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.
PAA beats Q3 earnings estimates as cost reductions lift profits despite a 7% drop in sales.
Plains All American (PAA) offers a compelling 9% yield, supported by a resilient fee-based business model and low commodity price exposure. PAA stands to benefit from rising North American energy demand, driven by AI data center growth and expanding US oil exports. Recent acquisition of a 55% stake in the EPIC pipeline, financed by asset sales, highlights PAA's disciplined approach to accretive M&A.
Plains All American's distribution history is not that great. So, I fully understand the market's skepticism - as implied by relatively low multiples and above-average yield. Yet, past is past. The current fundamentals and recent strategic moves have positioned PAA among one of the most robust MLPs out there.
Plains All American offers a compelling 9% dividend yield, supported by resilient Permian Basin volumes and a shift toward fee-based revenue. PAA's recent acquisitions and core Texas operations have driven volume growth well above state averages, despite regional oil production declines elsewhere. The company maintains strong dividend coverage, reduced leverage, and expects capital recycling from its NGL segment sale, enhancing financial stability.
Energy has experienced a 0.85% loss, making it the second-worst performer among the 11 sectors of the S&P 500 this year. Much of that is attributable to the oil majors' lackluster performances in 2025.
Plains All American Pipeline, L.P. offers a high single-digit dividend yield, strong cash flow, and a disciplined approach to capital allocation, making it attractive for dividend investors. Recent asset sales and bolt-on acquisitions have improved financial flexibility, reduced leverage, and positioned the company for focused growth in its core oil pipeline business. Dividend coverage remains robust, with a 175% coverage ratio and plans to further increase distributions, targeting a yield above 9% while maintaining balance sheet strength.
Plains All American just reported Q2 results. I dig into the update and share my updated outlook on PAA stock. Aside from exciting distribution and buyback acceleration, there is another big potential surprise coming investors' way.
Plains All American Pipeline, L.P. Common Units (NASDAQ:PAA ) Q2 2025 Earnings Conference Call August 8, 2025 10:00 AM ET Company Participants Al P.
While the top- and bottom-line numbers for Plains All American (PAA) give a sense of how the business performed in the quarter ended June 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.