01—Abstract
Summary
Summary of the 10-Q filed August 10, 2026. Cited figures are marked; the original filing is the authoritative source.
Plains All American Pipeline, L.P.
(PAA) reported net income attributable to PAA of $1.983 billiona for the six months ended June 30, 2026, compared with $653 million in the first six months of 2025, driven largely by income from discontinued operations of $1.548 billion. The results reflect the May 12, 2026 sale of the Canadian NGL Business to Keyera Corp., which is presented as discontinued operations and included a gain on sale of approximately $1.605 billion for the six months. Income from continuing operations, net of tax, was flat at $608 million versus $607 million, as higher revenues and lower G&A were offset by higher interest expense of $320 million versus $260 million and higher current income tax expense of $322 million versus $6 million, which the filing ties to restructuring activities connected with the divestiture.
Operating results from the Crude Oil segment improved, with Segment Adjusted EBITDA of $1.272 billionb for the six months versus $1.140 billion, attributed to the Cactus III acquisition, volume growth in the Permian Basin and market optimization, partly offset by Permian long-haul contract rates resetting to market. Consolidated Adjusted EBITDA was $1.731 billion for the six months versus $1.693 billion. Total debt fell to $8.441 billion at June 30, 2026 from $11.259 billion at December 31, 2025, after the company repaid its term loan, commercial paper borrowings and a $750 million senior note, and entered a new $2.7 billion senior unsecured revolving credit facility maturing June 2031.
At June 30, 2026, the company reported cash and cash equivalents of $1.059 billionc, a working capital surplus of $678 million and approximately $3.7 billion of liquidity. Common unit distributions paid were $589 million for the six months, and the company declared a $0.4175 per common unit distribution payable August 14, 2026. The filing also discloses an estimated Line 901 incident cost of approximately $870 million, a pending Canadian Competition Bureau lawsuit related to the divestiture, and a Line 63 release in May 2026 with estimated remediation costs of about $40 million.
02—Key points
Key Highlights
- Net income attributable to PAA was $1.983 billion for the six months ended June 30, 2026, versus $653 million a year earlier, largely reflecting the gain from the Canadian NGL Business sale in discontinued operations.
- Income from continuing operations, net of tax, was $608 million for the six months, essentially flat versus $607 million, with current income tax expense rising to $322 million from $6 million.
- Crude Oil segment Adjusted EBITDA rose to $1.272 billion for the six months from $1.140 billion, supported by the Cactus III acquisition and Permian Basin volume growth.
- Total debt decreased to $8.441 billion at June 30, 2026 from $11.259 billion at December 31, 2025, following repayment of the $1.1 billion term loan, commercial paper and the $750 million 4.50% senior notes.
- Canadian NGL Business sold to Keyera Corp. for approximately CAD$5.328 billion (about $3.883 billion), with cash proceeds used primarily to reduce leverage.
- Liquidity of approximately $3.7 billion at June 30, 2026, including $2.671 billion of availability under the new senior unsecured revolving credit facility and $1.059 billion of cash.
- Estimated aggregate Line 901 incident costs of approximately $870 million, with about $295 million of the $500 million 2015 insurance program collected to date.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Plains All American Pipeline kept $0.10.
- Revenue$17.69B100.0%
- Cost of revenue−$16.56B93.6%
- Gross profit$1.14B6.4%
- Operating costs−$739.0M4.2%
- Operating income$398.0M2.2%
- Interest, other & tax$1.43B8.1%
- Net income$1.83B10.3%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 10, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $17.69B$10.64B | +66.3% |
| Cost of Revenue | $16.56B$9.76B | +69.7% |
| Gross Profit | $1.14B$884.00M | +28.6% |
| Operating Expenses | $17.30B$10.40B | +66.3% |
| Operating Income | $398.00M$239.00M | +66.5% |
| Net Income | $1.83B$210.00M | +771.4% |
05—Questions
Frequently Asked Questions
Why did net income attributable to PAA rise so sharply compared with last year?
Net income attributable to PAA was $1.983 billion for the six months ended June 30, 2026, compared with $653 million in 2025. Income from discontinued operations of $1.548 billion, which includes a gain on sale of approximately $1.605 billion from the Canadian NGL Business divestiture, accounts for most of the increase. Income from continuing operations was essentially flat at $608 million.
How did the Canadian NGL Business divestiture affect the balance sheet and debt?
The sale closed May 12, 2026 for approximately CAD$5.328 billion (about $3.883 billion). The company used the proceeds to repay the $1.1 billion term loan, reduce commercial paper borrowings and redeem $750 million of 4.50% senior notes on June 25, 2026. Total debt fell to $8.441 billion from $11.259 billion at December 31, 2025.
What drove the change in income tax expense from continuing operations?
For the six months ended June 30, 2026, current income tax expense from continuing operations was $322 million, compared with $6 million in 2025. The filing attributes this to restructuring activities tied to the divestiture, including approximately $311 million of current tax expense from basis recapture, capital gains and withholding taxes, partially offset by a $217 million deferred tax benefit.
What are the key legal and environmental matters investors should monitor?
The company estimates total Line 901 incident costs of approximately $870 million, with a remaining undiscounted liability of about $23 million and one remaining lawsuit alleging stigma-related property damage. A Canadian Commissioner of Competition lawsuit challenges the Keyera sale, though the company believes it will not have a material adverse effect, as Keyera is primarily responsible. A May 2026 Line 63 release is estimated to cost about $40 million to remediate.
06—Continue