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Plains All American (PAA)
NASDAQ:PAA
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Plains All American
(NASDAQ:PAA)78Outperform
Plains All American (PAA) vs. S&P 500 (SPY)
Market Cap
$13.34B
Dividend Yield7.01%
Average Volume (3M)4.21M
Price to Earnings (P/E)25.9
Beta (1Y)0.50
Revenue Growth3.28%
EPS Growth-47.59%
CountryUS
Employees4,200
SectorEnergy
Sector Strength57
IndustryFossil Fuels
Share Statistics
EPS (TTM)0.73
Shares Outstanding703,775,940
10 Day Avg. Volume3,729,976
30 Day Avg. Volume4,213,666
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.27
Price to Cash Flow (P/CF)4.60
P/FCF Ratio4.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$21.67Price Target Upside11.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
Plains All American Business Overview & Revenue Model
Company DescriptionPlains All American Pipeline, L.P. (PAA) is a leading midstream energy company operating in North America. The company is primarily engaged in the transportation, storage, and marketing of crude oil and natural gas liquids (NGLs). PAA manages an extensive network of pipeline transportation and storage assets, serving key oil and gas regions such as the Permian Basin, Western Canada, and the Gulf Coast.
How the Company Makes MoneyPlains All American makes money through a diverse revenue model centered around its core midstream operations. The company generates revenue primarily by charging fees for the transportation of crude oil and NGLs through its extensive pipeline network. Additionally, PAA earns income from its storage services, offering customers the ability to store crude oil and NGLs in its strategically located facilities. The company also engages in the marketing of crude oil and NGLs, capturing margin opportunities through buying and selling these commodities. Key revenue streams are bolstered by long-term contracts with producers and refiners, providing a stable and predictable cash flow. Strategic partnerships and joint ventures further enhance PAA's earnings, allowing the company to leverage additional resources and access to new markets.
Plains All American Financial Statement Overview
Summary
Plains All American presents a solid financial position overall, with strengths in equity growth and cash flow stability. The company shows resilience in operational efficiency metrics, despite some volatility in net income and revenue growth. Improvements in debt management enhance the financial stability, though monitoring revenue and profitability trends will be essential to sustain long-term growth.Income Statement
Plains All American shows a stable financial position with a consistent gross profit margin. However, net profit margins have been volatile, and revenue growth has been inconsistent over the years. The EBIT and EBITDA margins are relatively stable, indicating operational efficiency. The TTM results show some recovery in net income but a decline in EBIT and EBITDA compared to previous years.75
Positive
Balance Sheet
The company has shown improvement in its balance sheet with a lower debt-to-equity ratio in the TTM period. Stockholders' equity has been growing, indicating a stronger equity position. The equity ratio is healthy, suggesting a balanced approach between leveraging and equity financing. The reduced total debt in the TTM period is a positive sign of financial health.82
Very Positive
Cash Flow
The cash flow statements indicate strong operating cash flows relative to net income, suggesting effective cash management. The free cash flow has been positive and growing, though there is a need to watch the fluctuations in investing cash flows. The TTM period shows a robust free cash flow with no capital expenditure, which supports the company's liquidity profile.78
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 |
| 1.72B | 2.76B | 1.89B | 1.74B | 1.13B | EBIT |
| 1.18B | 1.51B | 780.00M | 1.26B | 3.62B | EBITDA |
| 2.74B | 3.06B | 2.53B | 2.23B | -1.51B | Net Income Common Stockholders |
| 772.00M | 1.23B | 1.04B | 593.00M | -2.58B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 348.00M | 450.00M | 401.00M | 449.00M | 22.00M | Total Assets |
| 26.56B | 27.36B | 27.89B | 28.61B | 24.50B | Total Debt |
| 7.86B | 8.16B | 7.59B | 8.74B | 9.70B | Net Debt |
| 7.51B | 7.71B | 7.19B | 8.29B | 9.68B | Total Liabilities |
| 8.52B | 13.62B | 14.57B | 15.80B | 14.76B | Stockholders Equity |
| 18.05B | 10.42B | 13.32B | 12.81B | 9.74B |
| Cash Flow | Free Cash Flow | |||
| 2.49B | 2.17B | 1.95B | 1.66B | 776.00M | Operating Cash Flow |
| 2.49B | 2.73B | 2.41B | 2.00B | 1.51B | Investing Cash Flow |
| -1.50B | -702.00M | -526.00M | 386.00M | -1.09B | Financing Cash Flow |
| -1.08B | -1.98B | -1.93B | -1.98B | -435.00M |
Plains All American Technical Analysis
Positive
19.35
Price Trends
19.20
Positive
18.11
Positive
17.48
Positive
Market Momentum
-0.02
Positive
45.64
Neutral
24.79
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 19.35 is below the 20-day moving average (MA) of 19.84, above the 50-day MA of 19.20, and above the 200-day MA of 17.48, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 24.79 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
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $60.73B | 13.78 | 13.40% | 7.26% | 5.20% | 18.35% | |
78 Outperform | $13.34B | 25.88 | 7.56% | 7.01% | 3.28% | -47.59% | |
77 Outperform | $71.66B | 12.42 | 20.78% | 6.35% | 12.71% | 6.74% | |
73 Outperform | $131.05B | 25.68 | 8.26% | 6.21% | 24.95% | -17.19% | |
71 Outperform | $66.59B | 30.06 | 17.92% | 3.48% | 8.06% | -30.11% | |
64 Neutral | $56.03B | 17.35 | 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
PAA
Plains All American
19.35
3.88
25.08%
ET
Energy Transfer
17.46
3.53
25.34%
EPD
Enterprise Products Partners
33.46
7.20
27.42%
OKE
Oneok
89.57
15.69
21.24%
WMB
Williams Co
54.38
18.85
53.05%
TSE:ENB
Enbridge
61.01
15.49
34.02%
Plains All American Earnings Call Summary
Earnings Call Date: Feb 7, 2025 | % Change Since: -3.30% | Next Earnings Date: May 2, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook with strong performance in 2024, strategic acquisitions, and increased capital returns, despite challenges such as impairments, insurance claim setbacks, and potential tariff impacts. The company is well-positioned for future growth and maintains a constructive outlook on the energy market.Highlights
Exceeding Guidance and Strong EBITDA Performance
Adjusted EBITDA of $729 million for Q4 and $2.78 billion for the full year 2024, exceeding initial guidance by $105 million.
2025 Growth Projections
Provided EBITDA guidance of $2.8 billion to $2.95 billion for 2025, indicating approximately 3% growth year over year.
Strategic Acquisitions
Completed acquisitions of Ironwood Midstream Energy and the remaining 50% interest in Midway Pipeline, expanding asset base in Eagle Ford and Delaware Basin.
Increased Capital Returns
Announced a 20% increase in quarterly distribution, bringing the annual distribution to $1.52 per unit, representing a yield of approximately 7.5%.
Permian Basin Growth
Expected growth of 200,000 to 300,000 barrels per day by year-end 2025, with basin volumes reaching 6.7 million barrels per day.
Lowlights
Impairment and Insurance Claim Setbacks
A $140 million noncash impairment related to two US NGL terminal assets and a $225 million insurance claim write-off due to arbitration ruling.
NGL Segment Challenges
Expected slight decrease in NGL segment EBITDA for 2025, with a shift to 45% fee-based business.
Potential Tariff Impacts
Uncertainties surrounding potential tariffs on Canada and their impacts on NGL and crude businesses.
Company Guidance
During the call, Plains All American Pipeline provided guidance for 2025, highlighting several key metrics and financial expectations. The company projected an adjusted EBITDA range of $2.8 billion to $2.95 billion, indicating a year-over-year growth of approximately 3% at the midpoint. They anticipate Permian crude production to increase by 200,000 to 300,000 barrels per day, reaching approximately 6.7 million barrels per day by the end of 2025. The company plans to invest around $400 million in growth capital and $240 million in maintenance capital, while aiming to generate approximately $1.15 billion in adjusted free cash flow. Additionally, Plains announced a 20% increase in quarterly distribution, raising it by $0.25 per unit on an annualized basis, resulting in a yield of about 7.5%. The guidance reflects Plains' strategy of focusing on efficient growth, capital discipline, and increasing returns to unitholders.Plains All American Corporate Events
M&A TransactionsDividendsFinancial Disclosures
Plains All American Reports Strong 2024 Financial Results
Positive
Feb 7, 2025
Plains All American reported its fourth-quarter and full-year 2024 financial results on February 7, 2025, showcasing a net income of $772 million for the year despite a $225 million charge related to insurance proceeds and non-cash charges. The company successfully closed several acquisitions totaling $670 million and announced a 20% increase in annual distribution for 2025. Plains forecasts an Adjusted EBITDA of $2.80 – $2.95 billion for 2025, with plans to maintain a leverage ratio within its target range, benefiting from strong cash flow and disciplined capital investments.
Business Operations and Strategy
Plains All American to Update Investors December 2024
Neutral
Dec 9, 2024
Plains All American Pipeline, L.P. and Plains GP Holdings, L.P. are set to engage with analysts and investors at an event on December 9, 2024, where they will release updated presentation materials on their website. These materials, accessible under the ‘Investors’ section, offer insights into the companies’ strategies and market outlook, although updates will be limited to future press releases and filings.
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.