PAA's second-quarter 2025 earnings increase year over year, while revenues decrease.
PAA's second-quarter earnings are likely to benefit from fee-based contracts and a vast midstream network despite oil price swings.
Evaluate the expected performance of Plains All American (PAA) for the quarter ended June 2025, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
PAA offers a compelling 8.2% distribution yield, well-covered by strong cash flows and a disciplined capital return strategy. The upcoming sale of Canadian NGL assets will sharpen PAA's focus on fee-based crude oil operations, enhancing income durability. PAA's steady EBITDA growth, low leverage, and targeted bolt-on acquisitions position it for continued value creation and resilience.
Shares of Plains All American Pipeline (PAA 0.82%) surged 10.8% in June, according to data provided by S&P Global Market Intelligence . Fueling the oil pipeline company's rally was an agreement to sell its Canadian natural gas liquids (NGL) business to Keyera.
Plains All American offers an attractive 8% distribution yield, which is well-supported by distributable cash flow. The sale of the Canadian NGL business streamlines the portfolio and improves the percentage of EBITDA contributions from fee-based contracts. Permian Basin exposure is a key growth driver, positioning Plains All American for long-term transportation volume growth.
Plains All American Pipeline offers a compelling value proposition with stable cash flows and an attractive yield. The company benefits from a strong asset base and strategic positioning in key North American energy corridors. Recent financial performance demonstrates resilience and supports continued distribution growth for income-focused investors.
Plains All American is an American company dedicated entirely to the midstream business of oil and gas transportation. The company maintains a presence with its pipelines in Canada & the US. Adjusted EBITDA YoY growth in this case was 4%, going from a total of $847 million in 1Q2024 to $881 million in 1Q2025. If we calculate the EBITDA/Interest ratio, we see that it stands at 6.21x, which does not seem to generate concerns despite the level of debt in relation to equity.
Plains All American is down by ~16% from the April 2025 high. The correction has taken place, due to the unfavorable oil/gas markets. In the meantime, the business remains in a solid shape.
Plains All American Pipeline, L.P. Common Units (NASDAQ:PAA ) Q1 2025 Earnings Conference Call May 9, 2025 10:00 AM ET Company Participants Blake Fernandez - VP, IR Willie Chiang - Chairman and CEO Al Swanson - EVP and CFO Harry Pefanis - President and Co-Founder Chris Chandler - EVP and COO Jeremy Goebel - EVP and CCO Conference Call Participants Gabriel Moreen - Mizuho Manav Gupta - UBS Michael Blum - Wells Fargo Vrathan Reddy - JPMorgan Sunil Sibal - Seaport Global AJ O'Donnell - TPH John Mackay - Goldman Sachs Theresa Chen - Barclays Operator Good day and thank you for standing by.
PAA's first-quarter 2025 earnings decrease year over year, while revenues increase.
Plains All American Pipeline, L.P. PAA will release earnings results for the first quarter, before the opening bell on Friday, May 9.