01—Abstract
Summary
Summary of the 10-Q filed November 9, 2026. Cited figures are marked; the original filing is the authoritative source.
Plains All American Pipeline (PAA) reported a significant increase in net income attributable to PAA for the nine months ended September 30, 2026, reaching $2.345 billion compared to $1.093 billiona in the prior year period.
This substantial growth was primarily driven by the divestiture of the Canadian NGL Business, which closed in May 2026, resulting in a large gain from discontinued operations. Excluding discontinued operations, income from continuing operations saw a slight decrease, but operational highlights include increased crude oil pipeline volumes, particularly in the Permian Basin. Financially, PAA has strengthened its balance sheet by completing a substantial offering of junior subordinated notes and using the proceeds to repurchase all outstanding Series A and Series B preferred units.
This strategic move simplifies the capital structure and removes significant preferred distribution obligations. The company also renewed its revolving credit facility, enhancing its liquidity. Despite positive operational trends in crude oil, investors should note the slight decline in continuing operations income and the ongoing risks associated with commodity price volatility and environmental matters.
02—Key points
Key Highlights
- Net income attributable to PAA surged to $2.345 billion for the nine months ended September 30, 2026, a significant increase from $1.093 billion in the prior year, largely due to the gain from the Canadian NGL Business divestiture.
- The company completed the sale of its Canadian NGL Business on May 12, 2026, for approximately CAD$5.390 billion, aligning with its strategy to focus on crude oil operations.
- PAA issued $1.5 billion in junior subordinated notes and used the proceeds to repurchase all outstanding Series A and Series B preferred units, simplifying its capital structure.
- Total crude oil pipeline tariff volumes increased by 6% year-over-year for the three months ended September 30, 2026, with notable growth in the Permian Basin (8%) and Western regions (25%).
- Adjusted EBITDA attributable to PAA increased by 6% to $711 million for the three months ended September 30, 2026, and by 4% to $2.179 billion for the nine-month period, driven by acquisitions and volume growth.
- The company renewed its senior unsecured revolving credit facility, increasing its borrowing capacity to $2.7 billion, with an accordion feature to increase it to $4.0 billion, maturing in June 2031.
- Despite a decrease in income from continuing operations (net of tax) to $1.021 billion from $1.061 billion for the nine months, the company reported strong Adjusted Free Cash Flow of $4.728 billion for the nine months ended September 30, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Plains All American Pipeline kept $0.02.
- Revenue$15.17B100.0%
- Cost of revenue−$14.03B92.5%
- Gross profit$1.14B7.5%
- Operating costs−$627.0M4.1%
- Operating income$516.0M3.4%
- Interest, other & tax−$153.0M1.0%
- Net income$363.0M2.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 9, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $15.17B$11.58B | +31.1% |
| Cost of Revenue | $14.03B$10.59B | +32.5% |
| Gross Profit | $1.14B$993.00M | +15.1% |
| Operating Expenses | $14.66B$11.09B | +32.1% |
| Operating Income | $516.00M$484.00M | +6.6% |
| Net Income | $363.00M$441.00M | −17.7% |
05—Questions
Frequently Asked Questions
What was the main driver of the significant increase in PAA's net income for the nine months ended September 30, 2026?
The primary driver of the substantial increase in net income attributable to PAA to $2.345 billion was the gain realized from the divestiture of the Canadian NGL Business, which closed in May 2026. This transaction resulted in a large gain from discontinued operations.
How has PAA managed its capital structure and debt during this period?
PAA significantly strengthened its capital structure by issuing $1.5 billion in junior subordinated notes and using these proceeds, along with other funds, to repurchase all of its Series A and Series B preferred units. The company also renewed its revolving credit facility, providing substantial liquidity and flexibility.
What is the outlook for PAA's core crude oil transportation business based on the reported volumes?
The company's crude oil transportation business shows positive momentum, with total average daily volumes increasing by 6% for the three months ended September 30, 2026, compared to the same period in the prior year. Significant growth was observed in key regions like the Permian Basin (up 8%) and Western (up 25%), indicating strong demand and PAA's competitive positioning in these areas.
What are the key financial performance metrics reported, and how do they compare to the previous year?
Adjusted EBITDA attributable to PAA, a key non-GAAP measure, increased by 4% to $2.179 billion for the nine months ended September 30, 2026. The company also reported strong Adjusted Free Cash Flow of $4.728 billion for the nine-month period, reflecting robust operational cash generation after accounting for investing activities.
06—Continue