PAGP · Plains GP Holdings, L.P.

On May 12, 2026, Plains GP Holdings (PAGP) announced the completion of the sale of its Canadian NGL business to Keyera Corp. for CAD $5.13 billion (approximately USD $3.76 billion). The transaction, which was previously announced and subject to a definitive Share Purchase Agreement dated June 17, 2025, as amended, represents a strategic shift for Plains to become a pure-play crude oil midstream company. Net proceeds of approximately $3.3 billion, after taxes and expenses, will be used to reduce leverage, including repayment of outstanding borrowings under PAA's commercial paper program, the term loan described below, and PAA's 4.50% senior notes due December 2026, as well as for other general partnership purposes. In connection with the sale, PAA and Keyera entered into transition services agreements to support the transition of the Canadian NGL Business. Additionally, the closing triggered a mandatory prepayment of all amounts outstanding under the $1.1 billion Term Loan Agreement entered into on November 26, 2025, which PAA intends to terminate and repay by May 14, 2026. Post-closing, Plains expects its leverage ratio to trend toward the middle of its targeted range of 3.25 to 3.75x. The company does not anticipate paying a special distribution, as the tax liability to unitholders is expected to be mitigated by bonus depreciation from the Cactus III acquisition. Management highlighted that the transaction completes the transformation to a more durable business with less commodity price volatility, supported by reduced maintenance capital and lower corporate taxes. The remaining crude oil footprint is highly competitive with integrated assets from Canada to the U.S. Gulf Coast, positioning Plains to capture value from recent geopolitical events.