Core Insights - Plains All American Pipeline, L.P. (PAA) reported first-quarter 2025 adjusted earnings of 39 cents per unit, missing the Zacks Consensus Estimate of 45 cents by 13.3% [1] - Total revenues were $12.01 billion, falling short of the Zacks Consensus Estimate of $13.1 billion by 8.4%, but increased 0.1% from the previous year's $12 billion [2] Financial Performance - Total costs and expenses were $11.5 billion, a decrease of 1.3% year over year, attributed to increased purchases and related costs [3] - Net interest expenses rose to $127 million, up 33.7% from the prior-year quarter [3] Segment Performance - The Crude Oil segment's adjusted EBITDA was $559 million, up 1% from the year-ago quarter, driven by higher tariff volumes and contributions from recent acquisitions, offset by higher operating expenses [4] - Adjusted EBITDA for the NGL segment increased by 19% to $189 million, due to higher weighted average frac spreads and NGL sales volumes [5] Financial Update - As of March 31, 2025, cash and cash equivalents were $427 million, up from $348 million as of December 31, 2024 [6] - Long-term debt increased to $8.2 billion from $7.21 billion as of December 31, 2024, with long-term debt-to-total book capitalization rising to 46% from 42% [6] 2025 Guidance - For 2025, PAA expects adjusted EBITDA to be in the range of $2.80-$2.95 billion and adjusted free cash flow to be $1.095 billion [7] - The company plans disciplined capital investments, with growth capital and maintenance capital anticipated at $400 million and $240 million, respectively [7] Zacks Rank - PAA currently holds a Zacks Rank 3 (Hold) [8]

[Plains All American Reports First-Quarter 2025 Results](index=1&type=section&id=Plains%20All%20American%20Reports%20First-Quarter%202025%20Results) This section provides an overview of Plains All American's strong Q1 2025 financial and operational performance, highlighting key achievements, financial results, and segment-specific contributions [Overview and Business Highlights](index=1&type=section&id=Business%20Highlights) Plains All American reported strong Q1 2025 results with solid operational and financial performance, driven by its integrated Crude Oil and NGL businesses. The company highlighted significant cash flow generation, a strong balance sheet with a 3.3x leverage ratio, two bolt-on acquisitions, and the completion of a key fractionation project, while maintaining financial discipline and increasing its quarterly distribution by 20% year-over-year - CEO Willie Chiang emphasized the company's solid performance, substantial cash flow, strong balance sheet, and commitment to efficient growth and returning cash to unitholders amidst market volatility[4](index=4&type=chunk) - Key strategic and operational achievements in the quarter include: Acquired the remaining 50% interest in Cheyenne Pipeline to enhance integration from the Guernsey market to Cushing, Oklahoma; Acquired Black Knight Midstream's Permian Basin crude oil gathering business for approximately **$55 million**; Placed the **30 Mb/d** Fort Saskatchewan fractionation complex debottleneck project into service; Increased the 2025 C3+ spec product sales hedge profile to approximately **80%** at around **$0.70 per gallon**[5](index=5&type=chunk) Q1 2025 Financial Highlights | Metric | Value | | :--- | :--- | | Net Income attributable to PAA | $443 million | | Net Cash from Operating Activities | $639 million | | Adjusted EBITDA attributable to PAA | $754 million | | Leverage Ratio | 3.3x | | Quarterly Distribution per Unit | $0.38 ($1.52 annualized) | [Summary Financial Information (unaudited)](index=2&type=section&id=Summary%20Financial%20Information%20(unaudited)) The company reported significant year-over-year growth in GAAP results, with net income attributable to PAA increasing by 67% and net cash from operating activities rising by 53%. Non-GAAP results showed a 5% increase in Adjusted EBITDA attributable to PAA. Adjusted Free Cash Flow was negative, primarily due to a $624 million cash outflow for bolt-on acquisitions Q1 2025 vs Q1 2024 Financial Results (GAAP) | GAAP Results | Q1 2025 Value | Q1 2024 Value | % Change | | :--- | :--- | :--- | :--- | | Net income attributable to PAA | $443 million | $266 million | 67% | | Diluted net income per common unit | $0.49 | $0.29 | 69% | | Net cash provided by operating activities | $639 million | $419 million | 53% | | Distribution per common unit | $0.3800 | $0.3175 | 20% | Q1 2025 vs Q1 2024 Financial Results (Non-GAAP) | Non-GAAP Results | Q1 2025 Value | Q1 2024 Value | % Change | | :--- | :--- | :--- | :--- | | Adjusted net income attributable to PAA | $375 million | $354 million | 6% | | Diluted adjusted net income per common unit | $0.39 | $0.41 | (5)% | | Adjusted EBITDA attributable to PAA | $754 million | $718 million | 5% | | Adjusted Free Cash Flow | ($308 million) | $70 million | N/A | - The Q1 2025 period includes a net cash outflow of **$624 million** for bolt-on acquisitions, which significantly impacted Adjusted Free Cash Flow[7](index=7&type=chunk) [Segment Performance](index=3&type=section&id=Summary%20of%20Selected%20Financial%20Data%20by%20Segment%20(unaudited)) The NGL segment was the primary driver of growth in Q1 2025, with a 19% increase in Segment Adjusted EBITDA due to higher frac spreads and sales volumes. The Crude Oil segment's performance was stable, with favorable results from higher tariff volumes and acquisitions being largely offset by increased operating expenses and refinery downtime Segment Adjusted EBITDA (in millions) | Segment | Q1 2025 (million) | Q1 2024 (million) | % Change | | :--- | :--- | :--- | :--- | | Crude Oil | $559 | $553 | 1% | | NGL | $189 | $159 | 19% | - Crude Oil Segment Adjusted EBITDA was nearly flat, as benefits from higher tariff volumes, tariff escalations, and bolt-on acquisitions were offset by higher operating expenses and the impact of refinery downtime[9](index=9&type=chunk) - NGL Segment Adjusted EBITDA increased by **19%** compared to the prior year, primarily due to higher weighted average frac spreads and NGL sales volumes[10](index=10&type=chunk) [Financial Statements and Data](index=5&type=section&id=FINANCIAL%20SUMMARY%20(unaudited)) This section presents Plains All American's consolidated financial statements, including detailed statements of operations, balance sheet data, cash flow information, and key operating metrics by segment for the first quarter of 2025 [Condensed Consolidated Statements of Operations](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the first quarter of 2025, PAA's revenues remained stable year-over-year at approximately $12.0 billion. However, due to lower costs, operating income increased significantly by 44% to $533 million, and net income attributable to PAA rose 67% to $443 million Condensed Consolidated Statements of Operations (in millions) | Metric | 2025 (million) | 2024 (million) | | :--- | :--- | :--- | | **REVENUES** | **$12,011** | **$11,995** | | Total costs and expenses | $11,478 | $11,625 | | **OPERATING INCOME** | **$533** | **$370** | | INCOME BEFORE TAX | $566 | $365 | | **NET INCOME** | **$516** | **$351** | | **NET INCOME ATTRIBUTABLE TO PAA** | **$443** | **$266** | | **Basic and diluted net income per common unit** | **$0.49** | **$0.29** | [Condensed Consolidated Balance Sheet Data](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEET%20DATA) As of March 31, 2025, PAA's total assets increased to $27.1 billion from $26.6 billion at year-end 2024, primarily due to a rise in Property and equipment. Total debt also rose to $8.7 billion from $7.6 billion, leading to an increase in the total debt-to-total book capitalization ratio from 44% to 47% Condensed Consolidated Balance Sheet Data (in millions) | Metric | March 31, 2025 (million) | December 31, 2024 (million) | | :--- | :--- | :--- | | Total current assets | $4,735 | $4,802 | | Property and equipment, net | $16,062 | $15,424 | | **Total assets** | **$27,059** | **$26,562** | | Total current liabilities | $4,691 | $4,950 | | Senior notes, net | $8,131 | $7,141 | | **Total liabilities** | **$14,199** | **$13,466** | | **Total partners' capital** | **$12,860** | **$13,096** | | **Total liabilities and partners' capital** | **$27,059** | **$26,562** | Debt Capitalization Ratios | Metric (million) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total debt | $8,682 | $7,621 | | Long-term debt-to-total book capitalization | 46% | 42% | | Total debt-to-total book capitalization, including short-term debt | 47% | 44% | [Condensed Consolidated Cash Flow Data](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20CASH%20FLOW%20DATA) Net cash provided by operating activities increased by 53% to $639 million in Q1 2025. However, net cash used in investing activities surged to $1.15 billion, largely driven by $624 million in bolt-on acquisitions. Net cash from financing activities was a positive $590 million, resulting in a net increase in cash of $79 million for the quarter Condensed Consolidated Cash Flow Data (in millions) | Metric | 2025 (million) | 2024 (million) | | :--- | :--- | :--- | | Net cash provided by operating activities | $639 | $419 | | Net cash used in investing activities | $(1,149) | $(261) | | Net cash provided by/(used in) financing activities | $590 | $(273) | | **Net increase/(decrease) in cash and cash equivalents** | **$79** | **$(119)** | - The Q1 2025 investing activities include a net cash outflow of **$624 million** for bolt-on acquisitions[28](index=28&type=chunk) Capital Expenditures (Consolidated, in millions) | Metric | 2025 (million) | 2024 (million) | | :--- | :--- | :--- | | Investment capital expenditures | $161 | $104 | | Maintenance capital expenditures | $41 | $57 | | **Total** | **$202** | **$161** | [Operating Data by Segment](index=15&type=section&id=OPERATING%20DATA%20BY%20SEGMENT) In Q1 2025, total crude oil pipeline tariff volumes increased to 9,086 MBbls/d from 8,600 MBbls/d year-over-year, driven primarily by a 7% volume growth in the Permian Basin. NGL segment volumes also saw broad increases, with NGL fractionation volumes up 23% and pipeline tariff volumes up 9% compared to the prior year Average Daily Volumes by Segment (in thousands of barrels per day) | Segment Volumes | Q1 2025 (MBbls/d) | Q1 2024 (MBbls/d) | | :--- | :--- | :--- | | **Crude Oil** | | | | Permian Basin | 6,869 | 6,428 | | Total crude oil pipeline tariff | 9,086 | 8,600 | | **NGL** | | | | NGL fractionation | 157 | 128 | | NGL pipeline tariff | 234 | 214 | | Propane and butane sales | 147 | 128 | [Non-GAAP Reconciliations](index=3&type=section&id=NON-GAAP%20RECONCILIATIONS) This section provides an overview of Plains All American's non-GAAP financial measures, including detailed reconciliations of Net Income to Adjusted EBITDA and Implied DCF, and Net Cash from Operations to Adjusted Free Cash Flow, along with selected items impacting comparability [Non-GAAP Financial Measures Overview](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Selected%20Items%20Impacting%20Comparability) Management uses non-GAAP measures such as Adjusted EBITDA, Implied Distributable Cash Flow (DCF), and Adjusted Free Cash Flow to evaluate performance, assess cash availability for distributions, and provide investors with their analytical framework. These measures adjust for certain items, such as derivative gains/losses and transaction expenses, to better reflect core operating performance and liquidity - Management uses non-GAAP financial measures to evaluate past performance, future prospects, and assess the amount of cash available for distributions, debt repayments, and other purposes[14](index=14&type=chunk) - Primary non-GAAP measures include **Adjusted EBITDA**, **Implied DCF**, and **Adjusted Free Cash Flow**. These measures are adjusted for "selected items impacting comparability" to provide a clearer view of core operating performance[14](index=14&type=chunk)[18](index=18&type=chunk) - The company does not reconcile forward-looking non-GAAP financial measures as it is impractical to do so without unreasonable effort[15](index=15&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA and Implied DCF](index=10&type=section&id=Net%20Income%20to%20Adjusted%20EBITDA%20attributable%20to%20PAA%20and%20Implied%20DCF%20Reconciliation) This reconciliation shows the adjustments made to Net Income to arrive at key non-GAAP metrics. For Q1 2025, Net Income of $516 million was reconciled to an Adjusted EBITDA of $881 million. After accounting for noncontrolling interests, Adjusted EBITDA attributable to PAA was $754 million. Implied DCF was $526 million, resulting in a strong common unit distribution coverage ratio of 1.73x Q1 2025 Reconciliation Summary (in millions) | Metric | Value (million) | | :--- | :--- | | Net income | $516 | | Adjusted EBITDA | $881 | | Adjusted EBITDA attributable to PAA | $754 | | Implied DCF | $526 | | Implied DCF Available to Common Unitholders | $462 | | Common Unit Distribution Coverage Ratio | 1.73x | [Reconciliation of Net Cash from Operations to Adjusted Free Cash Flow](index=12&type=section&id=Net%20Cash%20Provided%20by%20Operating%20Activities%20to%20Non-GAAP%20Financial%20Liquidity%20Measures%20Reconciliation) This section details the conversion from GAAP's Net Cash Provided by Operating Activities to the non-GAAP measure of Adjusted Free Cash Flow. In Q1 2025, Net Cash Provided by Operating Activities of $639 million was adjusted for investing activities and other items, resulting in an Adjusted Free Cash Flow of negative $308 million. After accounting for $331 million in distributions, Adjusted Free Cash Flow after Distributions was negative $639 million, heavily impacted by acquisitions Q1 2025 Free Cash Flow Reconciliation (in millions) | Metric | Value (million) | | :--- | :--- | | Net cash provided by operating activities | $639 | | Net cash used in investing activities | $(1,149) | | **Adjusted Free Cash Flow** | **$(308)** | | Cash distributions | $(331) | | **Adjusted Free Cash Flow after Distributions** | **$(639)** | - The 2025 period includes a net cash outflow of **$624 million** for bolt-on acquisitions, which is a primary driver for the negative Adjusted Free Cash Flow[35](index=35&type=chunk) [Selected Items Impacting Comparability](index=13&type=section&id=SELECTED%20ITEMS%20IMPACTING%20COMPARABILITY) This section details specific adjustments made to GAAP figures to arrive at non-GAAP metrics. For Q1 2025, major adjustments included a $34 million positive impact from derivative activities and inventory valuation adjustments, and a $5 million expense for transaction-related costs. The aggregate of these items resulted in a $68 million positive adjustment to derive Adjusted Net Income Attributable to PAA Selected Items Impacting Comparability (in millions) | Item | Q1 2025 (million) | Q1 2024 (million) | | :--- | :--- | :--- | | Derivative activities and inventory valuation adjustments | $34 | $(159) | | Long-term inventory costing adjustments | $3 | $33 | | Deficiencies under minimum volume commitments, net | $7 | $12 | | Transaction-related expenses | $(5) | — | | **Selected items impacting comparability - Adjusted EBITDA** | **$30** | **$(114)** | | **Selected items impacting comparability - Adjusted net income attributable to PAA** | **$68** | **$(88)** | - Key adjustments include gains/losses from derivative activities not in an accounting hedge relationship, changes in the cost of long-term inventory, and revenue from minimum volume commitments[37](index=37&type=chunk) [Plains GP Holdings (PAGP) Information](index=17&type=section&id=PLAINS%20GP%20HOLDINGS%20AND%20SUBSIDIARIES) This section details Plains GP Holdings' (PAGP) role as the controlling entity of PAA, outlining its consolidation of PAA's financial results and reporting its net income attributable to shareholders [PAGP Overview and Financials](index=17&type=section&id=PAGP%20Overview%20and%20Financials) Plains GP Holdings (PAGP), which holds a non-economic controlling interest in PAA, consolidates PAA's results into its financial statements. For Q1 2025, PAGP reported net income attributable to its shareholders of $84 million, or $0.42 per Class A share. This represents a 100% increase from the $42 million, or $0.21 per share, reported in the prior-year quarter - PAGP owns an indirect non-economic controlling interest in PAA's general partner and an indirect limited partner interest in PAA, and as the control entity, it consolidates PAA's results[11](index=11&type=chunk) PAGP Net Income per Class A Share | Metric | 2025 (million) | 2024 (million) | | :--- | :--- | :--- | | Net income attributable to PAGP | $84 | $42 | | Basic and diluted net income per Class A share | $0.42 | $0.21 | - The consolidating financial statements for PAGP show the adjustments necessary to reflect its controlling interest in PAA, including adjustments to net income and partners' capital[44](index=44&type=chunk)[46](index=46&type=chunk) [Other Information](index=19&type=section&id=Other%20Information) This section provides important disclosures regarding forward-looking statements, outlining potential risks and uncertainties, and offers a general overview of Plains All American's business and operational scope [Forward-Looking Statements](index=19&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements that are subject to numerous risks and uncertainties which could cause actual results to differ materially from expectations. Key risks cited include general economic conditions, crude oil price volatility, demand for midstream services, competition, regulatory changes, operational hazards, and the ability to consummate strategic opportunities - The report's forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those anticipated[48](index=48&type=chunk) - Identified risks include, but are not limited to: General economic conditions, inflation, and demand for crude oil and NGLs; Fluctuations in crude oil prices and North American production levels; Competition and capacity overbuild in operating areas; Environmental liabilities and regulatory changes; The ability to consummate acquisitions and realize benefits; Counterparty performance and credit risk[50](index=50&type=chunk)[52](index=52&type=chunk) [About Plains All American](index=21&type=section&id=About%20Plains) Plains All American (PAA) is a publicly traded master limited partnership that owns and operates a large network of midstream energy infrastructure for crude oil and natural gas liquids (NGLs) in the U.S. and Canada. On average, PAA handles over 8 million barrels per day. PAGP is the publicly traded entity that owns a controlling general partner interest in PAA - PAA is a master limited partnership with an extensive network of pipeline, terminalling, storage, and processing assets for crude oil and NGLs in key US and Canadian producing basins and market hubs[53](index=53&type=chunk) - PAGP is a publicly traded entity that holds an indirect, non-economic controlling general partner interest and an indirect limited partner interest in PAA[54](index=54&type=chunk)

Financial Performance - Plains All American Pipeline (PAA) reported $754 million in Adjusted EBITDA attributable to PAA for 1Q25[5] - The company reaffirmed its full-year Adjusted EBITDA guidance of $2.80 - $2.95 billion[5] - PAA's leverage ratio stood at 3.3x in 1Q25[5] - Distributable Cash Flow available to Common Unitholders is $1.875 billion, with a Common Unit Distribution Ratio Coverage of 175%[22] - Adjusted Free Cash Flow (excluding changes in Assets & Liabilities) is +/- $1.095 billion[22, 26] Segment Performance - The Crude Oil segment contributed $559 million to Adjusted EBITDA in 1Q25[5] - The NGL segment contributed $189 million to Adjusted EBITDA in 1Q25[5] - The company anticipates $2.41 billion in Adjusted EBITDA from the Crude Oil segment and $450 million from the NGL segment for the full year 2025[22] Growth Strategy - Plains has invested approximately $1.3 billion in bolt-on acquisitions since the second half of 2022, targeting a return threshold of 15%+[11] - The company expects $300 - $400 million of annual growth capex[10] - The company is targeting ~$0.15/unit annual distribution growth from 2026 until ~160% common unit coverage is reached[26]

Core Insights - Plains All American Pipeline reported strong operational and financial performance for Q1 2025, with significant cash flow generation and a focus on efficient growth through acquisitions and projects [3][5][4]. Financial Performance - Net income attributable to Plains All American Pipeline (PAA) was $443 million for Q1 2025, a 67% increase from $266 million in Q1 2024 [4][5]. - Diluted net income per common unit rose to $0.49, up 69% from $0.29 in the previous year [4][5]. - Net cash provided by operating activities increased by 53% to $639 million compared to $419 million in Q1 2024 [4][5]. - The company declared a distribution of $0.38 per common unit, representing a 20% increase from $0.3175 in the same period last year [4][5]. Segment Performance - Crude Oil Segment Adjusted EBITDA was $559 million, a slight increase of 1% from $553 million in Q1 2024, driven by higher tariff volumes and contributions from acquisitions [10]. - NGL Segment Adjusted EBITDA increased by 19% to $189 million, primarily due to higher frac spreads and sales volumes [11]. Strategic Developments - Plains acquired the remaining 50% interest in Cheyenne Pipeline, enhancing integration from the Guernsey market to Cushing, Oklahoma [5]. - The company also acquired Black Knight Midstream's Permian Basin crude oil gathering business for approximately $55 million [5]. - The Fort Saskatchewan fractionation complex debottleneck project was placed into service, enhancing fee-based cash flow in Canada [5]. Capital Structure - The leverage ratio at the end of Q1 2025 was 3.3x, within the target range of 3.25x - 3.75x [5]. - Total assets increased to $27.059 billion from $26.562 billion year-over-year [25][27]. Cash Flow and Expenditures - Adjusted Free Cash Flow was reported at $(308) million, a decrease from $70 million in Q1 2024, influenced by significant cash outflows for acquisitions [54][56]. - Total investment capital expenditures for Q1 2025 were $130 million, up from $79 million in Q1 2024 [36].

Earnings Report - Plains All American Pipeline is set to release its first-quarter earnings results on May 9, with analysts expecting earnings of 45 cents per share, an increase from 41 cents per share in the same period last year [1] - The company is projected to report quarterly revenue of $14 billion, compared to $11.99 billion a year earlier [1] Management Changes - Harry Pefanis will retire as President of Plains effective June 1 [2] Stock Performance - Plains All American Pipeline shares rose 1.4% to close at $16.94 on Thursday [3] Analyst Ratings - Barclays analyst Theresa Chen maintained an Underweight rating and reduced the price target from $19 to $18 [9] - Morgan Stanley analyst Robert Kad maintained an Equal-Weight rating and raised the price target from $19 to $23 [9] - Raymond James analyst Justin Jenkins maintained a Strong Buy rating and increased the price target from $23 to $24 [9] - Wells Fargo analyst Michael Blum downgraded the stock from Overweight to Equal-Weight and cut the price target from $22 to $20 [9] - UBS analyst Shneur Gershuni maintained a Buy rating and raised the price target from $21 to $22 [9]

Core Viewpoint - Plains All American Pipeline, L.P. (PAA) is anticipated to show improvements in both revenue and earnings for the first quarter of 2025, with revenues expected to reach $13.12 billion, reflecting a 9.35% increase year-over-year, and earnings estimated at 43 cents per unit, indicating a 4.88% increase from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for PAA's first-quarter revenues is $13.12 billion, which is a 9.35% increase from the same quarter last year [1]. - The consensus estimate for earnings is 43 cents per unit, representing a 4.88% increase from the year-ago figure [2]. - PAA has a mixed surprise history, missing earnings estimates in two of the last four quarters while surpassing in the other two, resulting in an average positive surprise of 3.47% [3][4]. Earnings Prediction - The current Earnings ESP for PAA is -4.05%, indicating that the model does not predict a likely earnings beat this time [5]. - PAA's Zacks Rank is 3 (Hold), which does not suggest a strong likelihood of an earnings surprise compared to other companies in the sector [6]. Operational Factors - PAA operates a vast network of pipelines and storage facilities in key North American oil-producing regions, which is crucial for the efficient transportation of crude oil and is expected to positively impact earnings [8]. - A significant portion of PAA's cash flow comes from fee-based contracts, providing stable income streams that are less affected by short-term oil price fluctuations [9]. - Recent bolt-on acquisitions have expanded PAA's pipeline operations, contributing positively to earnings through operational synergies [10]. - The company has focused on reducing debt levels and enhancing operational efficiency, leading to improved margins [11]. Market Position - PAA's current trailing 12-month EV/EBITDA is 8.8X, which is lower than the industry average of 11.4X, indicating that the stock is trading at a discount [12]. - Over the past six months, PAA's units have declined by 1.6%, which is better than the industry's 8.2% loss [14]. Investment Outlook - PAA is positioned as a leading midstream energy company with a strategically located network that plays a vital role in linking upstream producers with downstream markets [15]. - The company benefits from long-term, fee-based contracts that ensure stable earnings and reduce exposure to commodity price fluctuations [16]. - Future performance is expected to be driven by strategic joint ventures, ongoing debt reduction, and a strong presence in the Permian Basin [18].

Core Viewpoint - Plains All American Pipeline LP (PAA) has shown strong price performance, outperforming both the industry and broader market indices over the past six months, with a 7.8% increase compared to the industry's 3.4% growth [1] Group 1: Company Performance and Strategy - PAA has completed a multi-year expansion plan and is now focused on disciplined capital spending and developing high-return assets, which is expected to enhance operations through cost-saving initiatives and strategic asset divestitures [2] - The firm anticipates full-year 2025 investment and maintenance capital of $400 million and $240 million, respectively, indicating a commitment to growth through organic initiatives and strategic acquisitions [6] - PAA's crude oil tariff volume is projected to improve by nearly 8% year over year in 2025, driven by tariff escalation and contributions from bolt-on acquisitions [8] Group 2: Market Position and Financial Metrics - PAA's management announced a 25-cent increase in its annual cash distribution for 2025, raising the annual distribution rate to $1.52 per unit, reflecting a 20% increase compared to Q4 2024 [11] - PAA's current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA) is 9.2X, which is lower than the industry average of 11.75X, indicating that the firm is undervalued compared to its peers [13] - The trailing 12-month return on equity for PAA is 11.82%, which is below the industry average of 14.21%, suggesting less effective utilization of shareholders' funds compared to industry peers [16] Group 3: Industry Trends and Challenges - The Permian Basin is expected to see crude production rise by nearly 6.7 million barrels per day by the end of 2025, positioning PAA to benefit from increased demand for midstream services [8] - Upstream companies are increasingly moving into the midstream sector, which could intensify competition for traditional midstream firms like PAA [9] - Growing scrutiny over hydraulic fracturing may lead to new regulations that could restrict its use, potentially impacting domestic oil and gas production and demand for midstream services [10]

The midstream sector of the oil and gas industry plays a pivotal role in connecting upstream production with downstream refining and distribution. It involves the transportation, storage, and wholesale marketing of crude oil, natural gas, and natural gas liquids (NGLs). Midstream companies manage extensive pipeline networks, storage facilities, and processing plants to ensure the efficient and secure movement of hydrocarbons from production sites to end-users.This Midstream sector is known for its capital-i ...

Core Viewpoint - Plains All American Pipeline, L.P. (PAA) and Plains GP Holdings (PAGP) announced their quarterly distributions for Q1 2025 and the timing for their earnings release [1][2][3]. Distribution Declaration - PAA Common Units will have a cash distribution of $0.38 per unit, unchanged from February 2025, equating to an annualized rate of $1.52 per unit [6]. - PAGP Class A Shares will also have a cash distribution of $0.38 per share, unchanged from February 2025, with an annualized rate of $1.52 per share [6]. - PAA Series A Preferred Units will distribute $0.61524 per unit, approximately $2.46 on an annualized basis [6]. - PAA Series B Preferred Units will distribute $21.49 per unit, based on the applicable quarterly floating rate [6]. Earnings Timing - PAA and PAGP will release their Q1 2025 earnings before market open on May 9, 2025 [3]. - A conference call for analysts and investors will be held at 9:00 a.m. CT (10 a.m. ET) to discuss the earnings, which will be webcast live [3]. Company Overview - PAA operates midstream energy infrastructure and logistics services for crude oil and natural gas liquids (NGL), handling approximately eight million barrels per day [4]. - PAGP holds an indirect, non-economic controlling general partner interest in PAA and is one of the largest energy infrastructure and logistics companies in North America [5].

HOUSTON, April 02, 2025 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) announced today their quarterly distributions with respect to the first quarter of 2025 and also announced timing of first quarter 2025 earnings. First Quarter Distribution Declaration PAA and PAGP announced the following quarterly cash distributions, each of which will be payable on May 15, 2025 to holders of the respective securities at the close of business on May 1, 2025: PA ...