Plains All American Pipeline (NASDAQ:PAA) delivered stronger-than-expected adjusted earnings for the second quarter on Friday, although revenue fell short amid ongoing energy market volatility.

Shares of the midstream energy firm gained 0.73% in pre-market trading following the earnings release.

The company reported adjusted EPS of $0.36, beating the analyst consensus of $0.34. Revenue for the quarter was $10.64 billion, below the expected $13.42 billion. Plains recorded Adjusted EBITDA attributable to PAA of $672 million and closed the quarter with a leverage ratio of 3.3x, positioning it at the low end of its target 3.25x-3.75x range.

“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.”

Adjusted EBITDA in the Crude Oil segment reached $580 million, up 1% year-over-year, benefiting from higher tariff volumes, tariff escalations, and gains from recent bolt-on acquisitions. These improvements were partially offset by fewer market opportunities and weaker commodity prices. In contrast, the NGL segment saw Adjusted EBITDA decline 7% to $87 million, primarily due to reduced iso-to-normal butane spread benefits.

Recently, Plains All American agreed to sell almost all of its NGL business for approximately CAD 5.15 billion ($3.75 billion USD), with the deal expected to close in the first quarter of 2026 pending regulatory approval. The company plans to use about $3 billion of the net proceeds to fund bolt-on acquisitions, preferred unit buybacks, and opportunistic common unit repurchases.

In addition, on July 22, 2025, Plains increased its stake in BridgeTex Pipeline Company, LLC by 20%, raising its ownership to 40% and further expanding its footprint in the Permian Basin.

Plains All American Pipeline stick price

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