million in the same period last year.

Strategically, Plains All American is in the process of divesting its Canadian NGL business, having entered into a definitive agreement with Keyera Corp. for approximately CAD 5.15 billion (around $3.75 billion). This transaction is expected to close in the first quarter of 2026 and is part of the company's strategy to focus on its core midstream crude oil operations. The operations of the Canadian NGL business have been classified as discontinued operations in the financial statements, reflecting a strategic shift that will significantly impact the company’s future financial results.

Operationally, the company reported a slight increase in crude oil pipeline tariff volumes, particularly in the Permian Basin, which saw a 28% increase in average daily volumes compared to the previous year. The total average volumes transported across all pipeline systems increased, contributing positively to the segment's performance. As of June 30, 2025, Plains All American had a working capital surplus of $9 million and approximately $2.7 billion in liquidity available to meet its ongoing operational and investment needs.

Looking ahead, Plains All American anticipates continued challenges due to fluctuating commodity prices and market conditions. The company remains focused on optimizing its operations and capitalizing on strategic opportunities, including potential acquisitions and divestitures. The outlook for the remainder of 2025 will depend on the successful execution of its strategic initiatives and the overall stability of the energy market.