Plains All American Pipeline (NASDAQ:PAA) Releases Quarterly Earnings Results, Misses Estimates By $0.09 EPS

Key Points

• Plains All American Pipeline reported $0.41 in quarterly EPS, missing the $0.50 consensus estimate by $0.09, while revenue reached $17.69 billion—up 66.3% year over year.
• Second-quarter adjusted EBITDA was $738 million, and management maintained its 2026 EBITDA guidance of $2.88 billion, plus or minus $75 million, despite raising its 2026 growth-capital budget to $400 million-$450 million.
• The Canadian NGL business sale reduced debt by roughly $2.9 billion and lowered leverage to 3.3 times; Plains also declared a $0.4175 quarterly dividend, equivalent to a 7.3% annualized yield.

Plains All American Pipeline (NASDAQ:PAA - Get Free Report) announced its earnings results on Friday. The company reported $0.41 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.50 by ($0.09), Briefing.com reports. The firm had revenue of $17.69 billion for the quarter. Plains All American Pipeline had a return on equity of 12.17% and a net margin of 2.53%.The business's revenue was up 66.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.36 EPS.

Here are the key takeaways from Plains All American Pipeline's conference call:

• Second-quarter adjusted EBITDA was $738 million, and management said the company remains on track to meet its 2026 guidance of $2.88 billion, plus or minus $75 million. Crude segment EBITDA rose to $690 million, supported by Cactus III synergies, efficiencies and market-based opportunities.
• Plains raised 2026 growth capital spending to $400 million-$450 million for producer-backed Permian and Canadian gathering expansions and a 75,000-barrel-per-day Cactus III expansion. The projects are expected to contribute primarily to 2027 EBITDA and generate returns above the company’s hurdle rate.
• The sale of the Canadian NGL business reduced debt by approximately $2.9 billion and lowered pro forma leverage to 3.3 times. Management expects about $1.75 billion of 2026 free cash flow and reiterated its plan to return capital to unit holders while retaining balance-sheet flexibility.
• Management increased its forecast for Permian production growth to 100,000-200,000 barrels per day exit-to-exit in 2026, citing earlier-than-expected natural-gas egress. Executives characterized this as a source of momentum heading into 2027, with additional upside possible from improving producer productivity and activity.
• Despite stronger production expectations and a solid second quarter, Plains left its 2026 EBITDA guidance unchanged, saying a strong second-half forecast already incorporates the expected volume ramp. Management also emphasized continued uncertainty from Middle East developments, oil-price volatility and changing export flows.

Plains All American Pipeline Trading Down 3.0%

Shares of Plains All American Pipeline stock traded down $0.71 during trading hours on Friday, reaching $22.81. The stock had a trading volume of 4,416,561 shares, compared to its average volume of 3,141,060. The firm has a market capitalization of $16.09 billion, a price-to-earnings ratio of 17.41, a P/E/G ratio of 7.78 and a beta of 0.50. Plains All American Pipeline has a 1 year low of $15.69 and a 1 year high of $25.03. The company has a current ratio of 0.94, a quick ratio of 0.88 and a debt-to-equity ratio of 1.02. The firm has a 50 day simple moving average of $22.99 and a two-hundred day simple moving average of $21.94.

Plains All American Pipeline Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Stockholders of record on Friday, July 31st will be issued a $0.4175 dividend. This represents a $1.67 dividend on an annualized basis and a dividend yield of 7.3%. The ex-dividend date is Friday, July 31st. Plains All American Pipeline's dividend payout ratio (DPR) is 127.48%.

Institutional Trading of Plains All American Pipeline

A number of institutional investors and hedge funds have recently bought and sold shares of PAA. Invesco Ltd. grew its stake in Plains All American Pipeline by 0.7% during the fourth quarter. Invesco Ltd. now owns 33,508,798 shares of the company's stock worth $601,818,000 after buying an additional 228,106 shares during the period. Morgan Stanley lifted its holdings in shares of Plains All American Pipeline by 40.2% during the 4th quarter. Morgan Stanley now owns 9,881,248 shares of the company's stock valued at $177,467,000 after acquiring an additional 2,833,161 shares in the last quarter. Tortoise Capital Advisors L.L.C. lifted its holdings in shares of Plains All American Pipeline by 2.9% during the 4th quarter. Tortoise Capital Advisors L.L.C. now owns 9,542,156 shares of the company's stock valued at $171,377,000 after acquiring an additional 265,555 shares in the last quarter. BROOKFIELD Corp ON boosted its position in Plains All American Pipeline by 18.9% during the 2nd quarter. BROOKFIELD Corp ON now owns 6,774,650 shares of the company's stock worth $124,112,000 after purchasing an additional 1,076,291 shares during the period. Finally, Berkley W R Corp boosted its position in Plains All American Pipeline by 39.3% during the 4th quarter. Berkley W R Corp now owns 2,684,307 shares of the company's stock worth $48,210,000 after purchasing an additional 757,505 shares during the period. Institutional investors and hedge funds own 41.78% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have weighed in on PAA shares. Morgan Stanley increased their price target on Plains All American Pipeline from $23.00 to $25.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 20th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $23.00 target price on shares of Plains All American Pipeline in a research note on Tuesday, July 21st. The Goldman Sachs Group upgraded Plains All American Pipeline from a "sell" rating to a "neutral" rating and increased their target price for the stock from $18.00 to $24.00 in a research report on Wednesday, June 3rd. Wells Fargo & Company raised their price target on Plains All American Pipeline from $22.00 to $23.00 and gave the stock an "equal weight" rating in a research note on Tuesday, May 12th. Finally, Truist Financial lifted their price target on Plains All American Pipeline from $23.00 to $25.00 and gave the company a "buy" rating in a report on Wednesday, July 15th. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Plains All American Pipeline presently has an average rating of "Hold" and a consensus target price of $23.23.

Plains All American Pipeline Company Profile

Plains All American Pipeline NASDAQ: PAA is a publicly traded energy infrastructure company that provides midstream services for crude oil and natural gas liquids (NGLs). The company’s core activities include gathering, transporting, storing and marketing hydrocarbons, using an integrated network of pipelines, storage terminals, rail and truck transloading facilities. Plains also offers logistics and marketing services that connect upstream producers with refiners, traders and export markets.

Plains owns and operates a portfolio of pipeline and terminal assets concentrated in major U.S.

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