Plains All American Q3 2026 Profit Falls 18% But EBITDA Rises 6%

Plains All American Pipeline, L.P. (Nasdaq: PAA) reported on 6 November 2026 that third-quarter net income attributable to PAA fell 18% year over year to $363 million, while Adjusted EBITDA attributable to PAA rose 6% to $711 million. Net cash provided by operating activities was $669 million, down 18%. The company declared a quarterly distribution of $0.4175 per unit, or $1.67 annualized, and said pro forma use at quarter-end stood at roughly 3.6x after issuing $1.5 billion of junior subordinated notes and redeeming $2.3 billion of Series A and Series B preferred units.

Context — why Plains' Q3 split matters now

The gap between the GAAP profit line and the non-GAAP earnings line is the story of the quarter. Net income attributable to PAA dropped 18% versus the same three months of 2025, yet Adjusted EBITDA attributable to PAA climbed 6% over the same span. The company attributes the divergence to items it classifies as impacting comparability, and it has flagged that its preferred unit redemption and junior subordinated notes issuance reshape the earnings that reach common unitholders.

That capital structure change is the catalyst behind the quarter's optics. The redemption of $2.3 billion of preferred units removes a preferred claim ahead of common equity, while the $1.5 billion junior subordinated notes issue replaces part of that stack. The company said the balance sheet optimization is expected to generate roughly $60 million, or $0.09 per unit, of distributable cash flow accretion to common unitholders annually. That is the company's expectation, not a booked result.

The report gives a nine-month comparable that reframes the single-quarter decline. For the nine months ended 30 September 2026, net income attributable to PAA was $2.345 billion, up 115% from $1.093 billion a year earlier. The prior-year nine-month figure carries the Canadian NGL Business, which Plains sold to Keyera Corp. on 12 May 2026, and the current-year figure carries the gain and cash from that divestiture.

Macro conditions remain a factor the company itself names. CEO Willie Chiang described the oil macro environment as volatile yet constructive, and said Plains sees multiple tailwinds building into 2027. The company did not provide a specific crude price deck in the report.

Data — what the numbers show

The quarter's headline figures, all from the report, are these: net income attributable to PAA of $363 million; Adjusted EBITDA attributable to PAA of $711 million; net cash from operations of $669 million; and a declared distribution of $0.4175 per unit. Diluted net loss per common unit was $0.06, against diluted net income per common unit of $0.55 in the third quarter of 2025.

That per-unit swing is the sharpest line in the release. Adjusted net income attributable to PAA rose 12% to $373 million, yet diluted adjusted net income per common unit fell to a loss of $0.04 from positive $0.39 a year earlier. The company reconciles these non-GAAP measures to net income in tables attached to the release and does not reconcile them on a forward-looking basis.

The liquidity measures moved the other way. Adjusted Free Cash Flow was $458 million, up 51% from $303 million. Adjusted Free Cash Flow after Distributions was $81 million, against a $18 million deficit a year earlier. Excluding changes in assets and liabilities, Adjusted Free Cash Flow was $569 million, up 152%, and after distributions $192 million, against a $95 million deficit.

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

Analysis — what it means for midstream investors

The volume drivers the company cites are Permian-linked: contributions from the Cactus III acquisition closed in the fourth quarter of 2025, volume growth across pipeline systems on higher Permian production, and market optimization gains. Offsetting those were certain Permian long-haul contract rates resetting to market in 2025, higher operating costs from environmental remediation and property taxes, and the loss of the Canadian NGL contribution.

Contract rate resets are the item worth watching for the midstream sector. When long-haul Permian rates reset toward market, the revenue per barrel on committed capacity falls even as volumes rise. Plains says crude oil growth is estimated at roughly $370 million in 2026 versus 2025, about 16%, and that figure includes a full year of Cactus III. That is the company's estimate.

On the growth side, Plains is expanding its Permian joint venture gathering system with about 270,000 dedicated acres in the Midland Basin, backed by 10-year agreements with a large integrated producer. The company said estimated gross volumes are roughly 225,000 barrels per day, commencing in the fourth quarter of 2027, with room for future growth. It also closed the Silver Creek gathering system acquisition in the Powder River Basin from subsidiaries of Tailwater Capital and The Energy & Minerals Group on 1 October, for aggregate cash consideration of about $585 million.

The counter-argument is use and cost inflation. The pro forma leverage ratio of roughly 3.6x includes all announced transactions, and the report does not disclose the rating agencies' reaction to the junior subordinated notes or the preferred redemption. Higher environmental remediation and property tax expense is a cost line that does not reverse with volumes. A crude price that undermines Permian drilling economics would pressure the dedicated-acre growth thesis.

Positioning follows the distribution. A roughly 7% current yield, as the company states, keeps income-oriented holders in the name, while the per-unit loss complicates the earnings screen for funds that filter on GAAP EPS.

Outlook — what to watch next

The company reiterated full-year 2026 Adjusted EBITDA guidance attributable to PAA of $2.880 billion, plus or minus $50 million. That is the single most concrete forward number in the release, and it brackets the fourth quarter implicitly.

Three dated catalysts sit on the calendar. First, the Permian JV expansion volumes begin in the fourth quarter of 2027, per the company. Second, the Silver Creek acquisition closed 1 October, so its contribution appears from the fourth quarter onward. Third, Plains said it is on track to deliver $50 million of efficiencies across the organization in 2026, alongside $50 million of captured synergies on Cactus III.

The company did not disclose the terms of the Permian JV agreements beyond acreage, volume estimates and duration. It also did not reconcile forward Adjusted EBITDA to GAAP net income, stating that doing so is impractical without unreasonable effort.

Frequently Asked Questions

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

Net income attributable to PAA includes items the company classifies as impacting comparability, and the preferred unit redemption changes the earnings that reach common unitholders. Adjusted EBITDA attributable to PAA strips out interest, taxes, depreciation and amortization, gains and losses on asset sales, and impairments. The company reported $363 million of net income and $711 million of Adjusted EBITDA attributable to PAA for the quarter.

What does the $1.5 billion junior subordinated notes deal mean for PAA unitholders?

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 optimization is expected to generate roughly $60 million, or $0.09 per unit, of annual distributable cash flow accretion to common unitholders. Pro forma use was about 3.6x at quarter-end, including all announced transactions.