Press release·08/10/2026 12:31:35

Financial Performance Overview

Plains All American Pipeline, L.P. (PAA) has reported its financial results for the second quarter and first half of 2026. The company’s overall performance was strong, with significant increases in revenue, profit, and cash flow compared to the same periods in 2025.

PAA’s consolidated revenues for the second quarter of 2026 were $17.7 billion, up 69% from $10.6 billion in the prior year period. For the first half of 2026, revenues were $30.2 billion, an increase of 38% from $22.1 billion in the first half of 2025. This growth was primarily driven by higher crude oil sales volumes and commodity prices.

Net income attributable to PAA for the second quarter was $389 million, compared to $30 million in the prior year period. For the first half of 2026, net income attributable to PAA was $408 million, up from $114 million in the first half of 2025. This significant increase was due to a $1.6 billion gain from the sale of the company’s Canadian NGL Business, partially offset by higher income tax expenses related to the divestiture.

Adjusted EBITDA (a non-GAAP financial measure that excludes certain items) for the second quarter was $879 million, up 8% from $812 million in the same period of 2025. For the first half of 2026, Adjusted EBITDA was $1.73 billion, a 2% increase from $1.69 billion in the first half of 2025. The improvement in Adjusted EBITDA was driven by contributions from recent acquisitions, volume growth across PAA’s pipeline systems, and market optimization initiatives, partially offset by the impact of certain contract rate resets.

Segment Performance

PAA operates two business segments: Crude Oil and NGL.

The Crude Oil segment, which accounts for the majority of the company’s operations, generated Segment Adjusted EBITDA of $690 million in the second quarter, up 19% from $580 million in the prior year period. For the first half of 2026, Crude Oil Segment Adjusted EBITDA was $1.27 billion, a 12% increase from $1.14 billion in the first half of 2025. The improvement was primarily due to contributions from recent acquisitions, volume growth, and market opportunities, partially offset by the impact of certain contract rate resets.

The NGL segment reported Segment Adjusted EBITDA of $4 million in the second quarter, compared to a loss of $10 million in the same period of 2025. For the first half of 2026, the NGL segment had a loss of $5 million, an improvement from a loss of $15 million in the first half of 2025. The segment’s performance was largely driven by costs associated with the company’s Canadian NGL Business, which was divested in May 2026.

Liquidity and Capital Resources

As of June 30, 2026, PAA had a working capital surplus of $679 million and approximately $3.7 billion of available liquidity, including $2.7 billion in undrawn capacity under its revolving credit facility and $1.0 billion in cash and cash equivalents.

During the first half of 2026, PAA had net repayments of $970 million under its credit facilities and commercial paper program, primarily funded by cash flow from operations and proceeds from the sale of the Canadian NGL Business. The company also used a portion of the divestiture proceeds to repay its $750 million, 4.50% senior notes that were due in December 2026.

PAA’s projected capital expenditures for 2026 are approximately $535 million for investment capital and $195 million for maintenance capital, with about half of the investment capital expected to be invested in the Permian JV assets.

Strengths and Weaknesses

Key strengths of PAA’s business include:

• Diversified asset base: PAA’s integrated network of crude oil pipelines, terminals, and storage facilities provides the company with a competitive advantage and exposure to various market opportunities.
• Volume growth: The company has benefited from increased crude oil production, particularly in the Permian Basin, driving higher volumes across its pipeline systems.
• Acquisition and integration capabilities: PAA has demonstrated the ability to successfully acquire and integrate new assets, as evidenced by the recent Cactus III pipeline acquisition.
• Financial flexibility: The company’s strong liquidity position and access to capital markets provide the financial resources to fund growth projects and maintain a stable financial profile.

Potential weaknesses or risks include:

• Exposure to commodity price volatility: PAA’s merchant activities and the value of its assets are influenced by fluctuations in crude oil prices, which can impact revenue and profitability.
• Regulatory and political risks: Changes in laws, regulations, or government policies could adversely affect the company’s ability to develop and operate its assets.
• Competition and contract renewals: PAA faces competition from other midstream providers, which could put pressure on transportation rates and volumes.
• Reliance on third-party assets: The company’s operations depend on the availability and performance of assets it does not own or control, which could disrupt its business.
• Potential for future divestitures: The sale of the Canadian NGL Business, while generating significant proceeds, represents a reduction in the company’s asset base and geographic diversification.

Outlook and Future Prospects

Looking ahead, PAA’s management is optimistic about the company’s prospects, citing continued growth in crude oil production, particularly in the Permian Basin, as a key driver of future performance. The company’s recent acquisitions and ongoing investment capital projects are expected to further strengthen its asset base and competitive position.

However, the company also acknowledges various risks and uncertainties that could impact its future results, including macroeconomic conditions, commodity price volatility, regulatory changes, and competitive pressures. PAA’s ability to successfully navigate these challenges and continue to execute its growth strategy will be crucial in determining its long-term success.

Overall, PAA’s strong financial performance in the first half of 2026, combined with its diversified asset base, financial flexibility, and strategic initiatives, position the company well to capitalize on future opportunities in the midstream energy sector.