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Plains All American reported second-quarter revenue of $17.7 billion, above the $14.7 billion consensus, and adjusted EPS of $0.41, above the $0.40 consensus. Revenue rose from $10.6 billion a year earlier, while diluted EPS was $2.51, compared with $0.21.
In its filing, Plains attributed higher product sales revenue and purchases primarily to higher crude oil sales volumes and commodity prices. The company said service revenue increased mainly because of its Cactus III pipeline acquisition, partly offset by certain Permian long-haul contract rates resetting to market.
Plains said crude oil segment adjusted EBITDA increased as acquisitions, pipeline volume growth and market opportunities and optimization initiatives outweighed the contract-rate resets. The company reported gross margin of 4.57%, down from 5.62%, while operating margin remained at 2.25%. Free cash flow was $818.0 million, compared with $542.0 million a year earlier.
The filing attributed higher general and administrative expenses partly to accelerated exit costs associated with the Canadian NGL business; Plains excluded those costs from its adjusted results.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $17.7 billion | $10.6 billion | 66.3% |
| Diluted EPS | $2.51 | $0.21 | 1,095.2% |
| Gross margin | 4.57% | 5.62% | −1.0 percentage point |
| Operating margin | 2.25% | 2.25% | 0.0 percentage points |
| Free cash flow | $818.0 million | $542.0 million | 50.9% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.41 | $0.40 | Beat by 2.50% |
| Revenue | $17.7 billion | $14.7 billion | Beat by 20.5% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Willie Chang said earlier-than-expected natural gas takeaway capacity prompted Plains to raise its Permian production outlook. He said the expected ramp-up would have minimal impact on this year’s EBITDA but carry momentum into the following year. CFO Al Swanson said the quarter’s crude oil segment results benefited from Cactus III synergies, efficiencies, market-based opportunities and the absence of earlier headwinds.
Chang said Plains had sanctioned an expansion of Cactus III to support demand for export barrels out of Corpus Christi. Asked how the new space would be filled, Jeremy Goebel said the marketing affiliate could use it initially and that Plains aimed to contract it over time. He said the expansion would not, in the company’s view, impair its ability to contract across the system.
On pricing, Goebel said longer-term rates would depend on the shipper, contract structure and term. He said Plains was seeing customers seek barrels from additional sources for supply security and described both Corpus Christi and Houston as tight markets. He also said regional volatility and margins had narrowed in the third quarter, though opportunities could return later in the year.
Asked about further Cactus III expansions, Chris Chandler said future phases would need customer commitments and that their costs looked more economical than originally assumed. He described the cost of the completed phase in broad terms rather than providing an exact amount.
Swanson said Plains’ second-half outlook already assumed crude oil segment EBITDA above the second-quarter level. Goebel added that Plains was “not forecasting market-based opportunities other than what we’ve captured.” Chandler said organizational changes, trucking adjustments and office consolidations contributed to the efficiency program.
Guidance
Chang said Plains raised its growth capital spending range for 2026 from its previous forecast and now expects Permian production growth rather than relatively flat production. Swanson said Plains reduced its maintenance capital forecast, largely because of the timing of the Canadian NGL business sale.