PAA · Plains All American Pipeline, L.P.

Plains All American Pipeline reported first-quarter 2026 results reflecting a mixed performance amid the pending divestiture of its Canadian NGL business, classified as held for sale and discontinued operations with retrospective application. GAAP net income attributable to PAA fell 66% to $152 million from $443 million in Q1 2025, with diluted EPS declining 71% to $0.14, while non-GAAP adjusted net income dropped 13% to $325 million but held diluted adjusted EPS steady at $0.39. Adjusted EBITDA totaled $852 million (down 3% YoY), with the PAA-attributable portion at $730 million (also down 3%). Crude oil Adjusted EBITDA rose 4% to $582 million, driven by bolt-on acquisitions like Cactus III pipeline and higher pipeline volumes, offset by Permian long-haul contract rate resets. NGL Adjusted EBITDA declined 23% to $145 million due to lower frac spreads and warmer weather impacting sales volumes. Operating cash flow was $418 million, down 35% YoY. Management raised full-year 2026 Adjusted EBITDA guidance midpoint by $130 million to $2.880 billion +/- $75 million, citing a strong oil macro environment and NGL contributions through May 2026 prior to the Keyera divestiture close. Growth capital stays at $350 million, maintenance capital rises to $185 million reflecting extended NGL ownership, and Adjusted Free Cash Flow guidance increases to ~$1.850 billion (excluding A&L changes and NGL proceeds). Pro forma leverage stood at 4.1x, with expectations to return to 3.25-3.75x midpoint post-sale and toward lower end by year-end. A $0.4175 per unit distribution was paid, up 10% YoY for ~7.5% yield. CEO Willie Chiang highlighted the integrated crude model, NGL sale enabling pure-play crude focus, $100 million from Cactus III synergies and efficiencies, and commitment to balance sheet strength and capital returns amid constructive oil markets positioning for 2027 momentum.