Plains GP Holdings (PAGP) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 surged to $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 was $738 million, up 10% year-over-year, supporting full-year guidance of $2.88 billion ±$75 million.

• Closed sale of Canadian NGL Business in May 2026, reducing leverage to 3.3x and streamlining operations.

• Increased growth capital spending for 2026 to $400–$450 million, focusing on quick-return projects in Permian and Canada.

• Strategic focus on capital discipline, flexible balance sheet, and significant cash returns to shareholders.

Financial highlights

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

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

• Adjusted net income attributable to PAA was $348 million, up 12% year-over-year.

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

• Expecting $1.75 billion in free cash flow for 2026 and significant capital returns to unitholders.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance reaffirmed at $2.88 billion ±$75 million.

• Permian production growth forecast raised to 100,000–200,000 bbl/day exit-to-exit for 2026, with momentum into 2027.

• Growth capital spending for 2026 increased to $400–$450 million, with projects expected to contribute to 2027 EBITDA.

• Maintenance capital guidance reduced by $10 million to $175 million due to NGL divestiture timing.

• Additional $50 million in efficiencies targeted by year-end 2026 and another $50 million by end of 2027.