Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - Identifying the right entry point for momentum stocks is challenging, and investors may end up with expensive shares that have limited upside [1] Group 2: Bargain Momentum Stocks - Investing in bargain stocks that have recently shown price momentum may be a safer strategy [2] - The Zacks Momentum Style Score is useful for identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 3: Plains All American Pipeline (PAA) - Plains All American Pipeline (PAA) is highlighted as a strong candidate for momentum investing due to a recent price increase of 0.1% over the past four weeks [3] - PAA has gained 10.3% over the past 12 weeks, indicating strong momentum, with a beta of 1.65, suggesting it moves 65% more than the market [4] - PAA has a Momentum Score of A, indicating a favorable time to invest [5] Group 4: Earnings Estimates and Valuation - PAA has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which attract more investor interest [6] - The stock is trading at a low Price-to-Sales ratio of 0.27, meaning investors pay only 27 cents for each dollar of sales, indicating a reasonable valuation [6] Group 5: Additional Investment Opportunities - Besides PAA, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles to help identify winning stock picks [8]

Financial Performance - Plains All American Pipeline (PAA) reported revenue of $12.4 billion for the quarter ended December 2024, a decrease of 2.3% year-over-year [1] - Earnings per share (EPS) remained unchanged at $0.42 compared to the same quarter last year [1] - The reported revenue was 3.10% below the Zacks Consensus Estimate of $12.8 billion, and the EPS was 4.55% below the consensus estimate of $0.44 [1] Key Metrics - Crude oil pipeline tariff volumes totaled 9,028 thousand barrels per day, lower than the estimated 10,034.47 thousand barrels per day [4] - Revenues from NGL (Natural Gas Liquids) were reported at $535 million, exceeding the average estimate of $273.70 million [4] - The year-over-year change in NGL revenues was a decline of 14.1% [4] - Segment Adjusted EBITDA for NGL was $154 million, slightly below the average estimate of $157.16 million [4] - Segment Adjusted EBITDA for crude oil was reported at $569 million, compared to the average estimate of $592.14 million [4] Stock Performance - Shares of Plains All American have returned +6.8% over the past month, outperforming the Zacks S&P 500 composite's +1.9% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $729 million for Q4 2024 and $2.78 billion for the full year, exceeding initial guidance by approximately $105 million [5][12][161] - The 2025 adjusted EBITDA guidance is set between $2.8 billion and $2.95 billion, indicating approximately 3% growth year over year at the midpoint [6][15] Business Line Data and Key Metrics Changes - The crude oil segment is expected to see year-over-year growth, driven by bolt-on acquisitions, volume growth, and pipeline tariff escalations, while the NGL segment is projected to contribute slightly less due to a shift to approximately 45% fee-based revenue [15][16] - The NGL segment benefited from higher-than-expected border flows, leading to increased C3 plus FEC product sales [13] Market Data and Key Metrics Changes - Permian crude production is anticipated to grow by 200,000 to 300,000 barrels per day by year-end 2025, with overall basin volumes expected to reach approximately 6.7 million barrels per day [6][7] - The company expects continued high utilization of its Corpus Christi-bound assets and increased volumes on the basin pipeline [7] Company Strategy and Development Direction - The company is focused on expanding its integrated asset base through bolt-on acquisitions and operational synergies, while maintaining capital discipline [11][22] - The recent acquisition of Ironwood Midstream Energy and the remaining interest in Midway Pipeline exemplify the company's efficient growth strategy [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the new administration's focus on energy security and independence, believing that North American energy will remain essential for maintaining living standards [23] - The company is well-positioned to support domestic energy growth with critical infrastructure connecting supply to demand centers across North America [23] Other Important Information - The company announced a 20% increase in the quarterly distribution, bringing the annual distribution to $1.52 per unit, representing a yield of approximately 7.5% based on current equity prices [11][12] - A $140 million noncash impairment related to two US NGL terminal assets impacted fourth-quarter GAAP results, but was excluded from adjusted results [19][20] Q&A Session Summary Question: Background on recent acquisitions and future opportunities - Management indicated that the recent acquisitions were the result of ongoing efforts to identify opportunities and that more bolt-on acquisitions are expected, though timing is uncertain [28][30] Question: Impact of potential tariffs on NGL and crude business - Management stated that they have been scenario planning for potential tariffs and believe their guidance range encompasses probable outcomes [34][36] Question: Factors driving 2025 guidance towards the upper end - Volume growth and oil prices are key factors, with management noting consistent activity and productivity improvements among producers [40][42] Question: Update on operational streamlining initiatives - Management emphasized that cost and efficiency improvements are ongoing processes integrated into daily operations, with some efficiencies already reflected in the 2025 guidance [56][58] Question: M&A strategy and growth opportunities - Management highlighted the importance of synergies from bolt-on acquisitions and the potential for organic growth in the Permian Basin [66][70] Question: Long-haul contract positions and distribution growth - Management confirmed that long-haul contracts are largely contracted, with incremental demand being factored into guidance, and that bolt-on acquisitions could enhance distribution growth [99][102] Question: Volume guidance in the Permian and competitive positioning in NGL - Management indicated that Permian production growth is expected to be consistent with previous years, and they are confident in their competitive positioning in the NGL market [110][114]

Core Insights - Plains All American Pipeline, L.P. (PAA) reported fourth-quarter 2024 adjusted earnings of 42 cents per unit, missing the Zacks Consensus Estimate of 44 cents by 4.5% [1] - The company experienced a GAAP loss of 4 cents per unit compared to GAAP earnings of 35 cents in the same quarter last year [1] - Full-year 2024 adjusted earnings increased by 6.3% to $1.51 per share from $1.42 in the previous year [1] Revenue Performance - PAA's net sales for the fourth quarter were $12.4 billion, falling short of the Zacks Consensus Estimate of $12.8 billion by 3.1% and down 2.3% from $12.7 billion in the year-ago quarter [3] - Total revenues for the full year 2024 reached $50.07 billion, reflecting a 2.8% increase from $48.71 billion in 2023 [3] Cost and Expense Analysis - Total costs and expenses for the fourth quarter amounted to $12.32 billion, up 0.4% year over year, driven by increased field operating costs and general and administrative expenses [4] - Net interest expenses were reported at $112 million, marking a 15.5% increase from the prior-year quarter [4] Segment Performance - The Crude Oil segment's adjusted EBITDA was $569 million, up 1% from the previous year, attributed to higher tariff volumes and contributions from acquisitions [5] - The NGL segment's adjusted EBITDA decreased by 9% to $154 million due to lower weighted average frac spreads [5] Financial Position - As of December 31, 2024, cash and cash equivalents were $348 million, down from $450 million a year earlier [6] - Long-term debt decreased to $7.21 billion from $7.31 billion as of December 31, 2023, with a long-term debt-to-total book capitalization ratio of 42% compared to 41% a year prior [6] 2025 Guidance - For 2025, PAA anticipates adjusted EBITDA in the range of $2.80 billion to $2.95 billion and adjusted free cash flow of $1.15 billion, excluding changes in assets and liabilities [8] - The company plans disciplined capital investments, with growth capital and maintenance capital projected at $400 million and $240 million, respectively [8] Zacks Rank - PAA currently holds a Zacks Rank 1 (Strong Buy) [9]

Financial Performance - Fourth-quarter 2024 net income attributable to Plains All American was $36 million, a decrease of 88% compared to $312 million in Q4 2023[4] - Full-year 2024 net income attributable to Plains All American was $772 million, down 37% from $1.23 billion in 2023[4] - Fourth-quarter 2024 adjusted EBITDA attributable to Plains All American was $729 million, exceeding guidance, while full-year adjusted EBITDA was $2.78 billion, a 3% increase from $2.71 billion in 2023[4] - Full-year 2024 adjusted free cash flow was $1.17 billion, a decrease of 31% from $1.8 billion in 2023[5] - Revenues for Q4 2024 were $12,402 million, a decrease of 2.3% from $12,698 million in Q4 2023; total revenues for the year increased by 2.8% to $50,073 million from $48,712 million[23] - Operating income for Q4 2024 was $87 million, down 79.6% from $426 million in Q4 2023; total operating income for the year decreased by 22.0% to $1,178 million from $1,510 million[23] - Net income attributable to Plains All American Pipeline (PAA) for Q4 2024 was $36 million, a significant drop from $312 million in Q4 2023; total net income for the year decreased to $772 million from $1,230 million[28] - Adjusted net income attributable to Plains All American (PAA) for Q4 2024 was $357 million, slightly up from $355 million in Q4 2023, indicating a year-over-year growth of 0.6%[33] - Net income for Q4 2024 was $119 million, down from $399 million in Q4 2023, reflecting a decrease of 70.2%[36] - Total net income attributable to PAA for the twelve months ended December 31, 2024, was $1.113 billion, down from $1.502 billion in 2023, a decrease of 26%[36] Cash Flow and Liquidity - Adjusted Free Cash Flow after Distributions for the year was impacted by cash distributions paid to preferred and common unitholders, reflecting the company's liquidity management strategy[21] - Cash and cash equivalents at the end of the period were $348 million, down from $450 million at the end of 2023, indicating a decrease in liquidity[30] - The company reported a net cash provided by operating activities of $2,490 million for the year, down from $2,727 million in 2023, highlighting a decline in operational cash flow[30] - The company incurred $1,504 million in net cash used in investing activities for the year, significantly higher than $702 million in 2023, indicating increased capital expenditures[30] - Adjusted Free Cash Flow for Q4 2024 was $365 million, a decrease from $710 million in Q4 2023, and for the twelve months ended December 31, 2024, it was $1,247 million compared to $1,798 million in 2023[40] - The company reported a significant charge of $225 million related to the write-off of a receivable for Line 901 insurance proceeds, impacting Adjusted Free Cash Flow[42] Acquisitions and Investments - The company closed three bolt-on acquisitions for approximately $670 million, including Ironwood Midstream Energy[4] - Total investment capital expenditures for Q4 2024 were $96 million, compared to $89 million in Q4 2023, representing an increase of 7.9%[31] Distribution and Shareholder Returns - The distribution per common unit was increased by 20% to $1.52 annually, with a new distribution of $0.25 per unit payable on February 14, 2025[4] - Cash distribution paid per common unit increased to $0.3175 in Q4 2024 from $0.2675 in Q4 2023, representing an increase of 18.7%[36] - The common unit distribution coverage ratio for Q4 2024 was 2.01x, compared to 2.55x in Q4 2023, indicating a decrease in coverage[36] - Total cash distributions for the twelve months ended December 31, 2024, were $1,145 million, an increase from $989 million in 2023[40] Segment Performance - Fourth-quarter 2024 crude oil segment adjusted EBITDA increased by 1% to $569 million, while NGL segment adjusted EBITDA decreased by 9% to $154 million[8] - Revenues from crude oil segment for Q4 2024 were $11,959 million, while NGL segment revenues were $535 million, compared to $12,187 million and $623 million respectively in Q4 2023[44] - Segment Adjusted EBITDA for crude oil was $569 million in Q4 2024, slightly up from $563 million in Q4 2023, while NGL segment Adjusted EBITDA decreased to $154 million from $169 million[44] - Crude Oil segment revenues for the twelve months ended December 31, 2024, increased to $48,720 million from $47,174 million in 2023, representing a growth of 3.3%[16] - NGL segment revenues decreased to $1,724 million in 2024 from $1,935 million in 2023, a decline of 10.9%[16] - Segment Adjusted EBITDA for the Crude Oil segment was $2,276 million in 2024, up from $2,163 million in 2023, reflecting a 5.2% increase[16] - NGL segment Adjusted EBITDA decreased to $480 million in 2024 from $522 million in 2023, a decrease of 8.1%[50] Balance Sheet and Financial Position - Total assets decreased to $26,562 million in 2024 from $27,355 million in 2023, primarily due to reductions in property and equipment and intangible assets[24] - Total liabilities decreased slightly to $13,466 million in 2024 from $13,623 million in 2023, indicating a stable leverage position[24] - Long-term debt-to-total book capitalization ratio increased to 42% in 2024 from 41% in 2023, reflecting a slight increase in leverage[25] - Total revenues for the twelve months ended December 31, 2024, increased to $50,073 million, up from $48,712 million in 2023, representing a growth of 2.8%[53] - Operating income decreased to $1,172 million for the twelve months ended December 31, 2024, compared to $1,501 million in 2023, a decline of 21.9%[53] - Basic and diluted net income per Class A share for the twelve months ended December 31, 2024, was $0.52, compared to $1.01 in 2023, reflecting a decline of 48.5%[56] - Total assets as of December 31, 2024, were $27,756 million, a slight decrease from $28,597 million as of December 31, 2023[55] - Current liabilities decreased to $4,924 million as of December 31, 2024, from $5,005 million in 2023, a reduction of 1.6%[55] Strategic Outlook and Risks - The company expects full-year 2025 adjusted EBITDA attributable to Plains All American to be between $2.80 billion and $2.95 billion[4] - Anticipated adjusted free cash flow for 2025 is approximately $1.15 billion, reduced by $580 million for previously announced bolt-on transactions[4] - The leverage ratio is expected to be at or below the low-end of the target range of 3.25x to 3.75x, providing significant balance sheet flexibility[4] - The company anticipates potential risks including fluctuations in crude oil demand and prices, which could impact midstream services and commercial opportunities[57] - The company is focused on strategic opportunities including acquisitions and joint ventures to enhance operational performance and market position[57] - PAA is impacted by various risks including weather interference, regulatory changes, and production level fluctuations in the Permian Basin[59] - The company faces challenges related to customer performance under contracts, which may affect revenue recognition[59] - PAA's operations are influenced by capital market conditions that could increase the cost of capital or limit financing options[59] - The effectiveness of risk management activities is crucial for PAA's operational stability[59] - The company is exposed to fluctuations in debt and equity markets, which may affect long-term incentive plans[59] - PAA's ability to attract and retain key personnel is essential for maintaining operational efficiency[59] Company Overview - The company is headquartered in Houston, Texas, and is publicly traded as a master limited partnership[61] - Plains All American Pipeline (PAA) and Plains GP Holdings (PAGP) are significant players in the North American energy infrastructure and logistics sector[61] - PAA handles over 8 million barrels per day of crude oil and natural gas liquids (NGL) on average[60] - The company operates an extensive network of pipeline gathering and transportation systems, along with terminalling, storage, processing, and fractionation assets[60]

2024 Results - Plains All American Pipeline reported a fourth-quarter net income attributable to PAA of $36 million, a decrease of 88% from $312 million in the same quarter of 2023. For the full year, net income was $772 million, down 37% from $1.23 billion in 2023 [5][6][24]. - The company generated net cash provided by operating activities of $726 million in Q4 2024 and $2.49 billion for the full year, reflecting a 28% decrease in Q4 and a 9% decrease for the year compared to 2023 [6][7][24]. - Adjusted EBITDA attributable to PAA for Q4 was $729 million, slightly above guidance, and $2.78 billion for the full year, representing a 3% increase from 2023 [6][7][24]. Efficient Growth Initiatives - The company successfully closed three bolt-on acquisitions for approximately $670 million, including Ironwood Midstream Energy, which is expected to enhance operational capabilities [6][8]. - Plains continues to pursue synergistic and high-return bolt-on opportunities across its asset footprint, indicating a focus on strategic growth [6][8]. 2025 Outlook - For 2025, Plains expects Adjusted EBITDA attributable to PAA to be in the range of $2.80 billion to $2.95 billion [6][8]. - The company announced a distribution increase of $0.25 per unit, representing a 20% increase in the annualized distribution compared to 2024 levels, bringing the new annual distribution to $1.52 per unit [6][8]. - Plains anticipates generating approximately $1.15 billion of Adjusted Free Cash Flow in 2025, with a leverage ratio expected to be at or below the low end of the target range of 3.25x to 3.75x [6][8].

Core Viewpoint - Plains All American Pipeline is set to release its fourth-quarter financial results on February 7, 2025, with expectations of stable earnings and increased revenue compared to the previous year [1]. Financial Performance - Analysts predict quarterly earnings of 42 cents per share, unchanged from the same period last year [1]. - Projected quarterly revenue is $13.76 billion, up from $12.7 billion a year earlier [1]. Stock Offering and Market Reaction - On January 13, 2025, the company announced a $1 billion public offering of senior notes [2]. - Following the announcement, Plains All American Pipeline shares fell by 1.4%, closing at $20.01 [2]. Analyst Ratings and Price Targets - Raymond James analyst Justin Jenkins maintains a Strong Buy rating, raising the price target from $23 to $24 [3]. - Barclays analyst Theresa Chen holds an Underweight rating, increasing the price target from $18 to $19 [3]. - Scotiabank analyst Holly Stewart reinstated a Sector Outperform rating with a price target of $23 [3]. - Wells Fargo analyst Michael Blum downgraded the stock from Overweight to Equal-Weight, cutting the price target from $22 to $20 [3]. - Morgan Stanley analyst Robert Kad also downgraded the stock from Overweight to Equal-Weight, reducing the price target from $22 to $19 [3].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - Investing in bargain stocks that have recently shown price momentum can be a safer strategy, utilizing tools like the Zacks Momentum Style Score to identify potential opportunities [3] Group 2: Plains All American Pipeline (PAA) Analysis - PAA has shown significant price momentum with a four-week price change of 19.9%, indicating growing investor interest [4] - Over the past 12 weeks, PAA's stock gained 20.7%, with a beta of 1.64, suggesting it moves 64% more than the market [5] - PAA has a Momentum Score of B, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - PAA is trading at a low Price-to-Sales ratio of 0.28, meaning investors pay only 28 cents for each dollar of sales, suggesting it is undervalued [7] Group 3: Additional Investment Opportunities - Besides PAA, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Various Zacks Premium Screens are available to help identify winning stock picks based on different investing styles [9]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Plains All American Pipeline (PAA) as a strong value stock based on its financial metrics and Zacks Rank [2][4][7] Value Metrics - PAA holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for undervaluation [4][7] - The stock has a P/E ratio of 14.35, which is slightly below the industry average of 14.45, suggesting it may be undervalued [4] - PAA's P/B ratio is 1.26, significantly lower than the industry average of 2.39, indicating attractive valuation [5] - The P/CF ratio for PAA is 6.74, compared to the industry's average of 10.03, further supporting the notion of undervaluation [6] Historical Performance - Over the past year, PAA's P/E has fluctuated between a high of 15.23 and a low of 11.75, with a median of 12.77 [4] - The P/B ratio has ranged from a high of 1.26 to a low of 0.93, with a median of 1.08 [5] - PAA's P/CF ratio has seen a high of 6.77 and a low of 4.67, with a median of 5.83 [6] Conclusion - Overall, PAA's financial metrics suggest it is likely undervalued, and combined with a strong earnings outlook, it presents an impressive value investment opportunity [7]

Technical Analysis - Plains All American Pipeline, L.P. (PAA) has reached an important support level and is considered a good stock pick from a technical perspective [1] - PAA recently experienced a "golden cross" event, where its 50-day simple moving average broke above its 200-day simple moving average, indicating a potential bullish breakout [1][2] Golden Cross Explanation - A golden cross is formed when a stock's short-term moving average crosses above a longer-term moving average, typically involving the 50-day and 200-day averages [2] - The formation of a golden cross consists of three stages: a downtrend that bottoms out, the crossover of moving averages, and continued upward momentum [3] Recent Performance and Outlook - Shares of PAA have increased by 8.3% over the past four weeks, indicating positive momentum [4] - The company holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting it may be poised for further breakout [4] - PAA's earnings outlook is positive, with no earnings estimates cut and one revision higher in the past 60 days, along with an increase in the Zacks Consensus Estimate [4]