Plains All American Pipeline (PAA) Q1 2026 earnings summary

Executive summary

• Q1 2026 adjusted EBITDA was $730 million, with crude oil outperforming and NGL lagging; net income attributable to unitholders was $152 million, down from the prior year due to lower discontinued operations and higher interest expense.

• Raised 2026 adjusted EBITDA guidance midpoint by $130 million to $2.88 billion, reflecting strong oil macro environment and NGL contribution into May 2026.

• Pending sale of the Canadian NGL business to Keyera Corp. is expected to close in May 2026, with proceeds targeted for ~$3.3 billion in debt reduction and a strategic shift to core crude oil operations.

• Cactus III acquisition and corporate efficiencies are expected to deliver $100 million in synergies in 2026.

• Macro environment impacted by Middle East conflict and global events, leading to higher commodity prices and increased demand for secure North American supply.

Financial highlights

• Q1 2026 crude oil segment adjusted EBITDA was $582 million, up 4% year-over-year, driven by acquisitions and higher volumes; NGL segment adjusted EBITDA was $145 million, down 23% year-over-year due to lower frac spreads and volumes.

• Total revenues from continuing operations were $12.47 billion, up 9% year-over-year.

• Adjusted free cash flow guidance for 2026 is ~$1.85 billion, excluding NGL sale proceeds; adjusted free cash flow after distributions was negative $266 million in Q1.

• Maintenance capital for 2026 increased to $185 million due to extended NGL asset ownership; growth capital remains $350 million.

• Quarterly distribution per unit increased to $0.4175, annualized at $1.67, with a target coverage ratio of ~150–160%.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance raised to $2.88 billion, including $170 million from NGL, with sensitivities of $10/bbl WTI impacting EBITDA by +/- $40 million.

• Projected 2026 investment capital is ~$350 million net, with maintenance capital at $185 million net.

• Proceeds from the NGL sale are expected to reduce leverage, with a long-term target leverage ratio of 3.25–3.75x.

• Permian crude oil production assumed flat for 2026, with upside potential if producer activity increases.

• Distribution growth and capital discipline remain priorities post-deleveraging.