PAA Q2 2026: Adjusted EBITDA Hits $738M, Leverage Drops to 3.3x, Growth Capex Revised Upward

summarizeSummary

PAA reported Q2 2026 Adjusted EBITDA of $738 million, up 10% YoY, driven by crude oil segment strength. Leverage fell to 3.3x after the Canadian NGL sale, and growth capex was raised to $400–$450 million. The quarterly distribution increased 10% to $0.4175/unit.

check_boxKey Events · Earnings and Guidance · PAA

• Q2 Adjusted EBITDA Beats

  Adjusted EBITDA attributable to PAA reached $738 million, a 10% increase from $672 million in Q2 2025, driven by a 19% jump in Crude Oil segment EBITDA.

• Leverage Hits Target Low-End

  Pro forma leverage ratio fell to 3.3x after $2.9 billion in debt repayment from the $3.76 billion Canadian NGL divestiture proceeds, within the 3.25–3.75x target range.

• Growth Capex Raised

  2026 organic growth capital guidance increased to $400–$450 million (from $350 million) to fund a 75 Mb/d Cactus III pipeline expansion and Permian gathering projects.

• Distribution Increased 10%

  Quarterly cash distribution raised to $0.4175 per unit ($1.67 annualized), representing a ~7% yield, supported by strong distributable cash flow.

auto_awesomeAnalysis · PAA · Energy & Transportation

A strong second quarter saw Adjusted EBITDA attributable to PAA climb 10% year-over-year to $738 million. The period also captured a $1.6 billion gain from the completed sale of its Canadian NGL business, which enabled $2.9 billion in debt reduction and pushed leverage to the low end of management's target range. Reflecting confidence in volume growth, the 2026 organic growth capital budget was raised by up to $100 million to fund a Cactus III pipeline expansion and Permian gathering projects. The distribution was increased 10% to $0.4175 per unit, offering a ~7% yield. These results confirm the successful transition to a pure-play crude oil midstream provider and provide momentum heading into 2027.