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As noted last week, midstream MLPs and corporations broadly raised full-year financial guidance following a strong second quarter. Looking ahead, the sector's growth runway is accelerating.
Midstream MLPs and corporations generally posted strong second-quarter earnings, benefiting from record volume throughput, strong margins, and robust demand for natural gas and natural gas liquids (NGL) exports. Companies also demonstrated the defensive nature of their fee-based cash flows.
Plains All American Pipeline is a leading crude oil midstream MLP with a 6.90% yield and critical Permian Basin infrastructure. PAA's growth outlook has improved as sustained oil prices above $80/barrel could drive upstream production and organic volume gains. The unit price has surged nearly 39% since late 2024, compressing the yield but reflecting optimism around higher energy prices and capital expansion.
Plains All American remains a compelling midstream play, leveraging Permian production growth and Gulf Coast export demand for robust income and returns. PAA delivered 19% YoY crude oil adjusted EBITDA growth in Q2 2026, driven by Cactus III integration, bolt-on acquisitions, and higher volumes. Management guides for 15% full-year crude oil adjusted EBITDA growth and is increasing growth capital spending, with new projects expected to boost EBITDA in 2027.
While the top- and bottom-line numbers for Plains All American (PAA) give a sense of how the business performed in the quarter ended June 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Plains All American Pipeline, L.P. Common Units (PAA) Q2 2026 Earnings Call Transcript
Plains All American Pipeline NASDAQ: PAA reported second-quarter adjusted EBITDA attributable to Plains of $738 million and said it remains on track to meet its full-year 2026 adjusted EBITDA guidance of $2.88 billion, plus or minus $75 million.
PAA tops Q2 earnings and sales estimates as Crude Oil EBITDA climbs while maintaining its 2026 adjusted EBITDA outlook.