Plains All American Pipeline (PAA) Q1 2026 earnings summary

Executive summary

• First-quarter 2026 adjusted EBITDA was $730 million, with net income attributable to unitholders at $152 million and strong crude oil segment performance; NGL segment lagged due to lower frac spreads and volumes.

• Raised full-year 2026 Adjusted EBITDA guidance midpoint by $130 million to $2.88 billion, reflecting a 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 earmarked for debt reduction and a strategic shift to core crude oil operations.

• Cactus III acquisition and cost reduction initiatives are expected to deliver $100 million in synergies and efficiencies by end of 2027.

Financial highlights

• Q1 2026 Adjusted EBITDA was $730 million, with $582 million from Crude Oil and $145 million from NGL; net income attributable to unitholders was $152 million.

• Total revenues from continuing operations were $12.47 billion, up 9% year-over-year; net income from continuing operations was $334 million.

• Adjusted Free Cash Flow guidance for 2026 is approximately $1.85 billion, excluding NGL sale proceeds.

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

• Pro forma leverage ratio at quarter-end was 4.1x, expected to decline to 3.5x post-NGL sale.

Outlook and guidance

• 2026 Adjusted EBITDA guidance raised to $2.88 billion, including $170 million from NGL, with sensitivities to WTI price changes.

• Growth capital for 2026 remains at $350 million; maintenance capital increased to $185 million due to extended NGL asset ownership.

• Full-year 2026 Adjusted Free Cash Flow guidance is ~$1.85 billion, excluding NGL sale proceeds.

• Proceeds from the NGL sale will be used to reduce leverage.

• Long-term leverage target range set at 3.25–3.75x.