Sometimes a company can grow its cash flow, sign a big new pipeline deal and still get punished by the market. That's roughly what happened to Plains All American Pipeline (PAA) on Friday.

The midstream operator reported weaker-than-expected third-quarter results, and investors responded by sending the stock lower. The headline numbers were ugly: an adjusted loss of 4 cents per share, versus Wall Street's estimate of earnings of 41 cents per share. Revenue totaled $15.173 billion, just below the analyst estimate of $15.208 billion.

But here's the thing. Adjusted EBITDA attributable to PAA actually rose 6% year over year to $711 million, supported by the Cactus III acquisition, higher pipeline volumes and market opportunities. So the business isn't falling apart. It's just that the per-share math didn't cooperate with what analysts had penciled in.

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 of that range.

For the fourth quarter, Plains expects adjusted EBITDA of about $700 million, roughly $10 million below the third quarter. That dip reflects fewer market opportunities and costs tied to the Silver Spur transition and integration.

Acquisitions Strengthen Pipeline Network

Plains has been busy reshaping its portfolio. The company 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 those 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.

Permian Expansion Drives Long-Term Growth

Then there's the Permian, where 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. It 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 market data.