Earnings quality appears strained as evidenced by an extreme OCF/NI ratio of 20.90x in 2026Q1, highlighting a heavy reliance on non-cash adjustments rather than core operational cash generation.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 |
|---|
| Cash from Operations | 2.71B | 2.93B | 2.48B | 2.72B | 2.4B | 1.99B | 1.51B | 2.5B | 2.6B | 2.5B | 711M | 1.33B | 1.99B | 1.95B | 1.23B | 2.36B |
| Operating CF Margin % | - | 6.62% | 4.96% | 5.59% | 4.19% | 4.73% | 6.48% | 7.43% | 7.65% | 9.52% | 3.52% | 5.76% | 4.57% | 4.61% | 3.26% | 6.88% |
| Operating CF Growth % | -1.47% | 18% | -8.74% | 13.23% | 20.74% | 31.85% | -39.6% | -3.99% | 4.33% | 251.05% | -46.66% | -32.95% | 2.05% | 58.12% | -47.73% | - |
| Net Income | 195M | 1.77B | 1.07B | 1.43B | 1.16B | 600M | -2.44B | 2.06B | 2.11B | -41M | 660M | 809M | 1.33B | 1.37B | 1.12B | 987M |
| Depreciation & Amortization | 934M | 953M | 1.03B | 1.05B | 968M | 777M | 656M | 604M | 521M | 628M | 495M | 433M | 394M | 378M | 483M | 250M |
| Stock-Based Compensation | 0 | 49M | 52M | 51M | 41M | 24M | 16M | 35M | 79M | 41M | 60M | 27M | 99M | 116M | 101M | 110M |
| Deferred Taxes | -144M | 14M | 9M | 44M | 162M | 62M | -218M | 64M | 236M | 909M | -7M | 98M | 141M | -7M | -19M | -21M |
| Other Non-Cash Items | 825M | 180M | 255M | -43M | 261M | 755M | 3.65B | -253M | -206M | 17M | -10M | 80M | 295M | 14M | 15M | 31M |
| Working Capital Changes | 301M | -34M | 72M | 194M | -191M | -227M | -158M | -12M | -133M | 942M | -487M | -114M | -269M | 73M | -466M | 1B |
| Change in Receivables | 0 | 207M | 112M | 213M | 649M | -2.18B | 1.43B | -1.16B | 231M | -511M | -524M | 803M | 1.18B | -185M | 254M | 246M |
| Change in Inventory | 0 | 96M | 70M | 223M | -10M | -18M | -304M | -5M | -75M | 605M | -463M | -90M | -129M | 134M | -180M | 518M |
| Change in Payables | 0 | -337M | -110M | 0 | -830M | 1.97B | -1.29B | 1.15B | -367M | 848M | 500M | -827M | -1.32B | 124M | -504M | 399M |
| Cash from Investing | -2.81B | -3.36B | -875M | -702M | -526M | 386M | -1.09B | -1.76B | -813M | -1.57B | -1.27B | -2.53B | -3.3B | -1.65B | -3.39B | -2.02B |
| Capital Expenditures | -592M | -643M | -640M | -582M | -455M | -336M | -738M | -1.18B | -1.63B | -1.02B | -1.33B | -2.08B | -1.93B | -1.61B | -1.2B | -635M |
| CapEx % of Revenue | 1.31% | 1.45% | 1.28% | 1.19% | 0.79% | 0.8% | 3.17% | 3.51% | 4.8% | 3.91% | 6.61% | 8.98% | 4.45% | 3.82% | 3.19% | 1.85% |
| Acquisitions | -2.02B | -2.5B | -252M | -458M | -163M | -126M | -771M | -574M | -458M | -1.68B | -583M | -358M | -1.26B | -161M | -2.17B | -1.39B |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -201M | -224M | 17M | 338M | 92M | 848M | 416M | -10M | 1.28B | 1.13B | 644M | -93M | -108M | 121M | -15M | 5M |
| Cash from Financing | -168M | 399M | -1.7B | -1.97B | -1.93B | -1.98B | -430M | -717M | -1.75B | -940M | 571M | 827M | 1.67B | -274M | 2.16B | -337M |
| Debt Issued (Net) | 1.61B | 2.56B | -140M | -667M | -750M | -912M | 427M | 416M | -701M | -2B | -103M | 1.4B | 2.25B | 740M | 2.2B | -756M |
| Equity Issued (Net) | -8M | -341M | 0 | 0 | -74M | -178M | -50M | 0 | 0 | 2.45B | 2.37B | 1.1B | 848M | 3.33B | 959M | 1.24B |
| Dividends Paid | -309M | -301M | -251M | -209M | -162M | -140M | -166M | -231M | -189M | -271M | -234M | -195M | -91M | -2.83B | -3M | -2M |
| Share Repurchases | -8M | -341M | 0 | 0 | -74M | -178M | -50M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.46B | -1.52B | -1.31B | -1.09B | -941M | -749M | -641M | -902M | -863M | -1.12B | -1.46B | -1.48B | -1.33B | -1.51B | -997M | -819M |
| Net Change in Cash | -257M | -20M | -104M | 49M | -52M | 393M | -21M | 15M | 29M | -10M | 20M | -374M | 361M | 18M | -2M | -10M |
| Free Cash Flow | 2.12B | 2.29B | 1.84B | 2.14B | 1.95B | 1.66B | 772M | 1.32B | 970M | 1.47B | -623M | -746M | 56M | 335M | 28M | 1.72B |
| FCF Margin % | 4.68% | 5.17% | 3.68% | 4.39% | 3.4% | 3.93% | 3.31% | 3.92% | 2.85% | 5.61% | -3.09% | -3.22% | 0.13% | 0.79% | 0.07% | 5.02% |
| FCF Growth % | 4.08% | 24.08% | -13.83% | 9.8% | 17.76% | 114.38% | -41.47% | 35.98% | -34.1% | 336.28% | 16.49% | -1432.14% | -83.28% | 1096.43% | -98.37% | - |
| FCF per Share | 10.70 | 11.56 | 9.36 | 10.97 | 10.05 | 8.53 | 3.14 | 7.76 | 6.10 | 10.15 | -6.29 | -8.99 | 1.04 | 6.76 | 0.58 | 35.83 |
| FCF Conversion (FCF/Net Income) | 10.87x | 11.27x | 24.12x | 13.75x | 14.31x | 33.18x | -2.66x | 7.55x | 7.80x | -3.41x | 7.56x | 11.30x | 28.40x | 129.87x | 30.80x | 1178.50x |
| Interest Paid | 207M | 0 | 351M | 377M | 393M | 401M | 428M | 397M | 400M | 486M | 462M | 405M | 344M | 312M | 302M | 261M |
| Taxes Paid | 53M | 0 | 269M | 69M | 112M | 76M | 111M | 136M | 21M | 50M | 98M | 50M | 159M | 37M | 72M | 11M |
Permian volume growth plateau
According to recent financial disclosures, PAGP exhibits a significant divergence between net income and operating cash flow, with the OCF/NI ratio reaching an extreme 20.90x in 2026Q1, suggesting that reported earnings are heavily impacted by non-cash charges and accounting adjustments rather than core operational profitability.
The persistent gap between net income and operating cash flow indicates that the company's bottom line is a poor proxy for its actual cash-generating capacity. Investors should monitor this disconnect, as it implies that the underlying business relies on significant depreciation and non-cash items to sustain its reported financial profile.
As reported in quarterly filings, free cash flow has demonstrated high volatility, peaking at $851 million in 2023Q4 before declining to $288 million in 2026Q1, reflecting the inherent difficulty in maintaining consistent cash margins within a capital-intensive midstream environment facing maturing basin production levels.
The downward trend in FCF margins suggests that the company is struggling to convert its infrastructure footprint into reliable cash flow growth. This trajectory warrants further investigation into whether current capital allocation strategies are sufficient to offset the natural decline in basin-wide production efficiency.
Based on the provided data, PAGP maintains a consistent capital expenditure profile, with CapEx/Revenue ratios hovering around 1.0% to 1.7%, indicating that the company must continuously reinvest in its extensive pipeline network to maintain throughput capacity in the highly competitive Permian Basin gathering environment.
The necessity of ongoing capital investment suggests that a significant portion of operating cash flow is effectively committed to maintenance rather than growth or shareholder returns. This capital intensity appears to limit the company's ability to expand its free cash flow yield during periods of stagnant volume growth.
As evidenced by historical cash flow statements, working capital changes have been a major source of volatility, ranging from a $550 million inflow in 2023Q4 to a $192 million outflow in 2024Q1, highlighting the sensitivity of cash flow to inventory and linefill management.
These fluctuations suggest that the company's cash position is highly susceptible to the timing of commodity purchases and sales within its logistics segment. Analysts should interpret these swings as operational noise that can obscure the underlying stability of the fee-based transportation business.
Based on reported figures, PAGP has shifted its capital deployment toward debt management and modest dividend payments, with acquisition spending reaching $1.7 billion in 2025Q4, indicating a strategic pivot toward consolidating its asset base rather than pursuing aggressive, large-scale greenfield expansion projects.
The focus on acquisitions and debt servicing appears to be a defensive response to the maturing Permian Basin environment. Investors should monitor whether these capital outlays provide sufficient returns to justify the ongoing dilution of cash available for direct shareholder distributions.
Quick answers to the most common questions about buying PAGP stock.
Plains GP Holdings, L.P. (PAGP) generated $2.93B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Plains GP Holdings, L.P. (PAGP) generated $2.29B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Plains GP Holdings, L.P. (PAGP) spent $643.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Plains GP Holdings, L.P. (PAGP) returned $301.0M to shareholders via cash dividends and spent $341.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.