Plains All American Pipeline, L.P. (NASDAQ: PAA) and Plains GP Holdings (NASDAQ: PAGP) raised their 2026 growth capital spending guidance to a range of $400 million to $450 million net to PAA, up from approximately $350 million previously.

The companies said maintenance capital is expected to remain approximately $185 million net to PAA for 2026. The increased budget supports multiple growth projects across Plains' Permian long-haul, Canadian gathering, and Permian gathering operations, according to the press release.

Plains plans to invest in its Permian system to accommodate additional gathering volumes, particularly in the New Mexico Delaware Basin area. The projects are expected to generate returns and contribute to EBITDA in 2027, the company stated.

"The oil macro environment has improved significantly since the beginning of the year, and customer activity and interest has allowed us to advance several high return projects," said Willie Chiang, Chairman, CEO and President.

Chiang noted that Plains purchases approximately 1.2 million barrels per day of crude oil and maintains direct connectivity to global export markets. The company will provide a more comprehensive project update during its earnings call in August.

Plains All American Pipeline operates midstream energy infrastructure and provides logistics services primarily for crude oil. The company owns pipeline gathering and transportation systems, terminals, storage facilities and other infrastructure assets serving producing basins and market hubs in the United States and Canada.