The raised EBITDA guidance and strong crude oil volumes (10,039 kbpd, +10% YoY) are positive, but the EPS miss and declining GAAP net income temper enthusiasm. Monitor the NGL divestiture closing in May 2026 and subsequent deleveraging; the stock may trade on crude oil macro sentiment and distribution sustainability.
Price Chart
Executive Summary
PAA reported Q1 2026 adjusted net income per common unit of $0.39, in line with the year-ago period but below the consensus EPS estimate of $0.42. The company raised its full-year 2026 Adjusted EBITDA guidance midpoint by $130 million to $2.880 billion, reflecting a constructive oil macro environment and extended NGL ownership into May. However, GAAP net income fell 66% YoY to $152 million, and the pending NGL divestiture adds execution risk.
Key Financial Metrics
Key Facts
- Q1 2026 adjusted net income per common unit of $0.39, flat YoY and a ~5.1% miss vs consensus $0.42
- GAAP net income attributable to PAA fell 66% YoY to $152 million, driven by a $103 million loss from discontinued operations
- Full-year 2026 Adjusted EBITDA guidance midpoint raised by $130 million to $2.880 billion ± $75 million
- Adjusted EBITDA attributable to PAA was $730 million, down 3% YoY from $754 million
- Crude Oil segment Adjusted EBITDA rose 4% YoY to $582 million; NGL segment Adjusted EBITDA fell 23% to $145 million
- Pro forma leverage ratio of 4.1x; expect to return toward 3.25-3.75x target range after NGL divestiture closing in May 2026
- Quarterly cash distribution of $0.4175 per unit (~7.5% annualized yield), up 10% YoY
- Full-year 2026 Adjusted Free Cash Flow guidance increased to ~$1.850 billion (excluding changes in A&L and NGL sale proceeds)
Financial Impact
Adjusted EBITDA guidance raised by $130 million midpoint to $2.880B; Q1 adjusted net income $325M vs $375M YoY (-13%)
Risk Factors
- NGL divestiture closing delayed or terms renegotiated, impacting deleveraging timeline
- Lower crude oil prices or demand could pressure volumes and margins
- Permian long-haul pipeline contract rate resets may continue to pressure crude oil segment growth
- High leverage (4.1x pro forma) limits financial flexibility until divestiture closes
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3291015 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 11, 2026 20d ago | 424B5 | $25.85 $24.99 | ▼ −3.33% | ▼ −3.43% | $23.63 (−8.61%) |
Sep 9, 2026 22d ago | Press Release | $25.72 $25.41 | ▼ −1.19% | ▼ −0.69% | $23.63 (−8.13%) |
Sep 9, 2026 23d ago | 424B5 | $25.85 $25.42 | ▼ −1.66% | ▼ −1.01% | $23.63 (−8.61%) |
Aug 7, 2026 8w ago | 8-K | $22.81 $23.90 | ▲ +4.78% | ▲ +4.38% | $23.63 (+3.57%) |
Jun 15, 2026 15w ago | Press Release | $21.94 $21.48 | ▼ −2.10% | ▼ −0.71% | $23.63 (+7.68%) |
May 8, 2026 21w ago | Press Release | $21.72 $22.48 | ▲ +3.50% | ▲ +2.04% | $23.63 (+8.77%) |
May 5, 2026 21w ago | Press Release | $22.17 $21.94 | ▼ −1.04% | ▼ −2.17% | $23.63 (+6.56%) |
US Market Status
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