Plains All American (PAA) AI Stock Analysis

• Market Cap: $14.51B
• Dividend Yield: 8.54%
• Average Volume (3M): 3.68M
• Price to Earnings (P/E): 12.4
• Beta (1Y): 0.56
• 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: 705,497,740
• 10 Day Avg. Volume: 2,525,448
• 30 Day Avg. Volume: 3,676,884
• PEG Ratio: 0.07
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.47
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 9.82
• Enterprise Value/Ebitda: 7.20
• 1Y Price Target: $20.59
• Price Target Upside: -1.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 78 Outperform
• Price Target: $22.00 ▲(5.31% 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

Cash generation

Consistently strong operating and free cash flow provides durable internal funding for maintenance and growth capex, debt paydown, and distributions. Over a 2–6 month horizon this cash generation underpins capital allocation flexibility and reduces dependence on external financing during commodity cycles.

Constructive guidance & cost program

Management's explicit 2026 guidance, large free cash flow target, and a defined $100M efficiency plan create measurable levers to lift margins and cash conversion. These recurring savings and clear targets support sustainable distributable cash flow and improve resilience to midstream margin pressure.

Strategic portfolio shift & synergies

Refocusing to a crude-centric midstream franchise and capturing Cactus III synergies improves revenue quality and operating scale. Proceeds from the NGL sale earmarked for debt reduction should lower leverage and make cash flows more predictable over the medium term, strengthening the core business.

Negative Factors

Elevated leverage

Although leverage has improved from peak levels, the partnership remains materially levered for a midstream operator. Elevated leverage constrains financial flexibility, increases interest expense sensitivity, and raises refinancing and covenant risk if commodity or cash flow stress occurs over the next several months.

Thin profitability and revenue pressure

Structurally thin margins and recent revenue decline leave earnings highly sensitive to volume, recontracting, and oil-price swings. With modest margin cushions, operational or market setbacks could quickly compress distributable cash flow and limit the ability to sustain payouts without further leverage actions.

Recontracting & weaker coverage buffer

Rate recontracting on long-haul systems signals structural margin pressure on legacy contracts. Coupled with a reduced distribution coverage threshold, the partnership has a narrower cushion for distributions, increasing payout vulnerability during macro slowdowns or further margin erosion over the medium term.

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	2.33B	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	0.00	1.87B	2.17B	1.95B	1.66B
Operating Cash Flow	2.94B	2.49B	2.73B	2.41B	2.00B
Investing Cash Flow	-3.77B	-1.50B	-702.00M	-526.00M	386.00M
Financing Cash Flow	799.00M	-1.08B	-1.98B	-1.93B	-1.98B

Plains All American Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 20.89 is above the 20-day moving average (MA) of 19.68, above the 50-day MA of 18.55, and above the 200-day MA of 17.07, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 79.26 is Negative, neither overbought nor oversold. The STOCH value of 94.48 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
HESM	79 Outperform	$7.76B	13.07	―	8.45%	10.78%	19.10%
PAA	78 Outperform	$14.51B	12.39	12.03%	8.54%	-7.53%	9.74%
DTM	75 Outperform	$13.57B	33.84	9.42%	2.70%	20.39%	-3.85%
WES	74 Outperform	$17.91B	14.75	31.82%	9.13%	5.81%	-13.58%
VNOM	69 Neutral	$16.04B	18.47	8.10%	6.08%	38.38%	3.35%
PAGP	66 Neutral	$16.72B	19.67	8.61%	8.03%	-7.53%	11.27%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Plains All American Corporate Events

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.

Plains All American Secures $1.1 Billion Term Loan

On October 31, 2025, Plains All American Pipeline acquired EPIC Crude Holdings, including its crude oil pipeline operations, and subsequently terminated EPIC’s credit agreement by repaying all outstanding amounts by December 1, 2025. Following this, Plains All American entered into a new $1.1 billion term loan agreement on November 26, 2025, with PNC Bank, featuring terms that allow prepayment and include customary covenants and financial conditions. This strategic financial restructuring is aligned with the company’s operational focus and may impact its financial flexibility and stakeholder relations.

The most recent analyst rating on (PAA) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on Plains All American stock, see the PAA Stock Forecast page.

Plains All American Completes $750M Debt Offering

On November 14, 2025, Plains All American Pipeline, L.P. and PAA Finance Corp. completed a public offering of $750 million in debt securities, comprising $300 million of 4.700% Senior Notes due 2031 and $450 million of 5.600% Senior Notes due 2036. These notes are additional issuances to those initially issued on September 8, 2025, and will mature in 2031 and 2036, respectively. The offering aims to strengthen PAA’s financial position by increasing the total outstanding principal amount of these notes to $1 billion each. The notes are senior unsecured obligations, ranking equally with existing senior debt and are subject to certain covenants and events of default as outlined in the indenture agreements.

The most recent analyst rating on (PAA) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on Plains All American stock, see the PAA Stock Forecast page.