Plains GP Holdings Reports $775 Million Net Income for First Half of 2025

Plains GP Holdings, L.P. reported a net income of $775 million for the six months ended June 30, 2025, an increase from $653 million in the same period of 2024. The company’s total revenues for the first half of 2025 were $22.1 billion, down 9% from $24.4 billion in the prior year, primarily due to a decrease in product sales revenues, which fell by 10% to $21.2 billion. The decline in revenues was attributed to lower commodity prices, despite an increase in crude oil sales volumes. The company’s operating income for the first half of 2025 was $591 million, compared to $685 million in the previous year.

In terms of operational metrics, Plains GP Holdings experienced a significant reduction in purchases and related costs, which decreased by 10% to $20.3 billion, reflecting the lower commodity prices. Field operating costs also saw a slight increase, totaling $585 million, up from $553 million in the prior year. General and administrative expenses rose marginally to $171 million, compared to $163 million in 2024. The company’s equity earnings from unconsolidated entities were $196 million, down from $201 million, indicating a slight decline in performance from joint ventures.

Strategically, Plains GP Holdings 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 assets and liabilities of the Canadian NGL business have been classified as held for sale, impacting the financial statements as discontinued operations.

The company also made several acquisitions in early 2025, including Ironwood Midstream for $481 million and Medallion Midstream for $163 million, which are expected to enhance its operational capacity in the crude oil segment. As of June 30, 2025, Plains GP Holdings reported total assets of $28.3 billion, up from $27.8 billion at the end of 2024, with cash and cash equivalents increasing to $460 million from $349 million. The company’s total debt rose to $8.7 billion, compared to $7.6 billion at the end of the previous year, reflecting its ongoing investment activities.

Looking ahead, Plains GP Holdings anticipates continued focus on its core operations and strategic acquisitions, while managing the impacts of market volatility and commodity price fluctuations. The company expects to maintain a strong liquidity position, with approximately $2.7 billion available to meet its operational and investment needs. The outlook remains cautious, with potential risks stemming from economic conditions, regulatory changes, and fluctuations in crude oil demand and prices.