Plains All American Pipeline (PAA)
NASDAQ:PAA
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Plains All American
(NASDAQ:PAA)
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Rating:73Outperform
Price Target:
$26.00
▲(23.69% Upside)
Action:Reiterated
Date:06/03/26
The score is driven primarily by solid financial fundamentals (strong cash generation and improved profitability) and a positive earnings update with raised 2026 guidance and a deleveraging plan tied to ~$3.3B of NGL sale proceeds. Technicals also support the rating with an established uptrend. Valuation is helped by an attractive ~7% yield and reasonable P/E, while key risks center on thin underlying margins, cash flow/revenue volatility, and regulatory/execution uncertainty around the transaction and leverage reduction path.
Positive Factors
Strong free cash flow generation
Consistent multi‑billion operating and free cash flow provides durable capacity to fund debt reduction, maintenance and growth capex, and distributions. High FCF coverage relative to net income supports long‑term capital allocation flexibility despite cyclical volumes.
Negative Factors
Structurally thin margins
Net margins near low single digits leave earnings highly sensitive to volume swings, tariff pressure and cost inflation. Even with higher absolute EBITDA, low margin structure constrains earnings durability and magnifies the impact of operational disturbances or sustained lower throughput.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent multi‑billion operating and free cash flow provides durable capacity to fund debt reduction, maintenance and growth capex, and distributions. High FCF coverage relative to net income supports long‑term capital allocation flexibility despite cyclical volumes.
Read all positive factors
Plains All American (PAA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.04B
Dividend Yield8.54%
Average Volume (3M)3.04M
Price to Earnings (P/E)14.0
Beta (1Y)0.40
Revenue Growth-9.94%
EPS Growth43.70%
CountryUS
Employees4,200
SectorEnergy
Sector Strength52
IndustryOil & Gas Midstream
Share Statistics
EPS (TTM)1.33
Shares Outstanding705,531,700
10 Day Avg. Volume2,433,872
30 Day Avg. Volume3,038,486
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.29
Price to Sales (P/S)0.29
P/FCF Ratio5.51
Enterprise Value/Market Cap1.70
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit14.36
Enterprise Value/Ebitda10.32
Forecast
1Y Price Target
$23.67Price Target Upside12.59% Upside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)1.58
Revenue Forecast (FY)$52.53B
Plains All American Business Overview & Revenue Model
Company Description
Plains All American Pipeline, L.P. operates a substantial midstream energy network across the United States and Canada, specializing in the transportation, storage, gathering, and terminalling of both crude oil and natural gas liquids (NGLs). The ...
How the Company Makes Money
PAA primarily makes money by providing fee-based midstream services that move and handle hydrocarbons for producers, refiners, and other market participants. A major revenue stream comes from transportation services on its pipeline systems, where ...
Plains All American Earnings Call Summary
Earnings Call Date:May 08, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive tone: management reported strong Q1 results, raised full-year EBITDA guidance (up ~4.7%), demonstrated clear plans to deploy ~$3.3 billion of NGL sale proceeds to reduce leverage, and highlighted multiple operational and commercial drivers (Cactus III synergies, optimization captures, and cost-savings targets) supporting multi-year growth. Key risks include one-off weather and maintenance impacts (~$49 million), regulatory uncertainty around the Keyera transaction, current elevated pro forma leverage (4.1x) prior to NGL sale proceeds, and the effect of hedges limiting near-term upside from higher spot prices. Overall, the positives (upgraded guidance, strong cash flow, balance-sheet repair plan, and tangible operational gains) materially outweigh the lowlights.Positive Updates
Strong Quarterly EBITDA
Reported first quarter adjusted EBITDA attributable to Plains All American Pipeline, L.P. of $730 million, driven by crude oil segment EBITDA of $582 million and NGL segment EBITDA of $145 million.
Negative Updates
Weather and One-Time Impacts
Winter weather, system maintenance, and timing of minimum volume commitments caused one-off impacts, including a roughly $49 million weather-related hit in the quarter (approximately 6.7% of Q1 adjusted EBITDA). Some weather-related production shut-ins are not recoverable, though MVC timing is expected to reverse.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Quarterly EBITDA
Reported first quarter adjusted EBITDA attributable to Plains All American Pipeline, L.P. of $730 million, driven by crude oil segment EBITDA of $582 million and NGL segment EBITDA of $145 million.
Read all positive updates
Company Guidance
Plains raised the midpoint of full‑year 2026 adjusted EBITDA by $130 million to $2.88 billion, citing a $170 million NGL‑segment EBITDA outlook (Q1 NGL EBITDA was $145M and management noted first‑quarter NGL outperformance of roughly $45M and a $70M uplift in the waterfall tied to ownership into May) and captured optimization/market opportunities that drove a $60M increase to the oil segment; Q1 adjusted EBITDA attributable to Plains was $730M (crude oil segment $582M). 2026 capex assumptions are $350M of growth capital and $185M of maintenance capital (the latter increased due to NGL ownership into May), and 2026 adjusted free cash flow is expected to be about $1.85B (ex. changes in working capital and NGL sale proceeds). Pro forma leverage was 4.1x at quarter end and would fall to ~3.5x pro forma for the NGL sale, with management targeting migration toward the low end of its 3.25x–3.75x range by year‑end; net NGL sale proceeds are expected to be roughly $3.3B (about $100M above prior expectation). Management also reiterated $100M of streamlining cost savings ($50M in 2026, $50M in 2027), noted elevated current/deferred taxes from restructuring with no cash tax paid this quarter, and said the Cactus III acquisition mitigates unitholder tax exposure so no special distribution is expected.Plains All American Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
72
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 45.17B | 44.26B | 50.07B | 48.71B | 57.34B | 42.08B |
| Gross Profit | 1.90B | 2.67B | 1.72B | 2.76B | 1.89B | 1.74B |
| EBITDA | 2.64B | 2.91B | 2.74B | 3.06B | 2.79B | 1.92B |
| Net Income | 1.15B | 1.44B | 772.00M | 1.23B | 1.04B | 593.00M |
Balance Sheet | ||||||
| Total Assets | 31.64B | 30.17B | 26.56B | 27.36B | 27.89B | 28.61B |
| Cash, Cash Equivalents and Short-Term Investments | 171.00M | 4.73B | 348.00M | 450.00M | 401.00M | 449.00M |
| Total Debt | 11.58B | 11.30B | 7.93B | 8.03B | 8.82B | 9.64B |
| Total Liabilities | 18.82B | 17.09B | 13.47B | 13.62B | 14.57B | 15.80B |
| Stockholders Equity | 9.60B | 9.84B | 9.81B | 10.42B | 10.06B | 9.97B |
Cash Flow | ||||||
| Free Cash Flow | 2.13B | 2.29B | 1.87B | 2.17B | 1.95B | 1.66B |
| Operating Cash Flow | 2.71B | 2.94B | 2.49B | 2.73B | 2.41B | 2.00B |
| Investing Cash Flow | -2.81B | -3.69B | -1.50B | -702.00M | -526.00M | 386.00M |
| Financing Cash Flow | -171.00M | 724.00M | -1.08B | -1.98B | -1.93B | -1.98B |
Plains All American Technical Analysis
Positive
21.02
Price Trends
22.14
Positive
21.18
Positive
18.79
Positive
Market Momentum
0.14
Positive
51.27
Neutral
31.55
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 21.02 is below the 20-day moving average (MA) of 22.97, below the 50-day MA of 22.14, and above the 200-day MA of 18.79, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 51.27 is Neutral, neither overbought nor oversold. The STOCH value of 31.55 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $17.42B | 14.67 | 34.98% | 9.13% | 11.43% | -8.64% | |
80 Outperform | $14.36B | 30.96 | 9.82% | 2.70% | 22.22% | 23.30% | |
76 Outperform | $8.00B | 13.58 | 64.33% | 8.45% | 7.06% | 13.61% | |
73 Outperform | $16.04B | 14.02 | 11.77% | 8.54% | -9.94% | 43.70% | |
69 Neutral | $18.76B | 25.01 | 14.67% | 8.03% | -9.94% | 34.19% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
64 Neutral | $16.20B | ― | -1.05% | 6.08% | 78.85% | -108.36% |
* Energy Sector Average
PAA
Plains All American
22.73
6.28
38.19%
WES
Western Midstream Partners
44.23
8.96
25.39%
PAGP
Plains GP Holdings
24.63
7.12
40.67%
VNOM
Viper Energy
44.78
5.14
12.96%
HESM
Hess Midstream Partners
38.78
2.61
7.21%
DTM
DT Midstream
140.80
38.27
37.32%
Plains All American Corporate Events
Executive/Board Changes
Plains All American Promotes New Chief Accounting Officer
Positive
Jun 2, 2026
Plains All American Pipeline and Plains GP Holdings announced on June 1, 2026 that Russ Montgomery will be promoted to Vice President, Accounting and Chief Accounting Officer of their respective general partners, effective September 1, 2026. The m...
Executive/Board ChangesShareholder Meetings
Plains All American Unitholders Back Directors, Pay, Auditor
Positive
May 22, 2026
At Plains All American Pipeline’s 2026 annual meeting of common and Series A Convertible Preferred unitholders held on May 20, 2026, investors instructed the partnership on how to vote its Class C shares of Plains GP Holdings at that entity&...
Executive/Board Changes
Plains All American Adds Veteran Executive to Board
Positive
May 13, 2026
On May 11, 2026, Plains All American Pipeline and Plains GP Holdings announced that veteran energy executive Cynthia B. Taylor has been appointed as an independent Class III director of their general partner’s board. She will also join the C...
Business Operations and StrategyM&A Transactions
Plains All American Completes Canadian Midstream Divestiture Transaction
Positive
May 12, 2026
On May 12, 2026, Plains All American Pipeline and Plains GP Holdings completed the previously announced sale of Plains Midstream Canada ULC, which held substantially all of Plains’ Canadian natural gas liquids business, to Keyera Corp. The t...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Plains All American Raises 2026 EBITDA and Distribution Outlook
Positive
May 8, 2026
On May 8, 2026, Plains All American reported first-quarter 2026 net income of $152 million and operating cash flow of $418 million, with Adjusted EBITDA attributable to PAA at $730 million and a pro forma leverage ratio of 4.1x. The partnership pa...
Other
Plains All American Announces New Material Definitive Agreement
Neutral
Mar 3, 2026
The provided text fragment from Plains All American does not contain any substantive details about specific events, financial results, strategic actions, or operational updates. As a result, there is no concrete information about past or future co...
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.