PLAINS GP HOLDINGS LP

Note 6—Debt

Debt consisted of the following (in millions):

(1)We classified these PAA commercial paper notes as short-term as of December 31, 2024, as these notes were primarily designated as working capital borrowings, were required to be repaid within one year and were primarily for hedged inventory and NYMEX and ICE margin deposits.

(2)As of December 31, 2024, PAA classified its $1.0 billion,4.65% senior notes due October 2025 as long-term based on its ability and intent to refinance the notes on a long-term basis at that time. PAA redeemed these senior notes on October 3, 2025.

(3)PAA’s fixed-rate senior notes had a face value of approximately $9.4 billion and $7.2 billion as of September 30, 2025 and December 31, 2024, respectively. We estimated the aggregate fair value of these notes as of September 30, 2025 and December 31, 2024 to be approximately $9.2 billion and $6.7 billion, respectively. PAA’s fixed-rate senior notes are traded among institutions, and these trades are routinely published by a reporting service. Our determination of fair value is based on reported trading activity near the end of the reporting period. We estimate that the carrying value of outstanding borrowings under PAA’s commercial paper program approximates fair value as interest rates reflect current market rates. The fair value estimates for PAA’s senior notes and commercial paper program are based upon observable market data and are classified in Level 2 of the fair value hierarchy.

Senior Notes

In January 2025, PAA completed the offering of $1.0 billion,5.95% senior notes due June 2035 at a public offering price of 99.761%. Interest payments are due on June 15 and December 15 of each year, commencing on June 15, 2025.

In September 2025, PAA completed the offering of $700 million,4.70% senior notes due January 2031 and $550 million,5.60% senior notes due January 2036 at a public offering price of 99.865% and 99.798%, respectively. Interest payments on these notes are due on January 15 and July 15 of each year, commencing on January 15, 2026.

Borrowings and Repayments

Total borrowings under the PAA commercial paper program for the nine months ended September 30, 2025 and 2024 were approximately $38.7 billion and $20.7 billion, respectively. Total repayments under the PAA commercial paper program were approximately $39.1 billion and $21.1 billion for the nine months ended September 30, 2025 and 2024, respectively. The variance in total gross borrowings and repayments is impacted by various business and financial factors including, but not limited to, the timing, average term and method of general partnership borrowing activities.

Letters of Credit

In connection with our merchant activities, we provide certain suppliers with irrevocable standby letters of credit to secure our obligation for the purchase and transportation of crude oil and NGL. Additionally, we issue letters of credit to support insurance programs, derivative transactions, including hedging-related margin obligations, and construction activities. At September 30, 2025 and December 31, 2024, we had outstanding letters of credit of $70 million and $90 million, respectively.