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Plains All American (PAA)
NASDAQ:PAA
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Plains All American
(NASDAQ:PAA)
78Outperform
Plains All American (PAA) vs. S&P 500 (SPY)
Market Cap
$11.81B
Dividend Yield7.94%
Average Volume (3M)4.21M
Price to Earnings (P/E)22.9
Beta (1Y)0.60
Revenue Growth3.28%
EPS Growth-47.59%
CountryUS
Employees4,200
SectorEnergy
Sector Strength44
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.73
Shares Outstanding703,775,940
10 Day Avg. Volume5,660,659
30 Day Avg. Volume4,209,647
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.28
Price to Cash Flow (P/CF)4.80
P/FCF Ratio4.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$22.00Price Target Upside31.11% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
Plains All American Business Overview & Revenue Model
Company DescriptionPlains 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 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.75
Positive
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
Very Positive
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.78
Positive
| 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
16.78
Price Trends
19.51
Negative
18.75
Negative
17.87
Negative
Market Momentum
-0.81
Positive
33.26
Neutral
26.63
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 16.78 is below the 20-day moving average (MA) of 19.07, below the 50-day MA of 19.51, and below the 200-day MA of 17.87, indicating a bearish trend. The MACD of -0.81 indicates Positive momentum. The RSI at 33.26 is Neutral, neither overbought nor oversold. The STOCH value of 26.63 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $8.14B | 14.23 | 51.23% | 7.58% | 10.89% | 19.50% | |
80 Outperform | $13.98B | 9.12 | 50.12% | 9.55% | 16.06% | 54.94% | |
80 Outperform | $7.72B | 19.54 | 18.79% | 5.58% | 5.79% | 7.52% | |
78 Outperform | $11.81B | 22.92 | 7.56% | 7.94% | 3.28% | -47.59% | |
74 Outperform | $9.43B | 25.79 | 8.08% | 3.26% | 6.40% | -8.42% | |
68 Neutral | $13.81B | 34.18 | 7.11% | 7.46% | 3.28% | -48.50% | |
57 Neutral | $7.57B | 4.34 | -4.83% | 6.50% | -0.19% | -64.60% |
* Energy Sector Average
Performance Comparison
PAA
Plains All American
16.78
0.49
3.01%
WES
Western Midstream Partners
36.65
5.39
17.24%
PAGP
Plains GP Holdings
17.87
0.62
3.59%
AM
Antero Midstream
16.12
3.26
25.35%
HESM
Hess Midstream Partners
35.68
3.50
10.88%
DTM
DT Midstream
92.78
32.81
54.71%
Plains All American Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: -16.14% | Next Earnings Date: May 9, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong performance in 2024, strategic acquisitions, and increased capital returns, despite challenges such as impairments, insurance claim setbacks, and potential tariff impacts. The company is well-positioned for future growth and maintains a constructive outlook on the energy market.Highlights
Exceeding Guidance and Strong EBITDA Performance
Adjusted EBITDA of $729 million for Q4 and $2.78 billion for the full year 2024, exceeding initial guidance by $105 million.
2025 Growth Projections
Provided EBITDA guidance of $2.8 billion to $2.95 billion for 2025, indicating approximately 3% growth year over year.
Strategic Acquisitions
Completed acquisitions of Ironwood Midstream Energy and the remaining 50% interest in Midway Pipeline, expanding asset base in Eagle Ford and Delaware Basin.
Increased Capital Returns
Announced a 20% increase in quarterly distribution, bringing the annual distribution to $1.52 per unit, representing a yield of approximately 7.5%.
Permian Basin Growth
Expected growth of 200,000 to 300,000 barrels per day by year-end 2025, with basin volumes reaching 6.7 million barrels per day.
Lowlights
Impairment and Insurance Claim Setbacks
A $140 million noncash impairment related to two US NGL terminal assets and a $225 million insurance claim write-off due to arbitration ruling.
NGL Segment Challenges
Expected slight decrease in NGL segment EBITDA for 2025, with a shift to 45% fee-based business.
Potential Tariff Impacts
Uncertainties surrounding potential tariffs on Canada and their impacts on NGL and crude businesses.
Company Guidance
During the call, Plains All American Pipeline provided guidance for 2025, highlighting several key metrics and financial expectations. The company projected an adjusted EBITDA range of $2.8 billion to $2.95 billion, indicating a year-over-year growth of approximately 3% at the midpoint. They anticipate Permian crude production to increase by 200,000 to 300,000 barrels per day, reaching approximately 6.7 million barrels per day by the end of 2025. The company plans to invest around $400 million in growth capital and $240 million in maintenance capital, while aiming to generate approximately $1.15 billion in adjusted free cash flow. Additionally, Plains announced a 20% increase in quarterly distribution, raising it by $0.25 per unit on an annualized basis, resulting in a yield of about 7.5%. The guidance reflects Plains' strategy of focusing on efficient growth, capital discipline, and increasing returns to unitholders.Plains All American Corporate Events
M&A TransactionsDividendsFinancial Disclosures
Plains All American Reports Strong 2024 Financial Results
Positive
Feb 7, 2025
Plains All American reported its fourth-quarter and full-year 2024 financial results on February 7, 2025, showcasing a net income of $772 million for the year despite a $225 million charge related to insurance proceeds and non-cash charges. The company successfully closed several acquisitions totaling $670 million and announced a 20% increase in annual distribution for 2025. Plains forecasts an Adjusted EBITDA of $2.80 – $2.95 billion for 2025, with plans to maintain a leverage ratio within its target range, benefiting from strong cash flow and disciplined capital investments.
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.