PLAINS GP HOLDINGS LP recently released its 10-Q report. Plains GP Holdings, L.P., through Plains All American Pipeline, L.P., owns and operates midstream infrastructure in the United States and Canada. Its operations are split between crude oil and natural gas liquids, with activities that include gathering, transporting, terminalling, storage, processing, fractionation, and related services. The company is headquartered in Houston and was incorporated in 2013.
In Item 2, management said that as of March 31, 2026, the company’s sole cash-generating assets consisted of an approximately 85% limited partner interest in AAP, plus a 100% managing member interest in GP LLC. AAP held about 233.0 million PAA common units, equal to roughly 31% of PAA’s total outstanding common units and Series A preferred units combined.
The biggest strategic development was the pending sale of the Canadian NGL business. On June 17, 2025, the company signed a definitive agreement with Keyera to sell Plains Midstream Canada ULC, which owns substantially all of the Canadian NGL business. Management said the divestiture is intended to sharpen the company’s focus on core crude oil operations and reduce exposure to commodity price swings and seasonality. The sale is expected to close in May 2026.
For the first quarter, net income was $222 million, down from $492 million a year earlier. Income from continuing operations was $325 million, compared with $356 million in the prior-year quarter. Net income attributable to PAGP fell to $20 million from $84 million, and basic and diluted net income per Class A share declined to $0.10 from $0.42.
Revenue and cost lines both expanded. Product sales revenues rose 9% to $12.026 billion from $11.046 billion, while purchases and related costs increased 9% to $11.493 billion from $10.517 billion. Services revenues increased 3% to $444 million from $431 million.
Management tied the higher product sales and purchases to greater crude oil sales volumes and higher commodity prices. The company said the NYMEX Light, Sweet crude oil futures contract averaged $73 per barrel in the first quarter of 2026, compared with $71 per barrel a year earlier, with a wider trading range of $56 to $105 versus $66 to $80.
Services revenue was helped by recently completed acquisitions, including the Cactus III pipeline acquisition in the fourth quarter of 2025. That increase was partly offset by certain Permian long-haul pipeline contract rates resetting to market during 2025.
Field operating costs were essentially flat at $301 million, compared with $300 million a year earlier. General and administrative expenses fell to $83 million from $86 million, mainly because the prior-year quarter included acquisition-related transaction costs and the current quarter had lower information systems costs after systems conversion and integration work wrapped up.
Depreciation and amortization rose to $243 million from $232 million, which management said was largely driven by recent acquisitions. Gains on asset sales and other, net, increased to $53 million from $13 million, reflecting the mark-to-market impact of a deal-contingent forward currency instrument tied to the Canadian NGL sale.
Interest expense, net, climbed to $144 million from $107 million. Management attributed that increase to higher weighted-average debt outstanding, including $3.0 billion of senior notes issued during 2025 and higher commercial paper and term loan borrowings in 2026, partly offset by the repayment of $1.0 billion of senior notes in October 2025.
Other income/(expense), net moved to a $15 million expense from $6 million of income, mainly because of a $12 million foreign currency revaluation loss and a $6 million contingent consideration fair value adjustment related to the Cactus III acquisition. Income tax expense from continuing operations fell to $8 million from $32 million, with management pointing to lower earnings and restructuring activity tied to the Canadian NGL divestiture.
The company also said its first-quarter tax line included a current income tax expense of $216 million from basis recapture and capital gains, offset by a deferred tax benefit tied mainly to the transfer of crude oil assets from PMC ULC to PCLP. As a result of these announcements, the company's shares have moved -1.86% on the market, and are now trading at a price of $23.19. For the full picture, make sure to review PLAINS GP HOLDINGS LP's 10-Q report.
