Plains All American Completes $3.3B NGL Divestiture, Targets 3.25–3.75x Leverage
Plains All American and Plains GP Holdings completed the sale of their Canadian NGL business to Keyera for $3.3 billion net of adjustments, using proceeds to repay debt and support partnership operations. Leverage should land in 3.25–3.75x and Plains will forgo a special distribution via Cactus III bonus depreciation.
1. Transaction Completion and Proceeds Use
Plains All American and Plains GP Holdings finalized the sale of Plains Midstream Canada ULC, the Canadian natural gas liquids business, to Keyera for approximately $3.3 billion net of purchase price adjustments, taxes and related costs. Proceeds will be applied to repay outstanding indebtedness and for general partnership purposes.
2. Impact on Leverage and Distributions
Post-closing, Plains expects its leverage ratio to trend toward the middle of its 3.25–3.75x target range. The partnership will forgo a special distribution, as tax liabilities arising from the divestiture are offset via bonus depreciation associated with the Cactus III acquisition.
3. Strategic Focus and Outlook
This divestiture completes Plains’s shift to a pure-play crude oil midstream company, reducing commodity price volatility and maintenance capital requirements. The remaining asset base spans from Canada to the U.S. Gulf Coast, offering customers multiple export options including Corpus Christi, and positioning free cash flow for capital discipline and returns to unitholders.