Plains All American Pipeline reported Q3 2025 results that included an adjusted earnings per share of $0.39, beating the consensus estimate of $0.34 by $0.05 and a GAAP EPS of $0.44. Revenue, however, fell short of expectations, coming in at $11.58 billion versus the $12.96 billion forecast—an $1.38 billion miss driven largely by lower volumes and pricing pressure in the NGL segment, while the crude‑oil segment’s adjusted EBITDA rose 3% year‑over‑year thanks to higher throughput and tariff increases.
Net income for the quarter rose to $441 million from $220 million in Q3 2024, and adjusted EBITDA increased modestly to $669 million from $659 million. The jump in net income reflects tighter cost control and higher margins, particularly in the crude‑oil segment, even as overall EBITDA growth remained modest. The company’s operating leverage and disciplined spending helped offset the revenue shortfall.
The company completed its full acquisition of EPIC, securing 100% equity interest. The 45% stake closed on November 1 for approximately $1.33 billion, including $500 million of debt, while the 55% stake closed on October 31. The acquisition expands Plains’ Permian‑Basin footprint and is expected to deliver mid‑teen returns and a roughly 10× 2026 EBITDA multiple. Management plans to rebrand the EPIC system as Cactus III to align with its “wellhead‑to‑water” strategy.
Guidance for the full year was narrowed to an adjusted EBITDA range of $2.84 billion to $2.89 billion, incorporating an estimated $40 million contribution from EPIC. The tightening reflects management’s confidence in meeting the revised target amid the revenue miss, while still signaling a stable outlook for the remainder of the year.
Investors reacted by trimming the company’s valuation, with shares falling about 3% after the announcement. The decline was driven primarily by the revenue miss, which outweighed the EPS beat and underscored market concern over top‑line growth. The EPS beat, however, highlighted Plains’ operational efficiency and cost discipline.
Additional context: Plains raised $1.25 billion in senior unsecured notes in September 2025 to refinance debt and fund acquisitions. The company is also moving to divest its Canadian NGL business, expected to close in Q1 2026, to streamline operations and focus on its core crude‑oil midstream business. The leverage ratio at the end of the quarter was 3.3×, comfortably within the target range of 3.25×–3.75×.
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