Plains All American Pipeline, L.P. (NASDAQ:PAA) reported stronger-than-expected second-quarter earnings on Friday, with robust pipeline volumes and improved crude oil operations helping the midstream energy company outperform Wall Street forecasts while maintaining its full-year outlook.
Shares gained around 1.4% in pre-market trading following the results.
Earnings and Revenue Beat Forecasts
Plains reported adjusted earnings of $0.41 per share for the second quarter, ahead of analysts’ consensus estimate of $0.39 per share.
Revenue climbed to $17.69 billion, comfortably exceeding market expectations of $12.75 billion.
Adjusted EBITDA attributable to PAA totalled $738 million during the quarter, including $698 million from crude oil operations and $40 million from its natural gas liquids (NGL) business.
The company completed the sale of its NGL business in mid-May.
Full-Year Guidance Maintained
Management reaffirmed its 2026 adjusted EBITDA guidance of approximately $2.88 billion, with a variance of plus or minus $75 million.
The company also expects to generate around $1.75 billion in adjusted free cash flow during 2026, excluding changes in working capital and proceeds from the NGL business sale.
Crude Oil Operations Continue to Strengthen
Adjusted EBITDA from crude oil operations increased to $690 million in the second quarter, up from $582 million in the previous quarter.
The improvement was driven by the absence of first-quarter operational headwinds, continued synergies from the Cactus III pipeline, efficiency improvements and favourable market opportunities.
These gains were partly offset by approximately $20 million in one-off environmental remediation costs and higher property tax expenses.
Pipeline tariff volumes averaged 10.505 million barrels per day, while Permian Basin operations handled 8.045 million barrels per day during the quarter.
Expansion Projects Progress
Plains increased its 2026 organic growth capital budget by $50 million, taking total planned spending to $100 million.
The additional investment will support projects including the expansion of the Cactus III pipeline, which is expected to increase capacity by 75,000 barrels per day to approximately 725,000 barrels per day.
The company is also expanding its Permian Basin gathering network by securing an additional 120,000 dedicated acres, strengthening its long-term growth platform in one of North America’s most active oil-producing regions.
Plains All American Pipeline stock price
