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Plains All American Pipeline LP PAA

Morningstar Rating
$17.56 +0.25 (1.44%)
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Company Report

Plains: Boosting Fair Value Estimate To $18

After rolling our model and lowering our 2024 forecast modestly to about $2.65 billion, we have increased our fair value estimate to $18 from $16 for the Plains entities. The update is primarily attributable to the time value of money, but also because we expect slightly higher oil volumes and tariffs beyond 2026 than previously, due largely to inflation and the Permian pipeline takeaway market becoming modestly tighter over time as volumes fill up existing pipelines. Our no-moat rating remains unchanged for the Plains entities.

Price vs Fair Value

PAA is trading within a range we consider fairly valued.
Price
$17.16
Fair Value
$23.00
Uncertainty
Medium
1-Star Price
$15.10
5-Star Price
$44.70
Economic Moat
Lld
Capital Allocation
Rxbsyzcm

Bulls Say, Bears Say

Bulls

After several years of difficult decisions, Plains is finally in a position to return more capital to Plains unitholders.

Bears

Lower natural gas liquids pricing is expected to contribute to a decline of $85 million in EBITDA for Plains' natural gas liquids business in 2024.

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News

Trading Information

Previous Close Price
$17.31
Day Range
$17.3417.64
52-Week Range
$11.8817.64
Bid/Ask
$17.45 / $17.60
Market Cap
$12.31 Bil
Volume/Avg
3.2 Mil / 2.9 Mil

Key Statistics

Price/Earnings (Normalized)
12.10
Price/Sales
0.25
Dividend Yield (Trailing)
6.47%
Dividend Yield (Forward)
7.34%
Total Yield
6.47%

Company Profile

Plains All American provides transportation, storage, processing, fractionation, and marketing services for crude oil, refined products, natural gas liquids, liquefied petroleum gas, and related products. Plains' assets span the United States and Alberta, Canada, but are heavily concentrated in the Permian Basin.
Sector
Energy
Industry
Oil & Gas Midstream
Stock Style Box
Mid Value
Total Number of Employees
4,200

Competitors

Valuation

Metric
PAA
ET
TRGP
Price/Earnings (Normalized)
12.1012.5221.83
Price/Book Value
1.491.739.02
Price/Sales
0.250.631.56
Price/Cash Flow
4.784.938.17
Price/Earnings
PAA
ET
TRGP

Financial Strength

Metric
PAA
ET
TRGP
Quick Ratio
0.840.830.58
Current Ratio
0.981.100.79
Interest Coverage
5.203.173.82
Quick Ratio
PAA
ET
TRGP

Profitability

Metric
PAA
ET
TRGP
Return on Assets (Normalized)
3.63%5.62%7.11%
Return on Equity (Normalized)
12.48%21.72%53.57%
Return on Invested Capital (Normalized)
6.19%9.25%11.56%
Return on Assets
PAA
ET
TRGP
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Capital Allocation
Economic Moat
Market Cap
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ET
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WMB
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OKE
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MPLX
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TRP
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KMI
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LNG
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TRGP
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