PLAINS GP HOLDINGS LPPAGP
PLAINS GP HOLDINGS LP Earnings Per Share Disclosure
Net Income Per Class A Share
Basic net income per Class A share is determined by dividing net income attributable to PAGP from continuing operations and net income attributable to PAGP from discontinued operations by the weighted average number of Class A shares outstanding during the period. Our Class B and Class C shares do not share in the earnings of the Partnership; accordingly, basic and diluted net income per Class B and Class C share has not been presented.
Diluted net income per Class A share is determined by dividing net income attributable to PAGP from continuing operations and net income attributable to PAGP from discontinued operations by the diluted weighted average number of Class A shares outstanding during the period. For purposes of calculating diluted net income per Class A share, both the net income attributable to PAGP and the diluted weighted average number of Class A shares outstanding consider the impact of possible future exchanges of AAP units and the associated Class B shares into our Class A shares. In addition, the calculation of the diluted weighted average number of Class A shares outstanding considers the effect of potentially dilutive awards under the Plains GP Holdings, L.P. Long-Term Incentive Plan (the “PAGP LTIP”).
Exchanges of potentially dilutive AAP units are assumed to have occurred at the beginning of the period and the incremental income attributable to PAGP resulting from the assumed exchanges is representative of the incremental income that would have been attributable to PAGP if the assumed exchanges occurred on that date. See Note 12 for information regarding exchanges of AAP units. PAGP LTIP awards that are deemed to be dilutive are reduced by a hypothetical share repurchase based on the remaining unamortized fair value, as prescribed by the treasury stock method in guidance issued by the FASB. See Note 18 for information regarding PAGP LTIP awards.
On a weighted-average basis, for the years ended December 31, 2025, 2024 and 2023, the possible exchange of 35 million, 35 million and 44 million AAP units, respectively, was dilutive to net income per Class A share from discontinued operations. The possible exchange did not result in dilution for net income per Class A share from continuing operations for any of the years presented. Accordingly, the effect of the possible exchange of AAP units is included in the computation of diluted net income per Class A share for discontinued operations for these years and excluded from the calculation for all others. For each of the years ended December 31, 2025, 2024 and 2023, our PAGP LTIP awards were also dilutive and are included in the calculation of diluted weighted average Class A shares outstanding, as applicable.
The following table sets forth the computation of basic and diluted net income per Class A share (in millions, except per share data):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Basic Net Income per Class A Share | |||||||||||||||||
| Net income attributable to PAGP from continuing operations | $ | 152 | $ | 39 | $ | 144 | |||||||||||
Net income attributable to PAGP from discontinued operations | $ | 108 | $ | 64 | $ | 54 | |||||||||||
| Basic weighted average Class A shares outstanding | 198 | 197 | 195 | ||||||||||||||
| Basic Net Income per Class A Share: | |||||||||||||||||
| Continuing operations | $ | 0.77 | $ | 0.19 | $ | 0.74 | |||||||||||
| Discontinued operations | 0.54 | 0.33 | 0.27 | ||||||||||||||
| Basic net income per Class A share | $ | 1.31 | $ | 0.52 | $ | 1.01 | |||||||||||
Diluted Net Income per Class A Share | |||||||||||||||||
| Net income attributable to PAGP from continuing operations | $ | 152 | $ | 39 | $ | 144 | |||||||||||
| Net income attributable to PAGP from discontinued operations | $ | 108 | $ | 64 | $ | 54 | |||||||||||
| Incremental net income attributable to PAGP resulting from assumed exchange of AAP Management Units | 15 | 9 | 9 | ||||||||||||||
Net income attributable to PAGP from discontinued operations including incremental net income from assumed exchange of AAP Management Units | $ | 123 | $ | 73 | $ | 63 | |||||||||||
Basic weighted average Class A shares outstanding | 198 | 197 | 195 | ||||||||||||||
| Dilutive shares resulting from assumed exchange of AAP Management Units | 35 | 35 | 44 | ||||||||||||||
| Diluted weighted average Class A shares outstanding | 233 | 232 | 239 | ||||||||||||||
| Diluted Net Income per Class A Share: | |||||||||||||||||
| Continuing operations | $ | 0.77 | $ | 0.19 | $ | 0.74 | |||||||||||
| Discontinued operations | 0.53 | 0.32 | 0.26 | ||||||||||||||
| Diluted net income per Class A share | $ | 1.30 | $ | 0.51 | $ | 1.00 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.