Plains All American Q3 2026: Net Income Falls 18% to $363M

Plains All American Pipeline, L.P. (Nasdaq: PAA) reported third-quarter 2026 net income attributable to PAA of $363 million on 6 November 2026, down 18% from $441 million a year earlier, while Adjusted EBITDA attributable to PAA rose 6% to $711 million. Diluted net loss per common unit was $0.06 versus $0.55 of income in the prior-year quarter. Net cash provided by operating activities fell 18% to $669 million. The company declared a quarterly distribution of $0.4175 per unit, or $1.67 annualized, up 10% year over year.

Context — why Plains All American's Q3 2026 results matter now

The split between GAAP net income and Adjusted EBITDA is the central feature of this quarter. Net income attributable to PAA fell 18% year over year, yet Adjusted EBITDA attributable to PAA rose 6%. The company also reported Adjusted net income attributable to PAA of $373 million, up 12% from $332 million in the third quarter of 2025.

The gap traces to the company's balance-sheet work. Plains issued $1.5 billion of Junior Subordinated notes and redeemed $2.3 billion of Series A and Series B Preferred Units. The company said the recent optimization is expected to generate roughly $60 million, or $0.09 per unit, of distributable cash flow accretion to common unitholders annually.

Preferred unit distributions sit above common equity in the cash flow waterfall. Removing them from the structure shifts cash toward common unitholders even when reported net income is under pressure. That is why the headline earnings decline and the per-unit accretion claim can coexist.

The company also reorganized its reporting. Plains consolidated its historical Crude Oil and NGL segments into one segment during the third quarter of 2026, and recast earlier periods to match. Management tied the change to the completed divestiture of NGL assets and a focus on a single crude oil business.

The Canadian NGL Business sale to Keyera Corp. closed on 12 May 2026. That transaction removes a revenue stream from continuing operations, which is why year-over-year comparisons carry a structural drag the company itself flags.

Data — what the numbers show

Revenue for the quarter was $15.173 billion against $11.578 billion a year earlier. Purchases and related costs rose to $14.030 billion from $10.585 billion, so the revenue increase is largely a pass-through of higher commodity costs rather than a margin gain.

Metric	Q3 2026	Q3 2025	Change
Net income attributable to PAA	$363M	$441M	-18%
Adjusted EBITDA attributable to PAA	$711M	$669M	+6%
Adjusted net income attributable to PAA	$373M	$332M	+12%
Distribution per common unit	$0.4175	$0.3800	+10%
Net cash from operating activities	$669M	$817M	-18%

Adjusted EBITDA across the consolidated entity, including noncontrolling interests, was $847 million, up 5% from $806 million. Implied DCF per common unit came in at $0.67 versus $0.61.

The liquidity picture changed sharply. Adjusted Free Cash Flow was $458 million for the quarter, up 51% from $303 million, and $4.728 billion for the nine months versus $344 million a year earlier. The nine-month figure includes roughly $3.527 billion of net proceeds from the Canadian NGL sale.

Field operating costs rose to $306 million from $288 million. The company attributed part of the increase to environmental remediation expenses and property tax expense. General and administrative expenses fell to $78 million from $83 million.

Pro forma use at quarter-end was approximately 3.6x, reflecting all announced transactions.

Analysis — what it means for markets, sectors and tickers

Midstream operators are valued on distributable cash flow and use, not on GAAP earnings. On those two measures Plains improved. Adjusted EBITDA attributable to PAA grew 6%, and the preferred redemption lowers the annual cash claim ranking ahead of common units.

The Permian JV expansion is the growth story. Plains is adding roughly 270,000 dedicated acres in the Midland Basin under 10-year agreements with a large integrated producer, with estimated gross volumes of about 225 mbbl/d commencing in the fourth quarter of 2027. The company did not name the counterparty.

The Silver Creek acquisition from subsidiaries of Tailwater Capital and The Energy & Minerals Group closed on 1 October 2026 for about $585 million in cash. That gives Plains immediate scale in the Powder River Basin and integration with its downstream assets, per the company.

The counter-argument is concentration. Reorganizing into one crude oil segment and leaning harder into Permian and Powder River gathering ties results to a narrow set of producing basins. The company acknowledged that the oil macro environment remains volatile, describing it as constructive.

The Permian long-haul contract rates resetting to market in 2025 were a stated drag on the quarter. That is a contractual headwind rather than an operational failure, and it pressures the same pipeline systems that the new Midland Basin acreage is meant to fill.

On positioning, Plains carries a distribution yield near 7% on the declared rate. Income-oriented funds and retail accounts that hold PAA for the payout will weigh the per-unit accretion against the earnings decline. The company did not disclose counterparty identity, contract pricing or the specific terms of the Permian JV agreements.

Outlook — what to watch next

Plains reiterated full-year 2026 Adjusted EBITDA guidance attributable to PAA of $2.880 billion, plus or minus $50 million. The company said it is on track to deliver that figure.

Crude Oil growth is estimated at roughly $370 million in 2026 versus 2025, or about 16%, including a full-year contribution from the Cactus III acquisition. The company also said it captured $50 million of synergies on Cactus III and remains on track for $50 million of efficiencies across the organization in 2026.

The next hard checkpoint is the fourth-quarter report, which will be the first to include a full period of Silver Creek results. The Midland Basin volumes are not scheduled to begin until the fourth quarter of 2027, so they will not appear in near-term prints.

Investors watching use should track whether the pro forma 3.6x ratio holds after the junior subordinated notes and preferred redemption settle. The company's stated priority is disciplined growth, financial flexibility and increasing return of capital.

Frequently Asked Questions

Why did Plains All American's net income fall while Adjusted EBITDA rose?

Net income attributable to PAA includes items that Adjusted EBITDA excludes, such as depreciation, interest expense, taxes and gains or losses on asset sales. The company also redeemed $2.3 billion of preferred units, which changes how income is allocated between preferred and common holders. Adjusted net income attributable to PAA rose 12% to $373 million, which the company treats as the cleaner read on operations.

What does the $60 million distributable cash flow accretion mean for PAA unitholders?

Plains said the junior subordinated notes issuance and preferred redemption should generate about $60 million, or $0.09 per unit, of annual distributable cash flow accretion to common unitholders. Distributable cash flow is the pool from which quarterly distributions are paid. At the declared $0.4175 quarterly rate, that accretion is a meaningful fraction of the per-unit payout, though the company did not commit to raising the distribution by that amount.

How does the Silver Creek acquisition change Plains' footprint?

Silver Creek is a Powder River Basin gathering system and related assets that Plains bought from subsidiaries of Tailwater Capital and The Energy & Minerals Group for about $585 million in cash, closing on 1 October 2026. The company said it provides immediate scale in the Powder River Basin and better integration with existing downstream assets. Plains did not disclose the acquired system's throughput volumes or revenue contribution.

Bottom Line

Plains All American's cash-flow metrics improved even as GAAP net income fell, with use near 3.6x and a 7% distribution yield.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.