Keyera to buy Plains' Canadian natural gas liquids business for $3.77 billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 17 2025
0mins
Should l Buy PAA?
Source: Reuters
Keyera Corp Acquisition: Keyera Corp has agreed to purchase Plains' Canadian natural gas liquids business for C$5.15 billion, enhancing its infrastructure across Canada and reducing reliance on U.S. markets amid tariffs imposed by the Trump administration.
Transaction Details: The deal is expected to close in Q1 2026, with Plains reclassifying the NGL assets as discontinued operations while retaining its U.S. assets and incurring approximately $360 million in taxes related to the sale.
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Analyst Views on PAA
Wall Street analysts forecast PAA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PAA is 20.19 USD with a low forecast of 16.50 USD and a high forecast of 23.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
3 Buy
4 Hold
1 Sell
Hold
Current: 19.400
Low
16.50
Averages
20.19
High
23.00
Current: 19.400
Low
16.50
Averages
20.19
High
23.00
About PAA
Plains All American Pipeline, L.P. owns and operates midstream energy infrastructure and provides logistics services for crude oil and natural gas liquids (NGL). It owns a network of pipeline gathering and transportation systems, in addition to terminalling, storage, processing, fractionation and other infrastructure assets serving key producing basins, transportation corridors and major market hubs and export outlets in the United States and Canada. Its Crude Oil segment operations consist of gathering and transporting crude oil using pipelines, gathering systems, trucks and at times on barges or railcars. Its assets provide services to third parties as well as to its merchant activities. Its NGL segment operations involve natural gas processing and NGL fractionation, storage, transportation and terminalling. NGL segment offers merchant activities include the acquisition of extraction rights from producers and/or shippers of the gas streams that pass through its Empress facility.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Plains All American Reports Disappointing Q4 Earnings
- Earnings Report: Plains All American Pipeline reported Q4 earnings of $0.40 per share, missing the analyst consensus of $0.41, indicating a decline in profitability that may affect investor confidence.
- Sales Decline: The company reported quarterly sales of $10.565 billion, falling short of the $12.731 billion consensus estimate, reflecting weak market demand that could pressure future performance.
- Stock Price Reaction: Following the earnings announcement, Plains All American's shares fell 1.6% to $19.09, indicating market reaction to disappointing results, which may impact the company's short-term financing capabilities.
- Analyst Rating Adjustments: Analysts adjusted their price targets, with Wells Fargo raising its target from $20 to $21, while Barclays and Scotiabank increased their targets to $18 and $23 respectively, reflecting cautious optimism about the stock's future.
See More
Plains All American Pipeline Q4 2025 Earnings Call Insights
- Strategic Transition: Plains All American is undergoing a strategic transition by divesting its NGL business and acquiring the Cactus III pipeline, enhancing cash flow quality and sustainability, positioning the company competitively for future market cycles.
- Cost Savings Target: The company aims to achieve $100 million in annual cost savings by 2027, with approximately 50% expected to be realized in 2026, significantly improving operational efficiency and enhancing profitability.
- Distribution Policy Adjustment: A 10% quarterly distribution increase brings the annual distribution to $1.67 per unit, while lowering the coverage ratio threshold from 160% to 150%, reflecting improved business visibility and paving the way for future distribution growth.
- Financial Performance: The fourth quarter adjusted EBITDA reached $738 million, with a full-year adjusted EBITDA of $2.833 billion, demonstrating the company's financial resilience and growth potential during its transition phase.
See More
Plains All American Pipeline Q4 Earnings Miss Expectations
- Earnings Shortfall: Plains All American Pipeline reported a Q4 GAAP EPS of $0.26, missing expectations by $0.17, indicating a significant decline in profitability that could undermine investor confidence.
- Revenue Decline: The company’s Q4 revenue of $10.57 billion represents a 14.8% year-over-year drop and fell short of the expected $11.31 billion, reflecting weak market demand and operational challenges that may pressure future cash flows.
- Market Reaction: Following the disappointing results, BofA downgraded Plains All American to a 'Sell' rating, which could further erode investor confidence and negatively impact the stock price.
- Yield Sustainability Concerns: Although the company offers yields exceeding 8%, the current financial performance raises caution among investors regarding sustainability, particularly amid increasing market volatility.
See More
Plains All American Reports Strong 2025 Financial Results and 2026 Guidance
- Net Income Surge: Plains All American reported a net income of $342 million for Q4 2025 and $1.435 billion for the full year, marking an 86% increase from 2024, which reflects strong performance in the midstream oil and gas market and is likely to boost investor confidence.
- Adjusted EBITDA Growth: The company achieved an adjusted EBITDA of $738 million in Q4 and $2.833 billion for the year, demonstrating effective cost control and operational efficiency, which are expected to support future capital expenditures and distributions.
- 2026 Outlook and Distribution Increase: Plains anticipates a midpoint adjusted EBITDA of $2.75 billion for 2026 and announced a $0.15 per unit increase in distributions, representing a 10% rise in the annualized distribution rate, enhancing return expectations for investors and attracting more capital inflows.
- Strategic Asset Divestiture: The company plans to complete the sale of its Canadian NGL business by the end of Q1 2026, which is expected to optimize asset allocation and reduce leverage ratios, further solidifying its leadership position in the North American midstream market.
See More
PLAINS ALL AMERICAN PIPELINE REPORTS $10.565 BILLION IN Q4 REVENUES
- Revenue Overview: Plains All American reported Q4 revenues of $10,565 million.
- Financial Performance: The revenue figure indicates a significant financial performance for the company in the fourth quarter.
See More
PLAINS ALL AMERICAN PIPELINE REPORTS Q4 ADJUSTED EPS OF $0.40
Pipeline Overview: The Plains All American Pipeline is a significant player in the oil and gas industry, focusing on transportation and storage of crude oil and natural gas liquids.
Financial Performance: The company reported an adjusted earnings per share (EPS) of $0.40 for the fourth quarter, indicating a stable financial performance amidst market fluctuations.
See More
Plains All American Reports Disappointing Q4 Earnings
- Earnings Report: Plains All American Pipeline reported Q4 earnings of $0.40 per share, missing the analyst consensus of $0.41, indicating a decline in profitability that may affect investor confidence.
- Sales Decline: The company reported quarterly sales of $10.565 billion, falling short of the $12.731 billion consensus estimate, reflecting weak market demand that could pressure future performance.
- Stock Price Reaction: Following the earnings announcement, Plains All American's shares fell 1.6% to $19.09, indicating market reaction to disappointing results, which may impact the company's short-term financing capabilities.
- Analyst Rating Adjustments: Analysts adjusted their price targets, with Wells Fargo raising its target from $20 to $21, while Barclays and Scotiabank increased their targets to $18 and $23 respectively, reflecting cautious optimism about the stock's future.
See More
Plains All American Pipeline Q4 2025 Earnings Call Insights
- Strategic Transition: Plains All American is undergoing a strategic transition by divesting its NGL business and acquiring the Cactus III pipeline, enhancing cash flow quality and sustainability, positioning the company competitively for future market cycles.
- Cost Savings Target: The company aims to achieve $100 million in annual cost savings by 2027, with approximately 50% expected to be realized in 2026, significantly improving operational efficiency and enhancing profitability.
- Distribution Policy Adjustment: A 10% quarterly distribution increase brings the annual distribution to $1.67 per unit, while lowering the coverage ratio threshold from 160% to 150%, reflecting improved business visibility and paving the way for future distribution growth.
- Financial Performance: The fourth quarter adjusted EBITDA reached $738 million, with a full-year adjusted EBITDA of $2.833 billion, demonstrating the company's financial resilience and growth potential during its transition phase.
See More
Plains All American Pipeline Q4 Earnings Miss Expectations
- Earnings Shortfall: Plains All American Pipeline reported a Q4 GAAP EPS of $0.26, missing expectations by $0.17, indicating a significant decline in profitability that could undermine investor confidence.
- Revenue Decline: The company’s Q4 revenue of $10.57 billion represents a 14.8% year-over-year drop and fell short of the expected $11.31 billion, reflecting weak market demand and operational challenges that may pressure future cash flows.
- Market Reaction: Following the disappointing results, BofA downgraded Plains All American to a 'Sell' rating, which could further erode investor confidence and negatively impact the stock price.
- Yield Sustainability Concerns: Although the company offers yields exceeding 8%, the current financial performance raises caution among investors regarding sustainability, particularly amid increasing market volatility.
See More
Plains All American Reports Strong 2025 Financial Results and 2026 Guidance
- Net Income Surge: Plains All American reported a net income of $342 million for Q4 2025 and $1.435 billion for the full year, marking an 86% increase from 2024, which reflects strong performance in the midstream oil and gas market and is likely to boost investor confidence.
- Adjusted EBITDA Growth: The company achieved an adjusted EBITDA of $738 million in Q4 and $2.833 billion for the year, demonstrating effective cost control and operational efficiency, which are expected to support future capital expenditures and distributions.
- 2026 Outlook and Distribution Increase: Plains anticipates a midpoint adjusted EBITDA of $2.75 billion for 2026 and announced a $0.15 per unit increase in distributions, representing a 10% rise in the annualized distribution rate, enhancing return expectations for investors and attracting more capital inflows.
- Strategic Asset Divestiture: The company plans to complete the sale of its Canadian NGL business by the end of Q1 2026, which is expected to optimize asset allocation and reduce leverage ratios, further solidifying its leadership position in the North American midstream market.
See More
PLAINS ALL AMERICAN PIPELINE REPORTS $10.565 BILLION IN Q4 REVENUES
- Revenue Overview: Plains All American reported Q4 revenues of $10,565 million.
- Financial Performance: The revenue figure indicates a significant financial performance for the company in the fourth quarter.
See More
PLAINS ALL AMERICAN PIPELINE REPORTS Q4 ADJUSTED EPS OF $0.40
Pipeline Overview: The Plains All American Pipeline is a significant player in the oil and gas industry, focusing on transportation and storage of crude oil and natural gas liquids.
Financial Performance: The company reported an adjusted earnings per share (EPS) of $0.40 for the fourth quarter, indicating a stable financial performance amidst market fluctuations.
See More
