Plains GP Holdings (PAGP) Q1 2026 earnings summary

Executive summary

• Reported Q1 2026 Adjusted EBITDA of $730 million, with strong crude oil and NGL segment performance, and net income attributable to unitholders of $152 million.

• Raised full-year 2026 Adjusted EBITDA guidance midpoint by $130 million to $2.88 billion, reflecting robust Q1 results and a constructive oil macro environment.

• Announced the pending sale of the Canadian NGL business, expected to close in May 2026, with proceeds targeted for debt reduction and transition to a pure-play crude midstream provider.

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

• Net income for Q1 2026 was $222 million, down from $492 million in Q1 2025, primarily due to a loss from discontinued operations related to the NGL sale.

Financial highlights

• Q1 2026 Adjusted EBITDA was $730 million, with $582 million from Crude Oil and $145 million from NGL; Adjusted Free Cash Flow guidance for 2026 is ~$1.85 billion, excluding NGL sale proceeds.

• Total revenues increased 9% year-over-year to $12.47 billion, driven by higher crude oil sales volumes and prices.

• Net income attributable to shareholders was $20 million, reflecting the impact of discontinued operations.

• Distribution per unit increased 10% year-over-year to $0.4175, annualized at $1.67.

• Adjusted EBITDA from NGL fell 23% year-over-year to $145 million, impacted by lower frac spreads and reduced sales volumes.

Outlook and guidance

• Full-year 2026 Adjusted EBITDA guidance raised to $2.88 billion (+/- $75 million), with NGL segment guidance at $170 million.

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

• Leverage ratio targeted at 3.25x–3.75x post-NGL sale, with a goal to reach the lower end of the range by year-end.

• Distribution per unit to increase by $0.15 to $1.67, with ongoing annual growth targeted.

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