Discontinued Operations

3 Months Ended

Mar. 31, 2026

Discontinued Operations and Disposal Groups [Abstract]

The operations of the Canadian NGL Business meet the criteria for classification as held for sale and for discontinued operations reporting. The Canadian NGL Business disposal group is recorded at its historical carrying value, as the fair value of the disposal group, less estimated costs to sell, is greater than the carrying value of the Canadian NGL Business disposal group. Depreciation and amortization on the long-lived assets of the Canadian NGL Business disposal group ceased upon meeting the criteria to be classified as assets held for sale. See Note 1 for information regarding the pending sale of the Canadian NGL Business.

The following table summarizes the carrying amounts of major classes of assets and liabilities of discontinued operations (in millions):


	March 31, 2026		December 31, 2025
Assets:
Current assets:

Trade accounts receivable and other receivables, net	$	435	$	285
Inventory	102		176
Other current assets	65		18
Total current assets of discontinued operations	$	602	$	479

Long-term assets:
Property and equipment, net (1)	$	2,167	$	2,191

Linefill	76		70
Long-term operating lease right-of-use assets, net	136		138
Long-term inventory	39		38
Other long-term assets, net	119		120
Total long-term assets of discontinued operations	$	2,537	$	2,557

Liabilities:
Current liabilities:
Trade accounts payable	$	450	$	295

Other current liabilities	111		87
Total current liabilities of discontinued operations	$	561	$	382

Long-term liabilities:

Long-term operating lease liabilities	$	90	$	96
Other long-term liabilities and deferred credits	575		510
Total long-term liabilities of discontinued operations	$	665	$	606

(1)Amounts are net of accumulated depreciation of $862 million and $876 million as of March 31, 2026 and December 31, 2025, respectively.

The following table provides a reconciliation of the line items comprising income/(loss) from discontinued operations before tax to income/(loss) from discontinued operations, net of tax (in millions):


	Three Months Ended March 31,
	2026		2025
Revenues:
Product sales	$	256	$	498
Services	38		36
Total revenues	294		534
Cost and Expenses:
Purchases and related costs	205		244
Field operating costs	71		68
General and administrative expenses	14		15
Depreciation and amortization	—		30
Losses on asset sales and other, net	32		—
Total costs and expenses	322		357

Income/(loss) from discontinued operations before tax	(28)		177
Current income tax expense	(44)		(39)
Deferred income tax expense	(31)		(2)
Income/(loss) from discontinued operations, net of tax	$	(103)	$	136

In connection with the planning and restructuring activities, we recorded deferred tax expense and a related liability of $77 million associated with the pending Canadian NGL Business divestiture, which is reflected within discontinued operations.

PLAINS ALL AMERICAN PIPELINE LP 10-Q