Plains All American Pipeline, L.P. (Nasdaq: PAA) operates midstream energy infrastructure providing logistics services for crude oil and natural gas liquids (NGL). The company is positioned within the North American energy sector, handling over 8 million barrels per day of crude oil and NGL.

For the first quarter of 2025, Plains All American reported a net income attributable to PAA of $443 million, a 67% increase from $266 million in the first quarter of 2024. The diluted net income per common unit rose to $0.49 from $0.29 year-over-year, representing a 69% increase. Net cash provided by operating activities increased by 53% to $639 million from $419 million in the prior year.

Adjusted EBITDA attributable to PAA reached $754 million, a 5% increase compared to $718 million in the prior year. Adjusted net income attributable to PAA was $375 million, a slight increase of 6% from $354 million a year ago. However, diluted adjusted net income per common unit decreased by 5% to $0.39 from $0.41.

Plains All American declared a quarterly cash distribution of $0.38 per unit, up 20% from $0.3175 a year prior. The distribution yield stands at approximately 9.0%. The leverage ratio at the end of the quarter was 3.3x, aligning with the target range of 3.25x to 3.75x.

On the revenue side, Plains posted revenues of $12.011 billion, slightly up from $11.995 billion a year prior. Costs and expenses totaled $11.478 billion, a decrease from $11.625 billion a year ago. The operating income for the quarter was $533 million, compared to $370 million in the same period last year.

In terms of segment performance, the Crude Oil Segment Adjusted EBITDA was $559 million, up 1% from $553 million, while NGL Segment Adjusted EBITDA increased by 19% to $189 million from $159 million.

For adjusted free cash flow, the company reported a negative figure of $(308) million, a significant decline from positive adjusted free cash flow of $70 million in the prior year. After distributions, adjusted free cash flow saw a further decline to $(639) million, compared to $(217) million in the first quarter of 2024.

Plains completed the acquisition of a 50% interest in Cheyenne Pipeline and Black Knight Midstream’s Permian Basin gathering business for approximately $55 million. Additionally, the 30 Mb/d Fort Saskatchewan fractionation complex debottleneck project has been placed in service. The company has increased its 2025 hedge profile for C3+ spec product sales to approximately 80% at around $0.70 per gallon.

Overall, the company presents a strong financial performance in Q1 2025 with notable increases in net income, operating income, and adjusted EBITDA, despite a decline in free cash flow.