Plains All American Pipeline, L.P. (NASDAQ: PAA) and Plains GP Holdings (NASDAQ: PAGP) completed the sale of Plains Midstream Canada ULC to Keyera Corp. for approximately $3.3 billion in net cash proceeds, according to a company statement.

The transaction involved the sale of all shares of the subsidiary that owns substantially all of Plains' natural gas liquids business in Canada. The sale was conducted under a Share Purchase Agreement dated June 17, 2025.

Plains stated it will use the proceeds to repay outstanding debt and for general partnership purposes. The company expects its leverage ratio to move toward the middle of its targeted range of 3.25 to 3.75x following the transaction.

The company indicated it does not anticipate paying a special distribution after closing, as tax liability to unitholders from the divestiture is expected to be offset by bonus depreciation from the Cactus III acquisition.

"We are excited to finalize this transaction which completes our transformation to a premier pure play crude oil midstream company," said Willie Chiang, Chairman, CEO and President. He noted the remaining business should experience less commodity price volatility and benefit from reduced maintenance capital and lower corporate taxes.

Plains All American Pipeline operates midstream energy infrastructure and provides logistics services for crude oil across the United States and Canada. The company owns pipeline gathering and transportation systems, terminals, storage facilities and other infrastructure assets.

Plains GP Holdings owns an indirect controlling general partner interest in Plains All American Pipeline and an indirect limited partner interest in the company. Both entities are headquartered in Houston, Texas.