Plains All American (PAA) AI Stock Analysis

• Market Cap: $13.00B
• Dividend Yield: 8.22%
• Average Volume (3M): 2.99M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.51
• Revenue Growth: 3.40%
• EPS Growth: -20.48%
• Country: US
• Employees: 4,200
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.39
• Shares Outstanding: 703,299,260
• 10 Day Avg. Volume: 3,160,380
• 30 Day Avg. Volume: 2,988,740
• PEG Ratio: 0.07
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.22
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 1.12
• Enterprise Value/Ebitda: 1.59
• 1Y Price Target: $20.50
• Price Target Upside: 10.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: $19.50 ▲(5.52%Upside)

Plains All American has a strong overall stock score driven by robust financial performance and strategic corporate actions that enhance its market position. While technical indicators suggest moderate momentum, the company's strong cash flow, reasonable valuation, and strategic focus in core operations provide a solid investment case. Challenges include external market uncertainties and the need to improve net profitability.

Positive Factors

Distribution Increase

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 generates revenue primarily through its extensive network of pipelines and storage facilities that charge fees for the transportation and storage of crude oil and NGLs. The company operates under long-term contracts with producers and refiners, ensuring a steady and predictable income stream. Additionally, PAA engages in the marketing of crude oil and NGLs, where it earns margins by purchasing, selling, and arbitraging these commodities. The company's earnings are supported by strategic partnerships and joint ventures that enhance its operational capabilities and market reach. PAA also benefits from its scale and expertise in managing energy logistics, optimizing its assets to capture value in varying market conditions.

Plains All American Financial Statement Overview

Summary

Plains All American demonstrates strong revenue growth and improved operational margins with steady cash flow generation. However, the company has a relatively low net profit margin and return on equity, indicating potential areas for profitability improvement.

Income Statement

Plains All American's income statement shows a positive trajectory with steady revenue growth from $48.71 billion in 2023 to $50.14 billion in TTM (Trailing-Twelve-Months). The gross profit margin improved significantly to 27.42% in TTM, up from 3.43% in 2024, indicating enhanced operational efficiency. However, net profit margin stands at 1.89% for TTM, which is relatively low, suggesting limited bottom-line profitability despite high gross margins. EBIT and EBITDA margins have shown consistent improvement, reflecting sound operational management.

Balance Sheet

The balance sheet of Plains All American demonstrates a stable financial structure, with a debt-to-equity ratio of 0.93 in TTM, improved from 0.44 in 2024, indicating manageable leverage. The equity ratio is 35.60%, showing a healthy level of equity financing. Despite this, the return on equity decreased to 9.85% in TTM from 4.28% in 2024, suggesting room for improvement in generating returns from shareholders' equity.

Cash Flow

Plains All American's cash flow analysis highlights a strong free cash flow generation of $2.057 billion in TTM, with a growth rate of 9.92% from 2024. The operating cash flow to net income ratio is 2.86, indicating robust cash generation relative to net income. The free cash flow to net income ratio of 2.17 further supports the company's ability to convert earnings into cash, providing flexibility for future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	50.14B	50.07B	48.71B	57.34B	42.04B	23.29B
Gross Profit	13.75B	1.72B	2.76B	1.89B	1.74B	1.13B
EBITDA	2.46B	2.74B	3.06B	2.53B	2.23B	-1.51B
Net Income	949.00M	772.00M	1.23B	1.04B	593.00M	-2.58B
Balance Sheet
Total Assets	27.06B	26.56B	27.36B	27.89B	28.61B	24.50B
Cash, Cash Equivalents and Short-Term Investments	427.00M	348.00M	450.00M	401.00M	449.00M	22.00M
Total Debt	8.91B	7.93B	8.16B	7.59B	8.74B	9.70B
Total Liabilities	14.20B	13.47B	13.62B	14.57B	15.80B	14.76B
Stockholders Equity	9.63B	18.05B	10.42B	13.32B	12.81B	9.74B
Cash Flow
Free Cash Flow	2.06B	1.87B	2.17B	1.95B	1.66B	776.00M
Operating Cash Flow	2.71B	2.49B	2.73B	2.41B	2.00B	1.51B
Investing Cash Flow	-2.38B	-1.50B	-702.00M	-526.00M	386.00M	-1.09B
Financing Cash Flow	-214.00M	-1.08B	-1.98B	-1.93B	-1.98B	-435.00M

Plains All American Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 18.48 is above the 20-day moving average (MA) of 18.00, above the 50-day MA of 17.44, and above the 200-day MA of 17.95, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 61.62 is Neutral, neither overbought nor oversold. The STOCH value of 66.40 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WES	79 Outperform	$14.85B	11.64	39.79%	9.35%	11.48%	-5.67%
DTM	79 Outperform	$10.76B	28.97	8.29%	3.10%	10.83%	-10.47%
AM	78 Outperform	$8.68B	21.07	19.71%	4.97%	5.03%	7.15%
HESM	77 Outperform	$8.03B	15.02	49.74%	7.43%	8.77%	15.22%
PAA	71 Outperform	$13.00B	19.89	9.43%	8.22%	3.40%	-20.48%
PAGP	69 Neutral	$14.85B	26.62	10.09%	7.78%	3.40%	-15.90%
Sector *	68 Neutral	$15.14B	9.95	6.38%	5.21%	4.16%	-67.19%

Plains All American Corporate Events

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.

The most recent analyst rating on (PAA) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Plains All American stock, see the PAA Stock Forecast page.

Plains All American 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.