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Plains GP Holdings (PAGP)
NASDAQ:PAGP
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Plains GP Holdings
(NASDAQ:PAGP)68Neutral
Plains GP Holdings (PAGP) vs. S&P 500 (SPY)
Market Cap
$16.04B
Dividend Yield6.44%
Average Volume (3M)1.76M
Price to Earnings (P/E)39.6
Beta (1Y)0.55
Revenue Growth3.13%
EPS Growth3.84%
CountryUS
Employees4,200
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)0.52
Shares Outstanding197,743,620
10 Day Avg. Volume1,502,579
30 Day Avg. Volume1,763,276
Financial Highlights & Ratios
PEG Ratio6.72
Price to Book (P/B)N/A
Price to Sales (P/S)0.08
Price to Cash Flow (P/CF)1.40
P/FCF Ratio1.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.50Price Target Upside3.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
Plains GP Holdings Business Overview & Revenue Model
Company DescriptionPlains GP Holdings (PAGP) is a publicly traded partnership that operates in the midstream energy sector. The company, through its ownership in Plains All American Pipeline, L.P., is involved in the transportation, storage, and marketing of crude oil and natural gas liquids (NGLs). Plains GP Holdings focuses on providing the infrastructure and logistics necessary to connect producers with refineries and other terminus points across North America.
How the Company Makes MoneyPlains GP Holdings makes money primarily through its ownership interest in Plains All American Pipeline, L.P., which generates revenue from the transportation, storage, and marketing of crude oil and natural gas liquids. The company charges fees for transporting these commodities through its extensive network of pipelines, as well as for storing them in its storage facilities. Additionally, PAGP earns income from buying and selling crude oil and NGLs, capitalizing on market opportunities to optimize its logistics operations. Key revenue streams include transportation fees, storage fees, and marketing margins. Plains GP Holdings benefits from strategic partnerships and long-term contracts with producers and refiners, providing stable cash flows and enhancing its financial performance.
Plains GP Holdings Financial Statement Overview
Summary
Plains GP Holdings exhibits solid financial health with strong cash flow and profitability improvements. The income statement shows improving margins and moderate revenue growth. The balance sheet is stable but could benefit from optimizing leverage. Cash flow performance is a highlight, with strong operational efficiency and capital utilization.Income Statement
The company's gross profit margin for TTM is healthy at 51.41%, and the net profit margin improved significantly to 1.34% from the previous annual report's 0.41%. However, overall revenue showed a modest TTM growth rate of 3.25%. Stability in EBIT and EBITDA margins at 2.83% and 4.54% respectively indicates consistent operating efficiency.68
Positive
Balance Sheet
The balance sheet reflects a strong equity position with an equity ratio of 49.29% for TTM, which is a positive indicator of stability. However, the debt-to-equity ratio is relatively low at 0.024, indicating potential under-leverage. ROE for TTM stood at 5.14%, suggesting moderate returns on equity.55
Neutral
Cash Flow
The company demonstrated a robust free cash flow growth rate of 14.82% TTM, indicating strong cash generation. The operating cash flow to net income ratio is high at 3.69, showcasing efficient cash operations. Additionally, the free cash flow to net income ratio is strong at 3.69, suggesting effective capital use.72
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 50.07B | 48.71B | 57.34B | 42.04B | 23.29B | Gross Profit |
| 3.49B | 3.13B | 3.20B | 2.80B | 2.20B | EBIT |
| 1.17B | 1.50B | 769.00M | 842.00M | 589.00M | EBITDA |
| 2.68B | 3.05B | 2.78B | 1.91B | -1.51B | Net Income Common Stockholders |
| 103.00M | 198.00M | 1.16B | 600.00M | -2.44B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 349.00M | 453.00M | 404.00M | 452.00M | 25.00M | Total Assets |
| 27.76B | 28.60B | 29.21B | 28.61B | 24.50B | Total Debt |
| 7.86B | 8.03B | 8.75B | 8.74B | 9.70B | Net Debt |
| 7.51B | 7.57B | 8.35B | 8.29B | 9.67B | Total Liabilities |
| 13.44B | 13.63B | 14.57B | 15.80B | 14.76B | Stockholders Equity |
| 19.24B | 1.55B | 14.64B | 14.18B | 11.19B |
| Cash Flow | Free Cash Flow | |||
| 1.84B | 2.16B | 1.95B | 1.66B | 772.00M | Operating Cash Flow |
| 2.48B | 2.72B | 2.40B | 1.99B | 1.51B | Investing Cash Flow |
| -875.00M | -702.00M | -526.00M | 386.00M | -1.09B | Financing Cash Flow |
| -1.70B | -1.97B | -1.93B | -1.98B | -430.00M |
Plains GP Holdings Technical Analysis
Positive
20.75
Price Trends
20.52
Positive
19.36
Positive
18.63
Positive
Market Momentum
-0.02
Positive
47.21
Neutral
39.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAGP, the sentiment is Positive. The current price of 20.75 is below the 20-day moving average (MA) of 21.12, above the 50-day MA of 20.52, and above the 200-day MA of 18.63, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.21 is Neutral, neither overbought nor oversold. The STOCH value of 39.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAGP.
Plains GP Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $53.89B | 12.52 | 31.78% | 6.86% | 4.30% | 10.45% | |
81 Outperform | $59.22B | 13.60 | 13.40% | 7.36% | 5.20% | 18.35% | |
71 Outperform | $65.87B | 29.93 | 17.92% | 3.49% | 8.06% | -30.11% | |
68 Neutral | $16.04B | 39.59 | 7.11% | 6.44% | 3.13% | 3.84% | |
68 Neutral | $58.08B | 22.34 | 8.54% | 4.40% | -0.55% | 10.02% | |
64 Neutral | $55.92B | 17.31 | 18.11% | 4.46% | 24.16% | -6.58% | |
57 Neutral | $8.34B | 5.35 | -5.98% | 7.29% | 0.20% | -69.45% |
* Energy Sector Average
Performance Comparison
PAGP
Plains GP Holdings
20.75
4.58
28.32%
ET
Energy Transfer
17.26
3.33
23.91%
KMI
Kinder Morgan
26.14
9.06
53.04%
OKE
Oneok
91.42
17.54
23.74%
WMB
Williams Co
54.02
18.49
52.04%
MPLX
MPLX
52.35
14.85
39.60%
Plains GP Holdings Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: -1.75% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with the company exceeding its 2024 guidance and setting growth expectations for 2025. Acquisitions and increased distributions reflect strategic growth and shareholder value focus. However, challenges such as noncash impairments and a significant insurance claim write-off were noted, along with expected tariff resets on key pipelines.Highlights
Exceeded 2024 Guidance
Plains reported adjusted EBITDA attributable to Plains of $729 million for Q4 and $2.78 billion for the full year, exceeding their initial 2024 guidance by approximately $105 million or 4%.
Positive Outlook for 2025
The company provided adjusted EBITDA guidance for 2025 of $2.8 billion to $2.95 billion, representing approximately 3% growth year-over-year at the midpoint of the guidance range.
Successful Acquisitions
Completed acquisitions including Ironwood Midstream Energy and the remaining 50% interest in Midway Pipeline, which are expected to expand and enhance the asset base.
Increased Distribution
Announced a 20% increase in the quarterly distribution, bringing the annual distribution to $1.52 per unit, representing a yield of approximately 7.5%.
Lowlights
Noncash Impairment and Insurance Claim Write-Off
Reported a $140 million noncash impairment related to two US NGL terminal assets and a $225 million write-off related to insurance claims from a 2015 incident.
Cactus Pipeline Tariff Reset
Expected reset of certain long-haul contract tariffs on the Cactus pipeline, which is anticipated to step down in the second half of 2025.
Company Guidance
During the PAA and PAGP Fourth Quarter 2024 Earnings Call, the company provided detailed guidance for 2025, highlighting several key metrics. PAA reported a strong adjusted EBITDA of $729 million for Q4 2024 and $2.78 billion for the year, surpassing their initial guidance by approximately 4%. For 2025, the company projected adjusted EBITDA of $2.8 billion to $2.95 billion, indicating a 3% growth year-over-year at the midpoint. Plains expects Permian crude production to increase by 200,000 to 300,000 barrels per day, reaching about 6.7 million barrels per day by the end of 2025. The company also announced a 20% increase in the quarterly distribution, leading to an annual distribution of $1.52 per unit, representing a yield of approximately 7.5%. Additionally, Plains plans to invest around $400 million in growth capital and $240 million in maintenance capital for 2025.Plains GP Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Plains GP Holdings Reports Strong 2024 Financial Results
Positive
Feb 7, 2025
On February 7, 2025, Plains GP Holdings reported its financial results for the fourth quarter and full year of 2024, highlighting a net income of $772 million for the year and adjusted EBITDA above guidance at $2.78 billion. The company also announced its 2025 guidance, expecting an adjusted EBITDA between $2.80 billion and $2.95 billion, alongside a 20% increase in annualized distribution per unit. Plains GP Holdings continues to focus on efficient growth initiatives, having completed significant acquisitions and maintaining a strong cash flow and financial flexibility, underscoring its commitment to delivering value to customers and unitholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.