Plains All American (PAA) AI Stock Analysis

• Market Cap: $11.77B
• Dividend Yield: 7.96%
• Average Volume (3M): 3.50M
• Price to Earnings (P/E): 18.0
• Beta (1Y): 0.53
• Revenue Growth: 3.40%
• EPS Growth: -20.48%
• Country: US
• Employees: 4,200
• Sector: Energy
• Sector Strength: 46
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.39
• Shares Outstanding: 703,299,260
• 10 Day Avg. Volume: 2,853,910
• 30 Day Avg. Volume: 3,499,538
• PEG Ratio: -0.47
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.98
• Enterprise Value/Market Cap: 1.63
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: 1.93
• 1Y Price Target: $20.42
• Price Target Upside: 21.98% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: $18.50 ▲( 10.51% Upside)

Plains All American exhibits a solid financial position with strong equity growth and cash flow stability, providing a foundation for resilience. However, technical indicators suggest bearish momentum, and market volatility presents risks. The attractive dividend yield and positive corporate events are supportive factors, while external uncertainties may impact future performance.

Positive Factors

Dividend Distribution

PAA announced a 20% increase in its distribution to $0.38/unit, which exceeded expectations.

Operational Performance

Adjusted EBITDA is slightly above consensus estimates, suggesting strong operational performance.

Strategic Acquisitions

The company made three strategic acquisitions which are expected to enhance its asset base and operational capabilities.

Negative Factors

Cash Management

Free Cash Flow after dividend shows a large negative variance compared to estimates, raising concerns about cash management.

Financial Optimization

PAA plans to buy back 18% of its outstanding Series A preferred units, indicating a focus on financial optimization.

Liquidity Concerns

Free Cash Flow before dividend is significantly below expectations, indicating potential liquidity concerns.

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 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 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.

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
7.93B	8.16B	7.59B	8.74B	9.70B
	Net Debt
7.59B	7.71B	7.19B	8.29B	9.68B
	Total Liabilities
13.47B	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
1.87B	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

• Technical Analysis Sentiment: Negative
• Last Price: 16.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 16.74 is below the 20-day moving average (MA) of 17.02, below the 50-day MA of 18.01, and below the 200-day MA of 17.84, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 20.53 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTM	79 Outperform	$10.57B	28.46	8.29%	2.91%	10.83%	-10.47%
AM	78 Outperform	$8.94B	21.69	19.71%	4.83%	5.03%	7.15%
WES	77 Outperform	$14.85B	11.64	39.79%	11.23%	11.48%	-5.67%
HESM	76 Outperform	$8.22B	15.00	49.74%	7.09%	8.77%	15.22%
PAA	71 Outperform	$11.77B	18.01	9.43%	7.96%	3.40%	-20.48%
PAGP	59 Neutral	$13.54B	24.27	10.09%	7.48%	3.40%	-15.90%
Sector *	57 Neutral	$7.06B	3.07	-3.48%	5.79%	0.59%	-50.58%

Plains All American Corporate Events

Plains All American Unitholders Approve Key Governance Decisions

On May 21, 2025, Plains All American Pipeline, L.P. held its annual meeting of unitholders, where key decisions were made regarding the voting of Class C shares of Plains GP Holdings, L.P. Unitholders voted on the election of four Class II directors, the ratification of PricewaterhouseCoopers LLP as the independent auditor for 2025, and the approval of executive compensation for 2024. The voting outcomes showed strong support for the proposed actions, with over 82% of eligible units represented and high percentages of votes in favor of each item. These decisions are expected to influence the company’s governance and financial oversight in the coming years.

The most recent analyst rating on (PAA) stock is a Buy with a $22.00 price target. To see the full list of analyst forecasts on Plains All American stock, see the PAA Stock Forecast page.

Plains All American Reports Strong Q1 2025 Financial Results

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.