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HOUSTON - On Friday, Plains All American Pipeline (NASDAQ:PAA) reported solid second-quarter earnings that exceeded analyst expectations, despite revenue falling short of forecasts amid a volatile energy market.
The company’s shares rose 0.73% in pre-market trading following the announcement.
The midstream energy company posted adjusted earnings per share of $0.36, beating the analyst consensus of $0.34. However, quarterly revenue came in at $10.64 billion, below the $13.42 billion analysts had expected. The company delivered Adjusted EBITDA attributable to PAA of $672 million and exited the quarter with a 3.3x leverage ratio, positioning it at the lower end of its target range of 3.25x-3.75x.
"We continue to advance our strategic initiatives and delivered solid second-quarter performance in a volatile macro environment," said Willie Chiang, Chairman, CEO and President. "Our previously announced NGL divestiture is expected to close in the first quarter of 2026 and will improve our free cash durability, provide substantial financial flexibility and drive opportunities to streamline the business."
The company’s Crude Oil segment Adjusted EBITDA reached $580 million, up 1% YoY, driven by higher tariff volumes, tariff escalations, and contributions from recently completed bolt-on acquisitions. These gains were largely offset by fewer market opportunities and lower commodity prices. Meanwhile, NGL segment Adjusted EBITDA decreased 7% to $87 million due to lower iso-to-normal butane spread benefits.
Plains All American recently executed agreements to divest substantially all of its NGL business for approximately $5.15 billion CAD ($3.75 billion USD), with expected closing in the first quarter of 2026 pending regulatory approval. The company plans to prioritize the net proceeds of approximately $3.0 billion USD toward bolt-on acquisitions, preferred unit repurchases, and opportunistic common unit repurchases.
Additionally, on July 22, 2025, Plains acquired an additional 20% interest in BridgeTex Pipeline Company, LLC, increasing its total interest to 40%, further strengthening its Permian Basin footprint.
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