Plains GP Holdings (PAGP) AI Stock Analysis

• Market Cap: $14.31B
• Dividend Yield: 7.74%
• Average Volume (3M): 1.15M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 0.51
• Revenue Growth: -4.31%
• EPS Growth: -16.62%
• Country: US
• Employees: 5,000
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.15
• Shares Outstanding: 197,743,620
• 10 Day Avg. Volume: 925,596
• 30 Day Avg. Volume: 1,148,693
• 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: 1.75
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 1.76
• Enterprise Value/Ebitda: 9.15
• 1Y Price Target: $20.14
• Price Target Upside: 6.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 62 Neutral
• Price Target: $20.00 ▲(6.16% Upside)

Plains GP Holdings' overall stock score is primarily influenced by its mixed financial performance and strategic initiatives highlighted in the earnings call. While the company shows operational efficiency and strong cash flow management, challenges in revenue growth and profitability, along with a high P/E ratio, weigh on the score. The attractive dividend yield and strategic moves, such as the NGL business sale, provide some positive offset.

Plains GP Holdings Business Overview & Revenue Model

Company Description

Plains GP Holdings (PAGP) is a publicly traded master limited partnership that operates in the energy sector, primarily focused on providing midstream logistics services for the transportation, storage, and marketing of crude oil, natural gas liquids, and refined products. The company operates an extensive network of pipelines, terminals, and storage facilities across North America, facilitating the efficient movement of hydrocarbons from production sites to end-users. PAGP's operations are crucial for maintaining the supply chain in the energy sector, ensuring that producers and consumers can engage in seamless transactions.

How the Company Makes Money

Plains GP Holdings generates revenue primarily through its midstream services, which include the transportation and storage of crude oil and natural gas liquids. The company earns fees based on the volume of products transported and stored, providing a stable income stream. Key revenue streams include fees from long-term transportation contracts, which offer predictable cash flows, as well as spot market transactions that can yield higher returns during periods of increased demand. Additionally, PAGP benefits from partnerships with a range of producers and refiners, allowing it to leverage existing infrastructure and expand its service offerings. The company's financial performance is also influenced by the overall health of the energy market, including fluctuations in commodity prices and production levels.

Plains GP Holdings Financial Statement Overview

Summary

Plains GP Holdings demonstrates a mixed financial performance. Strong gross profit margins and efficient cash flow management are positive indicators of operational efficiency. However, challenges remain in revenue growth and profitability, as reflected in the low net profit margin and return on equity. The improved debt-to-equity ratio suggests better leverage management, but the company needs to enhance profitability and revenue growth.

Income Statement

Plains GP Holdings shows a mixed performance in its income statement. The TTM gross profit margin is strong at 29.8%, indicating efficient cost management. However, the net profit margin is low at 0.28%, reflecting challenges in translating revenue into profit. Revenue growth has been negative recently, with a -4.67% decline in the TTM period, indicating potential market or operational challenges. Despite these issues, the company maintains a stable EBIT margin of 3.6% and an EBITDA margin of 5.7%, suggesting operational efficiency.

Balance Sheet

The balance sheet reveals a moderate financial position. The debt-to-equity ratio has improved significantly in the TTM period to 0.47, suggesting better leverage management compared to previous years. However, the return on equity is low at 1.5%, indicating limited profitability from shareholder investments. The equity ratio stands at 66.3%, showing a solid equity base relative to total assets, which is a positive sign of financial stability.

Cash Flow

Cash flow analysis shows a positive trend with a 3.09% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is robust at 5.26, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also healthy at 0.86, suggesting effective cash management and the ability to cover net income with free cash flow.

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	14.24B	3.49B	3.13B	3.20B	2.80B	2.20B
EBITDA	2.73B	2.68B	3.05B	2.78B	1.91B	-1.51B
Net Income	136.00M	103.00M	198.00M	168.00M	60.00M	-568.00M
Balance Sheet
Total Assets	28.30B	27.76B	28.60B	29.21B	29.98B	25.95B
Cash, Cash Equivalents and Short-Term Investments	460.00M	349.00M	453.00M	404.00M	452.00M	25.00M
Total Debt	8.80B	7.93B	8.03B	8.82B	9.64B	10.61B
Total Liabilities	14.18B	13.44B	13.63B	14.57B	15.80B	14.76B
Stockholders Equity	18.77B	1.35B	1.55B	14.64B	1.53B	1.48B
Cash Flow
Free Cash Flow	2.09B	1.84B	2.14B	1.95B	1.66B	772.00M
Operating Cash Flow	2.74B	2.48B	2.72B	2.40B	1.99B	1.51B
Investing Cash Flow	-1.55B	-875.00M	-702.00M	-526.00M	386.00M	-1.09B
Financing Cash Flow	-1.30B	-1.70B	-1.97B	-1.93B	-1.98B	-430.00M

Plains GP Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.84
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 18.84 is above the 20-day moving average (MA) of 18.65, below the 50-day MA of 18.96, and below the 200-day MA of 18.95, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 52.98 is Neutral, neither overbought nor oversold. The STOCH value of 85.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PAGP.

Plains GP Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WES	80 Outperform	$15.03B	12.13	39.91%	9.06%	7.11%	-16.14%
AM	78 Outperform	$9.37B	20.82	―	4.60%	7.09%	17.53%
HESM	72 Outperform	$7.35B	12.99	42.04%	8.09%	9.02%	17.28%
DTM	69 Neutral	$11.51B	30.45	8.05%	2.82%	15.28%	-9.99%
PAA	68 Neutral	$12.46B	19.59	9.44%	8.23%	-4.31%	-17.80%
PAGP	62 Neutral	$14.31B	27.41	8.16%	7.74%	-4.31%	-16.62%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Plains GP Holdings Corporate Events

Plains GP Holdings Completes $1.25 Billion Debt Offering

On September 8, 2025, Plains All American Pipeline, L.P. and PAA Finance Corp. completed a public offering of $1.25 billion in debt securities. The offering included $700 million in 4.700% Senior Notes due 2031 and $550 million in 5.600% Senior Notes due 2036. These notes are senior unsecured obligations and come with specific covenants and events of default, impacting PAA’s operational flexibility and financial structure.

Plains GP Holdings Acquires Stake in EPIC Crude

On August 30, 2025, Plains All American Pipeline, a subsidiary of Plains GP Holdings, entered into an agreement to acquire a 55% non-operated interest in EPIC Crude Holdings for approximately $1.57 billion, including $600 million of debt. This acquisition, expected to close in early 2026, aims to enhance Plains’ strategic position in the crude oil midstream sector by expanding its connectivity from the Permian and Eagle Ford basins to the Gulf Coast market. The transaction is anticipated to be immediately accretive to distributable cash flow and offers potential synergies and growth opportunities, strengthening Plains’ market access and customer service offerings.

Plains GP Extends CEO Award Expiration to 2030

On August 14, 2025, Plains GP Holdings extended the expiration date of a long-term award for CEO Willie Chiang from October 2025 to October 2030 to incentivize his continued leadership. This decision aims to support strategic initiatives and succession planning. Additionally, special retention grants were approved for executives Jeremy Goebel and Chris Chandler to ensure their continued contributions to the company’s success, with vesting schedules extending to 2030 and 2028, respectively.

Plains GP Holdings Reports Strong Q2 2025 Results

On August 8, 2025, Plains GP Holdings reported solid second-quarter results for 2025, with a net income of $210 million and net cash from operating activities of $694 million. The company announced the divestiture of its Canadian NGL business for $3.75 billion USD, expected to close in the first quarter of 2026, which will enhance its financial flexibility and streamline operations. Additionally, Plains acquired an additional 20% interest in BridgeTex Pipeline Company, strengthening its position in the Permian Basin.

Plains GP Holdings Sells Canadian NGL Business

On June 17, 2025, Plains All American Pipeline, L.P., a subsidiary of Plains GP Holdings, 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 retain its NGL assets in the U.S. and all crude oil assets in Canada. This strategic move positions Plains as a premier crude oil midstream entity, enhancing its financial flexibility and free cash flow profile while reducing commodity exposure and working capital requirements. The proceeds will support capital allocation strategies, including potential acquisitions and unit repurchases.