Plains All American (PAA) AI Stock Analysis

• Market Cap: $12.32B
• Dividend Yield: 8.32%
• Average Volume (3M): 2.71M
• Price to Earnings (P/E): 19.4
• Beta (1Y): 0.53
• Revenue Growth: -4.31%
• EPS Growth: -17.80%
• Country: US
• Employees: 4,200
• Sector: Energy
• Sector Strength: 43
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.36
• Shares Outstanding: 703,304,440
• 10 Day Avg. Volume: 3,363,177
• 30 Day Avg. Volume: 2,714,384
• 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: 2.16
• Enterprise Value/Revenue: 0.56
• Enterprise Value/Gross Profit: 1.95
• Enterprise Value/Ebitda: 9.43
• 1Y Price Target: $20.77
• Price Target Upside: 18.55% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 69 Neutral
• Price Target: $19.50 ▲(11.30% Upside)

Plains All American's overall stock score is driven by strong financial stability and positive earnings call sentiment. The company's strategic divestment and acquisitions enhance its financial flexibility. However, technical indicators suggest potential short-term weakness, and revenue growth challenges remain a concern. The attractive dividend yield provides a solid income component for investors.

Positive Factors

Investment Strategy

PAA raised its 2025 investment capital guidance, driven by Permian and South Texas lease connects and terminal expansions.

Operational Performance

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

Negative Factors

Cash Management

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

Financial Performance

Adjusted Free Cash Flow was revised downward, reflecting a reduction from bolt-on acquisitions.

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 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 shows strong revenue growth and improved operating margins. The balance sheet indicates moderate leverage and a stable equity position, though the return on equity could be enhanced. Cash flow metrics are particularly strong, showcasing efficient cash generation and conversion.

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	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	8.80B	7.93B	8.16B	8.82B	9.64B	10.61B
Total Liabilities	14.21B	13.47B	13.62B	14.57B	15.80B	14.76B
Stockholders Equity	17.63B	9.81B	10.42B	13.32B	12.81B	9.74B
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: Negative
• Last Price: 17.52
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• 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 17.52 is below the 20-day moving average (MA) of 18.01, below the 50-day MA of 17.92, and below the 200-day MA of 17.57, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 38.15 is Neutral, neither overbought nor oversold. The STOCH value of 30.65 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
HESM	80 Outperform	$8.65B	15.28	52.91%	6.88%	9.02%	17.28%
AM	78 Outperform	$8.57B	19.05	21.65%	5.03%	7.09%	17.53%
WES	77 Outperform	$14.66B	11.83	38.42%	9.36%	7.11%	-16.14%
DTM	75 Outperform	$10.51B	27.80	8.48%	3.01%	15.28%	-9.99%
PAA	69 Neutral	$12.32B	19.37	8.34%	8.32%	-4.31%	-17.80%
Sector *	65 Neutral	$14.86B	7.07	2.76%	5.52%	4.66%	-61.61%
PAGP	60 Neutral	$14.30B	27.39	8.16%	7.74%	-4.31%	-16.62%

Plains All American Corporate Events

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.

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.