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Plains All American Pipeline LP (PAA)



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Upturn Advisory Summary
03/20/2025: PAA (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type Stock | Historic Profit -11.83% | Avg. Invested days 39 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 14.22B USD | Price to earnings Ratio 27.78 | 1Y Target Price 22.07 |
Price to earnings Ratio 27.78 | 1Y Target Price 22.07 | ||
Volume (30-day avg) 3531074 | Beta 1.59 | 52 Weeks Range 15.56 - 20.77 | Updated Date 04/1/2025 |
52 Weeks Range 15.56 - 20.77 | Updated Date 04/1/2025 | ||
Dividends yield (FY) 7.52% | Basic EPS (TTM) 0.72 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 1.54% | Operating Margin (TTM) 3.81% |
Management Effectiveness
Return on Assets (TTM) 3.9% | Return on Equity (TTM) 8.3% |
Valuation
Trailing PE 27.78 | Forward PE 12.2 | Enterprise Value 21665037879 | Price to Sales(TTM) 0.28 |
Enterprise Value 21665037879 | Price to Sales(TTM) 0.28 | ||
Enterprise Value to Revenue 0.43 | Enterprise Value to EBITDA 7.92 | Shares Outstanding 703776000 | Shares Floating 464273956 |
Shares Outstanding 703776000 | Shares Floating 464273956 | ||
Percent Insiders 33.99 | Percent Institutions 42.87 |
Analyst Ratings
Rating 3.83 | Target Price 20.22 | Buy 1 | Strong Buy 8 |
Buy 1 | Strong Buy 8 | ||
Hold 7 | Sell 2 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Plains All American Pipeline LP

Company Overview
History and Background
Plains All American Pipeline LP (PAA) was founded in 1998. It has grown through acquisitions and organic projects to become a major midstream energy infrastructure provider.
Core Business Areas
- Crude Oil: Transportation, storage, and gathering of crude oil and NGL in the United States and Canada.
- NGL: Transportation, storage, fractionation, and marketing of natural gas liquids (NGL).
- Refined Products: Transportation of refined petroleum products
Leadership and Structure
Willie Chiang serves as the Chairman and CEO. PAA is structured as a master limited partnership (MLP).
Top Products and Market Share
Key Offerings
- Crude Oil Transportation: Transportation of crude oil through pipelines. PAA's market share is significant in key producing regions such as the Permian Basin. Competitors include Enterprise Products Partners, Energy Transfer, and Magellan Midstream Partners.
- Crude Oil Storage: Storage services for crude oil. PAA owns and operates extensive storage facilities. Competitors include Cushing, OK oil storage operators.
- NGL Services: Transportation, fractionation and storage of NGL's. Competitors include Energy Transfer and ONEOK.
Market Dynamics
Industry Overview
The midstream energy industry is experiencing increased volatility driven by production fluctuations and regulatory changes. Demand is influenced by global economic conditions and energy transition trends.
Positioning
PAA is a major player in the North American midstream sector, particularly in crude oil transportation and storage. Its competitive advantage lies in its strategic asset base and long-term customer relationships.
Total Addressable Market (TAM)
The TAM for midstream crude oil and NGL services is estimated at hundreds of billions of dollars annually. PAA is well-positioned to capture a significant portion of this TAM.
Upturn SWOT Analysis
Strengths
- Extensive pipeline network
- Strategic asset locations
- Strong customer relationships
- Experienced management team
- Diversified operations
Weaknesses
- Exposure to commodity price volatility
- High debt levels
- Regulatory risks
- MLP structure complexity
- Dependence on production levels
Opportunities
- Expansion of pipeline infrastructure
- Acquisitions of complementary assets
- Increased demand for NGL transportation
- Development of new energy transportation solutions
- Leveraging data analytics and technology
Threats
- Competition from other midstream companies
- Decline in oil and gas production
- Changes in government regulations
- Environmental concerns and opposition to pipeline projects
- Cybersecurity threats
Competitors and Market Share
Key Competitors
- Enterprise Products Partners (EPD)
- Energy Transfer LP (ET)
- MPLX LP (MPLX)
Competitive Landscape
PAA competes with other major midstream companies based on asset location, transportation capacity, and customer relationships. Its advantages include strategic assets and a diversified business model.
Major Acquisitions
BridgeTex Pipeline Company
- Year: 2012
- Acquisition Price (USD millions): 1075
- Strategic Rationale: Expansion of crude oil transportation infrastructure and market access.
Growth Trajectory and Initiatives
Historical Growth: PAA's growth has been driven by acquisitions and organic projects in key producing regions.
Future Projections: Analyst estimates for PAA's future growth vary, influenced by commodity price forecasts and infrastructure project timelines.
Recent Initiatives: Recent initiatives include expanding pipeline capacity in the Permian Basin and optimizing storage operations.
Summary
Plains All American Pipeline LP is a major player in the midstream energy sector with significant assets and a strong presence in key producing regions. While exposed to commodity price volatility and regulatory risks, PAA benefits from its strategic infrastructure and established customer relationships. The company needs to carefully manage its debt and adapt to evolving energy market trends to sustain long-term growth and shareholder value. Expansion in key producing areas will be crucial for future success.
Similar Companies
- EPD
- ET
- MPLX
- OKE
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Industry Reports
- Analyst Estimates
Disclaimers:
This analysis is based on publicly available information and should not be considered investment advice. Financial data and market share estimates are subject to change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Plains All American Pipeline LP
Exchange NASDAQ | Headquaters Houston, TX, United States | ||
IPO Launch date 1998-11-17 | CEO & Chairman of Plains All American GP LLC Mr. Wilfred C.W. Chiang | ||
Sector Energy | Industry Oil & Gas Midstream | Full time employees 4200 | Website https://www.plains.com |
Full time employees 4200 | Website https://www.plains.com |
Plains All American Pipeline, L.P., through its subsidiaries, engages in the pipeline transportation, terminaling, storage, and gathering of crude oil and natural gas liquids (NGL) in the United States and Canada. The company operates through two segments, Crude Oil and NGL. The Crude Oil segment offers gathering and transporting crude oil through pipelines, trucks, and on barges or railcars. This segment provides terminaling, storage, and other related services, as well as merchant activities. The NGL segment is involved in natural gas processing and NGL fractionation, storage, transportation, and terminaling. This segment also includes ethane, propane, normal butane, iso-butane, and natural gasoline derived from natural gas production and processing activities, as well as crude oil refining processes. Its NGL components are used for various applications, such as heating, engine, and industrial fuels. The company was founded in 1981 and is headquartered in Houston, Texas. Plains All American Pipeline, L.P. operates as a subsidiary of Plains GP Holdings, L.P.
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