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Plains All American (PAA)
NASDAQ:PAA
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Plains All American
(NASDAQ:PAA)
72Outperform
Plains All American (PAA) vs. S&P 500 (SPY)
Market Cap
$11.42B
Dividend Yield7.87%
Average Volume (3M)3.98M
Price to Earnings (P/E)22.1
Beta (1Y)0.52
Revenue Growth3.28%
EPS Growth-47.59%
CountryUS
Employees4,200
SectorEnergy
Sector Strength49
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.39
Shares Outstanding703,775,940
10 Day Avg. Volume3,817,195
30 Day Avg. Volume3,979,888
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.22
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit14.73
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.00Price Target Upside27.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Plains All American Business Overview & Revenue Model
Company DescriptionPlains All American Pipeline, L.P. (PAA) is a leading midstream energy company operating in North America. The company is primarily engaged in the transportation, storage, and marketing of crude oil and natural gas liquids (NGLs). PAA manages an extensive network of pipeline transportation and storage assets, serving key oil and gas regions such as the Permian Basin, Western Canada, and the Gulf Coast.
How the Company Makes MoneyPlains All American makes money through a diverse revenue model centered around its core midstream operations. The company generates revenue primarily by charging fees for the transportation of crude oil and NGLs through its extensive pipeline network. Additionally, PAA earns income from its storage services, offering customers the ability to store crude oil and NGLs in its strategically located facilities. The company also engages in the marketing of crude oil and NGLs, capturing margin opportunities through buying and selling these commodities. Key revenue streams are bolstered by long-term contracts with producers and refiners, providing a stable and predictable cash flow. Strategic partnerships and joint ventures further enhance PAA's earnings, allowing the company to leverage additional resources and access to new markets.
Plains All American Financial Statement Overview
Summary
Plains All American presents a solid financial position overall, with strengths in equity growth and cash flow stability. The company shows resilience in operational efficiency metrics, despite some volatility in net income and revenue growth. Improvements in debt management enhance the financial stability, though monitoring revenue and profitability trends will be essential to sustain long-term growth.Income Statement
Plains All American shows a stable financial position with a consistent gross profit margin. However, net profit margins have been volatile, and revenue growth has been inconsistent over the years. The EBIT and EBITDA margins are relatively stable, indicating operational efficiency. The TTM results show some recovery in net income but a decline in EBIT and EBITDA compared to previous years.―
Balance Sheet
The company has shown improvement in its balance sheet with a lower debt-to-equity ratio in the TTM period. Stockholders' equity has been growing, indicating a stronger equity position. The equity ratio is healthy, suggesting a balanced approach between leveraging and equity financing. The reduced total debt in the TTM period is a positive sign of financial health.82
Cash Flow
The cash flow statements indicate strong operating cash flows relative to net income, suggesting effective cash management. The free cash flow has been positive and growing, though there is a need to watch the fluctuations in investing cash flows. The TTM period shows a robust free cash flow with no capital expenditure, which supports the company's liquidity profile.―
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 50.07B | 48.71B | 57.34B | 42.04B | 23.29B | Gross Profit |
| 1.72B | 2.76B | 1.89B | 1.74B | 1.13B | EBIT |
| 1.18B | 1.51B | 780.00M | 1.26B | 3.62B | EBITDA |
| 2.74B | 3.06B | 2.53B | 2.23B | -1.51B | Net Income Common Stockholders |
| 772.00M | 1.23B | 1.04B | 593.00M | -2.58B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 348.00M | 450.00M | 401.00M | 449.00M | 22.00M | Total Assets |
| 26.56B | 27.36B | 27.89B | 28.61B | 24.50B | Total Debt |
| 7.86B | 8.16B | 7.59B | 8.74B | 9.70B | Net Debt |
| 7.51B | 7.71B | 7.19B | 8.29B | 9.68B | Total Liabilities |
| 8.52B | 13.62B | 14.57B | 15.80B | 14.76B | Stockholders Equity |
| 18.05B | 10.42B | 13.32B | 12.81B | 9.74B |
| Cash Flow | Free Cash Flow | |||
| 2.49B | 2.17B | 1.95B | 1.66B | 776.00M | Operating Cash Flow |
| 2.49B | 2.73B | 2.41B | 2.00B | 1.51B | Investing Cash Flow |
| -1.50B | -702.00M | -526.00M | 386.00M | -1.09B | Financing Cash Flow |
| -1.08B | -1.98B | -1.93B | -1.98B | -435.00M |
Plains All American Technical Analysis
Negative
16.44
Price Trends
18.49
Negative
18.69
Negative
17.84
Negative
Market Momentum
-0.53
Positive
38.31
Neutral
32.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAA, the sentiment is Negative. The current price of 16.44 is below the 20-day moving average (MA) of 17.28, below the 50-day MA of 18.49, and below the 200-day MA of 17.84, indicating a bearish trend. The MACD of -0.53 indicates Positive momentum. The RSI at 38.31 is Neutral, neither overbought nor oversold. The STOCH value of 32.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAA.
Plains All American Peers Comparison
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $8.39B | 20.43 | 19.71% | 4.98% | 5.03% | 7.15% | |
78 Outperform | $10.20B | 27.79 | 8.29% | 3.02% | 10.83% | -10.47% | |
76 Outperform | $8.49B | 14.50 | 49.74% | 7.31% | 8.77% | 15.22% | |
72 Outperform | $11.42B | 22.08 | 9.43% | 7.87% | 3.28% | -47.59% | |
72 Outperform | $13.59B | 8.93 | 39.79% | 11.79% | 11.48% | -5.67% | |
57 Neutral | $13.14B | 32.98 | 10.09% | 7.51% | 3.28% | -48.50% | |
56 Neutral | $6.99B | 3.67 | -4.87% | 5.88% | 0.18% | -49.70% |
* Energy Sector Average
Performance Comparison
PAA
Plains All American
16.44
0.01
0.06%
WES
Western Midstream Partners
37.11
2.38
6.85%
PAGP
Plains GP Holdings
17.74
0.49
2.84%
AM
Antero Midstream
18.07
4.42
32.38%
HESM
Hess Midstream Partners
37.00
4.32
13.22%
DTM
DT Midstream
101.24
38.82
62.19%
Plains All American Earnings Call Summary
Earnings Call Date:May 09, 2025
(Q1-2025)
| % Change Since: -2.95%|
Next Earnings Date:Aug 01, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative elements. The company reported strong financial performance with significant achievements in strategic acquisitions and expansions. However, market volatility, weather impacts, and external economic factors like tariffs present challenges. The positive aspects, such as solid performance and strategic growth initiatives, are slightly overshadowed by the external uncertainties and their potential impact.Q1-2025 Updates
Positive Updates
Solid First Quarter Performance
Reported an adjusted EBITDA attributable to Plains of $754 million for the first quarter.
NGL Segment Resilience
Approximately 80% of estimated C3+ Spec products sales are hedged for 2025, insulating from lower commodity prices.
Successful Bolt-on Transactions
Acquired the remaining 50% equity in the Cheyenne Pipeline and Black Knight Midstream, part of $1.3 billion deployed into bolt-on acquisitions over several years.
Fractionation Capacity Expansion
30,000 barrel a day fractionation bottleneck project at Fort Sask placed into service, supported by long-term customer commitments.
Strong Cash Flow Generation
Expected adjusted free cash flow of about $1.1 billion for the year, excluding changes in assets and liabilities.
Negative Updates
Market Volatility and Uncertainty
Ongoing uncertainty on trade tariffs and dissension among OPEC members leading to lower-than-anticipated commodity prices.
Impact of Winter Weather
First quarter crude oil segment adjusted EBITDA of $559 million was impacted by winter weather and higher-than-expected refinery downtime.
Impact of Tariffs on Market Uncertainty
Energy product imports into the United States from Canadian operations are exempt under USMCA, but market uncertainty due to tariffs remains.
Company Guidance
During the Plains All American and Plains GP Holdings First Quarter 2025 Earnings Conference Call, the company provided guidance indicating that if a $60 to $65 WTI (West Texas Intermediate) price environment persists for the remainder of the year, both their 2025 EBITDA guidance and Permian growth outlook might fall in the lower half of their respective ranges. The company reported an adjusted EBITDA attributable to Plains of $754 million for the quarter. Their NGL segment remains largely insulated from lower commodity prices, with approximately 80% of their estimated C3+ Spec products sales hedged for 2025. They expect to generate strong cash flow this year, with adjusted free cash flow projected at about $1.1 billion, excluding changes in assets and liabilities and reduced by approximately $635 million for acquisitions. Plains All American has been actively managing its balance sheet, maintaining flexibility with leverage towards the low end of their target range, and they continue to execute on their efficient growth strategy while returning capital to unitholders.Plains All American Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Plains All American Reports Strong Q1 2025 Financial Results
Positive
May 9, 2025
On May 9, 2025, Plains All American Pipeline reported its first-quarter 2025 financial results, highlighting a net income of $443 million and a net cash flow of $639 million. The company completed strategic acquisitions, including the remaining 50% interest in Cheyenne Pipeline and Black Knight Midstream’s Permian Basin crude oil gathering business, enhancing its market integration and operational capacity. The quarter also saw the completion of the Fort Saskatchewan fractionation complex project, which is expected to boost fee-based cash flow in Canada. These developments, along with a strong balance sheet and a focus on efficient growth, position Plains All American well amid market volatility, while maintaining a robust distribution payout to unitholders.
Spark’s Take on PAA Stock
According to Spark, TipRanks’ AI Analyst, PAA is a Outperform.
Plains All American scores a solid 75.3, reflecting its strong financial position with improvements in debt management and stable cash flow. The positive earnings call sentiment and strategic growth plans support the score, despite some challenges in valuation and technical indicators. The high dividend yield enhances the stock’s attractiveness to income investors, balancing out the high P/E ratio.
To see Spark’s full report on PAA stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.