Plains All American Pipeline (NASDAQ:PAA) stock traded lower Friday after the company reported weaker-than-expected third-quarter results.
The company reported an adjusted loss of 4 cents per share, missing Wall Street’s estimate of earnings of 41 cents per share.
Revenue totaled $15.173 billion, below the analyst estimate of $15.208 billion.
Adjusted EBITDA attributable to PAA rose 6% year over year to $711 million, supported by the Cactus III acquisition, higher pipeline volumes and market opportunities.
Plains Narrows 2026 Outlook
Plains narrowed its 2026 adjusted EBITDA forecast to $2.88 billion, plus or minus $50 million. The company expects results at or slightly above the midpoint.
For the fourth quarter, Plains expects adjusted EBITDA of about $700 million, roughly $10 million below the third quarter, reflecting fewer market opportunities and Silver Spur transition and integration costs.
Acquisitions Strengthen Pipeline Network
Plains sold its Canadian natural gas liquids business in May and acquired Silver Creek on Oct. 1, renaming it Silver Spur.
The acquired system currently transports approximately 125,000 barrels per day and includes 915,000 dedicated acres in the Powder River Basin.
Management expects the Powder River Basin assets to gain momentum in 2028 and beyond, supported by improved drilling results and lower production costs.
The deal also strengthens connectivity to Cushing and expands Plains’ existing infrastructure network.
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Permian Expansion Drives Long-Term Growth
Plains signed a 10-year agreement with a major producer to expand its Permian Midland Gathering system.
The agreement adds 270,000 dedicated acres, bringing total Permian acreage above 5.3 million acres. The agreement covers an estimated 225,000 barrels per day of gross volumes, with contributions expected in late 2027 or early 2028.
Management expects Permian production to grow by 200,000 to 300,000 barrels per day annually, supported by drilling activity and improving efficiency.
Meanwhile, Permian-to-coast pipelines are nearly 90% utilized. Plains added 75,000 barrels per day of capacity this summer and is considering further expansions for 2028 and 2029.
Oil Demand Supports Outlook
Management pointed to resilient global oil demand, supply disruptions and declining inventories as supportive factors for crude markets.
Plains expects stronger drilling activity and improved pipeline capacity to support Permian production growth into 2027.
The company plans to provide detailed 2027 guidance in February.
PAA Price Action: Plains All American shares were down 3.44% at $23.68 at the time of publication on Friday, according to Benzinga Pro data.
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