Plains GP Holdings LP

PAGP reported first-quarter adjusted EBITDA attributable to Plains GP Holdings of $730 million. Crude oil segment adjusted EBITDA was $582 million, and NGL segment adjusted EBITDA was $145 million. Management increased the midpoint of full-year 2026 adjusted EBITDA guidance by $130 million to $2.88 billion; NGL segment EBITDA is now expected to be $170 million for the year, and growth capital remains $350 million while maintenance capital was raised to $185 million. Plains expects about $1.85 billion of adjusted free cash flow in 2026, excluding changes in assets and liabilities and excluding NGL divestiture proceeds. Net proceeds from the NGL sale are expected to be about $3.3 billion, roughly $100 million higher than prior estimates, and leverage pro forma for the sale would be about 3.5x by year end, moving toward the low end of the 3.25x to 3.75x target range.

Willie Chiang framed the quarter around a more constructive oil macro backdrop, saying geopolitical disruptions and tighter supply are making North America more important to global energy security. He emphasized that Plains is positioned to benefit from both near-term volatility and longer-term restocking demand, and said the company is focused on three 2026 priorities: closing the NGL sale, driving Cactus III synergies, and advancing streamlining. His tone was confident but disciplined, repeatedly noting that growth opportunities must meet return thresholds and support future cash returns to unitholders.

Al Swanson highlighted that crude EBITDA of $582 million was broadly in line with internal expectations and included a full quarter of Cactus III, offset by winter weather, maintenance, and minimum volume commitment timing. He said NGL EBITDA of $145 million was stronger than expected due to higher straddle production and better frac spreads in March. On the balance sheet, he said first-quarter pro forma leverage was 4.1x, falling to about 3.5x pro forma for the NGL sale, and that proceeds of about $3.3 billion should be used to pay down a little over $3 billion of debt. He also noted elevated current and deferred taxes tied to the NGL restructuring, but said there was no cash tax impact in the quarter.

Analysts pressed on whether higher crude prices were already reflected in guidance and whether there was upside if prices stay elevated; management said the guide reflects a highly hedged start to the year, but there is upside from stronger macro conditions. Questions also focused on producer activity, basis, and egress expansion, with management saying rigs have started to return, but producer caution remains tied to the back end of the curve and natural gas takeaway constraints. On cost savings and capital allocation, management said it remains on track for $50 million of efficiencies in 2026 and another $50 million in 2027, and after debt paydown from the NGL sale the priorities return to distribution growth, investment, preferred paydowns if leverage allows, and opportunistic buybacks.