Plains All American Pipeline, L.P.

Plains reported second quarter adjusted EBITDA attributable to Plains of $738 million. Crude oil segment adjusted EBITDA was $690 million, up significantly from the first quarter, and NGL segment adjusted EBITDA was $40 million, reflecting the mid-May closing of the NGL business sale. Management said 2Q results included about $14 million of one-off environmental remediation expenses. For 2026, the company reaffirmed full-year adjusted EBITDA guidance of $2.88 billion plus or minus $75 million, raised growth CapEx to $400 million-$450 million from $350 million, reduced maintenance CapEx to $175 million, and said it expects about $1.75 billion of free cash flow. Management also said pro forma leverage at quarter-end was 3.3x after about $2.9 billion of debt reduction, and that it is about 70% hedged for the balance of the year at an average WTI price around $62.

Willie Chiang framed the quarter around execution on three priorities: closing the Canadian NGL sale, capturing Cactus III synergies, and identifying about $50 million of efficiencies in 2026 plus another $50 million in 2027. He sounded constructive on the macro backdrop, arguing that Middle East disruptions and tighter global inventories increase the value of North American infrastructure and could favor a shift toward a more demand-pull market for barrels. He repeatedly emphasized capital discipline, flexibility, and returning cash to unitholders while also pursuing accretive organic and bolt-on growth.

Al Swanson highlighted the quarter’s mix of stronger crude EBITDA and lower NGL contribution after the sale, while noting roughly $14 million of one-time environmental remediation costs. He walked through the revised 2026 framework: growth CapEx of $400 million-$450 million, maintenance CapEx of $175 million, about $1.75 billion of free cash flow, 70% hedged remaining for the year at around $62 WTI, and leverage of 3.3x after the NGL divestiture reduced debt by about $2.9 billion. He also said the company has realized a little less than half of the targeted $50 million of 2026 efficiencies so far and remains on track for the rest by year-end.

Analysts focused on why stronger Permian volume expectations did not lead to higher 2026 EBITDA guidance, and management said most of the benefit is modeled into a strong second-half outlook and is more of a setup for 2027 than an immediate 2026 uplift. Questions also centered on the newly sanctioned Cactus III 75,000-barrel-per-day expansion; management said it is highly economic, can be filled by the marketing affiliate now, and future phases will depend on customer commitments and market conditions. Another recurring topic was the balance between organic projects, bolt-ons, and capital allocation; management said it is evaluating all options, including organic CapEx, acquisitions, returning cash, and even taking out the preferred.