Company: PAGP
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001581990-25-000006
Chunk: 416

Company: PLAINS GP HOLDINGS LP
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1A
Chunk 416
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Table of ContentsIndex to Financial Statements

Item 1A.  Risk Factors

Summary of Risk Factors

Risks Inherent in an Investment in Us 

Our partnership structure carries inherent risks, including but not limited to:

•our cash flow will be entirely dependent upon the ability of PAA to make cash distributions to AAP, and the ability of AAP to make cash distributions to us;

•the distributions AAP is entitled to receive may fluctuate, which may reduce cash distributions to our Class A shareholders;

•if distributions on our Class A shares are not paid with respect to any fiscal quarter, our Class A shareholders will not be entitled to receive that quarter’s payments in the future;

•the amount of cash that we and PAA distribute each quarter may limit our ability to grow;

•the Class B shareholders own a significant number of shares, which may make the removal of our general partner difficult; and

•Our general partner may cause us to issue additional Class A shares or other equity securities, including equity securities that are senior to our Class A shares, or cause AAP to issue additional securities, in each case without shareholder approval, which may adversely affect our shareholders.

Risks Related to Conflicts of Interest

Our existing organizational structure and the current and future relationships among us, PAA, our respective general partners, the Legacy Owners and affiliated entities present the potential for conflicts of interest.

Risks Related to PAA’s Business

PAA’s business, results of operations, financial condition, cash flows and unit price can be adversely affected by many factors including but not limited to:

•the volume of crude oil, natural gas and NGL shipped, processed, purchased, stored, fractionated and/or gathered at or through the use of PAA’s pipelines and facilities, which can be negatively impacted by a variety of factors outside of its control;

•competition in PAA’s industry, including recontracting and other risks associated with the general capacity overbuild of midstream energy infrastructure in some of the areas where PAA operates;

•changes in supply and demand for the products PAA handles and the services it provides, which can be caused by a variety of factors outside of its control;

•natural disasters, catastrophes, terrorist attacks (including eco-terrorist attacks), process safety failures, equipment failures or other events, including pipeline or facility accidents;

•information or operations technology failures, including cybersecurity attacks, data breaches and other disruptions affecting PAA or its service providers;

•risks arising from climate change, energy conservation measures, or initiatives that