Earnings

Plains All American Turns to a Single Crude Segment

The Tip Desk · November 6, 2026 · 3 min read

Adjusted EBITDA attributable to PAA was $711 million in the third quarter as the partnership recast Crude Oil and NGL into one reportable unit.

Plains All American Pipeline, L.P. (PAA) and Plains GP Holdings (PAGP) reported third-quarter 2026 Adjusted EBITDA attributable to PAA of $711 million, up 6% from a year earlier.

That year-over-year gain followed a sequential step-down from $738 million in the second quarter. The company said the increase versus 2025 reflected contributions from the Cactus III acquisition completed in the fourth quarter of 2025, volume growth across pipeline systems largely driven by increased production in the Permian Basin, and market opportunities and optimization initiatives. Those gains were partially offset by certain Permian long-haul contract rates resetting to market in 2025, higher operating costs from environmental remediation and property taxes, and 2025 contributions from the Canadian NGL Business, which was sold in May 2026.

Net income attributable to PAA was $363 million, down 18% from $441 million a year earlier. Diluted net income per common unit was a loss of $0.06 versus $0.55. Revenues were $15.173 billion, with purchases and related costs of $14.030 billion. Operating income was $516 million. Income from continuing operations, net of tax, was $413 million.

Adjusted net income attributable to PAA was $373 million. Implied distributable cash flow was $0.67 a common unit. Adjusted free cash flow was $458 million, and adjusted free cash flow after distributions was $81 million. Net cash provided by operating activities was $669 million.

The partnership paid a quarterly cash distribution of $0.4175 a unit, unchanged from the second quarter.

In the third quarter the company reorganized historical Crude Oil and NGL reportable segments into one consolidated segment and recast earlier-period data. It said the change reflected completion of initiatives to divest NGL assets, enhance connectivity of the core asset base, and streamline operations with a focus on the consolidated crude oil business, as well as management of commercial opportunities across North America without regard to market or geographic location.

On September 14, 2026, PAA repurchased all 58.4 million Series A preferred units for about $1.687 billion. On October 9, 2026, it repurchased all 0.8 million Series B preferred units for about $800 million. Pro forma leverage at quarter-end was about 3.6x after $1.5 billion of junior subordinated notes and $2.3 billion of preferred-unit redemptions, including announced transactions. The company said recent balance-sheet optimization is expected to generate about $60 million ($0.09 a unit) of distributable cash-flow accretion to common unitholders annually.

Total debt was $9.920 billion at September 30, 2026. Long-term debt-to-total book capitalization was 51%.

On October 1, 2026, the company closed the previously announced acquisition of the Silver Creek Powder River Basin gathering system and related assets for about $585 million. It also said it is expanding the Permian JV gathering system by about 270,000 dedicated acres in the Midland Basin under 10-year agreements with a large integrated producer, with estimated gross volumes of about 225 mbbl/d commencing in the fourth quarter of 2027.

The company said it is on track to deliver full-year 2026 Adjusted EBITDA attributable to PAA of $2.880 billion plus or minus $50 million, with crude oil growth estimated at about $370 million in 2026 versus 2025, or about 16%, including a full-year contribution from Cactus III. It said it closed the NGL sale in May 2026, captured $50 million of synergies on Cactus III, and is on track to deliver $50 million of efficiencies across the organization in 2026.

More on PAGP

August 7, 2026 Earnings Plains GP Cuts Leverage to 3.3x After NGL Sale, Lifts Growth Spending

PLAINS GP HOLDINGS LP — all coverage and financials