Plains All American (PAA)
NASDAQ:PAA
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Plains All American
(NASDAQ:PAA)
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Rating:78Outperform
Price Target:
$25.00
â–²(14.47% Upside)
Action:ReiteratedDate: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
Cash generation
Consistently strong operating and free cash flow provides durable internal funding for debt reduction, distributions, and normalized growth CapEx. Large, repeatable FCF relative to earnings enhances financial resilience across cycles and supports multi-year capital return and deleveraging plans.
Negative Factors
Elevated leverage
Although leverage metrics have improved, the partnership remains materially levered for a midstream operator, constraining flexibility. Elevated net debt increases refinancing and interest-rate risk, limits strategic optionality, and means weaker cycles or delayed asset sales could force tougher capital-allocation tradeoffs.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistently strong operating and free cash flow provides durable internal funding for debt reduction, distributions, and normalized growth CapEx. Large, repeatable FCF relative to earnings enhances financial resilience across cycles and supports multi-year capital return and deleveraging plans.
Read all positive factors
Plains All American (PAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.41B
Dividend Yield8.54%
Average Volume (3M)3.69M
Price to Earnings (P/E)8.8
Beta (1Y)0.48
Revenue Growth-7.53%
EPS Growth9.74%
CountryUS
Employees4,200
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)0.40
Shares Outstanding705,531,700
10 Day Avg. Volume3,734,941
30 Day Avg. Volume3,689,943
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.29
Price to Sales (P/S)0.29
P/FCF Ratio5.51
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit10.26
Enterprise Value/Ebitda7.22
Forecast
1Y Price Target
$21.64Price Target Upside-0.92% Downside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)1.51
Revenue Forecast (FY)$49.17B
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 segm...
How the Company Makes Money
PAA primarily makes money by providing fee-based midstream services that move and handle hydrocarbons for producers, refiners, and other market participants. A major revenue stream comes from transportation services on its pipeline systems, where ...
Plains All American Earnings Call Summary
Earnings Call Date:Feb 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 08, 2026
Earnings Call Sentiment Positive
The call emphasized strategic progress toward a pure-play crude business, highlighted strong cash flow generation, a meaningful distribution increase, targeted cost savings ($100 million by 2027), and immediate synergies from the Cactus III acquisition. Management provided constructive 2026 guidance (adjusted EBITDA midpoint $2.75B) and signaled disciplined capital allocation (normalized growth CapEx $300–$400M). Key near-term challenges include macro headwinds (geopolitical and OPEC supply), modest headline EBITDA pressure from the NGL divestiture, recontracting impacts on long-haul margins, and weather-related short-term production disruptions. Overall, positives (cash flow, distribution increase, synergies, cost-savings program, balance-sheet actions) materially outweigh the manageable lowlights.Positive Updates
Strong Quarterly and Annual Adjusted EBITDA
Reported Q4 adjusted EBITDA attributable to Plains of $738 million and full-year adjusted EBITDA of $2.833 billion, demonstrating solid underlying earnings going into 2026.
Negative Updates
Market Headwinds and Macro Uncertainty
Management cited multiple 2025 challenges including geopolitical unrest, OPEC actions to increase oil supply, and tariff uncertainties — headwinds that pressured the market environment and required strategic responses.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Quarterly and Annual Adjusted EBITDA
Reported Q4 adjusted EBITDA attributable to Plains of $738 million and full-year adjusted EBITDA of $2.833 billion, demonstrating solid underlying earnings going into 2026.
Read all positive updates
Company Guidance
Plains guided 2026 adjusted EBITDA net to Plains of $2.75 billion at the midpoint (±$75 million), with oil‑segment EBITDA midpoint of $2.64 billion (implying ~13% Y/Y crude growth), including an assumed $100 million of NGL EBITDA (if the NGL divestiture closes near end‑Q1) and $10 million of other income; Permian/basin volumes are expected to be roughly flat in 2026 with overall basin volumes about 6.6 million bpd at year‑end. Management expects growth CapEx of ~ $350 million and maintenance CapEx of ~ $165 million (net to PAA), about $1.8 billion of adjusted free cash flow (ex‑working capital changes and NGL sale proceeds), $100 million of annual run‑rate cost savings by 2027 (≈$50 million in 2026) plus roughly $50 million of Cactus III synergies on run‑rate this year, and a modest reduction in the distribution coverage threshold from 160% to 150% while targeting $0.15 per‑unit annualized distribution growth (quarterly distribution was increased 10%, bringing annual distribution to $1.67/unit, ~8.5% yield); they also expect a special distribution of $0.15/unit or less, plan to use NGL proceeds largely to pay down debt, and expect post‑close leverage to trend toward the middle of a 3.25–3.75x target range.Plains All American Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
78
Positive
| 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
Positive
21.84
Price Trends
20.84
Positive
19.11
Positive
17.90
Positive
Market Momentum
0.37
Positive
53.92
Neutral
35.37
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 21.84 is above the 20-day moving average (MA) of 21.82, above the 50-day MA of 20.84, and above the 200-day MA of 17.90, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 35.37 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $15.41B | 8.81 | 14.75% | 8.54% | -7.53% | 9.74% | |
75 Outperform | $13.56B | 27.57 | 9.41% | 2.70% | 20.39% | -3.85% | |
74 Outperform | $16.09B | 13.53 | 34.44% | 9.13% | 5.81% | -13.58% | |
73 Outperform | $8.08B | 11.96 | 59.38% | 8.45% | 10.78% | 19.10% | |
66 Neutral | $18.15B | 14.58 | 19.19% | 8.03% | -7.53% | 11.27% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
62 Neutral | $16.56B | -80.97 | -1.79% | 6.08% | 38.38% | 3.35% |
* Energy Sector Average
PAA
Plains All American
21.84
7.14
48.57%
WES
Western Midstream Partners
40.87
9.00
28.24%
PAGP
Plains GP Holdings
23.82
7.93
49.88%
VNOM
Viper Energy
46.31
11.66
33.65%
HESM
Hess Midstream Partners
38.91
6.42
19.75%
DTM
DT Midstream
133.35
47.13
54.65%
Plains All American Corporate Events
Other
Plains All American Announces New Material Definitive Agreement
Neutral
Mar 3, 2026
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 co...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Plains All American Posts Strong 2025 Results, Lifts Payout
Positive
Feb 6, 2026
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...
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.