Plains GP Holdings (PAGP) AI Stock Analysis

• Market Cap: $14.17B
• Dividend Yield: 7.15%
• Average Volume (3M): 1.75M
• Price to Earnings (P/E): 35.7
• Beta (1Y): 0.54
• Revenue Growth: 3.28%
• EPS Growth: -48.50%
• Country: US
• Employees: 5,000
• Sector: Energy
• Sector Strength: 47
• Industry: Oil & Gas Midstream
• EPS (TTM): 0.52
• Shares Outstanding: 197,743,620
• 10 Day Avg. Volume: 1,361,520
• 30 Day Avg. Volume: 1,749,706
• PEG Ratio: 6.72
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.71
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 6.95
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $21.40
• Price Target Upside: 14.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Plains GP Holdings displays strong financial health, particularly in cash flow generation and improved profitability. The earnings call highlighted successful strategic initiatives and a positive growth outlook, though challenges remain. Technical indicators suggest bearish momentum, and the valuation appears high, which could be a concern for new investors.

Plains GP Holdings Business Overview & Revenue Model

Company Description

Plains GP Holdings, L.P., through its subsidiary, Plains All American Pipeline, L.P., owns and operates midstream energy infrastructure in the United States and Canada. The company operates in two segments, Crude Oil and Natural Gas Liquids (NGLs). The company engages in the transportation of crude oil and NGLs on pipelines, gathering systems, and trucks. As of December 31, 2021, this segment owned and leased assets comprising 18,300 miles of crude oil and NGL pipelines and gathering systems; 38 million barrels of above-ground tank capacity; and 1,275 trailers. It engages in the provision of storage, terminalling, and throughput services primarily for crude oil, NGLs, and natural gas; NGL fractionation and isomerization services; and natural gas and condensate processing services. As of December 31, 2021, this segment owned and operated approximately 74 million barrels of crude oil storage capacity; 28 million barrels of NGL storage capacity; four natural gas processing plants; a condensate processing facility; nine fractionation plants; 16 NGL rail terminals; four marine facilities; and 110 miles of pipelines. As of December 31, 2021, this segment owned 15 million barrels of crude oil and 2 NGL linefill; 3 million barrels of crude oil and 1 NGL linefill in pipelines owned by third parties and other inventory; 640 trucks and 1,275 trailers; and 3,900 NGL railcars. The company offers logistics services to producers, refiners, and other customers. PAA GP Holdings LLC operates as a general partner of the company. Plains GP Holdings, L.P. was incorporated in 2013 and is headquartered in Houston, Texas.

How the Company Makes Money

Plains 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 18.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PAGP, the sentiment is Negative. The current price of 18.64 is below the 20-day moving average (MA) of 18.64, below the 50-day MA of 20.20, and below the 200-day MA of 19.07, indicating a bearish trend. The MACD of -0.41 indicates Negative momentum. The RSI at 35.42 is Neutral, neither overbought nor oversold. The STOCH value of 39.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PAGP.

Plains GP Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WES	81 Outperform	$14.34B	9.36	50.12%	9.31%	16.06%	54.94%
AM	78 Outperform	$7.92B	20.06	18.79%	5.44%	5.79%	7.52%
HESM	78 Outperform	$8.37B	14.64	51.23%	7.28%	10.89%	19.50%
DTM	78 Outperform	$9.94B	27.18	8.08%	3.11%	6.40%	-8.42%
PAA	75 Outperform	$12.29B	23.85	7.56%	7.63%	3.28%	-47.59%
PAGP	63 Neutral	$14.17B	35.65	7.11%	7.15%	3.28%	-48.50%
Sector *	56 Neutral	$6.92B	3.31	-4.49%	6.03%	-0.35%	-47.83%

Plains GP Holdings Corporate Events

Plains GP Holdings Reports Strong 2024 Financial Results

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.