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Plains All American
(NASDAQ:PAA)
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Rating:74Outperform
Price Target:
$26.00
â–²(5.69% Upside)
Action:Upgraded
Date:08/08/26
The score is driven primarily by strong cash generation and improving profitability, supported by a positive earnings call with reaffirmed 2026 targets, sizeable free cash flow expectations, and significant deleveraging. Offsetting these strengths are mixed/soft near-term technical signals and structurally thin margins (plus a notable debt-reporting discontinuity in the financial statements that merits caution).
Positive Factors
Strong free cash flow generation
Consistent multi-billion dollar operating and free cash flow provides durable capacity to fund growth projects, sustain distributions, and pay down debt. High FCF conversion (≈88% of net income) increases optionality versus relying on volatile commodity-linked cash flows, supporting long-term financial flexibility.
Negative Factors
Structurally thin margins
Very low gross and EBITDA margins mean profitability is highly sensitive to small swings in volumes, tariff recovery, or operating costs. Even with strong cash flow, thin structural margins reduce the cushion against adverse commodity differentials or regional throughput declines, raising earnings volatility risk over time.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent multi-billion dollar operating and free cash flow provides durable capacity to fund growth projects, sustain distributions, and pay down debt. High FCF conversion (≈88% of net income) increases optionality versus relying on volatile commodity-linked cash flows, supporting long-term financial flexibility.
Read all positive factors
Plains All American (PAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.33B
Dividend Yield6.64%
Average Volume (3M)2.17M
Price to Earnings (P/E)18.5
Beta (1Y)0.37
Revenue Growth-9.94%
EPS Growth43.70%
CountryUS
Employees3,900
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)3.77
Shares Outstanding705,531,700
10 Day Avg. Volume2,104,413
30 Day Avg. Volume2,168,426
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$24.60Price Target Upside0.00%
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.68
Revenue Forecast (FY)$54.16B
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 fee-based midstream services that move, store, and handle crude oil and NGLs for producers, refiners, marketers, and other counterparties. Key revenue streams typically include: (1) Transportation fees: Charg...
Plains All American Earnings Call Summary
Earnings Call Date:Aug 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 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 | 52.30B | 44.26B | 50.07B | 48.71B | 57.34B | 42.08B |
| Gross Profit | 1.19B | 2.67B | 1.72B | 2.76B | 1.89B | 1.74B |
| EBITDA | 3.57B | 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 | 6.54B | 4.73B | 348.00M | 450.00M | 401.00M | 449.00M |
| Total Debt | 194.00M | 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 | 14.29B | 9.84B | 9.81B | 10.42B | 10.06B | 9.97B |
Cash Flow | ||||||
| Free Cash Flow | 2.48B | 2.29B | 1.87B | 2.17B | 1.95B | 1.66B |
| Operating Cash Flow | 2.82B | 2.94B | 2.49B | 2.73B | 2.41B | 2.00B |
| Investing Cash Flow | -2.65B | -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
Neutral
24.60
Price Trends
22.68
Positive
22.11
Positive
19.88
Positive
Market Momentum
0.25
Positive
43.30
Neutral
10.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAA, the sentiment is Neutral. The current price of 24.6 is above the 20-day moving average (MA) of 23.75, above the 50-day MA of 22.68, and above the 200-day MA of 19.88, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 43.30 is Neutral, neither overbought nor oversold. The STOCH value of 10.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $19.24B | 15.02 | 34.12% | 7.71% | 11.43% | -8.64% | |
75 Outperform | $8.42B | 14.13 | 69.02% | 7.47% | 7.06% | 13.61% | |
74 Outperform | $17.33B | 18.47 | 25.44% | 6.48% | -9.94% | 43.70% | |
70 Outperform | $14.08B | 29.74 | 9.87% | 2.33% | 18.12% | 22.38% | |
69 Neutral | $20.06B | 26.87 | 46.63% | 6.03% | -9.94% | 34.19% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
59 Neutral | $15.90B | -143.90 | 1.23% | 5.12% | 78.85% | -108.36% |
* Energy Sector Average
PAA
Plains All American
22.81
6.45
39.43%
WES
Western Midstream Partners
46.62
12.26
35.69%
PAGP
Plains GP Holdings
24.74
7.19
40.94%
VNOM
Viper Energy
40.82
5.53
15.68%
HESM
Hess Midstream Partners
39.80
1.65
4.33%
DTM
DT Midstream
131.44
29.93
29.48%
Plains All American Corporate Events
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...
Business Operations and StrategyPrivate Placements and Financing
Plains All American Secures New $2.7 Billion Credit Facility
Positive
Jun 17, 2026
On June 12, 2026, Plains All American Pipeline entered into a new senior unsecured revolving credit agreement providing $2.7 billion in committed borrowing capacity, replaceable up to $4.0 billion with additional lender commitments, and including ...
Executive/Board Changes
Plains All American Promotes New Chief Accounting Officer
Positive
Jun 2, 2026
Plains All American Pipeline and Plains GP Holdings announced on June 1, 2026 that Russ Montgomery will be promoted to Vice President, Accounting and Chief Accounting Officer of their respective general partners, effective September 1, 2026. The m...
Executive/Board ChangesShareholder Meetings
Plains All American Unitholders Back Directors, Pay, Auditor
Positive
May 22, 2026
At Plains All American Pipeline’s 2026 annual meeting of common and Series A Convertible Preferred unitholders held on May 20, 2026, investors instructed the partnership on how to vote its Class C shares of Plains GP Holdings at that entity&...
Executive/Board Changes
Plains All American Adds Veteran Executive to Board
Positive
May 13, 2026
On May 11, 2026, Plains All American Pipeline and Plains GP Holdings announced that veteran energy executive Cynthia B. Taylor has been appointed as an independent Class III director of their general partner’s board. She will also join the C...
Business Operations and StrategyM&A Transactions
Plains All American Completes Canadian Midstream Divestiture Transaction
Positive
May 12, 2026
On May 12, 2026, Plains All American Pipeline and Plains GP Holdings completed the previously announced sale of Plains Midstream Canada ULC, which held substantially all of Plains’ Canadian natural gas liquids business, to Keyera Corp. The t...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Plains All American Raises 2026 EBITDA and Distribution Outlook
Positive
May 8, 2026
On May 8, 2026, Plains All American reported first-quarter 2026 net income of $152 million and operating cash flow of $418 million, with Adjusted EBITDA attributable to PAA at $730 million and a pro forma leverage ratio of 4.1x. The partnership pa...
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.