tiprankstipranks
Trending News
More News >
Plains GP Holdings LP (PAGP)
:PAGP
US Market
Advertisement

Plains GP Holdings (PAGP) AI Stock Analysis

Compare
722 Followers

Top Page

PAGP

Plains GP Holdings

(NASDAQ:PAGP)

Rating:62Neutral
Price Target:
$20.00
â–²(8.58% Upside)
Plains GP Holdings' overall stock score reflects a mixed financial performance with strong cash flow management but challenges in revenue growth and profitability. Technical analysis indicates a neutral to slightly bearish trend, while valuation suggests potential overvaluation despite a high dividend yield. Positive corporate events and strategic initiatives provide some optimism, but cautious earnings guidance tempers the outlook.

Plains GP Holdings (PAGP) vs. SPDR S&P 500 ETF (SPY)

Plains GP Holdings Business Overview & Revenue Model

Company DescriptionPlains 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 MoneyPlains 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 Earnings Call Summary

Earnings Call Date:Aug 08, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The earnings call provided a balanced view of Plains' ongoing strategic initiatives, including solid financial performance and significant transactions like the NGL business sale. However, challenges such as the decline in the NGL segment and cautious guidance for the year indicate areas of concern.
Q2-2025 Updates
Positive Updates
Solid Second Quarter Adjusted EBITDA
Plains reported a solid second quarter adjusted EBITDA attributable to Plains of $672 million.
NGL Business Sale
Execution of definitive agreements to sell substantially all of the NGL business to Keyera for approximately USD 3.75 billion, with expected close in the first quarter of 2026.
Bolt-on Acquisition Strategy
Year-to-date, Plains completed 5 bolt-on transactions totaling approximately $800 million. Recently acquired an additional 20% interest in BridgeTex Pipeline Company LLC for $100 million.
Permian Volume Growth
Crude Oil segment adjusted EBITDA of $580 million benefited from Permian volume growth and contributions from recent bolt-on acquisitions.
Financial Flexibility and Strategy
Plains expects to generate approximately $870 million of adjusted free cash flow in 2025 and maintain financial flexibility for growth and capital allocation.
Negative Updates
NGL Segment Decline
Reported adjusted EBITDA of $87 million for the NGL segment, which stepped down sequentially due to normal seasonality and lower quarter-on-quarter frac spreads.
Guidance on Lower Range
Full year 2025 EBITDA guidance of $2.8 billion to $2.95 billion is expected to be in the lower half of the range, indicating cautious outlook.
Increased Growth Capital Guidance
2025 growth capital guidance increased by $75 million to $475 million due to new projects and weather delays, though maintenance capital is trending below initial forecast.
Company Guidance
In the second quarter of 2025, Plains All American (PAA) reported an adjusted EBITDA of $672 million. The company announced the sale of its NGL business to Keyera for approximately $3.75 billion, expected to close in the first quarter of 2026, which will result in a streamlined crude oil midstream entity with less commodity exposure. PAA plans to use around $3 billion of net proceeds for bolt-on M&A to expand its crude oil-focused portfolio and potential repurchases of Series A and B preferred units. The company also acquired an additional 20% interest in BridgeTex Pipeline for $100 million, increasing its overall interest to 40%. For the full year 2025, PAA maintained its EBITDA guidance range of $2.8 billion to $2.95 billion and expects to generate approximately $870 million of adjusted free cash flow, along with increasing its growth capital guidance to $475 million.

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
65
Positive
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
55
Neutral
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
70
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue47.80B50.07B48.71B57.34B42.04B23.29B
Gross Profit14.24B3.49B3.13B3.20B2.80B2.20B
EBITDA2.73B2.68B3.05B2.78B1.91B-1.51B
Net Income136.00M103.00M198.00M168.00M60.00M-568.00M
Balance Sheet
Total Assets28.30B27.76B28.60B29.21B29.98B25.95B
Cash, Cash Equivalents and Short-Term Investments460.00M349.00M453.00M404.00M452.00M25.00M
Total Debt8.80B7.93B8.03B8.82B9.64B10.61B
Total Liabilities14.18B13.44B13.63B14.57B15.80B14.76B
Stockholders Equity18.77B1.35B1.55B14.64B1.53B1.48B
Cash Flow
Free Cash Flow2.09B1.84B2.14B1.95B1.66B772.00M
Operating Cash Flow2.74B2.48B2.72B2.40B1.99B1.51B
Investing Cash Flow-1.55B-875.00M-702.00M-526.00M386.00M-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
Negative
Last Price18.42
Price Trends
50DMA
19.12
Negative
100DMA
18.59
Negative
200DMA
18.92
Negative
Market Momentum
MACD
-0.10
Positive
RSI
36.41
Neutral
STOCH
21.32
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 18.42 is below the 20-day moving average (MA) of 18.92, below the 50-day MA of 19.12, and below the 200-day MA of 18.92, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 36.41 is Neutral, neither overbought nor oversold. The STOCH value of 21.32 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$8.67B15.3252.91%6.95%9.02%17.28%
78
Outperform
$8.66B18.9921.65%4.93%7.09%17.53%
77
Outperform
$14.67B11.8438.42%9.38%7.11%-16.14%
69
Neutral
$10.70B28.318.48%2.95%15.28%-9.99%
68
Neutral
$12.27B19.268.34%8.46%-4.31%-17.80%
65
Neutral
$15.28B7.483.19%5.33%4.10%-60.58%
62
Neutral
$14.24B27.288.16%7.91%-4.31%-16.62%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PAGP
Plains GP Holdings
18.42
1.22
7.09%
PAA
Plains All American
17.22
1.30
8.17%
WES
Western Midstream Partners
38.04
3.72
10.84%
AM
Antero Midstream
18.25
4.84
36.09%
HESM
Hess Midstream Partners
40.75
7.83
23.78%
DTM
DT Midstream
105.27
33.03
45.72%

Plains GP Holdings Corporate Events

M&A TransactionsBusiness Operations and Strategy
Plains GP Holdings Acquires Stake in EPIC Crude
Positive
Sep 2, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Plains GP Extends CEO Award Expiration to 2030
Positive
Aug 18, 2025

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.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Plains GP Holdings Reports Strong Q2 2025 Results
Positive
Aug 8, 2025

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.

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

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.

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: Sep 04, 2025