PAA earnings analysis
What we found in PAA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Q2 2026 results showed strong top-line and earnings improvement: revenue increased to $17.693 billion from $12.47 billion sequentially and $10.64 billion year over year, while EPS rose to $0.41 from $0.14 and $0.21, respectively. Free cash flow recovered to $575 million from $288 million in Q1. The supplied filing text does not include the financial statements, MD&A, segment disclosures, or balance-sheet data, so those areas cannot be fully assessed; current guidance is also not provided in the excerpt.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Accelerated Sharply
- Revenue was $17.693 billion in Q2 2026, up from $12.47 billion in Q1 2026 and $10.64 billion in Q2 2025. The increase was approximately 41.9% sequentially and 66.3% year over year.
- EPS Rebounded
- Diluted EPS was $0.41, compared with $0.14 in Q1 2026 and $0.21 in Q2 2025, an increase of $0.27 sequentially and $0.20 year over year.
- Sequential Cash Flow Recovery
- Free cash flow was $575 million, versus $288 million in Q1 2026 and $575 million in Q2 2025. Cash generation therefore more than doubled sequentially and was flat year over year.
- Debt Rate Exposure Limited
- The company reported no variable-rate debt outstanding at June 30, 2026, and stated that all senior notes are fixed-rate notes. This limits direct exposure to short-term interest-rate movements on debt.
- Controls Remained Effective
- Management concluded that disclosure controls and procedures were effective as of June 30, 2026, and reported no changes in internal control over financial reporting that materially affected, or were reasonably likely to materially affect, controls.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Commodity Derivative Volatility
- Commodity derivative fair value was negative $43 million at June 30, 2026. A 10% crude-oil price increase or decrease was estimated to change derivative fair value by approximately $2 million or negative $2 million, respectively; the sensitivity excludes the underlying hedged commodity.
- Preferred Distribution Rate Risk
- Series B preferred-unit distributions are tied to three-month SOFR and related adjustments. Based on the units outstanding at June 30, 2026, a 100-basis-point interest-rate change would increase or decrease annual distributions by approximately $8 million.
- Future Interest-Rate Exposure
- Although the company had no variable-rate debt outstanding at June 30, 2026, variable-rate debt averaged approximately 4.4% during the six months ended June 30, 2026. Future variable-rate borrowings or fixed-rate debt issuances could therefore increase interest-rate exposure.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.41
- Gross margin
- 8.3%
- Operating margin
- 2.3%
What they said about what is next.
The supplied 10-Q text does not provide quantitative revenue, EPS, or EBITDA guidance, nor an updated outlook. The prior analysis reported adjusted EBITDA guidance of approximately $2.88 billion, but the current filing excerpt does not reaffirm or change it.
The filing reads better than the one before it.
What came before.
- 10-Q · May 8, 2026
- Plains All American Pipeline (PAA) reported Q1 2026 revenue of $12.47 billion, exceeding estimates of $12.13 billion, while EPS came in at $0.39, missing the consensus estimate of $0.42. The company raised its full-year…
- 10-K · February 27, 2026
- Plains All American (PAA) is executing a strategic shift to a crude-oil pure play via a June 2025 SPA to sell its Canadian NGL Business for approximately $5.15 billion CAD (~$3.75 billion USD), classifying that business…
- 10-Q · November 8, 2024
- Plains All American reported Q3 revenues of $12,743 million, up $672 million (+5.6%) versus Q3 2023, with operating income rising to $347 million (from $234 million). Net income attributable to PAA was $220 million and…
- 10-Q · August 9, 2024
- Plains All American reported Q2 revenue of $12,933 million, up from $11,602 million a year earlier, driven by higher Crude Oil and NGL segment contract sales. Despite revenue growth, operating income was roughly flat at…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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