First Read: Plains All American Pipeline "Completes Divestiture of Canadian..."

Research evidence excerpt

First Read: Plains All American Pipeline "Completes Divestiture of Canadian..."

Global Research

12 May 2026ab

First Read

EquitiesPlains All American Pipeline

Completes Divestiture of Canadian NGL Business United States

(Positive) Pipelines

12-month rating Buy

12m price target US$25.00

What happened?

PAA and PAGP completed the previously announced sale of all of the issued and

outstanding shares of Plains Midstream Canada ULC, the PAA subsidiary that owns Price (11 May 2026) US$21.99

substantially all of PAA’s natural gas liquids business to Keyera Corp, pursuant to the RIC: PAA.O BBG: PAA US

terms of a definitive Share Purchase Agreement dated as of June 17, 2025 . PAA expects

Trading data and key metrics

to get Net cash proceeds of ~$3.3Bn from the closing of this transaction. Plains does not

anticipate paying a special distribution following the closing as the tax liability to 52-wk range US$23.02-15.85

unitholders resulting from the NGL divestiture is expected to be mitigated by bonus Market cap. US$15.5b

depreciation from the Cactus III acquisition. Shares o/s 706m (COM)

Free float 88%

Why is this important? Avg. daily volume ('000) 3,471

At the end of 1Q26, pro forma leverage ratio was 4.1x (on the higher side). Using cash Avg. daily value (m) US$75.2

proceeds from the sale of assets, PAA will repay certain outstanding indebtedness and Common s/h equity (12/26E) US$7.79b

for other general partnership purposes. Post closing, PAA expects its leverage ratio to P/BV (12/26E) 1.9x

trend toward the middle of its targeted range of 3.25 to 3.75x. Net debt to EBITDA (12/26E) 2.9x

EPS (UBS, diluted) (USD)

Competition Tribunal Process

12/26E

The Commissioner of Competition has filed an application with the Competition UBS Cons.

Tribunal in connection with the Transaction.