Plains All American Pipeline (PAA) Q2 2026 earnings summary

Executive summary

• Q2 2026 net income attributable to unitholders was $1.83 billion, driven by a $1.6 billion gain from the Canadian NGL Business divestiture and strong crude oil segment performance.

• Adjusted EBITDA for Q2 2026 reached $738 million, reflecting operational efficiencies and Cactus III synergies.

• Closed the Canadian NGL Business sale in May 2026, transitioning to a pure-play crude oil midstream provider and reducing leverage.

• Captured $50 million in Cactus III synergies and are on track for $50 million in additional cost efficiencies by year-end 2026.

• Increased 2026 organic growth capital guidance to $400–$450 million, targeting quick-return projects in the Permian and Canada.

Financial highlights

• Q2 2026 revenues were $17.7 billion, up from $10.6 billion in Q2 2025, with crude oil segment adjusted EBITDA at $690 million and NGL segment at $40 million.

• Net cash provided by operating activities was $956 million for Q2 2026, a 38% increase year-over-year.

• Adjusted net income attributable to PAA was $348 million, up 12% year-over-year; diluted adjusted net income per common unit was $0.41.

• Adjusted Free Cash Flow after Distributions for Q2 2026 was $3.84 billion, reflecting NGL divestiture proceeds.

• Quarterly cash distribution was $0.4175 per unit, up 10% year-over-year.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance reaffirmed at $2.88 billion ±$75 million, with momentum expected to continue into 2027.

• Permian production growth forecast raised to 100,000–200,000 bpd exit-to-exit for 2026, driven by earlier-than-expected gas egress.

• Free cash flow for 2026 expected to be ~$1.75 billion, supporting significant capital returns to unitholders.

• 70% of pipeline loss allowance revenue hedged for the year at ~$62 WTI; 2027 hedge position to be disclosed in February.

• Maintenance capital guidance reduced to $175 million due to NGL divestiture timing.