Plains All American (PAA) AI Stock Analysis

• Market Cap: $12.46B
• Dividend Yield: 8.23%
• Average Volume (3M): 2.72M
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.56
• Revenue Growth: -4.31%
• EPS Growth: -17.80%
• Country: US
• Employees: 4,200
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.36
• Shares Outstanding: 703,304,440
• 10 Day Avg. Volume: 2,930,062
• 30 Day Avg. Volume: 2,722,951
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.13
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 1.95
• Enterprise Value/Ebitda: 9.43
• 1Y Price Target: $20.41
• Price Target Upside: 15.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 68 Neutral
• Price Target: $19.50 ▲(10.05% Upside)

Plains All American's overall stock score reflects a stable financial position with strong profitability and cash flow metrics. The valuation is attractive due to a high dividend yield. The earnings call highlighted strategic moves for long-term growth, despite some short-term challenges. Technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

Positive Factors

Strategic Divestiture

The divestiture of the NGL business allows Plains All American to streamline its operations and focus on its core crude oil midstream activities. This strategic move is expected to enhance operational efficiency and provide capital for future growth opportunities.

Financial Flexibility

By using the proceeds from the NGL sale to pursue disciplined M&A and optimize its capital structure, Plains All American is enhancing its financial flexibility. This approach supports long-term growth and stability by allowing the company to respond strategically to market opportunities.

Permian Volume Growth

Growth in Permian volumes contributes positively to Plains All American's crude oil segment, reinforcing its market position in a key production area. This trend supports sustained revenue and profitability in the long term, given the strategic importance of the Permian Basin.

Negative Factors

Revenue Growth Challenges

The declining revenue growth trend poses a risk to Plains All American's financial performance. Sustained revenue contraction can impact profitability and limit the company's ability to invest in growth initiatives, potentially affecting its competitive position.

Increased Capital Expenditures

Higher capital expenditures can strain cash flow and reduce financial flexibility. While investments in growth are necessary, increased spending due to project delays and scope changes may pressure Plains All American's financial resources and impact long-term profitability.

Contract Roll-Offs

The expiration of key contracts could negatively affect Plains All American's revenue and earnings. Although recontracting efforts are underway, the potential for reduced income from these assets poses a challenge to maintaining stable cash flows and profitability.

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 primarily through its transportation and storage services for crude oil and natural gas liquids. The company charges fees for the transportation of these hydrocarbons through its extensive pipeline network, which is a major revenue stream. Additionally, PAA earns income from its storage facilities, where it charges customers for storing their products. The company also engages in marketing activities, buying and selling crude oil and natural gas liquids, which contributes to its earnings. Significant partnerships with major oil producers and refiners enhance its operational efficiency and revenue potential, while market dynamics such as demand for energy products and regulatory factors can also impact its financial performance.

Plains All American Financial Statement Overview

Summary

Plains All American demonstrates a balanced financial position with strengths in profitability and cash flow generation. The income statement shows stable margins, though revenue growth is a concern. The balance sheet is strong, with a healthy debt-to-equity ratio and solid equity base. Cash flow metrics indicate efficient cash management. Overall, the company is financially stable but should address revenue growth challenges to enhance future performance.

Income Statement

Plains All American shows a mixed performance in its income statement. The TTM data indicates a decline in revenue growth at -4.67%, which is concerning. However, the company maintains a stable gross profit margin of 28.51% and a net profit margin of 1.92%. The EBIT and EBITDA margins are moderate at 3.77% and 5.89%, respectively. While profitability is present, the declining revenue trend poses a risk.

Balance Sheet

The balance sheet reflects a solid financial structure with a debt-to-equity ratio of 0.50, indicating manageable leverage. The return on equity is 7.24%, showing decent profitability for shareholders. The equity ratio stands at 64.91%, suggesting a strong equity base relative to total assets. Overall, the balance sheet is stable with a good balance between debt and equity.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 3.40% in the TTM period. The operating cash flow to net income ratio is 0.52, and the free cash flow to net income ratio is 0.87, indicating efficient cash generation relative to net income. Despite some fluctuations, cash flow remains robust, supporting the company's operations and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	47.80B	50.07B	48.71B	57.34B	42.04B	23.29B
Gross Profit	13.63B	1.72B	2.76B	1.89B	1.74B	1.43B
EBITDA	2.82B	2.74B	3.06B	2.53B	2.23B	-1.51B
Net Income	916.00M	772.00M	1.23B	1.04B	593.00M	-2.58B
Balance Sheet
Total Assets	27.16B	26.56B	27.36B	27.89B	28.61B	24.50B
Cash, Cash Equivalents and Short-Term Investments	459.00M	348.00M	450.00M	401.00M	449.00M	22.00M
Total Debt	8.87B	7.93B	8.03B	8.82B	9.64B	10.61B
Total Liabilities	14.21B	13.47B	13.62B	14.57B	15.80B	14.76B
Stockholders Equity	9.71B	9.81B	10.42B	10.06B	9.97B	9.59B
Cash Flow
Free Cash Flow	2.13B	1.87B	2.17B	1.95B	1.66B	776.00M
Operating Cash Flow	2.45B	2.49B	2.73B	2.41B	2.00B	1.51B
Investing Cash Flow	-2.48B	-1.50B	-702.00M	-526.00M	386.00M	-1.09B
Financing Cash Flow	-375.00M	-1.08B	-1.98B	-1.93B	-1.98B	-435.00M

Plains All American Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 17.72 is above the 20-day moving average (MA) of 17.41, above the 50-day MA of 17.70, and below the 200-day MA of 17.73, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 55.67 is Neutral, neither overbought nor oversold. The STOCH value of 91.68 is Negative, 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
WES	80 Outperform	$15.03B	12.13	39.91%	9.06%	7.11%	-16.14%
VNOM	76 Outperform	$12.98B	11.48	10.85%	5.94%	17.92%	18.39%
HESM	72 Outperform	$7.35B	12.99	42.04%	8.09%	9.02%	17.28%
DTM	69 Neutral	$11.51B	30.45	8.05%	2.82%	15.28%	-9.99%
PAA	68 Neutral	$12.46B	19.59	8.34%	8.23%	-4.31%	-17.80%
PAGP	62 Neutral	$14.31B	27.41	0.72%	7.74%	-4.31%	-16.62%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Plains All American Corporate Events

Plains All American Completes $1.25 Billion Debt Offering

On September 8, 2025, Plains All American Pipeline, L.P. and PAA Finance Corp. completed a public offering of $1.25 billion in debt securities, which includes $700 million in 4.700% Senior Notes due 2031 and $550 million in 5.600% Senior Notes due 2036. These senior unsecured notes are designed to rank equally with existing senior debt and are subject to certain covenants and default events, potentially impacting the company’s financial flexibility and stakeholder interests.

Plains All American Acquires Stake in EPIC Crude Holdings

On August 30, 2025, Plains All American Pipeline, L.P. announced that a subsidiary has entered into a definitive agreement to acquire a 55% non-operated interest in EPIC Crude Holdings, LP from Diamondback Energy, Inc. and Kinetik Holdings Inc. for approximately $1.57 billion, including $600 million of debt. The acquisition, expected to close in early 2026, aims to enhance Plains’ wellhead to water strategy by providing additional upstream and downstream connectivity, and is anticipated to be immediately accretive to distributable cash flow. This strategic move strengthens Plains’ position as a leading crude oil midstream provider, offering enhanced market access and customer flexibility, while maintaining a strong balance sheet and creating further return of capital opportunities for stakeholders.

Plains All American Extends CEO Grant Expiration

On August 14, 2025, Plains All American‘s Board approved an extension of the expiration date for CEO Willie Chiang’s 2018 Promotional Grant to October 2030, aiming to incentivize his continued leadership and strategic initiatives. Additionally, special retention grants were awarded to key executives Jeremy Goebel and Chris Chandler to ensure their commitment to the company’s long-term goals, with vesting schedules extending beyond 2026.

Plains All American Reports Strong Q2 2025 Results

On August 8, 2025, Plains All American Pipeline reported solid financial results for the second quarter of 2025, with a net income of $210 million and adjusted EBITDA of $672 million. The company announced the divestiture of its Canadian NGL business, expected to close in the first quarter of 2026, which will enhance financial flexibility and streamline operations. Additionally, Plains acquired an additional 20% interest in the BridgeTex Pipeline, strengthening its position in the Permian Basin. These strategic moves are aimed at optimizing the company’s asset base and returning cash to unitholders.

Plains All American Sells Canadian NGL Business

On June 17, 2025, Plains All American Pipeline, L.P. announced a definitive agreement to sell its Canadian NGL business to Keyera Corp. for approximately C$5.15 billion. The transaction, expected to close in the first quarter of 2026, will allow Plains to focus on its crude oil operations in North America, enhancing its financial flexibility and free cash flow profile. The sale is anticipated to result in significant tax implications for PAA unitholders, with a special distribution planned to offset potential tax liabilities. The deal positions Plains as a premier pure play crude oil midstream entity, reducing its commodity exposure and working capital requirements.