Plains GP Holdings Reports $492 Million Net Income in Q1 2025, Driven by Strategic Acquisitions

Plains GP Holdings, L.P. reported a net income of $492 million for the first quarter of 2025, a significant increase from $336 million in the same period of 2024. This growth was primarily driven by favorable fluctuations in derivative mark-to-market valuations and higher Segment Adjusted EBITDA, which rose due to improved performance in both the Crude Oil and NGL segments. Total revenues for the quarter reached $12.011 billion, slightly up from $11.995 billion year-over-year, with product sales revenues remaining stable at $11.544 billion.

The company experienced a decrease in total costs and expenses, which fell to $11.479 billion from $11.626 billion in the previous year. Notably, purchases and related costs decreased by 1% to $10.761 billion, while field operating costs and general administrative expenses also saw minor reductions. The operating income for the quarter was reported at $532 million, compared to $369 million in the prior year, reflecting improved operational efficiency.

Strategically, Plains GP Holdings made significant acquisitions during the quarter, including Ironwood Midstream Energy Partners II, LLC for approximately $481 million, enhancing its gathering system in the Eagle Ford Basin. Additionally, the company acquired EMG Medallion 2 Holdings, LLC for $163 million, further expanding its crude oil gathering and transportation capabilities. The acquisition of the remaining 50% interest in Cheyenne Pipeline LLC was also completed, resulting in a net gain of $31 million.

Operationally, the company reported a working capital surplus of $45 million and approximately $2.6 billion in liquidity as of March 31, 2025. The Crude Oil segment generated revenues of $11.439 billion, while the NGL segment saw a 26% increase in revenues to $638 million, driven by higher sales volumes and improved frac spreads. The average daily volumes for NGL fractionation increased to 157,000 barrels per day, up from 128,000 barrels per day in the previous year.

Looking ahead, Plains GP Holdings anticipates continued growth driven by its strategic acquisitions and operational efficiencies. The company expects to maintain its strong liquidity position and is focused on leveraging its expanded asset base to enhance profitability. The outlook remains positive, with management emphasizing the importance of navigating market conditions and optimizing operational performance to sustain growth in the coming quarters.