DivestmentMay 12, 2026, 05:27 PM
Plains GP Holdings Completes Canadian NGL Divestment for $3.3B Net
AI Summary
Plains GP Holdings LP announced the completion of the sale of its Canadian Natural Gas Liquids (NGL) Business to Keyera Corp. for approximately CAD $5.13 billion (USD $3.76 billion). The net proceeds of approximately $3.3 billion will be primarily used to reduce leverage, including the repayment of a $1.1 billion term loan and other outstanding debt. This transaction marks Plains' strategic transformation into a pure-play crude oil midstream company, aiming for a more durable business with reduced commodity price volatility and improved free cash flow.
Key Highlights
- Plains GP Holdings completed the sale of its Canadian NGL Business to Keyera Corp. on May 12, 2026.
- Received cash consideration of approximately CAD $5.13 billion (USD $3.76 billion).
- Net proceeds from the sale were approximately $3.3 billion after taxes and expenses.
- Net proceeds will be used to reduce leverage, including repaying a $1.1 billion term loan and 4.50% senior notes due December 2026.
- Company expects its leverage ratio to trend toward the middle of its targeted range of 3.25 to 3.75x.
- The divestiture completes Plains' transformation to a pure play crude oil midstream company.
Price Impact
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