Business
Plains All American Executes Definitive Agreements for $3.75 Billion Sale of NGL Business to Keyera
HOUSTON, June 17, 2025 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) (collectively, “Plains”)
About this update from Plains Gp Holdings, L.p.
[{"type":"text","content":"HOUSTON, June 17, 2025 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) (collectively, “Plains”) announced today that it has executed definitive agreements with Keyera Corp. (TSX: KEY) (“Keyera”) pursuant to which Plains will sell substantially all of its NGL business to Keyera for a total cash consideration of approximately $5.15 Billion CAD ($3.75 Billion USD). The transaction is expected to close in the first quarter of 2026, and is subject to customary closing conditions, including regulatory approvals. As a result of the transaction, Plains will divest its Canadian NGL business but will retain substantially all NGL assets in the United States and will also retain all crude oil assets in Canada. Transaction Benefits Results in premier midstream crude oil “pure play”: Positioned to drive efficient growth and streamlining opportunitiesMore durable cash flow stream: Reduces commodity related EBITDA contribution, seasonality and working capital requirementsAttractive valuation: Purchase price represents approximately 13x expected 2025 Distributable Cash Flow (DCF)Enhances free cash flow profile: Pro-forma business expected to generate higher percentage of \"excess cash flow\" with disproportionately lower capital investments and taxesProvides significant financial flexibility: Creates optionality to redeploy capital and execute existing capital allocation framework in a disciplined manner Capital AllocationProceeds from the transaction are expected to be approximately $3.0 Billion USD net after: 1) taxes 2) transaction expenses and 3) a potential one-time special distribution. The estimated ~$0.35/unit special distribution is intended to offset potential individual tax liabilities associated with the transaction and is subject to Board approval, ultimate tax implications, and successful closing of the transaction. Plains expects to continue executing on its long-term capital allocation framework. Proceeds from the transaction will be prioritized toward: Disciplined bolt-on M&A to extend and expand the crude oil focused portfolioCapital structure optimization including potential repurchases of Series A & Series B Preferred unitsOpportunistic common unit repurchases “Today’s announcement is a win-win transaction for both Plains and Keyera. Plains is exiting the Canadian NGL...