Plains All American Pipeline, L.P. (Nasdaq: PAA) is a publicly traded master limited partnership that specializes in midstream energy infrastructure and logistics services for crude oil and natural gas liquids (NGL). The company operates an extensive network of gathering and transportation systems, along with terminal, storage, processing, and fractionation assets in North America, managing over 8 million barrels per day on average.

In the first quarter of 2025, Plains All American reported a net income attributable to PAA of $443 million, an increase of 67% from $266 million in the same period of 2024. The company’s adjusted EBITDA for the quarter was $754 million, up from $718 million a year earlier, representing a 5% increase. Plains maintained a leverage ratio of 3.3x, remaining at the lower end of its target range of 3.25x to 3.75x.

Plains also reported net cash provided by operating activities of $639 million for Q1 2025, a 53% rise compared to $419 million in the prior year. The company declared a quarterly cash distribution of $0.38 per unit, up 20% from $0.3175 a year ago, with a current distribution yield of approximately 9.0%.

Segment performance indicated a stable condition, with crude oil segment adjusted EBITDA at $559 million, nearly unchanged from the $553 million reported in Q1 2024. Meanwhile, the NGL segment saw adjusted EBITDA increase by 19% to $189 million, driven by higher frac spreads and sales volumes.

For the year, Plains has hedged around 80% of its C3+ spec product sales at an approximate level of $0.70 per gallon. The company’s capital expenditures for 2025 are planned at approximately $400 million, with a focus on areas such as the Fort Saskatchewan fractionation complex and recent acquisitions including a 50% interest in the Cheyenne Pipeline and Black Knight Midstream, valued at $55 million.

Guidance for 2025 remains cautious; Plains anticipates that ongoing volatility in the markets could place its EBITDA guidance and Permian growth outlook within the lower half of previously announced ranges, contingent on sustaining a WTI price of $60 to $65. The company forecasts a strong cash generation capacity, targeting adjusted free cash flow of about $1.1 billion, which will be reduced by approximately $635 million for acquisitions.