tiprankstipranks
Trending News
More News >
Plains All American (PAA)
NASDAQ:PAA
US Market

Plains All American (PAA) AI Stock Analysis

Compare
1,769 Followers

Top Page

PA

Plains All American

(NASDAQ:PAA)

Rating:71Outperform
Price Target:
$19.50
â–²(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 (PAA) vs. SPDR S&P 500 ETF (SPY)

Plains All American Business Overview & Revenue Model

Company DescriptionPlains 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 MoneyPlains 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 Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q1-2025)
|
% Change Since: 9.09%|
Next Earnings Date:Aug 08, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative elements. The company reported strong financial performance with significant achievements in strategic acquisitions and expansions. However, market volatility, weather impacts, and external economic factors like tariffs present challenges. The positive aspects, such as solid performance and strategic growth initiatives, are slightly overshadowed by the external uncertainties and their potential impact.
Q1-2025 Updates
Positive Updates
Solid First Quarter Performance
Reported an adjusted EBITDA attributable to Plains of $754 million for the first quarter.
NGL Segment Resilience
Approximately 80% of estimated C3+ Spec products sales are hedged for 2025, insulating from lower commodity prices.
Successful Bolt-on Transactions
Acquired the remaining 50% equity in the Cheyenne Pipeline and Black Knight Midstream, part of $1.3 billion deployed into bolt-on acquisitions over several years.
Fractionation Capacity Expansion
30,000 barrel a day fractionation bottleneck project at Fort Sask placed into service, supported by long-term customer commitments.
Strong Cash Flow Generation
Expected adjusted free cash flow of about $1.1 billion for the year, excluding changes in assets and liabilities.
Negative Updates
Market Volatility and Uncertainty
Ongoing uncertainty on trade tariffs and dissension among OPEC members leading to lower-than-anticipated commodity prices.
Impact of Winter Weather
First quarter crude oil segment adjusted EBITDA of $559 million was impacted by winter weather and higher-than-expected refinery downtime.
Impact of Tariffs on Market Uncertainty
Energy product imports into the United States from Canadian operations are exempt under USMCA, but market uncertainty due to tariffs remains.
Company Guidance
During the Plains All American and Plains GP Holdings First Quarter 2025 Earnings Conference Call, the company provided guidance indicating that if a $60 to $65 WTI (West Texas Intermediate) price environment persists for the remainder of the year, both their 2025 EBITDA guidance and Permian growth outlook might fall in the lower half of their respective ranges. The company reported an adjusted EBITDA attributable to Plains of $754 million for the quarter. Their NGL segment remains largely insulated from lower commodity prices, with approximately 80% of their estimated C3+ Spec products sales hedged for 2025. They expect to generate strong cash flow this year, with adjusted free cash flow projected at about $1.1 billion, excluding changes in assets and liabilities and reduced by approximately $635 million for acquisitions. Plains All American has been actively managing its balance sheet, maintaining flexibility with leverage towards the low end of their target range, and they continue to execute on their efficient growth strategy while returning capital to unitholders.

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
70
Positive
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
65
Positive
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
72
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue50.14B50.07B48.71B57.34B42.04B23.29B
Gross Profit13.75B1.72B2.76B1.89B1.74B1.13B
EBITDA2.46B2.74B3.06B2.53B2.23B-1.51B
Net Income949.00M772.00M1.23B1.04B593.00M-2.58B
Balance Sheet
Total Assets27.06B26.56B27.36B27.89B28.61B24.50B
Cash, Cash Equivalents and Short-Term Investments427.00M348.00M450.00M401.00M449.00M22.00M
Total Debt8.91B7.93B8.16B7.59B8.74B9.70B
Total Liabilities14.20B13.47B13.62B14.57B15.80B14.76B
Stockholders Equity9.63B18.05B10.42B13.32B12.81B9.74B
Cash Flow
Free Cash Flow2.06B1.87B2.17B1.95B1.66B776.00M
Operating Cash Flow2.71B2.49B2.73B2.41B2.00B1.51B
Investing Cash Flow-2.38B-1.50B-702.00M-526.00M386.00M-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 Price18.48
Price Trends
50DMA
17.44
Positive
100DMA
18.33
Positive
200DMA
17.95
Positive
Market Momentum
MACD
0.28
Negative
RSI
61.62
Neutral
STOCH
66.40
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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
WEWES
79
Outperform
$14.85B11.6439.79%9.35%11.48%-5.67%
DTDTM
79
Outperform
$10.76B28.978.29%3.10%10.83%-10.47%
AMAM
78
Outperform
$8.68B21.0719.71%4.97%5.03%7.15%
77
Outperform
$8.03B15.0249.74%7.43%8.77%15.22%
PAPAA
71
Outperform
$13.00B19.899.43%8.22%3.40%-20.48%
69
Neutral
$14.85B26.6210.09%7.78%3.40%-15.90%
68
Neutral
$15.14B9.956.38%5.21%4.16%-67.19%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PAA
Plains All American
18.48
0.94
5.36%
WES
Western Midstream Partners
38.94
0.17
0.44%
PAGP
Plains GP Holdings
19.54
0.98
5.28%
AM
Antero Midstream
18.11
4.31
31.23%
HESM
Hess Midstream Partners
38.21
3.74
10.85%
DTM
DT Midstream
105.94
38.87
57.95%

Plains All American Corporate Events

M&A TransactionsBusiness Operations and Strategy
Plains All American Sells Canadian NGL Business
Positive
Jun 17, 2025

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.

Executive/Board ChangesShareholder Meetings
Plains All American Unitholders Approve Key Governance Decisions
Positive
May 23, 2025

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.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Plains All American Reports Strong Q1 2025 Financial Results
Positive
May 9, 2025

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.

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.Date of analysis: Jun 18, 2025