Plains All American (PAA) AI Stock Analysis

• Market Cap: $14.96B
• Dividend Yield: 8.54%
• Average Volume (3M): 3.77M
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.52
• Revenue Growth: -7.53%
• EPS Growth: 9.74%
• Country: US
• Employees: 4,200
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.40
• Shares Outstanding: 705,531,700
• 10 Day Avg. Volume: 4,384,094
• 30 Day Avg. Volume: 3,774,270
• PEG Ratio: 0.07
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 5.51
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 9.92
• Enterprise Value/Ebitda: 6.98
• 1Y Price Target: $21.20
• Price Target Upside: -0.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): 1.52
• Revenue Forecast (FY): $48.51B

• Rating: 78 Outperform
• Price Target: $25.00 ▲(17.87% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is driven primarily by strong and improving cash flow with supportive 2026 guidance (EBITDA and ~$1.8B free cash flow) and identifiable cost/synergy benefits. Technicals are favorable with a clear uptrend and positive momentum indicators. Valuation is also supportive with a reasonable P/E and high yield, partially offset by thin margins and still-meaningful leverage.

Positive Factors

Strong free cash flow generation

Consistent, sizable free cash flow (~$2.4B TTM) provides durable funding for debt reduction, distributions and normalized growth CapEx. Over the next 2–6 months this cash generation supports capital allocation flexibility and reduces reliance on external financing.

Strategic shift to pure‑play crude with M&A synergies

Refocusing the portfolio toward crude and integrating Cactus III creates scale in core assets and immediate opex synergies. Together with the NGL divestiture, this structurally improves cash quality and reduces non‑core exposure, enhancing midstream focus for years ahead.

Distribution increase and disciplined capital guidance

Management raised distributions while guiding normalized growth and maintenance CapEx, signaling disciplined allocation: returning cash to holders while funding prioritized growth. Sustainable FCF coverage underpins distributions without aggressive capital expansion.

Negative Factors

Elevated leverage limiting flexibility

Although leverage has improved from earlier years, pro forma leverage near 3.9x keeps financial flexibility constrained. High gross leverage increases sensitivity to commodity cycles and interest costs, limiting the ability to pursue opportunistic investments or absorb shocks.

Structurally thin margins and recent revenue decline

Relatively low EBITDA and net margins plus falling revenues make earnings more exposed to modest volume, price, or recontracting shifts. Over a multi‑month horizon, thin margins reduce buffer for unexpected costs and increase earnings volatility versus peers with wider spreads.

Recontracting and divestiture pressure on headline EBITDA

Long‑haul recontracting and the planned NGL sale can lower reported EBITDA even as cash quality improves. These structural contract and portfolio changes may compress pipeline yields and raise near‑term earnings volatility, pressuring headline results over months.

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 in two segments, Crude Oil and NGL. The Crude Oil segment offers gathering and transporting crude oil through pipelines, gathering systems, trucks, and at times on barges or railcars. This segment provides terminalling, storage, and other facilities-related services, as well as merchant activities. As of December 31, 2021, this segment owned and leased 18,300 miles of active crude oil transportation pipelines and gathering systems, as well as an additional 110 miles of pipelines that supports crude oil storage and terminalling facilities; 74 million barrels of commercial crude oil storage capacity; 38 million barrels of active, above-ground tank capacity; four marine facilities; a condensate processing facility; seven crude oil rail terminals and 2,100 crude oil railcars; and 640 trucks and 1,275 trailers. The Natural Gas Liquids segment engages in the natural gas processing, NGL fractionation, storage, transportation, and terminalling activities. As of December 31, 2021, this segment owned and operated four natural gas processing plants; nine fractionation plants; 28 million barrels of NGL storage capacity; approximately 1,620 miles of active NGL transportation pipelines, as well as an additional 55 miles of pipeline that supports NGL storage facilities; 16 NGL rail terminals and approximately 3,900 NGL rail cars; and approximately 220 trailers. The company was founded in 1981 and is headquartered in Houston, Texas. Plains All American Pipeline, L.P. operates as a subsidiary of Plains GP Holdings, L.P.

How the Company Makes Money

Plains All American generates revenue through multiple streams, primarily from the transportation and storage of crude oil and refined products via its extensive pipeline network. The company charges fees based on the volume of oil transported through its pipelines, and it also earns revenue from storage services provided at its terminals. Additionally, the Supply and Logistics segment contributes to earnings by purchasing crude oil and selling it to refiners and other customers, often leveraging price differentials in various markets. Significant partnerships with oil producers and refiners enhance PAA's ability to secure long-term contracts, thus providing stable revenue. The company also benefits from its scale and operational efficiency, allowing it to maintain competitive pricing and optimize its logistics operations.

Plains All American Financial Statement Overview

Summary

Strong cash generation is the core positive (TTM operating cash flow ~$2.9B and free cash flow ~$2.4B, up ~10%). Profitability is solid versus 2024 but structurally thin (roughly ~6% EBITDA margin and ~2% net margin) with TTM revenue down ~5%. Leverage is improving but remains meaningful, limiting flexibility.

Income Statement

Profitability is solid in TTM (Trailing-Twelve-Months), with margins holding up (about 6% EBITDA margin and ~2% net margin) and earnings materially higher than 2024. However, revenue has slipped in TTM (down ~5% versus the prior year) and profitability remains structurally thin, which leaves results sensitive to volume/price/mix. The longer view shows a clear recovery from the 2020 loss, but year-to-year revenue and margin volatility is still evident.

Balance Sheet

Leverage looks elevated but improving versus earlier years: debt relative to equity has trended down from above 1.0x in 2020 to below 1.0x recently, and returns on equity are healthy in TTM (roughly 12%). That said, the capital structure is still meaningfully levered for a midstream business, which can limit flexibility if market conditions weaken.

Cash Flow

Cash generation is a clear strength: TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are strong (about $2.9B and $2.4B, respectively), with free cash flow up ~10% versus the prior period. Free cash flow is also consistently sizable relative to reported earnings across years, supporting debt reduction and shareholder returns. The main watch-out is that operating cash flow covers only about half of total debt on the provided coverage metric, indicating leverage still matters despite strong cash flow.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	44.26B	50.07B	48.71B	57.34B	42.08B
Gross Profit	2.67B	1.72B	2.76B	1.89B	1.74B
EBITDA	2.91B	2.74B	3.06B	2.79B	1.92B
Net Income	1.44B	772.00M	1.23B	1.04B	593.00M
Balance Sheet
Total Assets	30.17B	26.56B	27.36B	27.89B	28.61B
Cash, Cash Equivalents and Short-Term Investments	4.73B	348.00M	450.00M	401.00M	449.00M
Total Debt	11.30B	7.93B	8.03B	8.82B	9.64B
Total Liabilities	17.09B	13.47B	13.62B	14.57B	15.80B
Stockholders Equity	9.84B	9.81B	10.42B	10.06B	9.97B
Cash Flow
Free Cash Flow	2.29B	1.87B	2.17B	1.95B	1.66B
Operating Cash Flow	2.94B	2.49B	2.73B	2.41B	2.00B
Investing Cash Flow	-3.69B	-1.50B	-702.00M	-526.00M	386.00M
Financing Cash Flow	724.00M	-1.08B	-1.98B	-1.93B	-1.98B

Plains All American Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 21.21 is above the 20-day moving average (MA) of 21.00, above the 50-day MA of 19.66, and above the 200-day MA of 17.45, indicating a bullish trend. The MACD of 0.56 indicates Positive momentum. The RSI at 57.82 is Neutral, neither overbought nor oversold. The STOCH value of 38.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAA.

Plains All American Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAA	78 Outperform	$14.96B	8.81	14.75%	8.54%	-7.53%	9.74%
DTM	75 Outperform	$13.80B	27.57	9.41%	2.70%	20.39%	-3.85%
WES	74 Outperform	$16.01B	13.53	34.44%	9.13%	5.81%	-13.58%
HESM	73 Outperform	$8.17B	11.96	59.38%	8.45%	10.78%	19.10%
PAGP	66 Neutral	$17.55B	14.58	19.19%	8.03%	-7.53%	11.27%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
VNOM	62 Neutral	$15.80B	-80.97	-1.79%	6.08%	38.38%	3.35%

Plains All American Corporate Events

Plains All American Announces New Material Definitive Agreement

The provided text fragment from Plains All American does not contain any substantive details about specific events, financial results, strategic actions, or operational updates. As a result, there is no concrete information about past or future company activities, nor any discernible impact on its operations, industry positioning, or stakeholders that can be summarized from this release.

The most recent analyst rating on (PAA) stock is a Hold with a $23.50 price target. To see the full list of analyst forecasts on Plains All American stock, see the PAA Stock Forecast page.

Plains All American Posts Strong 2025 Results, Lifts Payout

On February 6, 2026, Plains All American reported strong fourth-quarter and full-year 2025 results, with net income attributable to PAA of $342 million for the quarter and $1.435 billion for the year, and adjusted EBITDA of $738 million and $2.833 billion, respectively, alongside an 18% year-over-year increase in operating cash flow to $2.94 billion. The partnership ended 2025 with a pro forma leverage ratio of 3.9x after refinancing and funding its EPIC (now Cactus III) acquisition, and set 2026 guidance around a midpoint of $2.75 billion in adjusted EBITDA and approximately $1.8 billion in adjusted free cash flow, supported by $100 million in planned efficiency gains through 2027 and $50 million of expected Cactus III synergies. Plains also raised its annualized distribution by $0.15 per unit effective with the February 13, 2026 payment and lowered its distribution coverage threshold from 160% to 150%, signaling confidence in more predictable cash flows and a multi-year runway for further capital returns, while advancing a strategic shift toward a streamlined crude oil midstream portfolio through the planned sale of its Canadian NGL business to Keyera Corp., which has been classified as discontinued operations ahead of an anticipated closing toward the end of the first quarter of 2026.

The most recent analyst rating on (PAA) stock is a Buy with a $21.50 price target. To see the full list of analyst forecasts on Plains All American stock, see the PAA Stock Forecast page.