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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on PAGP

Plains GP Holdings, L.P.'s recent performance was negatively impacted by a lack of recent positive news, despite its attractive valuation metrics and strong FCF generation. The company's fee-based midstream operations ensure stable cash flows, but recent market volatility and a lack of earnings beats have weighed on its performance. Additionally, the absence of any recent share buyback announcements or dividend hikes has contributed to the negative sentiment surrounding the stock.

1.c. Company Highlights

2. Plains All American: Refining its Focus

In the second quarter of 2025, Plains All American reported adjusted EBITDA attributable to Plains of $672 million. This performance, however, is overshadowed by the company's strategic shift towards a pure-play crude oil midstream business. The sale of its NGL business to Keyera for $3.75 billion, expected to close in the first quarter of 2026, reflects this move. While analysts had anticipated a potential sale of the NGL business, the specific details of the transaction are positive for Plains, as it streamlines operations and reduces commodity exposure.

Publication Date: Aug -12

📋 Highlights
  • Q2 2025 Adjusted EBITDA:: Plains All American reported $672 million, reflecting strong operational performance.
  • NGL Business Sale:: $3.75 billion transaction with Keyera to streamline operations into a crude-focused midstream entity.
  • BridgeTex Acquisition:: $100 million for an additional 20% stake, enhancing Permian infrastructure exposure.
  • 2025 Free Cash Flow:: Expected to generate $870 million, with $475 million in capital investments for growth projects.
  • EBITDA Guidance:: Full-year range of $2.8–$2.95 billion, but likely to trend toward the lower half due to market conditions.

Impact on Financials

Despite the sale, Plains anticipates generating robust adjusted free cash flow of approximately $870 million in 2025. This strong cash flow will fuel capital structure optimization, including potential repurchases of preferred units and opportunistic common unit buybacks. The company's focus on bolt-on acquisitions remains steadfast, with the recent acquisition of a 20% interest in BridgeTex Pipeline Company LLC for $100 million demonstrating this commitment.

Growth and Outlook

Capital expenditure (CapEx) in 2025 is elevated, driven by new opportunities, bolt-on acquisitions, and deferred projects from the previous year. However, Plains expects CapEx to decrease in 2026 following the NGL sale. The company maintains a constructive long-term outlook for crude oil, citing continued demand growth, limited project additions, and expectations for OPEC+ supply to be absorbed.

Valuation Considerations

Looking at the current valuation metrics, Plains All American is trading at a P/E ratio of 27.49, suggesting that the market anticipates strong future earnings growth. The relatively low P/B ratio of 0.2 and P/S ratio of 0.08 may indicate undervaluation compared to its peers. However, with a relatively high EV/EBITDA multiple of 4.41, investors seem to be factoring in the company's growth prospects and the potential for value creation through strategic acquisitions and capital structure optimization.

3. NewsRoom

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5 Value Stocks With Exciting EV-to-EBITDA Ratios to Scoop Up

Dec -04

Source: zacks.com

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Best Income Stocks to Buy for Nov. 28

Nov -28

Source: zacks.com

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Best Value Stocks to Buy for Nov. 28

Nov -28

Source:

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Plains GP Holdings: An Energy Reboot Amid Recovery. Why They Are A "Buy"

Nov -18

Source: seekingalpha.com

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Advisors Capital Management LLC Purchases 130,207 Shares of Plains GP Holdings, L.P. $PAGP

Nov -14

Source: defenseworld.net

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The Best REIT, BDC, And MLP To Retire On

Nov -12

Source: seekingalpha.com

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Teacher Retirement System of Texas Sells 43,690 Shares of Plains GP Holdings, L.P. $PAGP

Nov -04

Source: defenseworld.net

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3 Investable Laggards In An Overbought Market

Oct -28

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.92%)

6. Segments

Crude Oil

Expected Growth: 5%

Plains GP Holdings, L.P.'s 5% growth in Crude Oil is driven by increasing global demand, particularly from Asia, and rising production in the Permian Basin. Additionally, the company's strategic pipeline infrastructure and storage capacity expansions support growing volumes. Furthermore, improving refining margins and strong export demand also contribute to the growth.

Natural Gas Liquids

Expected Growth: 4%

Plains GP Holdings, L.P.'s Natural Gas Liquids segment growth is driven by increasing demand for petrochemical feedstocks, growing exports to Asia, and strategic pipeline infrastructure investments. Additionally, the company's diversified asset base, operational efficiencies, and favorable market conditions contribute to its 4% growth rate.

Intersegment Revenues Elimination

Expected Growth: 0%

With 0% growth in Intersegment Revenues Elimination, Plains GP Holdings, L.P. is experiencing stagnant internal transactions. This may be due to stable production levels, consistent pricing, and lack of changes in internal agreements. The absence of growth suggests a steady-state operation, with no significant changes in the company's internal revenue streams.

7. Detailed Products

Crude Oil

Plains GP Holdings, L.P. is a leading transporter of crude oil, providing logistics and transportation services to oil producers and refiners.

Natural Gas Liquids (NGLs)

The company is a major transporter of NGLs, which are used as feedstocks for petrochemicals, fuels, and other products.

Refined Products

Plains GP Holdings, L.P. transports refined petroleum products, including gasoline, diesel fuel, jet fuel, and heating oil.

LPG and Other Petrochemicals

The company transports liquefied petroleum gases (LPG) and other petrochemicals, which are used as fuels, feedstocks, and in industrial processes.

8. Plains GP Holdings, L.P.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Plains GP Holdings, L.P. is medium due to the availability of alternative energy sources and the increasing adoption of renewable energy.

Bargaining Power Of Customers

The bargaining power of customers for Plains GP Holdings, L.P. is low due to the company's diversified customer base and the lack of concentration in the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Plains GP Holdings, L.P. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for Plains GP Holdings, L.P. is low due to the high barriers to entry in the energy industry and the company's established position in the market.

Intensity Of Rivalry

The intensity of rivalry for Plains GP Holdings, L.P. is high due to the competitive nature of the energy industry and the presence of several major players in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 83.36%
Debt Cost 5.54%
Equity Weight 16.64%
Equity Cost 11.46%
WACC 6.53%
Leverage 501.10%

11. Quality Control: Plains GP Holdings, 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

Stock-Card
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

18.89$

Current Price

18.89$

Potential

-0.00%

Expected Cash-Flows