Plains GP Holdings, L.P. (PAGP): Business Model Canvas [Dec-2025 Updated]

You're looking past the headlines to truly map out Plains GP Holdings, L.P.'s (PAGP) business now that they've committed to a pure-play crude oil strategy, and frankly, the structure is built for scale and stability. As someone who's spent two decades in this space, I see a model anchored by a massive network-over $\mathbf{20,000}$ miles of pipe-and a cash flow that's $\mathbf{85\%}$ fee-based, which is exactly what investors want to see, especially with YTD 2025 Adjusted EBITDA hitting $\mathbf{\$2,499}$ million. Still, managing $\mathbf{\$9,452}$ million in debt while funding a $\mathbf{\$475}$ million CapEx budget for 2025 requires precision. Check out the full Business Model Canvas below to see exactly how Plains GP Holdings, L.P. (PAGP) connects its assets to its revenue.

Plains GP Holdings, L.P. (PAGP) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that underpin Plains GP Holdings, L.P.'s (PAGP) operations, which are executed through its subsidiary, Plains All American Pipeline, L.P. (PAA). These partnerships are critical for asset optimization and portfolio focus as of late 2025.

Plains All American Pipeline (PAA) as the operating entity is actively streamlining its focus to be a premier crude oil midstream provider. This strategic shift is highlighted by recent major transactions. For instance, PAA closed on the acquisition of 100% of EPIC Crude Holdings, LP on October 31, 2025. The EPIC Pipeline, which PAA now wholly controls, has an operating capacity of over 600,000 barrels per day and approximately 7 million barrels of operational storage. To finance this, PAA entered a new $1.1 billion senior unsecured term loan agreement on November 26, 2025. PAA's reported net cash provided by operating activities for the third quarter of 2025 was $817 million, and the forecast for full-year 2025 Adjusted EBITDA attributable to Plains is in the range of $2.84 to $2.89 billion.

The relationship with Keyera Corp. centers on a significant portfolio adjustment. Plains executed definitive agreements to sell substantially all of its Canadian NGL business to Keyera Corp. for a total cash consideration of approximately C$5.15 billion (US$3.75 billion). This deal, expected to close in the first quarter of 2026, was struck at an attractive valuation, representing approximately 13x expected 2025 Distributable Cash Flow (DCF). Plains estimates it will pay $360 million in Canadian taxes related to this divestiture, with net proceeds expected to be around $3.0 billion USD after taxes and expenses. This move allows PAA to retain all crude oil assets in Canada and substantially all NGL assets in the United States.

The joint venture with ONEOK, Inc. in the BridgeTex Pipeline has evolved. As of July 2025, ONEOK increased its ownership stake to 60% by purchasing an additional 30% interest. PAA simultaneously announced an additional 20% stake for $100 million net to its interest, paying $180 million for that specific 20% stake, making PAA and ONEOK the sole owners. This effectively ended the prior ownership structure where OMERS held 50%, ONEOK 30%, and PAA 20%. The BridgeTex Pipeline stretches from the Permian to Houston and has a capacity of 440 Mb/d. The combined stakes imply a total valuation for BridgeTex of $900 million based on recent transaction multiples.

The final piece involves the relationships with major crude oil producers and shippers, which are secured through contracts. These contracts provide the stable fee-based revenue stream PAA is focusing on. For example, the recently acquired EPIC Pipeline system is underpinned by long-term minimum volume commitments from high-quality customers. Furthermore, PAA manages its commodity exposure through hedging; they increased their 2025 C3+ spec product sales hedge profile to approximately 80% at roughly $0.70 per gallon level.

Here's a quick look at the key joint venture structures:

These partnerships define the current structure, which is heavily weighted toward crude oil logistics following the Keyera deal. You can see the shift in focus when you look at the assets retained versus those sold off.

• PAA retained substantially all NGL assets in the United States.
• PAA retained all crude oil assets in Canada.
• The Canadian NGL divestiture is valued at approximately C$5.15 billion.
• The BridgeTex ownership change implies a $900 million valuation for the asset.
• PAA secured a new term loan of $1.1 billion in November 2025.

Plains GP Holdings, L.P. (PAGP) - Canvas Business Model: Key Activities

You're looking at the core engine of Plains GP Holdings, L.P. (PAGP) operations as of late 2025. These are the actions that drive the business, grounded in the numbers we see from their recent filings.

Operating and Maintaining Infrastructure

The sheer scale of the physical assets is a primary activity. While the exact total pipeline mileage isn't explicitly stated in the latest reports, the operational scope is massive. Plains All American Pipeline, L.P. (PAA), the operating subsidiary, handles a significant volume of product daily, which is the real measure of activity here.

• PAA handles approximately eight million barrels per day of crude oil and natural gas liquids (NGL) on average.
• The recently acquired EPIC Crude Pipeline, now 100 percent owned, spans approximately 800 miles from the Permian and Eagle Ford basins to Corpus Christi.

Executing Disciplined Bolt-on M&A

Plains GP Holdings, L.P. has been actively growing through strategic acquisitions that complement its existing footprint. The major move in late 2025 was securing full control of the EPIC Crude Pipeline, which strengthens the Permian wellhead to water strategy.

Earlier in 2025, the company also executed several smaller, strategic bolt-on acquisitions for an aggregate cash consideration net to Plains of approximately $670 million.

Managing Commodity Risk

A key activity is structuring contracts to ensure stable cash flows, which is vital for maintaining distributions and managing debt. This is achieved by locking in revenues through long-term agreements rather than relying solely on fluctuating commodity prices.

• The EPIC Crude acquisition is supported by long-term minimum volume commitments from shippers.
• The overall financial strategy focuses on maintaining an investment grade credit profile while ensuring balance sheet flexibility.

Optimizing Capital Structure and Managing Debt

The management of the balance sheet is a constant, high-priority activity, especially following major acquisitions. The goal is to keep leverage within a defined range to maintain financial flexibility.

As of September 30, 2025, the total debt on the balance sheet stood at $9,452 million. This level resulted in a reported leverage ratio of 3.3x for Q3 2025, which aligns with the company's target range of 3.25x to 3.75x. To manage this, Plains GP Holdings, L.P. raised $1.25 billion in senior unsecured notes in September 2025 to refinance maturing debt and partially fund the EPIC acquisitions.

Plains GP Holdings, L.P. (PAGP) - Canvas Business Model: Key Resources

You're looking at the hard assets and financial backing that make Plains GP Holdings, L.P. (PAGP) tick, which is really about the infrastructure owned by its operating partnership, Plains All American Pipeline (PAA). These resources are the foundation for their fee-based earnings.

Extensive crude oil pipeline and gathering system network

The sheer scale of the physical network is a primary resource. Plains All American Pipeline (PAA) operates an infrastructure footprint connecting major supply basins to key demand centers and export outlets across North America.

• PAA owns interests in approximately 18,370 miles of active pipelines and gathering systems.
• As of Q3 2025, PAA handles on average over nine million barrels per day of crude oil and Natural Gas Liquids (NGL).
• The White Cliffs Pipeline system includes one crude oil pipeline with approximately 100,000 barrels per day of capacity.
• Recent bolt-on acquisitions, like the 55% interest in EPIC Crude Holdings LP, add approximately 800 miles of long-haul pipelines with operating capacity over 600,000 barrels per day.

Here's a quick look at the capacity additions and scale:

Crude oil storage capacity of 72 million barrels

Storage is critical for market optionality and managing logistics bottlenecks. Plains All American Pipeline (PAA) maintains significant storage assets across its system, which are vital for their marketing and terminalling activities.

While you mentioned 72 million barrels, the most recently reported figure for PAA's crude oil storage capacity is slightly higher, giving them substantial inventory holding capability.

• PAA owns crude oil storage capacity for about 75 million barrels.
• PAA also holds storage capacity for 28 million barrels of NGLs.
• The acquired interest in EPIC Crude Holdings adds approximately 7 million barrels of operational storage.

Indirect General Partner (GP) interest in Plains All American Pipeline (PAA)

Plains GP Holdings, L.P. (PAGP) derives its primary value from its ownership structure in Plains All American Pipeline, L.P. (PAA). PAGP consolidates PAA's results because of this control structure.

PAGP owns an indirect non-economic controlling general partner interest in PAA's general partner and an indirect limited partner interest in PAA. This structure allows PAGP to control PAA's operations while insulating the parent entity from certain liabilities associated with the operating partnership's general partner role.

Financial flexibility from the $3 billion NGL sale proceeds

The pending divestiture of the NGL business provides a significant near-term cash infusion, which is earmarked for capital allocation priorities, enhancing financial flexibility.

Agreements were executed to divest substantially all of the NGL business, with an expected closing in the first quarter of 2026. The expected net cash consideration is substantial.

• Total cash consideration for the NGL divestiture is approximately $5.15 billion CAD.
• The net USD proceeds are estimated around $3.0 billion net USD.
• These NGL sale proceeds will be prioritized for bolt-on Mergers and Acquisitions (M&A), preferred unit repurchases, and opportunistic common unit repurchases.

The expected leverage ratio post-acquisition of EPIC and closing of the NGL divestiture is projected toward the midpoint of the target range, around 3.5x.

Plains GP Holdings, L.P. (PAGP) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Plains GP Holdings, L.P. (PAGP) is a critical piece of North American energy infrastructure right now. The value proposition centers on moving massive volumes of crude oil reliably from where it's produced to where it's needed, especially for export.

Integrated, wellhead-to-water crude oil logistics in North America

Plains GP Holdings, L.P. offers a comprehensive system connecting supply basins to major market hubs and export outlets across the United States and Canada. This integration is key to their value. For instance, Plains acquired Black Knight Midstream's Permian Basin crude oil gathering business, effective May 1, 2025, strengthening their footprint in that prolific basin. On average, the company handles approximately eight million barrels per day of crude oil and Natural Gas Liquids (NGL). Furthermore, strategic acquisitions, like the one for EPIC Crude Holdings, are designed to enhance this connectivity.

The scope of this logistics network can be summarized:

Stable cash flow from an 85% fee-based revenue model

The stability you seek comes largely from a revenue structure heavily reliant on long-term contracts rather than volatile commodity prices. While the exact figure for 2025 is specified in the model as 85%, the strategic shift reinforces this. Plains GP Holdings, L.P. is actively repositioning as a pure-play crude oil midstream operator, which typically implies a higher proportion of fee-based revenue. The company's Q1 2025 results showed that a debottleneck project at the Fort Saskatchewan fractionation complex was placed into service specifically to enhance their fee-based cash flow in Canada. This structure underpins their ability to generate consistent cash flow, as evidenced by the Q3 2025 net income attributable to PAGP rising to $83 million, up from $33 million in the prior year period.

Critical access for Permian and Eagle Ford crude to Gulf Coast export markets

Plains GP Holdings, L.P. is positioned as a crucial link for crude oil produced in the Permian Basin and Eagle Ford regions to reach the growing U.S. Gulf Coast export infrastructure. This is a primary strategic pillar for the company in 2025. The company's assets are strategically located to capitalize on this flow. For example, management noted that they are poised to benefit from utilizing the broader Plains Permian and Eagleford asset base to drive volumes to the EPIC Crude's downstream assets. One analysis from late 2025 suggested Plains' infrastructure captures 25% of Permian production.

Key elements supporting this critical access include:

• Permian Basin Dominance: Expanding gathering and transportation capacity.
• Gulf Coast Export Growth: Developing infrastructure to support U.S. crude exports.
• EPIC System: Provides additional egress to the U.S. Gulf Coast.

Predictable capital returns for investors; annualized distribution is $1.52

The commitment to unitholder returns is a direct value proposition, providing a predictable income stream even amidst market shifts. For the third quarter of 2025, Plains GP Holdings, L.P. announced a quarterly cash distribution of $0.38 per Class A Share. This translates directly to an annualized distribution of $1.52 per Class A Share, which was unchanged from the distribution paid in May 2025. This consistent payout signals management confidence in the underlying cash flow generation capabilities of the midstream assets. The company is targeting full-year 2025 Adjusted EBITDA guidance in the range of $2.84 to $2.89 billion.

Plains GP Holdings, L.P. (PAGP) - Canvas Business Model: Customer Relationships

You're looking at how Plains GP Holdings, L.P. manages its relationships with its core customers-the major producers and refiners-and its Class A shareholders. This relationship structure is heavily weighted toward long-term stability, which is typical for a midstream infrastructure business.

The scale of the customer base, which includes producers and refiners across North America, is reflected in the sheer volume Plains All American Pipeline, L.P. (PAA), the underlying operating partnership, handles. As of early 2025 filings, on average, PAA handles approximately eight million barrels per day of crude oil and NGL. This massive throughput underpins the long-term fee-based cash flow generation.

The commitment to anchor shippers and long-term revenue stability is evident in the company's focus on contract structure, even if specific contract lengths aren't public. The financial results for the third quarter ended September 30, 2025, showed total sales of $11.58 billion. The company's strategy relies on these contracts to support its operations, particularly in key areas like the Permian Basin, where the 2025 growth outlook targeted 200,000 to 300,000 barrels per day of volume increase.

Here is a look at the financial metrics tied to the customer and shareholder base as of late 2025:

For PAGP Class A shareholders, the relationship is maintained through consistent capital returns and regular communication. The quarterly distribution has been held steady, signaling confidence in cash flow generation, though you need to watch the coverage ratios. The Q3 2025 quarterly distribution was $0.38 per Class A share, which annualizes to $1.52 per Class A Share. This rate represented a 20% increase on an annualized basis compared to the November 2024 distribution.

The high-touch element is supported by the regular cadence of formal engagement:

• Quarterly earnings conference calls held with analysts and investors in May 2025, August 2025, and November 2025.
• Qualified Notices regarding PAA distributions are posted on the Plains website under the "Investor Relations - Unit Information" section.
• The presentation slides for earnings calls are posted on the Investor Relations website under the News and Events section at ir.plains.com.

The expected non-taxable return of capital nature of the PAGP distribution, to the extent of the shareholder's tax basis, is a specific feature communicated to tax-conscious investors. This is definitely a point of focus in investor discussions.

Finance: draft Q4 2025 cash flow forecast by next Tuesday.

Plains GP Holdings, L.P. (PAGP) - Canvas Business Model: Channels

You're looking at how Plains GP Holdings, L.P. (PAGP), through its operating partnership PAA, physically moves and stores the product. This is all about hard assets connecting supply basins to market hubs.

Crude oil pipeline systems across the US and Canada

The core of the Channels segment is the vast network of pipelines. As of early 2025, PAA was handling, on average, approximately eight million barrels per day of crude oil and NGLs across its systems in the US and Canada. By the third quarter of 2025, this average throughput had increased to over nine million barrels per day of crude oil and NGL combined. This network includes both long-haul transportation and gathering systems.

The company has been actively expanding through bolt-on acquisitions. For instance, in September 2025, PAGP agreed to acquire a 55% non-operated interest in EPIC Crude Holdings, LP. This specific asset adds approximately 800 miles of long-haul pipelines, including the EPIC Pipeline, with an operating capacity exceeding 600,000 barrels per day, serving the Permian and Eagle Ford basins to the Gulf Coast. Furthermore, as of December 31, 2024, the assets utilized in the Crude Oil segment included 18,800 miles of active crude oil transportation pipelines and gathering systems.

Storage and terminalling facilities at major hubs like Cushing

Storage is critical for balancing supply and demand, and Plains GP Holdings, L.P. maintains significant commercial storage capacity. As of the end of 2024, the company held 72 million barrels of commercial crude oil storage capacity across its terminalling and storage locations.

Cushing, Oklahoma, is a key hub where PAGP is the largest provider of crude oil terminalling services. The total capacity at Cushing is listed at 27 MMBbls (million barrels). The acquisition of the remaining 50% interest in Cheyenne Pipeline, which closed in February 2025, further enhanced integration into pipelines supplying Cushing. The Midland, Texas hub, which offers access to Permian Basin gathering pipelines, has a total capacity of 8 MMBbls.

The EPIC Crude Holdings acquisition also added approximately 7 million barrels of operational storage. Furthermore, Plains has other strategic sites:

• Marine facilities in the US: four sites
• Export capacity at Corpus Christi, St. James, and Mobile sites
• St. James and Patoka terminals connect to the Capline pipeline

Truck and rail fleet for flexible, last-mile crude gathering

When pipelines aren't the answer, or for initial gathering, Plains relies on its truck and rail assets. These provide the flexibility for last-mile logistics and moving product between hubs.

Looking at the end of 2024 data, the fleet supporting the Crude Oil segment included:

• Crude oil railcars: 1,250 units
• Trucks: 815 units
• Trailers: 1,335 units

The rail terminals provide significant throughput capability. Aggregate capacity for loading and unloading railcars was reported as 264,000 barrels per day for loading and 380,000 barrels per day for unloading. The company also has condensate processing capacity, with the Gardendale facility stabilizing condensate from the Eagle Ford area gathering systems.

Plains GP Holdings, L.P. (PAGP) - Canvas Business Model: Customer Segments

You're looking at the core groups that keep Plains GP Holdings, L.P. (PAGP) moving product and cash flow. As a pure-play crude oil midstream company following the June 2025 divestiture of its NGL business, the customer base is sharply focused on crude oil logistics. Honestly, these segments are all about volume commitments, throughput fees, and investor yield.

The primary customers for the underlying operations of Plains All American Pipeline, L.P. (PAA) fall into two main operational buckets. First, you have the producers, the crude oil and condensate exploration and production (E&P) companies, mainly in basins like the Permian. Their need to move barrels dictates the utilization of PAGP's gathering and transportation systems. Second, you have the downstream customers-the major refiners and crude oil marketers who take delivery at market hubs or export points. The health of this second group is key; for instance, Q2 2025 adjusted EBITDA saw a sequential benefit as refiner customers returned from downtime. PAGP's strategic growth, like the capital allocated to new Permian lease connects, is directly tied to securing and growing volumes from these two groups.

The third segment is distinct: the investors holding PAGP Class A Shares. These are the capital providers seeking income from the fee-based cash flows generated by the midstream assets. The commitment to this group is clear through the consistent distribution policy. As of late 2025, the quarterly distribution was $0.38 per Class A Share, which annualizes to $1.52 per share, representing a yield of approximately 8.1% based on recent market pricing. This income stream is a major draw for investors, though you always need to monitor it against free cash flow, especially given the capital spending on acquisitions like the 100% equity interest purchase in EPIC Crude Holdings.

Here's a quick look at the scale and investor profile as of the latest reporting:

The operational focus is clearly shifting toward maximizing returns from the crude oil assets, which is where the E&P and refiner segments interact most directly. The company's strategy involves integrating assets like the recently acquired EPIC Crude system to extend contract duration, which directly impacts the revenue predictability for all customers.

You should keep an eye on these key customer-related activities:

• Monitoring the full impact of the EPIC Crude Holdings acquisition on long-haul volumes.
• Tracking the progress of the stated Permian volume growth guidance for the remainder of 2025.
• Assessing the stability of the $0.38 quarterly distribution against the reported Adjusted EBITDA of $669 million for Q3 2025.
• Noting the strategic shift away from NGLs, which impacts the historical customer base in that area.

What this estimate hides is the specific contract structure-how much volume is firm fee versus market-exposed-which is what really drives the stability for the refiners and marketers you deal with. Finance: draft 13-week cash view by Friday.

Plains GP Holdings, L.P. (PAGP) - Canvas Business Model: Cost Structure

The cost structure for Plains GP Holdings, L.P. (PAGP) is heavily weighted toward maintaining its extensive midstream asset base and servicing its significant leverage. You'll see that fixed and variable infrastructure costs, coupled with financing obligations, form the core of the expense profile for late 2025.

The sheer scale of the asset base drives substantial operating costs. For the fiscal quarter ending in September of 2025, Plains GP reported Operating Expenses of $11.19B. This figure captures the day-to-day running of the pipelines and facilities, which is a major, recurring outlay.

Financing costs are a notable component, directly linked to the company's capital structure. As of September 30, 2025, Plains GP Holdings, L.P. carried total debt of $9,452 million. This level of debt results in considerable interest payments; for the quarter ending in September of 2025, the reported Interest Expense on Debt was $135 million.

Investment in the asset base, both for growth and upkeep, represents another major cost area. The growth capital expenditures (CapEx) budget for the full year 2025 was ultimately set at $475 million, an increase from earlier projections. This spending is aimed at expanding capacity, particularly in the Permian Basin. Furthermore, costs associated with ensuring the network remains safe and operational are significant, with maintenance capital expenditures trending closer to $230 million for 2025.

Here's a quick look at some of the key financial figures impacting the cost structure as of late 2025:

The costs tied to maintaining the physical infrastructure are multifaceted. These expenses cover routine operations, regulatory compliance, and proactive integrity management. Key areas driving these infrastructure-related costs include:

• Routine pipeline inspection and testing.
• Scheduled preventative maintenance shutdowns.
• Compliance with federal pipeline safety regulations.
• Costs for linefill replacement and inventory management.

Plains GP Holdings, L.P. (PAGP) - Canvas Business Model: Revenue Streams

You're looking at the core ways Plains GP Holdings, L.P. (PAGP) brings in money, which is primarily through its ownership of Plains All American Pipeline, L.P. (PAA). The business model leans heavily on long-term, fee-based contracts, which helps smooth out the volatility you see in commodity prices. For the third quarter ending September 30, 2025, PAGP reported total sales of $11.58 billion for that period. The trailing twelve months revenue ending September 30, 2025, stood at $46.63 billion.

The revenue streams are built on moving and storing hydrocarbons. Here's how those dollars flow:

• Fee-based revenue from pipeline tariffs and transportation services.
• Storage and terminalling fees from capacity reservations.
• Distribution income from the limited partner interest in PAA.

The performance of these streams is often tracked through Adjusted EBITDA attributable to Plains All American Pipeline, L.P. (PAA). For the first quarter of 2025, PAA delivered Adjusted EBITDA of $754 million. This was followed by $672 million in Adjusted EBITDA attributable to PAA for the second quarter of 2025. The company's full-year 2025 guidance for this metric was set between $2.80 billion and $2.95 billion. You asked specifically about the Year-to-Date (YTD) 2025 Adjusted EBITDA attributable to PAA, which is reported as $2,499 million.

The fee-based revenue component, which is the backbone of the stability, benefits from volume growth and contract escalations. For instance, in Q1 2025, Adjusted EBITDA from Crude Oil was positively impacted by higher tariff volumes and tariff escalations. Conversely, the NGL segment saw its Adjusted EBITDA rise 19% year-over-year in Q1 2025, driven by higher sales volumes and frac spreads.

Storage and terminalling fees are bundled into the overall segment performance, but the commitment to capacity reservations provides a reliable floor for cash flow. The company's overall capital allocation strategy is supported by its projected cash generation. Plains All American projected Adjusted Free Cash Flow of approximately $1.1 billion for the full year 2025.

The distribution income stream for PAGP comes from its limited partner interest in PAA. For the second quarter of 2025, PAGP Class A Shares received a quarterly cash distribution of $0.38 per share, which is the same as the previous distribution. This implies an annualized distribution rate of $1.52 per Class A Share. For you as a shareholder, it's important to note that the PAGP distribution is expected to be a non-taxable return of capital to the extent of your tax basis.

Here's a quick look at the key performance indicators related to cash generation and distributions in 2025:

The stability of the fee structure is a key driver, even as regulatory changes loom. For example, the 2025 FERC tariff index review is expected to potentially cap tariff growth, which could mean billions in lost revenue across major operators over time, underscoring the importance of volume and capacity reservation fees. Still, the company's reported Q3 2025 net income of $83 million, despite lower sales compared to a year ago, reflects improved profitability, which supports these revenue streams.

Finance: draft a sensitivity analysis on the impact of the lower 2025 FERC tariff index on projected 2026 fee-based revenue by next Wednesday.