Plains All American to Sell Canadian NGL Business to Keyera in $3.75 Billion Deal
Plains All American has agreed to sell its Canadian natural gas liquids (NGL) business to Keyera for $3.75 billion, streamlining its portfolio to focus on U.S. crude operations. The deal, expected to close in Q1 2026, positions Plains as a pure-play midstream crude oil leader while enhancing free cash flow and reducing commodity exposure.
(P&GJ) — Plains All American Pipeline announced a definitive agreement to sell most of its Canadian natural gas liquids (NGL) business to Keyera Corp. for $3.75 billion (approximately $5.15 billion CAD). The deal is expected to close in Q1 2026, pending regulatory approvals.
Under the terms, Plains will divest its Canadian NGL operations but retain nearly all NGL assets in the U.S. and all crude oil assets in Canada. The transaction is expected to enhance Plains' positioning as a crude oil-focused midstream company and streamline operations.
“This is a win-win transaction,” said Willie Chiang, Chairman and CEO of Plains. “We’re exiting the Canadian NGL business at an attractive valuation, and Keyera is acquiring strategic infrastructure. Post-closing, we’ll be a premier crude oil midstream entity with enhanced free cash flow and reduced commodity exposure.”
Transaction Highlights:
- 13x 2025 DCF valuation
- Improved free cash flow with lower capex and taxes
- Reduces commodity-linked volatility and working capital demands
- Proceeds (approximately $3 billion net) to fund M&A, capital structure optimization, and potential $0.35/unit special distribution
Plains plans to use the proceeds to pursue bolt-on acquisitions, repurchase preferred and common units, and strengthen its balance sheet. A one-time special distribution is under consideration to help offset potential tax liabilities passed to unitholders.
The sale is considered a taxable event for holders of PAA common units and PAGP Class A shares, with varying impacts based on individual tax circumstances. Plains estimates it will pay $360 million in Canadian taxes related to the transaction and will reclassify the NGL assets as discontinued operations effective June 30, 2025.