DivestmentMay 12, 2026, 10:32 AM
Plains All American Completes $3.3B Canadian NGL Business Divestment
AI Summary
Plains All American Pipeline completed the previously announced sale of its Canadian NGL Business to Keyera Corp. for approximately $3.3 billion in net cash proceeds. The company plans to use these proceeds to repay outstanding indebtedness and for general partnership purposes, expecting its leverage ratio to trend toward the middle of its targeted range of 3.25 to 3.75x. This divestment marks Plains' transformation into a pure-play crude oil midstream company, aiming for increased durability, reduced commodity price volatility, and lower maintenance capital and corporate taxes.
Key Highlights
- Completed sale of Canadian NGL Business to Keyera Corp.
- Net cash proceeds from sale approximately $3.3 billion.
- Proceeds to be used for debt repayment and general partnership purposes.
- Expects leverage ratio to trend toward 3.25-3.75x target range.
- Transforms into a premier pure-play crude oil midstream company.
- No special distribution anticipated due to tax mitigation.
- Business expected to be more durable with less commodity price volatility.