Plains All American Pipeline LP
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −1.65%.
Did PAA Beat Earnings? Q1 2026 Results
Plains All American Pipeline delivered a mixed first quarter for 2026, posting adjusted diluted earnings of $0.39 per unit on revenue of $12.47 billion, with adjusted EPS holding flat year-over-year even as GAAP net income tumbled 66% to $152 million, weighed down by a $103 million loss from discontinued operations tied to the pending sale of its Canadian NGL business to Keyera Corp. That divestiture, expected to close in May 2026, also triggered roughly $216 million in current income tax expense during the quarter, casting a shadow over reported results. Beneath those charges, the Crude Oil segment showed genuine underlying strength, with Adjusted EBITDA climbing 4% year-over-year to $582 million on higher pipeline volumes and contributions from the recently acquired Cactus III pipeline. Looking ahead, management raised its full-year 2026 Adjusted EBITDA guidance midpoint by $130 million to $2.88 billion, citing a constructive crude oil environment, while targeting adjusted free cash flow of approximately $1.85 billion and a leverage ratio that returns toward its 3.25 to 3.75 times target range following the NGL sale.
- Crude Oil Adjusted EBITDA increased 4% YoY driven by contributions from bolt-on acquisitions including Cactus III pipeline and higher pipeline volumes
- NGL Adjusted EBITDA decreased 23% YoY due to lower weighted average frac spreads and reduced sales volumes from warmer weather
- Permian Basin crude oil pipeline tariff volumes increased to 7,774 thousand barrels per day from 6,869 in Q1 2025
- Total crude oil pipeline tariff volumes grew to 10,039 thousand barrels per day from 9,086 in Q1 2025
- Certain Permian long-haul pipeline contract rate resets partially offset crude oil segment gains
“Global events this year illustrate the importance of reliable, secure and responsibly produced energy and have accelerated the timing of our view for a more constructive crude oil market. Our integrated business model and asset base connecting U.S. crude production to the global markets are critical to meeting global energy demand. As a result, we are increasing the midpoint of our 2026 Adjusted EBITDA guidance by $130 million to reflect a constructive oil macro environment and extended ownership of our Canadian NGL business into May. The closing of the NGL divestiture will mark a transition to a premier pure play crude oil midstream provider. We remain focused on executing key initiatives in 2026, including closing the pending NGL sale and realizing $100 million of contribution between Cactus III synergies and capturing efficiencies across our system. The combination of these internal initiatives coupled with a healthy oil macro backdrop positions Plains with momentum into 2027 and beyond. Finally, we remain committed to financial discipline and maintaining a strong balance sheet, while continuing to return capital to unit holders.”
Plains All American Pipeline CEO, on the earnings call
Forward Guidance & Outlook
PAA raised its full-year 2026 Adjusted EBITDA guidance midpoint by $130 million to $2.880 billion (+/- $75 million), reflecting a strong oil macro environment and NGL contribution into May 2026. Full-year 2026 Adjusted Free Cash Flow guidance was increased to approximately $1.850 billion (excluding changes in assets & liabilities and anticipated cash proceeds from NGL divestiture). Growth capital remains at $350 million with maintenance capital increasing to $185 million reflecting ownership of NGL assets into May 2026. The company expects its pro forma leverage ratio to return toward the midpoint of the 3.25-3.75x target range following NGL divestiture closing and migrate toward the lower end by year-end. Management targets $100 million of contribution between Cactus III synergies and capturing efficiencies across the system.
PAA YoY Financials
PAA Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.