Earnings Analysis November 6, 2026

Plains All American Pipeline LP ($PAA) Q3 FY2027 Earnings Analysis: Adjusted EPS and Revenue Miss Expectations

Earnings Report

Revenue: $15.173 billion (Q3 FY2026, +31.1% YoY, expected $15.211 billion) ❌ Miss

EPS (Earnings Per Share): Adjusted -$0.04 (Q3 FY2026, expected $0.46) ❌ Miss

Guidance: Maintained · 2026 annual company-attributable adjusted EBITDA of $2.83 billion to $2.93 billion

Stock Reaction: After-hours -1.81% ($24.09, as of 11-06 22:22 KST)

Highlights

Core Profit Growth: Company-attributable adjusted EBITDA for Q3 FY2026 was $711 million, a 6% increase from the previous year.

Supported Distributions: Distribution per common unit for Q3 FY2026 was $0.4175, with a coverage ratio of distributable cash at 1.61x.

Improved Capital Structure: The company expects distributable cash for common units to increase by $60 million annually due to recent capital structure restructuring.

The company explained that the results were supported by contributions from acquired assets and increased throughput following production growth in the Permian region. A key point to watch is whether the effect of redeeming preferred units will lead to higher cash distributions for common unit holders in the future.

Lowlights

Adjusted Loss Per Share: Adjusted EPS for Q3 FY2026 was -$0.04, falling $0.50 short of the expected $0.46.

Revenue Miss: Q3 FY2026 revenue was $15.173 billion, which was $38 million lower than the expected $15.211 billion.

Decreased Operating Cash Flow: Cash flow from operating activities for Q3 FY2026 was $669 million, an 18% decrease compared to the same period last year.

An impact of $358 million from the redemption of Series A preferred units was deducted from the common unit attributable income this quarter and remained in the adjusted earnings calculation. The company also cited the resetting of rates for some long-haul transportation contracts and increases in environmental remediation costs and property taxes as factors constraining performance.

What the Company Said

Chairman, CEO, and President Willie Chiang emphasized the expansion of the collection network, the integration effects of acquired assets, and the increase in distributable cash resulting from the redemption of preferred units. The company explained that it would maintain its annual outlook while simultaneously pursuing financial flexibility and investor returns.

Market Reaction and Future Key Points

Along with the after-hours decline, the burdens to consider are the adjusted earnings per share and the revenue miss. While it is difficult to definitively identify the direct cause of the stock price decline based solely on the press release, the fact that the impact of the preferred equity redemption remains in the adjusted earnings is necessary for interpreting the results.

In the next quarter, it must be confirmed how earnings attributable to common equity and distributable cash change following the preferred equity redemption.

In the next quarter, it should be examined how much the increase in transport volume offsets the burden of contract rate resets and rising operating expenses.

In the next quarter, it must be confirmed whether the contribution from newly acquired assets supports the achievement of annual guidance.

Earnings Call Key Summary

Once the company script is released following the earnings call, the key takeaways from the call will be added to this section. We will select and summarize only the important points, such as how management explained the results and outlook, and what analysts asked.