Key Highlights

  • Plains All American Pipeline (NASDAQ:PAA) traded at USD 26.73, up 0.37%, on October 26, 2026, with a USD 18.86 billion market value, P/E of 7.40, trailing EPS of USD 3.61 and a 6.13% yield.
  • Second quarter adjusted EBITDA attributable to the partnership was USD 738 million, up 10%, with crude oil segment EBITDA of USD 690 million, up 19%, and Permian pipeline volumes of 8,045 thousand barrels per day.
  • The quarterly distribution is USD 0.4175 per unit, or USD 1.67 a year, against implied distributable cash flow of USD 0.70 per unit, roughly 1.7 times coverage, simple arithmetic on two company figures.
  • Pro forma leverage fell to 3.3 times after about USD 2.9 billion of debt reduction from the Canadian NGL sale, and Plains All American Pipeline (NASDAQ:PAA) reports third quarter results on November 6, 2026.

Fee Income and a Cleaner Balance Sheet

Plains sold its Canadian NGL business to Keyera, closing on May 12, 2026 for net cash of about USD 3.48 billion, which cut debt by about USD 2.9 billion and left net income of USD 1.83 billion, including a gain of about USD 1.6 billion. The trailing P/E of 7.40 is flattered by that gain, so it should not be read as a recurring multiple. Management calls the company a pure play crude oil midstream provider. Crude oil segment EBITDA rose 19% to USD 690 million in the quarter, and the company said it is on track for full-year guidance. The sale simplified the business and removed volatile NGL earnings.

How Oil Prices Reach the Distribution

Pipelines earn mostly fees on barrels moved, so the link to crude is volume. Permian tariff volumes rose to 8,045 thousand barrels per day from 7,223 a year earlier, up about 11%. WTI near USD 102 encourages producers to keep drilling, which feeds those pipes without direct price exposure, while the Cactus III expansion adds 75 thousand barrels per day and lifts 2026 growth capital to USD 400 million to USD 450 million. Management has also targeted USD 50 million of cost reductions by year end. Plains also agreed in early September to buy Powder River Basin assets from Silver Creek for USD 585 million, a deal reported by a market data page.

Risks to the Yield

A high yield reflects risk as well as income. A sharp fall in crude could slow Permian drilling, volumes could fall short of forecasts, and the unit price is near its 52-week high of USD 26.39 in published market data, leaving little room for disappointment. Distributions are not guaranteed and are set by the board each quarter. The ex-distribution date is October 30, 2026. Investors should also remember that partnership units carry specific tax reporting. Analysts added to targets in October, with UBS at USD 31 and Raymond James at USD 28. The consensus target of about USD 26.24 is only slightly above the share price.

Where Things Stand

The 6.13% yield looks supported by the latest numbers: coverage of about 1.7 times, leverage of 3.3 times and rising Permian volumes. That answers the headline, with the caveat that coverage is based on a company non-GAAP measure and distributions can change. Plains All American Pipeline (NASDAQ:PAA) gains from oil prices indirectly, through volumes, not through commodity price swings. The balance of evidence is favorable, but valuation is stretched near the 52-week high. The next catalyst is November 6 results.