Plains All American Reports Third-Quarter 2026 Results
PLAINS GP HOLDINGS LP (PAGP) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Plains All American Reports Third-Quarter 2026 Results Houston, TX – November 6, 2026 – Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported third-quarter 2026 results and provided the following highlights: Third-Quart
Facts are quoted from the filing text and checked against it.
How this was made
The 30-second read
Why it matters
The earnings beat and guidance reaffirmation provide fresh data for valuation models and may trigger short‑term buying.
Market read
First‑report earnings release with material financial metrics and guidance, likely to move the stocks and influence the broader midstream sector.
What to watch
Execution risk on Permian JV expansion and integration of Silver Creek assets.
PAA Q3 2026: Adjusted EBITDA attributable to PAA up 6% to $711 million; diluted GAAP and adjusted results per common unit were losses of $(0.06) and $(0.04)
Operating and distribution metrics improved: Adjusted EBITDA attributable to PAA rose 6%, Implied DCF per common unit rose 10%, the declared distribution rose 10%, and Adjusted Free Cash Flow rose 51%. Per-unit earnings were negative in the quarter: diluted net income per common unit was $(0.06) against $0.55, and diluted adjusted net income per common unit was $(0.04) against $0.39. The filing prints an 'Impact from repurchase of Series A preferred units' of $(358) million in the continuing-operations computation for the quarter. Net income attributable to PAA fell 18%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, Q3 2026 (GAAP, Condensed Consolidated Statements of Operations, PAA)GAAP | $15.17B | – | – |
| Operating income, Q3 2026 (GAAP, PAA)GAAP | $516M | – | – |
| Purchases and related costs, Q3 2026 (GAAP, PAA)GAAP | $14.03B | – | – |
| Field operating costs, Q3 2026 (GAAP, PAA)GAAP | $306M | – | – |
| General and administrative expenses, Q3 2026 (GAAP, PAA)GAAP | $78M | – | – |
| Depreciation and amortization, Q3 2026 (GAAP, PAA)GAAP | $235M | – | – |
| Interest expense, net, Q3 2026 (GAAP, PAA)GAAP | −$131M | – | – |
| Equity earnings in unconsolidated entities, Q3 2026 (GAAP, PAA)GAAP | $85M | – | – |
| Gain on/(impairment of) investments in unconsolidated entities, net, Q3 2026 (GAAP, PAA)GAAP | −$68M | – | – |
| Income from continuing operations before tax, Q3 2026 (GAAP, PAA)GAAP | $421M | – | – |
| Current income tax benefit/(expense) from continuing operations, Q3 2026 (GAAP, PAA)GAAP | $4M | – | – |
| Deferred income tax benefit/(expense) from continuing operations, Q3 2026 (GAAP, PAA)GAAP | −$12M | – | – |
| Income from discontinued operations, net of tax, Q3 2026 (GAAP, PAA)GAAP | $40M | – | – |
| Net income, Q3 2026 (GAAP, PAA consolidated, before noncontrolling interests)GAAP | $453M | – | – |
| Net income attributable to PAA, Q3 2026 (GAAP)GAAP | $363M | – | (18)% |
| Diluted net income/(loss) per common unit, Q3 2026 (GAAP)GAAP | $(0.06) | – | (111)% |
| Net cash provided by operating activities, Q3 2026 (GAAP)GAAP | $669M | – | (18)% |
| Distribution per common unit declared, Q3 2026other | $0.4175 | – | 10% |
| Adjusted net income attributable to PAA, Q3 2026 (non-GAAP)non-GAAP | $373M | – | 12% |
| Diluted adjusted net income/(loss) per common unit, Q3 2026 (non-GAAP)non-GAAP | $(0.04) | – | (110)% |
| Adjusted EBITDA, Q3 2026 (non-GAAP, consolidated)non-GAAP | $847M | – | 5% |
| Adjusted EBITDA attributable to PAA, Q3 2026 (non-GAAP)non-GAAP | $711M | – | 6% |
| Implied DCF per common unit, Q3 2026 (non-GAAP)non-GAAP | $0.67 | – | 10% |
| Adjusted Free Cash Flow, Q3 2026 (non-GAAP)non-GAAP | $458M | – | 51% |
| Adjusted Free Cash Flow after Distributions, Q3 2026 (non-GAAP)non-GAAP | $81M | – | ** (not meaningful, as printed) |
| Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities), Q3 2026 (non-GAAP)non-GAAP | $569M | – | 152% |
| Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities), Q3 2026 (non-GAAP)non-GAAP | $192M | – | ** (not meaningful, as printed) |
| Cash distributions paid, Q3 2026 (preferred and common unitholders)other | $377M | – | – |
| Common unit cash distributions, Q3 2026other | $295M | – | – |
| Implied DCF, Q3 2026 (non-GAAP)non-GAAP | $558M | – | – |
| Common Unit Distribution Coverage Ratio, Q3 2026 (non-GAAP)non-GAAP | 1.61x | – | – |
| Total investment and maintenance capital expenditures, Q3 2026 (net to PAA)other | $124M | – | – |
| Net income attributable to PAGP, Q3 2026 (GAAP, PAGP consolidating)GAAP | $68M | – | – |
| Diluted net income/(loss) per Class A share, Q3 2026 (GAAP, PAGP)GAAP | $(0.16) | – | – |
| Total revenues, nine months ended September 30, 2026 (GAAP, PAA)GAAP | $45.33B | – | – |
| Operating income, nine months ended September 30, 2026 (GAAP, PAA)GAAP | $1.32B | – | – |
| Purchases and related costs, nine months ended September 30, 2026 (GAAP, PAA)GAAP | $42.08B | – | – |
| Interest expense, net, nine months ended September 30, 2026 (GAAP, PAA)GAAP | −$451M | – | – |
| Income from continuing operations before tax, nine months ended September 30, 2026 (GAAP, PAA)GAAP | $1.13B | – | – |
| Income from discontinued operations, net of tax, nine months ended September 30, 2026 (GAAP, PAA)GAAP | $1.59B | – | – |
| Net income, nine months ended September 30, 2026 (GAAP, PAA consolidated)GAAP | $2.61B | – | – |
| Net income attributable to PAA, nine months ended September 30, 2026 (GAAP)GAAP | $2.35B | – | 115% |
| Diluted net income per common unit, nine months ended September 30, 2026 (GAAP)GAAP | $2.59 | – | 107% |
| Net cash provided by operating activities, nine months ended September 30, 2026 (GAAP)GAAP | $2.04B | – | (5)% |
| Distribution per common unit declared, nine months ended September 30, 2026other | $1.2525 | – | 10% |
| Adjusted net income attributable to PAA, nine months ended September 30, 2026 (non-GAAP)non-GAAP | $1.05B | – | 3% |
| Diluted adjusted net income per common unit, nine months ended September 30, 2026 (non-GAAP)non-GAAP | $0.75 | – | (34)% |
| Adjusted EBITDA, nine months ended September 30, 2026 (non-GAAP, consolidated)non-GAAP | $2.58B | – | 3% |
| Adjusted EBITDA attributable to PAA, nine months ended September 30, 2026 (non-GAAP)non-GAAP | $2.18B | – | 4% |
| Implied DCF per common unit, nine months ended September 30, 2026 (non-GAAP)non-GAAP | $1.99 | – | 3% |
| Adjusted Free Cash Flow, nine months ended September 30, 2026 (non-GAAP)non-GAAP | $4.73B | – | ** (not meaningful, as printed) |
| Adjusted Free Cash Flow after Distributions, nine months ended September 30, 2026 (non-GAAP)non-GAAP | $3.66B | – | ** (not meaningful, as printed) |
| Adjusted Free Cash Flow (Excluding Changes in Assets & Liabilities), nine months ended September 30, 2026 (non-GAAP)non-GAAP | $4.76B | – | ** (not meaningful, as printed) |
| Adjusted Free Cash Flow after Distributions (Excluding Changes in Assets & Liabilities), nine months ended September 30, 2026 (non-GAAP)non-GAAP | $3.69B | – | ** (not meaningful, as printed) |
| Total investment and maintenance capital expenditures, nine months ended September 30, 2026 (net to PAA)other | $363M | – | – |
| Total crude oil pipeline tariff volumes, Q3 2026 (operating data, thousands of barrels per day)other | 10.51M | – | – |
| Permian Basin crude oil pipeline tariff volumes, Q3 2026 (operating data, thousands of barrels per day)other | 8.07M | – | – |
| Total crude oil pipeline tariff volumes, nine months ended September 30, 2026 (operating data, thousands of barrels per day)other | 10.38M | – | – |
| Permian Basin crude oil pipeline tariff volumes, nine months ended September 30, 2026 (operating data, thousands of barrels per day)other | 7.96M | – | – |
FY2026 outlook
- NoteAdjusted EBITDA attributable to PAA: $2.880 billion +/- $50 million (company is 'on track' to deliver this guidance, per the filing)
- NoteCrude Oil growth estimated ~$370 million in 2026 versus 2025, or ~16% (includes full year contribution from Cactus III acquisition)
- NoteOn track to deliver $50 million of efficiencies across the organization in 2026
Capital returns
- Paid a quarterly cash distribution of $0.4175 per unit in Q3 2026 ($1.67 per unit annualized), which the filing describes as a current distribution yield of ~7%.
- Common unit cash distributions were $295 million in Q3 2026 (Q3 2025: $267 million) and $884 million for the nine months (2025: $802 million).
- Preferred unit cash distributions paid were $82 million in Q3 2026 (Q3 2025: $54 million).
- On September 14, 2026, PAA repurchased all 58.4 million Series A preferred units for a purchase price of approximately $1.687 billion.
- On October 9, 2026, PAA repurchased all 0.8 million Series B preferred units for a purchase price of approximately $800 million.
- The filing states that recent balance sheet optimization is expected to generate ~$60 million ($0.09/unit) of distributable cash flow accretion to common unitholders annually.
- Common Unit Distribution Coverage Ratio was 1.61x in Q3 2026 and 1.59x for the nine months ended September 30, 2026 (Q3 2025: 1.61x; nine months 2025: 1.69x).
What drove it
- The company states that Q3 2026 Adjusted EBITDA attributable to PAA increased 6% due to favorable results from (i) contributions from the Cactus III acquisition completed in Q4 2025, (ii) volume growth across pipeline systems largely driven by increased production in the Permian Basin region and (iii) market opportunities and optimization initiatives.
- The company states these favorable factors were partially offset by (iv) the impact from certain Permian long-haul contract rates resetting to market in 2025, (v) higher operating costs driven by environmental remediation expenses and property tax expense and (vi) contributions in the 2025 period from the Canadian NGL Business, which was sold in May 2026.
- The Canadian NGL Business was sold to Keyera Corp. on May 12, 2026 and is presented as discontinued operations. The filing states that results throughout the release specify whether they are from continuing or discontinued operations.
- After the reorganization in Q3 2026, the historical Crude Oil and NGL segments were combined into one consolidated segment, and prior periods were recast. The company states the change reflects divestiture of NGL assets, connectivity of the core asset base and streamlining of operations.
- The company states that Silver Creek, a Powder River Basin gathering system acquired for aggregate cash consideration of approximately $585 million, closed October 1, 2026.
- The company states it is expanding the Permian JV gathering system, adding ~270,000 dedicated acres in the Midland Basin under 10-year agreements with a large integrated producer, with estimated gross volumes of ~225 mbbl/d commencing in the fourth quarter of 2027.
- GAAP net income attributable to PAA fell 18% in Q3 2026. The filing's continuing-operations per-unit computation shows the line 'Impact from repurchase of Series A preferred units' of $(358) million for Q3 2026 (2025: none).
- General and administrative expenses for the nine months include approximately $33 million related to the acceleration of certain expenses, primarily in Q2 2026, resulting from exit costs associated with the Canadian NGL Business.
Concerns
- Net income attributable to PAA fell 18% to $363 million and diluted net income per common unit was $(0.06) in Q3 2026. Diluted adjusted net income per common unit was $(0.04), down 110% from $0.39.
- Operating cash flow fell 18% to $669 million in Q3 2026 and 5% to $2,042 million for the nine months.
- Pro forma leverage of ~3.6x is a figure the filing presents with the preferred redemption and junior subordinated notes included in the calculation.
- The filing reports the Series A and Series B preferred unit repurchases and the Series A repurchase impact of $(358) million in the per-unit calculations, which reduce income available to common unitholders in the quarter.
- The filing states that environmental remediation expenses and property tax expense increased operating costs in the quarter, and that Permian long-haul contract rates reset to market in 2025.
- Equity earnings in unconsolidated entities declined to $85 million from $96 million, and a $(68) million impairment of investments in unconsolidated entities was recorded in Q3 2026.
What to watch
- Delivery against the FY2026 Adjusted EBITDA attributable to PAA guidance of $2.880 billion +/- $50 million, given the nine-month figure of $2,179 million.
- Realization of the ~$60 million ($0.09/unit) annual distributable cash flow accretion the company expects from balance sheet optimization.
- Progress on the Permian JV gathering expansion (~270,000 Midland Basin acres, commencing Q4 2027) and Silver Creek integration in the Powder River Basin.
- Reduction of leverage from the pro forma ~3.6x level and the post-transaction debt structure, including the $1.5 billion junior subordinated notes.
- Effect of the Permian long-haul contract rate reset and the environmental remediation and property tax costs cited as drags in Q3 2026.
- Management's expected $50 million of 2026 organizational efficiencies, which the filing says remain on track.
Balance sheet and cash flow
- Cash and cash equivalents were $879 million at September 30, 2026 (December 31, 2025: $328 million).
- Total assets were $29,474 million at September 30, 2026 (December 31, 2025: $30,169 million) in the PAA balance sheet. PAGP consolidated total assets were $30,498 million (December 31, 2025: $31,276 million).
- Total debt was $9,920 million at September 30, 2026 (December 31, 2025: $11,262 million). Long-term debt was $9,911 million (December 31, 2025: $10,698 million in the debt capitalization table; $10,696 million in the balance sheet).
- Senior notes, net were $8,375 million; junior subordinated notes, net were $1,479 million; other long-term debt was $57 million at September 30, 2026.
- Long-term debt-to-total book capitalization was 51% (December 31, 2025: 52%). Total debt-to-total book capitalization, including short-term debt, was 51% (December 31, 2025: 53%).
- Pro forma leverage ratio at quarter-end was ~3.6x, which the filing says reflects the issuance of $1.5 billion of Junior Subordinated notes and the redemption of $2.3 billion of Series A and Series B Preferred Units (includes all announced transactions).
- Nine-month net cash provided by investing activities was $3,003 million, including $3,480 million from discontinued operations. The filing states this includes a net cash inflow of approximately $3.527 billion for proceeds (net of cash divested) from the sale of the Canadian NGL Business.
- Nine-month net cash used in financing activities was $(4,477) million (2025: net cash provided of $500 million).
- Nine-month cash provided by operating activities from continuing operations was $1,883 million (2025: $1,836 million); from discontinued operations it was $159 million (2025: $314 million).
- Nine-month cash used in investing activities from continuing operations was $(477) million (2025: $(1,680) million).
Analysis
Plains reported third-quarter 2026 results that combine operating growth with weaker per-unit earnings. Adjusted EBITDA attributable to PAA rose 6% to $711 million and Implied DCF per common unit rose 10% to $0.67. The company's declared distribution rose 10% to $0.4175 per unit. Management attributes the Adjusted EBITDA growth to the Cactus III acquisition, volume growth driven by Permian Basin production and market opportunities, partly offset by Permian long-haul contract rates resetting to market, higher environmental remediation and property tax costs, and the absence of Canadian NGL Business contributions following its May 2026 sale. Tariff volumes support the volume story: total crude oil pipeline tariff volumes were 10,507 thousand barrels per day in Q3 2026 against 9,883 in Q3 2025, and Permian Basin volumes were 8,071 against 7,490.
GAAP and adjusted per-unit earnings moved the other way. Diluted net income per common unit was $(0.06) against $0.55, and diluted adjusted net income per common unit was $(0.04) against $0.39. The filing prints an 'Impact from repurchase of Series A preferred units' of $(358) million in the Q3 2026 continuing-operations allocation, and this line sits between the Series A repurchase on September 14, 2026 and the common-unit calculation. The nine-month figures tell a different story: GAAP net income attributable to PAA rose 115% to $2,345 million and diluted net income per common unit rose 107% to $2.59, largely reflecting discontinued operations of $1,588 million, which include the sale of the Canadian NGL Business. Adjusted net income per common unit for the nine months fell 34% to $0.75, and the filing's selected-items table shows a $(1,298) million adjustment in that period.
Cash generation is strong on the adjusted basis but weaker on the GAAP basis. Adjusted Free Cash Flow rose 51% to $458 million in Q3 2026, and Adjusted Free Cash Flow after Distributions was $81 million. Net cash provided by operating activities fell 18% to $669 million. For the nine months, Adjusted Free Cash Flow of $4,728 million includes the net proceeds of approximately $3.527 billion from the Canadian NGL sale, a point the company states explicitly in its footnotes. Net capital expenditures net to PAA were $124 million in Q3 2026, down from $171 million.
The balance sheet shows deleveraging through transactions. Total debt fell to $9,920 million from $11,262 million at year-end 2025, and long-term debt-to-total book capitalization improved to 51% from 52%. The company reports a pro forma leverage ratio of approximately 3.6x, which includes the $1.5 billion junior subordinated notes issuance and the $2.3 billion of preferred unit redemptions. Cash rose to $879 million from $328 million. Management expects the balance sheet actions to add about $60 million ($0.09 per unit) of annual distributable cash flow accretion.
Full-year guidance is restated rather than changed in this release: the company says it is on track to deliver FY2026 Adjusted EBITDA attributable to PAA of $2.880 billion +/- $50 million. Nine-month Adjusted EBITDA attributable to PAA was $2,179 million, and the release does not print a new range or a comparison with a previous outlook. The Crude Oil growth estimate of ~$370 million (~16%) for 2026 versus 2025 includes the full-year Cactus III contribution. The reader should weigh the Q4 implied figure against the stated range.
Two items warrant attention. The first is the reporting change: NGL and Crude Oil were combined into one segment in Q3 2026 with prior periods recast, so segment-level comparisons with earlier filings are not available from this release. The second is the year-end long-term debt figure, which the balance sheet prints as $10,696 million and the debt capitalization table prints as $10,698 million; both are reported as printed.
Management, verbatim
We remain focused on a disciplined growth strategy, maintaining financial flexibility and increasing return of capital to our unitholders
Willie Chiang, Chairman, CEO and President
Not in the filing
stated, not guessed- Prior-year and sequential (Q2 2026) comparisons for total revenues, operating income, cost lines and interest expense are not printed as percentage changes in this release.
- Segment revenue and segment operating results: the filing reports one consolidated segment after the reorganization, and no segment revenue table is printed.
- Revenue by product line, business or geography is not printed; only crude oil pipeline tariff volumes by region are given, as volumes rather than revenue.
- Prior-quarter (Q2 2026) figures for all metrics are not printed in this release.
- Previous-period outlook: no previous release outlook was provided, so no guidance comparison can be made.
- Consensus estimates, analyst expectations and share-price reaction are not in the document.
- Guided revenue, gross margin, operating expense and tax rate figures are not printed in the guidance.
- Change percentages for PAGP Class A share net income and for Q3 2026 PAA revenue, operating income and interest expense are not printed.
- Year-to-date Q3 2026 adjusted EBITDA guidance has no quarterly phasing printed.
- Income tax expense lines for nine months and the net-to-PAA capital expenditure split by category for prior year are printed; no other tax rate figure is printed.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a SEC Form 8‑K reporting Plains All American's third‑quarter 2026 financial results and guidance.
Ticker impact
Plains All American Pipeline reported Q3 2026 net income of $363M, adjusted EBITDA of $711M and provided full-year adjusted EBITDA guidance of $2.880B.
likely upward pressure as investors price in stronger-than-expected earnings and issued guidance
The company delivered higher net income and EBITDA versus prior year and issued full-year guidance, indicating solid cash flow and growth prospects.
Plains GP Holdings disclosed Q3 2026 results, including a pro forma leverage ratio of ~3.6x after issuing $1.5B junior notes and redeeming $2.3B preferred units.
likely supportive price action as balance sheet optimization improves cash flow and leverage
The reduction in leverage and cash distribution of $0.4175 per unit signal financial flexibility, which should be well‑received by the market.
Market effects
Strengthens outlook for midstream energy sector and may lift peer pipelines.
Positive impact on U.S. energy infrastructure investors.
Reinforces demand for oil transport amid volatile macro environment.
Counterpoint
Potential overvaluation risk if oil prices soften later in the year.
Key entities
- companyPlains All American Pipeline, L.P.
Midstream energy transport and storage firm.
- companyPlains GP Holdings LP
Master limited partnership holding Plains All American assets.
