Nov 6, 2026, 8:38 AM ETEnergy

Plains All American Pipeline — Third Quarter 2026 Earnings Summary

PAAPLAINS ALL AMERICAN PIPELINE LP

Source

Financial Performance

Net income attributable to PAA for the three months ended September 30, 2026, was $363 million, a decrease of 18% compared to $441 million in the same period in 2025.
Net income attributable to PAA for the nine months ended September 30, 2026, was $2,345 million, an increase of 115% compared to $1,093 million in the same period in 2025.
Adjusted EBITDA attributable to PAA for the three months ended September 30, 2026, was $711 million, an increase of 6% compared to $669 million in the prior year period.
Adjusted EBITDA attributable to PAA for the nine months ended September 30, 2026, was $2,179 million, an increase of 4% compared to $2,095 million in the prior year period.
Net cash provided by operating activities for the three months ended September 30, 2026, was $669 million, a decrease of 18% compared to $817 million in the prior year period.
Net cash provided by operating activities for the nine months ended September 30, 2026, was $2,042 million, a decrease of 5% compared to $2,150 million in the prior year period.
Adjusted Free Cash Flow for the three months ended September 30, 2026, was $458 million, an increase of 51% compared to $303 million in the prior year period.
Adjusted Free Cash Flow for the nine months ended September 30, 2026, was $4,728 million, compared to $344 million in the prior year period.
Pro forma leverage ratio at quarter-end was approximately 3.6x.
Long-term debt was $9,911 million as of September 30, 2026, compared to $10,696 million as of December 31, 2025.
Total debt was $9,920 million as of September 30, 2026, compared to $11,262 million as of December 31, 2025.
Total book capitalization excluding noncontrolling interests was $19,373 million as of September 30, 2026, compared to $20,534 million as of December 31, 2025.
Long-term debt-to-total book capitalization was 51% as of September 30, 2026, compared to 52% as of December 31, 2025.

Guidance and Future Outlook

The company is on track to deliver full-year 2026 Adjusted EBITDA guidance attributable to PAA of $2.880 billion, plus or minus $50 million.
Crude Oil growth is estimated at approximately $370 million in 2026 versus 2025, representing approximately 16% growth, which includes the full-year contribution from the Cactus III acquisition.
The company expects to deliver $50 million of efficiencies across the organization in 2026.
Recent balance sheet optimization is expected to generate approximately $60 million ($0.09 per unit) of distributable cash flow accretion to common unitholders annually.
Management anticipates significant production growth in the Powder River Basin over the coming years following the Silver Creek acquisition.

Business Segments and Product Lines

The company reorganized its historical operating and reportable segments, Crude Oil and NGL, into one consolidated segment effective in the third quarter of 2026.
Crude oil pipeline tariff volumes in the Permian Basin averaged 8,071 thousand barrels per day for the three months ended September 30, 2026, compared to 7,490 thousand barrels per day in the same period in 2025.
Total crude oil pipeline tariff volumes averaged 10,507 thousand barrels per day for the three months ended September 30, 2026, compared to 9,883 thousand barrels per day in the same period in 2025.
The company expanded the Permian JV gathering system by adding approximately 270,000 dedicated acres in the Midland Basin.
A 10-year agreement was secured with a large integrated producer for estimated gross volumes of approximately 225,000 barrels per day, commencing in the fourth quarter of 2027.
The company closed the acquisition of the Silver Creek gathering system and related assets in the Powder River Basin on October 1, 2026, for approximately $585 million.
The company completed the sale of its Canadian NGL Business to Keyera Corp. on May 12, 2026.
The company captured $50 million of synergies on the Cactus III acquisition.

Market and Competitive Landscape

The oil macro environment is described as volatile yet constructive, with multiple tailwinds expected as the company builds momentum into 2027.
Volume growth across pipeline systems was largely driven by increased production in the Permian Basin region.
Results were partially offset by Permian long-haul contract rates resetting to market in 2025.
Higher operating costs were driven by environmental remediation expenses and property tax expense.

Risks and Challenges

The company faces risks related to general economic and market conditions, including potential recessions, inflation, and supply chain issues.
Declines in global crude oil demand or prices could lead to significant reductions in North American crude oil production and volumes shipped.
Geopolitical events, including conflicts in the Middle East, may impact commodity price volatility and crude oil supply and demand.
Competition and capacity overbuild in operating areas could result in downward pressure on rates, volumes, and margins.
Environmental liabilities, litigation, and negative societal sentiment regarding the hydrocarbon energy industry pose potential risks.
Natural disasters, cyber attacks, and weather interference could materially impact operations.
Changes in laws, regulations, or trade policies could restrict the development of oil and gas resources or negatively impact the business.
Customer counterparty performance risks, including financial constraints or insolvency, could affect contract obligations.

Management Commentary and Tone

Willie Chiang, Chairman, CEO, and President, stated the company delivered solid operational performance year-to-date with continued execution on key initiatives.
Management emphasized driving efficient growth through Permian gathering footprint expansion, the Silver Creek acquisition, and financial flexibility.
The company remains focused on a disciplined growth strategy, maintaining financial flexibility, and increasing return of capital to unitholders.
Management highlighted the recent junior subordinated notes offering and preferred securities redemption as expected to generate distributable cash flow accretion.

Other Key Points

The company paid a quarterly cash distribution of $0.4175 per unit, representing an annualized rate of $1.67 per unit and a current distribution yield of approximately 7%.
The company issued $1.5 billion of Junior Subordinated notes and redeemed $2.3 billion of Series A and Series B Preferred Units.
On September 14, 2026, the company repurchased all 58.4 million Series A preferred units for approximately $1.687 billion.
On October 9, 2026, the company repurchased all 0.8 million Series B preferred units for approximately $800 million.
The company executed three key initiatives for the year: closing the NGL sale in May 2026, capturing $50 million of synergies on the Cactus III acquisition, and delivering $50 million of efficiencies.
The sale of the Canadian NGL Business generated a net cash inflow of approximately $3.527 billion for the nine months ended September 30, 2026.
General and administrative expenses for the nine months ended September 30, 2026, included approximately $33 million related to exit costs associated with the Canadian NGL Business.
The company reported a gain on asset sales of $1,631 million for the nine months ended September 30, 2026, primarily related to the Canadian NGL Business divestiture.
The company reorganized its segment reporting structure to consolidate Crude Oil and NGL segments, reflecting a focus on the consolidated crude oil business.