Plains All American (PAA) reported earnings 30 days ago. What's next for the stock?
Plains All American is a high-yield midstream company trading at a value range with a 9% distribution yield and strong fundamentals. PAA's recent EPIC pipeline acquisition enhances its crude oil logistics network, expands export exposure, and is expected to generate mid-teens IRR and immediate synergies. The distribution is well-covered and further increases are possible as NGL sale proceeds are redeployed.
Plains All American Pipeline, L.P. Common Units ( PAA ) Q3 2025 Earnings Call November 5, 2025 10:00 AM EST Company Participants Blake Fernandez - Vice President of Investor Relations Willie Chiang - President, CEO & Chairman of Plains All American GP LLC Al Swanson - Executive VP & CFO of Plains All American GP LLC Jeremy Goebel - Executive VP & Chief Commercial Officer of Plains All American GP LLC Chris Chandler - Executive VP & COO of Plains All American GP LLC Conference Call Participants Michael Blum - Wells Fargo Securities, LLC, Research Division Keith Stanley - Wolfe Research, LLC Andrew John O'Donnell - Tudor, Pickering, Holt & Co. Securities, LLC, Research Division Brandon Bingham - Scotiabank Global Banking and Markets, Research Division Sunil Sibal - Seaport Research Partners Jeremy Tonet - JPMorgan Chase & Co, Research Division Manav Gupta - UBS Investment Bank, Research Division Jean Ann Salisbury - BofA Securities, Research Division John Mackay - Goldman Sachs Group, Inc., Research Division Presentation Operator Good day, and thank you for standing by.
| Oil, Gas & Consumable Fuels Industry | Energy Sector | Wilfred C.W. Chiang CEO | NASDAQ (NGS) Exchange | 726503105 CUSIP |
| US Country | 4,200 Employees | 31 Oct 2025 Last Dividend | 2 Oct 2012 Last Split | 17 Nov 1998 IPO Date |
Plains All American Pipeline, L.P., a pivotal entity in the energy infrastructure sector, operates extensively within the United States and Canada. Specializing in the transport, terminaling, storage, and gathering of crude oil and natural gas liquids (NGLs), the company has carved a niche in facilitating essential services for the oil and gas industry. It was established in 1981 and has since developed a comprehensive network to support the complex logistics involved in energy distribution. Based in Houston, Texas, Plains All American Pipeline functions under the broader umbrella of Plains GP Holdings, L.P., indicating a significant backing and financial foundation. Operating through two main segments – Crude Oil and NGL – the company embodies a critical link in the energy supply chain, connecting producers with markets efficiently and securely.
Under its Crude Oil segment, Plains All American Pipeline specializes in the collection and transportation of crude oil. Utilizing a combination of pipelines, gathering systems, trucks, barges, and railcars, the company ensures a flexible and reliable delivery process. This includes traversing extensive geographical areas to reach various processing plants, refineries, and export terminals, essentially facilitating the movement from extraction sites to areas of processing and use.
Offering comprehensive terminaling and storage solutions, the company plays an integral role in the crude oil and NGL supply chains. These services include the safekeeping and handling of petroleum products within extensive storage facilities. Furthermore, terminal operations ensure these commodities are efficiently transferred to and from transportation modes, such as pipelines and ships, securing a seamless link in the distribution chain.
Alongside its primary operations, Plains All American engages in merchant activities within the Crude Oil segment. This aspect covers the buying, selling, and trading of crude oil and other petroleum products, leveraging market conditions to facilitate commerce and support client needs across various industries.
The NGL segment delves into more specialized operations, including the processing of natural gas to separate and collect NGL components. This process, crucial for the production of cleaner energy sources, involves fractionating the raw stream of natural gases to extract valuable elements like ethane, propane, and butane, which find extensive use across different industries.
Similar to its crude oil operations, Plains All American Pipeline provides essential services for the storage, transport, and terminaling of NGLs. This includes developing infrastructure to support the handling of these products, ensuring their safe and efficient delivery from production points to markets or for further processing, reflecting the company’s versatility in managing both crude oil and NGL logistics.
The products derived from the company's NGL operations, such as ethane, propane, normal butane, iso-butane, and natural gasoline, are integral to various applications. They serve as vital components in heating, engine fuels, and industrial processes, demonstrating the essential role Plains All American plays in supporting a wide range of energy needs.