Plains to Complete NGL Divestiture to Keyera in May 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy PAGP?
Source: Globenewswire
- Transaction Update: Plains All American Pipeline and Keyera Corp are set to complete the NGL divestiture by May 2026, with the Canadian Competition Bureau challenging the deal but not preventing its closure, indicating strong confidence from both parties.
- Strategic Business Transformation: Post-divestiture, Plains will become a pure-play crude oil midstream company, with integrated assets spanning from Canada to the U.S. Gulf Coast, enhancing its market competitiveness and operational efficiency.
- Market Risk Advisory: While the transaction is expected to proceed smoothly, the company faces various uncertainties, including economic, market, and legal factors that could lead to discrepancies between actual results and expectations, necessitating ongoing market monitoring.
- Company Overview: Plains is a publicly traded master limited partnership that handles approximately nine million barrels of crude oil and NGL daily, boasting an extensive network of pipeline and transportation systems dedicated to providing logistics services for North America's energy infrastructure.
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Analyst Views on PAGP
Wall Street analysts forecast PAGP stock price to fall
6 Analyst Rating
2 Buy
3 Hold
1 Sell
Hold
Current: 24.230
Low
16.50
Averages
20.42
High
23.00
Current: 24.230
Low
16.50
Averages
20.42
High
23.00
About PAGP
Plains GP Holdings, L.P. through Plains All American Pipeline, L.P. (PAA), owns and operates midstream energy infrastructure and provides logistics services for crude oil and natural gas liquids (NGL). The Company operates through two segments: Crude Oil and NGL. The Crude Oil segment operations generally consist of gathering and transporting crude oil using pipelines (including gathering systems), trucks, and at times on barges or railcars, in addition to providing terminalling, storage and other related services utilizing its integrated assets across the United States and Canada. The NGL segment operations involve natural gas processing and NGL fractionation, storage, transportation and terminalling. The NGL segment is engaged in providing gathering, fractionation, storage, and/or terminalling services to third-party customers, extracting NGL mix from the gas stream processed at its Empress straddle plant facility as well as acquiring NGL mix.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Canada's Competition Bureau Challenges Keyera Acquisition
- Acquisition Challenge: Canada's Competition Bureau has filed an application to challenge Keyera's proposed acquisition of Plains All American Pipeline, claiming it would reduce competition at the crucial Fort Saskatchewan hub, potentially increasing costs for energy producers.
- Transaction Value: Plains agreed to sell nearly all of its Canadian natural gas liquids business to Keyera for approximately C$5.15 billion (US$3.75 billion) in cash, with the Bureau asserting that this deal would reduce the number of major competitors from three to two.
- Market Impact: The Bureau highlighted that the merger would grant the combined entity greater pricing power and the ability to impose less favorable contract terms, negatively impacting the entire supply chain and harming Canadian energy producers.
- Keyera's Response: Keyera disagrees with the Bureau's assertions, stating that the transaction will enhance competition and provide customers with improved access to key markets, and it intends to respond to the Bureau's application.
See More
Plains to Complete NGL Divestiture to Keyera in May 2026
- Transaction Update: Plains All American Pipeline and Keyera Corp are set to complete the NGL divestiture by May 2026, with the Canadian Competition Bureau challenging the deal but not preventing its closure, indicating strong confidence from both parties.
- Strategic Business Transformation: Post-divestiture, Plains will become a pure-play crude oil midstream company, with integrated assets spanning from Canada to the U.S. Gulf Coast, enhancing its market competitiveness and operational efficiency.
- Market Risk Advisory: While the transaction is expected to proceed smoothly, the company faces various uncertainties, including economic, market, and legal factors that could lead to discrepancies between actual results and expectations, necessitating ongoing market monitoring.
- Company Overview: Plains is a publicly traded master limited partnership that handles approximately nine million barrels of crude oil and NGL daily, boasting an extensive network of pipeline and transportation systems dedicated to providing logistics services for North America's energy infrastructure.
See More
Founders Capital Increases Stake in Plains GP Holdings
- Share Acquisition: Founders Capital Management disclosed a purchase of 157,091 shares of Plains GP Holdings in Q1 2026, valued at approximately $3.43 million, indicating strong confidence in the company.
- Increased Stake: Following this acquisition, Founders Capital's stake in Plains GP Holdings rose to 3.03%, reflecting optimism about the energy market and expectations for the company's future growth.
- Stock Performance: As of April 20, 2026, Plains GP Holdings shares were priced at $22.69, up 33.5% year-over-year, although slightly underperforming the S&P 500, indicating market recognition of its value.
- Investment Appeal: PAGP stock offers a dividend yield of around 7.0% and a P/E ratio of 18.5x, below its three-year average of 22.4x, attracting value-seeking investors, though caution is advised due to the volatility of energy prices.
See More
Iran War Fuels Growth for North American Oil Companies
- Rising Oil Prices: The Iranian attacks on oil infrastructure have effectively closed the Strait of Hormuz, leading to a sharp increase in oil prices, which is expected to drive revenue growth for North American oil companies.
- Enbridge Expansion Plans: Enbridge is set to invest CAD 28.4 billion in pipeline and terminal expansions, which is projected to increase its cash flow per share by 3% this year, allowing for continued growth in its 5.4% dividend and enhancing its market competitiveness.
- Enterprise Products Partners Investments: Enterprise Products Partners has invested billions in new pipeline systems and marine terminals, with $4.8 billion in major growth projects currently under construction, expected to support a 5.9% distribution growth, maintaining a 27-year streak of payout increases.
- Plains All American Pipeline Strategic Adjustments: Plains has optimized its pipeline portfolio through acquisitions of EPIC Crude Oil Pipelines and BridgeTex Pipeline, which is expected to drive stable cash flow growth in the future and support its 7.7% high dividend, boosting investor confidence.
See More
Plains GP Holdings Rated Among Best Infrastructure Stocks
- Analysts See Long-Term Growth: Barclays raised its price target for Plains GP Holdings from $18 to $21 while maintaining an 'Underweight' rating, indicating over 12% downside potential, reflecting confidence in the company's ability to benefit from the US-Iran conflict.
- Attractive Dividend Yield: Plains GP Holdings announced a quarterly dividend of $0.4175 per share on April 8, payable on May 15, 2026, with a strong annual dividend yield of 7.08%, appealing to income-seeking investors.
- Optimistic Market Outlook: Analysts are bullish on Plains GP Holdings due to increased production activity in the U.S. and structurally higher crude prices, suggesting the company can achieve growth and strengthen its market position.
- Competitive Analysis: While PAGP is seen as a promising investment, analysts note that certain AI stocks may offer greater upside potential and lower downside risk, indicating a diverse perspective on investment choices in the market.
See More
Chickasaw Capital Reduces Stake in Plains GP Holdings
- Share Reduction Details: Chickasaw Capital Management sold 144,038 shares of Plains GP Holdings in Q1 2026, resulting in a total holding of 8,675,146 shares valued at $210.6 million, indicating a cautious stance towards the company.
- Market Value Analysis: Despite the reduction, the value of Chickasaw's position in Plains GP Holdings increased by $41.8 million at quarter-end, reflecting both trading activities and price movements, suggesting ongoing market confidence in the company.
- Portfolio Concentration: Chickasaw reported 95 holdings in its 13F filing, with the top five equities representing 52.6% of its $2.8 billion AUM, indicating a high concentration in its portfolio, with Plains GP Holdings still accounting for 7.4%.
- Shareholder Returns: Plains GP Holdings has delivered a 24.5% return to shareholders this year, significantly outperforming the S&P 500's 2.1%, and the board raised the quarterly dividend by 9.9% to $0.4175, resulting in a 7.1% yield that appeals to income-seeking investors.
See More
Canada's Competition Bureau Challenges Keyera Acquisition
- Acquisition Challenge: Canada's Competition Bureau has filed an application to challenge Keyera's proposed acquisition of Plains All American Pipeline, claiming it would reduce competition at the crucial Fort Saskatchewan hub, potentially increasing costs for energy producers.
- Transaction Value: Plains agreed to sell nearly all of its Canadian natural gas liquids business to Keyera for approximately C$5.15 billion (US$3.75 billion) in cash, with the Bureau asserting that this deal would reduce the number of major competitors from three to two.
- Market Impact: The Bureau highlighted that the merger would grant the combined entity greater pricing power and the ability to impose less favorable contract terms, negatively impacting the entire supply chain and harming Canadian energy producers.
- Keyera's Response: Keyera disagrees with the Bureau's assertions, stating that the transaction will enhance competition and provide customers with improved access to key markets, and it intends to respond to the Bureau's application.
See More
Plains to Complete NGL Divestiture to Keyera in May 2026
- Transaction Update: Plains All American Pipeline and Keyera Corp are set to complete the NGL divestiture by May 2026, with the Canadian Competition Bureau challenging the deal but not preventing its closure, indicating strong confidence from both parties.
- Strategic Business Transformation: Post-divestiture, Plains will become a pure-play crude oil midstream company, with integrated assets spanning from Canada to the U.S. Gulf Coast, enhancing its market competitiveness and operational efficiency.
- Market Risk Advisory: While the transaction is expected to proceed smoothly, the company faces various uncertainties, including economic, market, and legal factors that could lead to discrepancies between actual results and expectations, necessitating ongoing market monitoring.
- Company Overview: Plains is a publicly traded master limited partnership that handles approximately nine million barrels of crude oil and NGL daily, boasting an extensive network of pipeline and transportation systems dedicated to providing logistics services for North America's energy infrastructure.
See More
Founders Capital Increases Stake in Plains GP Holdings
- Share Acquisition: Founders Capital Management disclosed a purchase of 157,091 shares of Plains GP Holdings in Q1 2026, valued at approximately $3.43 million, indicating strong confidence in the company.
- Increased Stake: Following this acquisition, Founders Capital's stake in Plains GP Holdings rose to 3.03%, reflecting optimism about the energy market and expectations for the company's future growth.
- Stock Performance: As of April 20, 2026, Plains GP Holdings shares were priced at $22.69, up 33.5% year-over-year, although slightly underperforming the S&P 500, indicating market recognition of its value.
- Investment Appeal: PAGP stock offers a dividend yield of around 7.0% and a P/E ratio of 18.5x, below its three-year average of 22.4x, attracting value-seeking investors, though caution is advised due to the volatility of energy prices.
See More
Iran War Fuels Growth for North American Oil Companies
- Rising Oil Prices: The Iranian attacks on oil infrastructure have effectively closed the Strait of Hormuz, leading to a sharp increase in oil prices, which is expected to drive revenue growth for North American oil companies.
- Enbridge Expansion Plans: Enbridge is set to invest CAD 28.4 billion in pipeline and terminal expansions, which is projected to increase its cash flow per share by 3% this year, allowing for continued growth in its 5.4% dividend and enhancing its market competitiveness.
- Enterprise Products Partners Investments: Enterprise Products Partners has invested billions in new pipeline systems and marine terminals, with $4.8 billion in major growth projects currently under construction, expected to support a 5.9% distribution growth, maintaining a 27-year streak of payout increases.
- Plains All American Pipeline Strategic Adjustments: Plains has optimized its pipeline portfolio through acquisitions of EPIC Crude Oil Pipelines and BridgeTex Pipeline, which is expected to drive stable cash flow growth in the future and support its 7.7% high dividend, boosting investor confidence.
See More
Plains GP Holdings Rated Among Best Infrastructure Stocks
- Analysts See Long-Term Growth: Barclays raised its price target for Plains GP Holdings from $18 to $21 while maintaining an 'Underweight' rating, indicating over 12% downside potential, reflecting confidence in the company's ability to benefit from the US-Iran conflict.
- Attractive Dividend Yield: Plains GP Holdings announced a quarterly dividend of $0.4175 per share on April 8, payable on May 15, 2026, with a strong annual dividend yield of 7.08%, appealing to income-seeking investors.
- Optimistic Market Outlook: Analysts are bullish on Plains GP Holdings due to increased production activity in the U.S. and structurally higher crude prices, suggesting the company can achieve growth and strengthen its market position.
- Competitive Analysis: While PAGP is seen as a promising investment, analysts note that certain AI stocks may offer greater upside potential and lower downside risk, indicating a diverse perspective on investment choices in the market.
See More
Chickasaw Capital Reduces Stake in Plains GP Holdings
- Share Reduction Details: Chickasaw Capital Management sold 144,038 shares of Plains GP Holdings in Q1 2026, resulting in a total holding of 8,675,146 shares valued at $210.6 million, indicating a cautious stance towards the company.
- Market Value Analysis: Despite the reduction, the value of Chickasaw's position in Plains GP Holdings increased by $41.8 million at quarter-end, reflecting both trading activities and price movements, suggesting ongoing market confidence in the company.
- Portfolio Concentration: Chickasaw reported 95 holdings in its 13F filing, with the top five equities representing 52.6% of its $2.8 billion AUM, indicating a high concentration in its portfolio, with Plains GP Holdings still accounting for 7.4%.
- Shareholder Returns: Plains GP Holdings has delivered a 24.5% return to shareholders this year, significantly outperforming the S&P 500's 2.1%, and the board raised the quarterly dividend by 9.9% to $0.4175, resulting in a 7.1% yield that appeals to income-seeking investors.
See More
