01—Abstract
Summary
Summary of the 10-Q filed May 8, 2026. Cited figures are marked; the original filing is the authoritative source.
Plains All American Pipeline, L.P. reported net income attributable to PAA of $152 milliona for the three months ended March 31, 2026, compared with $443 million in the first quarter of 2025.
Net income attributable to PAA was $100 millionb allocated to common unitholders, or $0.14 per basic and diluted common unit, versus $0.49 a year earlier. Results from continuing operations were $334 million of income, versus $380 million, while discontinued operations (the Canadian NGL Business) reported a loss of $103 million, versus income of $136 million. Total revenues rose to $12.47 billion from $11.48 billion, driven by higher crude oil sales volumes and commodity prices, and Crude Oil segment Adjusted EBITDA increased to $582 million from $559 million, benefiting from recent acquisitions and volume growth in the Permian Basin.
The filing centers on the pending sale of the Canadian NGL Business to Keyera Corp. under a June 17, 2025 agreement, expected to close in May 2026 for approximately CAD$5.15 billionc (about $3.75 billion). The company expects net proceeds of approximately $3.3 billion after taxes and expenses, to be used to reduce leverage, including commercial paper and term loan borrowings. The term loan must be mandatorily prepaid within seven business days of closing.
Income tax expense of $216 milliond in current tax and an offsetting deferred tax benefit were recorded in continuing operations as part of restructuring tied to the divestiture. As of March 31, 2026, the company reported a working capital deficit of $380 million and approximately $1.8 billion of liquidity, and stated it was in compliance with its debt covenants.
Cash and cash equivalents were $171 million, total debt was $11.38 billion, and the company reported Implied DCF of $484 million and Adjusted EBITDA of $852 million for the quarter, both including discontinued operations. Distributions of $0.4175 per common unit were declared for payment on May 15, 2026.
02—Key points
Key Highlights
- Net income attributable to PAA was $152 million in Q1 2026, down from $443 million in Q1 2025; net income per common unit was $0.14 versus $0.49.
- Discontinued operations (Canadian NGL Business) posted a $103 million loss in Q1 2026, compared with $136 million of income a year earlier.
- Pending sale of the Canadian NGL Business to Keyera Corp. for approximately CAD$5.15 billion (about $3.75 billion) is expected to close in May 2026, with expected net proceeds of approximately $3.3 billion.
- Crude Oil segment Adjusted EBITDA rose to $582 million from $559 million, supported by recent acquisitions including Cactus III and Permian Basin volume growth.
- Current income tax expense of $216 million was recognized in continuing operations from restructuring tied to the divestiture, offset by an approximately equal deferred tax benefit.
- Liquidity was approximately $1.8 billion at March 31, 2026, against a working capital deficit of $380 million; the company was in covenant compliance.
- Quarterly common unit distribution of $0.4175 is payable May 15, 2026 ($1.67 annualized).
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Plains All American Pipeline kept $0.01.
- Revenue$12.47B100.0%
- Cost of revenue−$11.49B92.2%
- Gross profit$977.0M7.8%
- Operating costs−$572.0M4.6%
- Operating income$405.0M3.2%
- Interest, other & tax−$253.0M2.0%
- Net income$152.0M1.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 8, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $12.47B$11.48B | +8.7% |
| Cost of Revenue | $11.49B$10.52B | +9.3% |
| Gross Profit | $977.00M$960.00M | +1.8% |
| Operating Expenses | $12.06B$11.12B | +8.5% |
| Operating Income | $405.00M$356.00M | +13.8% |
| Net Income | $152.00M$443.00M | −65.7% |
05—Questions
Frequently Asked Questions
Why did net income fall so sharply year over year?
Net income attributable to PAA fell to $152 million from $443 million, mainly because discontinued operations swung to a $103 million loss from $136 million of income, and income from continuing operations declined to $334 million from $380 million. The 2025 period also included a $31 million gain on investments in unconsolidated entities that did not recur.
What will happen to the Canadian NGL Business and its proceeds?
The Canadian NGL Business is being sold to Keyera Corp. for approximately CAD$5.15 billion (about $3.75 billion), with closing expected in May 2026. The company expects net proceeds of about $3.3 billion after taxes and expenses, to be used to reduce leverage, including commercial paper and term loan borrowings.
Is the company's distribution covered by cash flow?
For Q1 2026, Implied DCF was $484 million and Implied DCF Available to Common Unitholders was $431 million, versus common unit cash distributions of $295 million, leaving Implied DCF Excess of $136 million. Adjusted Free Cash Flow after Distributions was negative $266 million for the quarter, which the filing says may be funded from reserves, cash on hand, or borrowings.
What are the company's main liquidity sources and any near-term debt obligations?
Liquidity was approximately $1.8 billion at March 31, 2026, including $1.35 billion of revolver availability, $1.34 billion of hedged inventory facility availability, net of $1.09 billion outstanding under commercial paper, and $171 million of cash. The company has a $750 million 4.50% senior note due December 2026, which it classifies as long-term based on its intent to refinance.
What drove the revenue increase?
Total revenues increased to $12.47 billion from $11.48 billion, primarily due to higher crude oil sales volumes and commodity prices. Crude oil pipeline tariff volumes averaged 10,039 thousand barrels per day, up from 9,086 thousand, with Permian Basin volumes up 13% on acquisitions and production growth.
06—Continue