Company: PAGP
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001581990-25-000028
Chunk: 44

Company: PLAINS GP HOLDINGS LP
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 44
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abilitiesDerivative AssetsOther current assets$14 $(14)$36 $36 $25 $(24)$22 $23 Other long-term assets, net1 — — 1 — — — — Derivative LiabilitiesOther current liabilities— — — — (5)5 — — Other long-term liabilities and deferred credits4 (9)— (5)2 (6)— (4)Total$19 $(23)$36 $32 $22 $(25)$22 $19  Interest Rate Risk Hedging We use interest rate derivatives to hedge the benchmark interest rate associated with interest payments occurring as a result of debt issuances. The derivative instruments we use to manage this risk consist of forward starting interest rate swaps and treasury locks. These derivatives are designated as cash flow hedges. As such, changes in fair value are deferred in AOCI and are reclassified to interest expense as we incur the interest expense associated with the underlying debt. The following table summarizes the terms of our outstanding interest rate derivatives as of September 30, 2025 (notional amounts in millions):Hedged TransactionNumber and Types ofDerivatives EmployedNotionalAmountExpectedTermination DateAverage RateLockedAccountingTreatmentAnticipated interest payments8 forward starting swaps(30-year)$200 6/15/20263.09%Cash flow hedge 

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Table of ContentsPLAINS GP HOLDINGS, L.P. AND SUBSIDIARIESNOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

During the three months ended September 30, 2025, we terminated $200 million of notional hedging instruments for proceeds of $7 million, which was recorded in AOCI. As of September 30, 2025, there was a net loss of $31 million deferred in AOCI. The deferred net loss recorded in AOCI is expected to be reclassified to future earnings contemporaneously with interest expense accruals associated with underlying debt instruments. We estimate that substantially all of the remaining deferred loss will be reclassified to earnings through 2056 as the underlying hedged transactions impact earnings. A portion of these amounts is based on market prices as of September 30, 2025; thus, actual amounts to be reclassified will differ and could vary materially as a result of changes in market