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1. Company Snapshot

1.a. Company Description

Plains All American Pipeline, L.P., through its subsidiaries, engages in the pipeline transportation, terminalling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada.The company operates in two segments, Crude Oil and NGL.The Crude Oil segment offers gathering and transporting crude oil through pipelines, gathering systems, trucks, and at times on barges or railcars.


This segment provides terminalling, storage, and other facilities-related services, as well as merchant activities.As of December 31, 2021, this segment owned and leased 18,300 miles of active crude oil transportation pipelines and gathering systems, as well as an additional 110 miles of pipelines that supports crude oil storage and terminalling facilities; 74 million barrels of commercial crude oil storage capacity; 38 million barrels of active, above-ground tank capacity; four marine facilities; a condensate processing facility; seven crude oil rail terminals and 2,100 crude oil railcars; and 640 trucks and 1,275 trailers.The Natural Gas Liquids segment engages in the natural gas processing, NGL fractionation, storage, transportation, and terminalling activities.


As of December 31, 2021, this segment owned and operated four natural gas processing plants; nine fractionation plants; 28 million barrels of NGL storage capacity; approximately 1,620 miles of active NGL transportation pipelines, as well as an additional 55 miles of pipeline that supports NGL storage facilities; 16 NGL rail terminals and approximately 3,900 NGL rail cars; and approximately 220 trailers.The company was founded in 1981 and is headquartered in Houston, Texas.Plains All American Pipeline, L.P. operates as a subsidiary of Plains GP Holdings, L.P.

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1.b. Last Insights on PAA

The recent 3-month performance of Plains All American Pipeline, L.P. was negatively impacted by a decline in oil and gas markets, leading to a correction in the stock price. The unfavorable market conditions resulted in a 16% drop from the April 2025 high. Despite this, the company's business remains in a solid shape, with a strong asset base and strategic positioning in key North American energy corridors. The recent financial performance demonstrates resilience and supports continued distribution growth for income-focused investors.

1.c. Company Highlights

2. PAA's Q3 2025 Earnings: A Strong Performance

In the third quarter of 2025, Plains All American Pipeline (PAA) reported a robust financial performance, with Crude Oil segment adjusted EBITDA reaching $593 million, benefiting from higher volumes and contributions from recently completed bolt-on acquisitions. The company's actual EPS came out at $0.39, beating estimates of $0.34. Revenue growth is expected to be modest, with analysts estimating a 1.0% increase in revenues for the next year. The company's P/S Ratio stands at 0.25, indicating a relatively low valuation compared to its revenues.

Publication Date: Nov -11

📋 Highlights
  • EPIC Full Acquisition:: Acquired remaining 45% interest in EPIC Crude Holdings for $1.3B, including $500M debt, completing 100% ownership.
  • 2025 EBITDA Guidance Revised:: Narrowed to $2.84B–$2.89B, reflecting lower crude prices and EPIC acquisition contributions.
  • Debt Reduction Strategy:: $3.1B in sales proceeds allocated for debt reduction to reach leverage midpoint, prioritizing shareholder returns.
  • EPIC Operational Flexibility:: Long-term contracts (70%+ capacity) and potential for cost optimization, capital efficiency, and market access enhancements.
  • Permian Growth Outlook:: Cautious optimism for 2026, driven by steady Permian production and partnerships with major operators despite mixed basin trends.

Operational Highlights

The company made significant progress in its strategic objectives, including the acquisition of the remaining 45% operating interest in EPIC Crude Holdings, bringing its total ownership to 100%. As Jeremy Goebel mentioned, "There's a substantial portion of the pipeline that's contracted for long term, and the balance of the pipe has medium duration contracts." This acquisition is expected to drive growth and optimize the company's broad system.

Leverage and Capital Allocation

PAA has been actively managing its leverage profile, with a plan to reach the midpoint of its leverage range through debt reduction. Al Swanson discussed the $3.1 billion in sales proceeds deployed via acquisitions, which will be used for debt reduction, allowing the company to reassess its capital allocation priorities, including return of cash to shareholders through distributions and bolt-on acquisitions. The company's Net Debt / EBITDA ratio stands at -1.85, indicating a healthy debt position.

Growth Prospects

The company is bullish on North American oil growth, particularly in the Permian, with Willie Chiang stating that they're seeing steady growth from two large majors. PAA's EV/EBITDA ratio is 2.17, suggesting a relatively low valuation compared to its earnings before interest, taxes, depreciation, and amortization. The company's Dividend Yield stands at 9.12%, making it an attractive option for income-seeking investors.

Valuation

PAA's P/E Ratio is 10.32, indicating a moderate valuation compared to its earnings. The company's ROIC stands at 5.34%, suggesting a relatively efficient use of capital. With a Free Cash Flow Yield of 20.55%, PAA appears to be generating significant cash flows, which can be used to support its dividend or invest in growth opportunities.

3. NewsRoom

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Stop Waiting for “Rate Cuts.” Here's How to Build an 8% Yield Portfolio Even if the Fed Holds Rates in December

Dec -04

Source: 247wallst.com

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The Dark Side Of High-Yield CEFs And Covered Call ETFs

Nov -30

Source: seekingalpha.com

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The Most Viable 10% Yielding Retirement Portfolio I've Ever Designed

Nov -21

Source: seekingalpha.com

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Plains All American: Buy This 9% Yield While The Market Ignores Value

Nov -20

Source: seekingalpha.com

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8%+ Yields: Why Plains All American Is Outperforming Energy Transfer Where It Matters Most

Nov -20

Source: seekingalpha.com

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The Best REIT, BDC, And MLP To Retire On

Nov -12

Source: seekingalpha.com

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3 Oil Pipeline MLP Stocks to Watch Despite Industry Headwinds

Nov -11

Source: zacks.com

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Plains All American Announces Pricing of Public Offering of $750 Million of Senior Notes

Nov -10

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.52%)

6. Segments

Crude Oil

Expected Growth: 2.5%

Plains All American Pipeline's 2.5% growth in Crude Oil is driven by increasing demand from refineries, expansion of pipeline infrastructure, and strategic acquisitions. Additionally, growing production from Permian Basin and Canada, coupled with improving crude oil differentials, contribute to the growth. Furthermore, the company's focus on operational efficiency and cost savings initiatives also support the growth momentum.

Natural Gas Liquids

Expected Growth: 3.5%

Plains All American Pipeline's 3.5% growth in Natural Gas Liquids (NGLs) is driven by increasing demand from petrochemicals and refining, coupled with growing production from the Permian Basin and other key shale plays. Additionally, the company's strategic pipeline infrastructure and storage assets position it to capitalize on the rising NGL export market.

Intersegment Revenues Elimination

Expected Growth: 0.0%

With 0.0% growth in Intersegment Revenues Elimination, Plains All American Pipeline, L.P. is experiencing stagnant internal sales. This may be due to optimized operations, lack of new projects, or a saturated market. The company's focus on efficiency and cost-cutting measures could be contributing to this flat growth, as they prioritize profitability over revenue expansion.

7. Detailed Products

Crude Oil Transportation

Plains All American Pipeline, L.P. provides transportation services for crude oil from production areas to refineries and other destinations.

Crude Oil Gathering

The company gathers crude oil from production areas and transports it to central locations for further transportation.

Natural Gas Liquids (NGL) Transportation

Plains All American Pipeline, L.P. transports NGLs from processing plants to fractionation facilities and other destinations.

Refined Products Transportation

The company transports refined products such as gasoline, diesel, and jet fuel from refineries to terminals and other destinations.

Terminaling and Storage

Plains All American Pipeline, L.P. provides terminaling and storage services for crude oil, NGLs, and refined products.

8. Plains All American Pipeline, L.P.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Plains All American Pipeline, L.P. is medium due to the availability of alternative modes of transportation, such as trucks and trains, which can substitute for pipelines. However, the high cost and complexity of building new pipelines create barriers to entry, reducing the threat of substitutes.

Bargaining Power Of Customers

The bargaining power of customers for Plains All American Pipeline, L.P. is low due to the company's diversified customer base and the lack of concentration among its customers. Additionally, the company's pipelines are critical infrastructure for its customers, giving Plains All American Pipeline, L.P. a strong bargaining position.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Plains All American Pipeline, L.P. is medium due to the company's dependence on a few large suppliers for materials and services. However, the company's scale and diversification of suppliers reduce the bargaining power of individual suppliers.

Threat Of New Entrants

The threat of new entrants for Plains All American Pipeline, L.P. is low due to the high barriers to entry, including the need for significant capital investment, regulatory approvals, and expertise in pipeline construction and operation.

Intensity Of Rivalry

The intensity of rivalry for Plains All American Pipeline, L.P. is high due to the competitive nature of the pipeline industry, with several large players competing for market share and customers. Additionally, the company faces competition from other modes of transportation, such as trucks and trains.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.87%
Debt Cost 5.25%
Equity Weight 57.13%
Equity Cost 11.69%
WACC 8.93%
Leverage 75.03%

11. Quality Control: Plains All American Pipeline, L.P. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Western Midstream Partners

A-Score: 7.1/10

Value: 5.1

Growth: 6.6

Quality: 7.2

Yield: 10.0

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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International Seaways

A-Score: 6.7/10

Value: 7.2

Growth: 8.2

Quality: 7.4

Yield: 10.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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DT Midstream

A-Score: 6.6/10

Value: 3.2

Growth: 6.0

Quality: 6.5

Yield: 7.0

Momentum: 8.5

Volatility: 8.3

1-Year Total Return ->

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Plains GP Holdings

A-Score: 6.6/10

Value: 8.1

Growth: 3.6

Quality: 3.9

Yield: 10.0

Momentum: 4.5

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Plains All American Pipeline

A-Score: 6.5/10

Value: 7.8

Growth: 3.6

Quality: 4.5

Yield: 10.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
EnLink Midstream

A-Score: 4.6/10

Value: 3.5

Growth: 5.4

Quality: 2.8

Yield: 5.0

Momentum: 4.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.73$

Current Price

17.73$

Potential

-0.00%

Expected Cash-Flows