Plains GP (PAGP) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, February 6, 2026 astatine 10:13 AM CST 35 min read

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Friday, February 6, 2026 astatine 10 a.m. ET

• Chairman & Chief Executive Officer — Wilfred C.W. Chiang

• Executive Vice President & Chief Financial Officer — Al P. Swanson

• Executive Vice President & Chief Commercial Officer — Jeremy L. Goebel

• Executive Vice President & Chief Operating Officer — Christopher R. Chandler

• Director, Investor Relations — Blake Michael Fernandez

Wilfred C.W. Chiang: Thank you, Blake. Good morning, everyone, and convey you for joining us. Earlier this morning, we reported 4th fourth and full-year adjusted EBITDA attributable to Plains of $738 cardinal and $2.833 billion, respectively. 2025 was a pivotal twelvemonth for Plains. The marketplace situation presented aggregate challenges, including geopolitical unrest, actions from OPEC to summation lipid supply, and uncertainty connected the economical interaction from tariffs. As highlighted connected Slide four, contempt these distractions, we stay focused connected transitioning to a pure-play crude company, which besides serves arsenic a catalyst to streamline our operations and amended presumption Plains for the future.

This modulation is accelerated done the merchantability of our NGL business, on with the caller acquisition of the EPIC pipeline, present renamed Cactus III. These transactions heighten the prime and durability of our currency travel watercourse portion improving distributable currency travel and positioning america good for aboriginal marketplace cycles. 2026 volition beryllium a twelvemonth of execution and self-help, with a absorption connected 3 initiatives. First, we stay connected docket to adjacent the NGL divestiture adjacent the extremity of the archetypal quarter, pending Canadian Competition Bureau approval. Second, we are integrating the precocious acquired Cactus III pipeline and expect to thrust synergies related to that strategy to amended EBITDA.

And third, we are streamlining the enactment with a absorption connected efficiency, improving our outgo structure. Over the past respective months, we person precocious our streamlining initiatives and are targeting $100 cardinal of identified yearly savings done 2027, with astir 50% expected to beryllium realized successful 2026. The cardinal drivers of these efficiencies are outlined connected Slide 5 and see reducing G&A and OpEx to bespeak a much simplified business, consolidating operations, and exiting oregon optimizing lower-margin businesses. One illustration that illustrates our absorption connected higher-margin businesses is the merchantability of our Mid-Continent lease selling concern successful 2025 for a full information of astir $50 cardinal with minimal interaction to EBITDA.