Plains All American Pipeline to Sell NGL Business to Keyera for $5.15 Billion

Strategic Insights -

Plains All American Pipeline, L.P. has announced that it has entered into a definitive agreement to sell its natural gas liquids (NGL) business to Keyera Corp. for a total cash consideration of approximately $5.15 billion CAD ($3.75 billion USD). The transaction is expected to close in the first quarter of 2026, subject to satisfaction or waiver of customary closing conditions, including regulatory approvals. Plains will retain substantially all NGL assets located in the United States and all crude oil assets in Canada. The sale is expected to generate a foreign tax credit for PAA common unitholders at close of the transaction, which will offset a significant portion of the taxable gain passed through to individual unitholders.

Key Takeaways:

  • Plains All American Pipeline will sell its NGL business to Keyera Corp. for approximately $5.15 billion CAD ($3.75 billion USD).
  • The transaction is expected to close in the first quarter of 2026, subject to satisfaction or waiver of customary closing conditions.
  • Plains will retain substantially all NGL assets located in the United States and all crude oil assets in Canada.
  • The sale is expected to generate approximately $0.35/unit special distribution to holders of PAA common units and PAGP Class A shares.
  • The transaction is anticipated to generate current year earnings and profits for PAGP Class A shareholders.

Statistics:

  • Total cash consideration: $5.15 billion CAD ($3.75 billion USD)
  • Expected close date: First quarter of 2026
  • Retained NGL assets: United States
  • Retained crude oil assets: Canada
  • Estimated special distribution: $0.35/unit
  • Estimated entity-level taxes payable: $360 million USD
  • Expected foreign tax credit for PAA common unitholders: operates to offset taxable gain

Sources:

  • Plains All American Pipeline, L.P. (2025-06-17). Plains All American Pipeline, L.P. to Sell NGL Business to Keyera Corp. for $5.15 Billion.
  • Comtex_466462828 (2025-06-17). Plains All American Pipeline, L.P. Announces Definitive Agreement to Sell NGL Business to Keyera Corp.
  • Plains All American Pipeline, L.P. (2025-06-17). Plains All American Pipeline, L.P. Reports Second Quarter 2025 Results.