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Plains All American
(NASDAQ:PAA)
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Rating:73Outperform
Price Target:
$29.00
â–²(13.15% Upside)
Action:Reiterated
Date:09/30/26
PAA’s score is driven primarily by improving financial performance and strong cash generation (robust TTM free cash flow and higher profitability), supported by attractive valuation (low P/E and high yield). The main restraint is weaker near-term technical momentum (below key short-term moving averages with negative MACD), while the earnings call was constructive with reaffirmed guidance, expected strong 2026 free cash flow, and ongoing deleveraging tempered by macro and hedge-related risks.
Positive Factors
Strong Cash Generation
PAA is converting reported earnings into substantial cash, with free cash flow representing about 88% of TTM net income. This supports debt reduction, maintenance spending, organic growth and distributions, strengthening financial resilience over the next several quarters.
Negative Factors
Thin Operating Margins
Structurally thin margins leave less room to absorb cost increases, weaker volumes or unfavorable market conditions than a higher-margin business would have. They also make earnings more sensitive to the mix of fee-based services and marketing-related activities.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
PAA is converting reported earnings into substantial cash, with free cash flow representing about 88% of TTM net income. This supports debt reduction, maintenance spending, organic growth and distributions, strengthening financial resilience over the next several quarters.
Read all positive factors
Plains All American (PAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.63B
Dividend Yield6.18%
Average Volume (3M)2.42M
Price to Earnings (P/E)7.3
Beta (1Y)0.23
Revenue Growth9.00%
EPS Growth299.23%
CountryUS
Employees3,900
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)3.61
Shares Outstanding705,566,470
10 Day Avg. Volume2,302,621
30 Day Avg. Volume2,420,515
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)1.29
Price to Sales (P/S)0.29
P/FCF Ratio5.51
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit12.19
Enterprise Value/Ebitda9.27
Forecast
1Y Price Target
$26.92Price Target Upside5.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)1.59
Revenue Forecast (FY)$60.03B
Plains All American Business Overview & Revenue Model
Company Description
Plains All American Pipeline, L.P., through its subsidiaries, engages in the pipeline transportation, terminalling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada. The company operates through two...
How the Company Makes Money
PAA primarily makes money by providing midstream logistics services—moving, storing, and handling crude oil and NGLs—for customers under contracted arrangements. Key revenue streams typically include: (1) Transportation fees: PAA earns tariff-base...
Plains All American Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive operational and financial picture: strong Q2 adjusted EBITDA, meaningful free cash flow expectations, substantial deleveraging (~$2.9 billion) to a 3.3x pro forma leverage ratio, capture of Cactus III synergies and a low-cost expansion, and an increased growth-capex program focused on high-return, quick-hit projects. Management emphasized efficiency targets ($50M in 2026 and another $50M in 2027) and a disciplined capital allocation framework. The main negatives were macro / geopolitical uncertainty, a one-off $14M remediation charge, partial hedge coverage (~70%) leaving residual price exposure, and analyst concern that higher Permian volume forecasts did not lift 2026 EBITDA guidance (timing of benefits expected in 2027). Overall, the positives (operational execution, balance sheet repair, cash generation and strategic expansions) materially outweigh the lowlights.Positive Updates
Cactus III Synergies and Expansion
Captured targeted Cactus III synergies and sanctioned a capital-efficient expansion adding 75,000 barrels/day to bring Cactus III capacity to 725,000 barrels/day; expansion to be online by end of month and described as highly economic (low tens of millions of dollars incremental cost) with quick fill potential via marketing affiliate.
Negative Updates
Geopolitical and Macro Uncertainty
Ongoing conflict in the Middle East and supply disruptions through the Strait of Hormuz create heightened market uncertainty and volatility that could affect volumes, differentials and timing of demand; management repeatedly noted uncertain timing and extent of macro tailwinds.
Read all updates
Q2-2026 Updates
Positive
Negative
Cactus III Synergies and Expansion
Captured targeted Cactus III synergies and sanctioned a capital-efficient expansion adding 75,000 barrels/day to bring Cactus III capacity to 725,000 barrels/day; expansion to be online by end of month and described as highly economic (low tens of millions of dollars incremental cost) with quick fill potential via marketing affiliate.
Read all positive updates
Company Guidance
Management reaffirmed robust 2026 targets and provided detailed metrics: Q2 adjusted EBITDA attributable to Plains was $738M (crude segment $690M; NGL $40M, including ~$14M one‑off remediation), and full‑year adjusted EBITDA guidance remains $2.88B ± $75M; pro forma leverage is 3.3x after roughly $2.9B of debt reduction from the May Canadian NGL sale. They raised growth capex to $400–450M (from $350M) while cutting maintenance capex to $175M, expect to capture $50M of efficiencies in 2026 and another $50M in 2027, forecast ~100k–200k bpd Permian exit‑to‑exit production growth in 2026, sanctioned a 75k bpd Cactus III expansion to 725k bpd (online by month‑end), are ~70% hedged on PLA revenue at an average WTI of ~$62, and expect roughly $1.75B of free cash flow in 2026 while continuing to return capital (targeted $0.15/unit annual increases).Plains All American Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 52.22B | 44.26B | 50.07B | 48.71B | 57.34B | 42.08B |
| Gross Profit | 2.34B | 2.67B | 1.72B | 2.76B | 1.89B | 1.74B |
| EBITDA | 3.08B | 2.91B | 2.74B | 3.06B | 2.79B | 1.92B |
| Net Income | 2.77B | 1.44B | 772.00M | 1.23B | 1.04B | 593.00M |
Balance Sheet | ||||||
| Total Assets | 29.22B | 30.17B | 26.56B | 27.36B | 27.89B | 28.61B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 4.73B | 348.00M | 450.00M | 401.00M | 449.00M |
| Total Debt | 8.63B | 11.30B | 7.93B | 8.03B | 8.82B | 9.64B |
| Total Liabilities | 14.93B | 17.09B | 13.47B | 13.62B | 14.57B | 15.80B |
| Stockholders Equity | 11.08B | 9.84B | 9.81B | 10.42B | 10.06B | 9.97B |
Cash Flow | ||||||
| Free Cash Flow | 2.38B | 2.29B | 1.87B | 2.17B | 1.95B | 1.66B |
| Operating Cash Flow | 2.98B | 2.94B | 2.49B | 2.73B | 2.41B | 2.00B |
| Investing Cash Flow | 797.00M | -3.69B | -1.50B | -702.00M | -526.00M | 386.00M |
| Financing Cash Flow | -3.15B | 724.00M | -1.08B | -1.98B | -1.93B | -1.98B |
Plains All American Technical Analysis
Positive
25.63
Price Trends
25.09
Positive
23.94
Positive
22.29
Positive
Market Momentum
0.47
Negative
68.75
Neutral
88.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAA, the sentiment is Positive. The current price of 25.63 is above the 20-day moving average (MA) of 24.96, above the 50-day MA of 25.09, and above the 200-day MA of 22.29, indicating a bullish trend. The MACD of 0.47 indicates Negative momentum. The RSI at 68.75 is Neutral, neither overbought nor oversold. The STOCH value of 88.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAA.
Plains All American Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $58.92B | 12.47 | 33.42% | 7.41% | 4.79% | 10.20% | |
77 Outperform | $60.53B | 16.52 | 16.28% | 4.42% | 41.83% | 12.74% | |
76 Outperform | $64.89B | 28.74 | 72.08% | 1.49% | -0.83% | 49.90% | |
75 Outperform | $80.27B | 12.91 | 21.21% | 5.93% | 7.38% | 7.45% | |
73 Outperform | $18.63B | 7.32 | 27.46% | 6.18% | 9.00% | 299.23% | |
73 Outperform | $70.28B | 12.57 | 16.77% | 6.59% | 33.27% | 12.55% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
PAA
Plains All American
26.41
10.83
69.47%
ET
Energy Transfer
20.41
4.60
29.12%
EPD
Enterprise Products Partners
37.17
7.85
26.77%
OKE
Oneok
96.01
30.47
46.49%
TRGP
Targa Resources
302.61
153.28
102.65%
MPLX
MPLX
58.11
11.14
23.72%
Plains All American Corporate Events
Business Operations and StrategyExecutive/Board Changes
Plains All American appoints new chief operating officer
Positive
Sep 29, 2026
On September 29, 2026, Plains All American Pipeline and Plains GP Holdings announced that veteran executive Dean Liollio will become Executive Vice President and Chief Operating Officer effective October 2, 2026, succeeding Chris Chandler, who is ...
Business Operations and StrategyPrivate Placements and Financing
Plains All American Completes $1.5 Billion Note Offering
Positive
Sep 14, 2026
On September 14, 2026, Plains All American Pipeline completed a $1.5 billion public offering of junior subordinated notes, issuing $700 million of 6.750% Series A Notes and $800 million of 7.000% Series B Notes, both maturing on December 15, 2056....
Business Operations and StrategyPrivate Placements and Financing
Plains All American Announces Junior Subordinated Notes Offering
Positive
Sep 10, 2026
On September 9, 2026, Plains All American announced it had priced an underwritten public offering of $700 million in 6.75% Series A Junior Subordinated Notes due 2056 and $800 million in 7.00% Series B Junior Subordinated Notes due 2056, with clos...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Plains All American details EPIC Cactus III acquisition
Positive
Sep 9, 2026
On October 31, 2025, Plains All American completed the acquisition of a 55% non-operated equity stake in EPIC Crude Holdings, LP and its general partner from subsidiaries of Diamondback Energy, Inc. and Kinetik Holdings Inc., followed by the Novem...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Plains All American Posts Strong Q2 Results, Boosts Distribution
Positive
Aug 7, 2026
On August 7, 2026, Plains All American reported second-quarter 2026 results marked by net income of $1.83 billion, boosted by a roughly $1.6 billion gain from the sale of its Canadian NGL business, and operating cash flow of $956 million. Adjusted...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.