Plains All American Pipeline, L.P. (NASDAQ:PAA) is one of the 11 Best Pipeline and MLP Stocks to Buy in 2026. RBC Capital and Morgan Stanley Maintains Hold Rating on Plains All American (PAA) On January 28, 2026, RBC Capital and Morgan Stanley maintained their Hold ratings on Plains All American Pipeline, L.P. (NASDAQ:PAA). While RBC Capital maintained a $20 price target, Morgan Stanley kept its at $21. On the same day, BofA released a contrasting update, downgrading the stock’s rating from Neutral to Un ...

Financial Data and Key Metrics Changes - For Q4 2025, Plains reported Adjusted EBITDA of $738 million and full-year Adjusted EBITDA of $2.833 billion, indicating a pivotal year despite market challenges [3][4] - The crude oil segment Adjusted EBITDA was $611 million, while the NGL segment reported $122 million, reflecting seasonal impacts and market conditions [11][12] - The company expects 2026 Adjusted EBITDA guidance of $2.75 billion at the midpoint, with a 13% year-over-year growth in the crude segment [7][8] Business Line Data and Key Metrics Changes - The crude oil segment's performance was bolstered by the Cactus 3 acquisition, contributing to overall EBITDA despite challenges from recontracting [11] - The NGL segment's performance was impacted by warm weather and weak frac spreads, leading to a moderated seasonal uptick [11] - The company anticipates $100 million of EBITDA from the NGL segment post-divestiture, along with $10 million of other income [8] Market Data and Key Metrics Changes - Permian crude production is expected to remain flat year-over-year in 2026, with overall basin volumes projected to be about 6.6 million barrels by year-end [8] - The company noted a cautious optimism among larger producers in the Permian Basin, with a focus on efficiency and inventory preservation [29][30] Company Strategy and Development Direction - Plains is transitioning to a peer-play crude company, focusing on streamlining operations and enhancing cash flow durability through strategic acquisitions and divestitures [3][4] - The company is targeting $100 million in annual savings through efficiency initiatives by 2027, with half expected to be realized in 2026 [4][24] - The acquisition of the Wild Horse Terminal is expected to enhance storage capacity and generate returns above internal thresholds [7] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of executing on efficiency initiatives and closing the NGL divestiture to position the company competitively for the future [15] - The geopolitical environment and OPEC actions were noted as challenges, but management remains focused on long-term growth and stability [3][15] - The company expressed confidence in the ability to grow beyond 2026, supported by self-help initiatives and market fundamentals [58] Other Important Information - A 10% increase in quarterly distribution was announced, bringing the annual distribution to $1.67 per unit, representing an 8.5% yield [8][9] - The company plans to reduce its distribution coverage ratio threshold from 160% to 150%, reflecting improved visibility and alignment with peers [9][10] Q&A Session Summary Question: Synergies from Cactus Pipeline - Management confirmed achieving $50 million in synergies, with half from G&A and OPEX reductions and the rest from optimizing pipeline capacity [20][21] Question: Cost Savings Initiatives - The NGL business sale allows for a comprehensive review of company structure, targeting $100 million in savings by 2027 [24][25] Question: Permian Basin Outlook - Management noted cautious optimism among producers, with a focus on efficiency and inventory preservation, expecting growth to resume in 2027 [29][30] Question: Distribution Coverage Ratio - The reduction to 150% is seen as conservative, allowing for routine investments and distribution growth [37][73] Question: Growth Capital Expenditures - The 2026 growth CAPEX is guided at $350 million, aligning with typical investment levels, focusing on ongoing projects and potential expansions [41][42]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported Adjusted EBITDA attributable to Plains of $738 million and $2.833 billion for the full year, indicating a pivotal year despite market challenges [4][5] - The crude oil segment adjusted EBITDA was $611 million, which included contributions from the Cactus III acquisition, while the NGL segment reported adjusted EBITDA of $122 million [11][12] - The company expects adjusted EBITDA guidance for 2026 at $2.75 billion, with a midpoint for the oil segment EBITDA of $2.64 billion, reflecting a 13% year-over-year growth in the crude segment [7][8] Business Line Data and Key Metrics Changes - The crude oil segment is expected to drive significant growth, while the NGL segment is projected to contribute $100 million of EBITDA, assuming the divestiture closes as planned [8][12] - The company is focusing on streamlining operations and has targeted $100 million in annual savings through 2027, with approximately 50% expected to be realized in 2026 [5][6] Market Data and Key Metrics Changes - Permian crude production is expected to remain flat year-over-year in 2026, with overall basin volumes projected to be about 6.6 million barrels at the end of the year [8] - The company anticipates growth to resume in 2027, driven by global energy demand growth and diminishing OPEC spare capacity [8] Company Strategy and Development Direction - The company is transitioning to a pure-play crude company, which is expected to streamline operations and enhance cash flow durability [4][5] - Key initiatives for 2026 include closing the NGL divestiture, integrating the Cactus III Pipeline, and improving cost structures [5][6] - The company remains committed to generating significant free cash flow, optimizing its asset base, and maintaining a flexible balance sheet [10][17] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges faced in 2025, including geopolitical unrest and OPEC actions, but emphasized a focus on operational efficiency and strategic transactions [4][16] - The outlook for 2026 is characterized as a year of execution and self-help, with confidence in the ability to grow beyond 2026 due to expected synergies and market improvements [16][61] Other Important Information - The company announced a 10% increase in quarterly distributions, bringing the annual distribution to $1.67 per unit, representing an 8.5% yield based on recent equity prices [8][9] - The company is also focused on maintaining a distribution coverage ratio of 150%, which reflects improved visibility and aligns with peers [9][42] Q&A Session Summary Question: Synergies from Cactus Pipeline - Management confirmed that they are on track to achieve $50 million in synergies from the Cactus III acquisition, with half already realized through G&A and OPEX reductions [21][22] Question: Cost Savings Initiatives - The company is rethinking its structure post-NGL sale, aiming for $100 million in cost savings by the end of 2027, with $50 million expected in 2026 [26][27] Question: Permian Basin Outlook - Management expressed cautious optimism regarding producer sentiment in the Permian Basin, noting that efficiencies are improving despite a flat production outlook for 2026 [31][33] Question: Capital Allocation Priorities - The company reiterated its focus on distribution growth and maintaining a conservative coverage ratio, with plans for opportunistic investments in bolt-ons and repurchases [36][42] Question: Long-Haul Permian Volume Guidance - Management explained that the guidance includes contributions from Cactus III and increased contracted capacity, with expectations for stable margins [66][68] Question: Impact of Geopolitical Developments - Management discussed the potential impacts of developments in Venezuela, noting that while immediate effects may create opportunities, substantial long-term changes would require significant investment [52][54]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported Adjusted EBITDA of $738 million and $2.833 billion for the full year, indicating a pivotal year despite market challenges [3][4] - The crude oil segment Adjusted EBITDA was $611 million, which included contributions from the Cactus 3 acquisition [10] - The NGL segment reported Adjusted EBITDA of $122 million, reflecting seasonal impacts and warm weather [10] Business Line Data and Key Metrics Changes - The company is transitioning to a peer-play crude company, enhancing cash flow quality through the sale of the NGL business and acquisition of the Cactus 3 Pipeline [3][4] - The NGL segment is expected to contribute $100 million of EBITDA post-divestiture, while the oil segment is projected to grow by 13% year-over-year [6][7] Market Data and Key Metrics Changes - Permian crude production is expected to remain flat year-over-year in 2026, with overall basin volumes around 6.6 million barrels by year-end [7] - The company anticipates a more constructive oil market environment in 2027, driven by global energy demand growth [7][30] Company Strategy and Development Direction - The company is focused on three key initiatives for 2026: closing the NGL divestiture, integrating the Cactus 3 Pipeline, and streamlining operations for efficiency [4][5] - A targeted $100 million in annual savings is expected through 2027, with half of that realized in 2026 [5][24] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding producer sentiment in the Permian Basin, noting improved efficiencies and a focus on preserving inventory [29][30] - The company remains committed to generating significant free cash flow and maintaining a flexible balance sheet while returning capital to unit holders [9][16] Other Important Information - A 10% increase in quarterly distribution was announced, raising the annual distribution to $1.67 per unit, representing an 8.5% yield [7][8] - The company plans to reduce its distribution coverage ratio threshold from 160% to 150%, reflecting improved cash flow visibility [8][39] Q&A Session Summary Question: Synergies from Cactus Pipeline - Management confirmed that $50 million in synergies are already on track, with half achieved through G&A and OPEX reductions [20] Question: Cost savings initiatives - The NGL business sale allows for a comprehensive review of company structure, targeting $100 million in savings by 2027 [24][25] Question: Permian Basin outlook - Producer sentiment is cautiously optimistic, with a focus on efficiency and improved recoveries [29][30] Question: Distribution coverage rationale - The 150% coverage level is seen as conservative, allowing for multi-year distribution growth [38][39] Question: Growth CAPEX details - The 2026 growth CAPEX is guided at $350 million, reflecting a return to typical investment levels [41][42] Question: Impact of geopolitical developments - Management discussed potential impacts from Venezuela, emphasizing the need for stability and investment for long-term changes [49][51] Question: Trends in other business segments - The company sees stable performance in Canadian operations, with growth expected in the Uinta Basin [83]

4Q25 Earnings Call Investor Relations Contacts Blake Fernandez Vice President, Investor Relations Blake.Fernandez@plains.com Ross Hovde Director, Investor Relations Ross.Hovde@plains.com Investor Relations 866-809-1291 plainsIR@plains.com 2 February 6, 2026 Forward-Looking Statements & Non-GAAP Financial Measures Disclosure This presentation contains forward-looking statements, including, in particular, statements about the performance, plans, strategies and objectives for future operations of Plains All Am ...

Financial Performance - Fourth-quarter 2025 net income attributable to Plains All American was $342 million, with full-year net income reaching $1.435 billion, an 86% increase compared to 2024[4] - Fourth-quarter 2025 adjusted EBITDA attributable to Plains All American was $738 million, while full-year adjusted EBITDA totaled $2.833 billion, reflecting a 2% increase from 2024[4] - Operating income for the twelve months ended December 31, 2025, was $1,434 million, compared to $868 million in 2024, reflecting a significant increase[26] - Total net income for the twelve months ended December 31, 2025, reached $1.169 billion, a significant increase from $514 million in 2024[29] - Net income attributable to PAA for the three months ended December 31, 2025, was $342 million, up from $36 million in the same period of 2024[26] - Basic net income per Class A share for continuing operations was $0.77 for the twelve months ended December 31, 2025, compared to $0.19 in 2024[64] - Basic net income per common unit for the three months ended December 31, 2025, was $0.41, compared to a loss of $0.04 in the same period of 2024[36] Cash Flow and Distributions - Plains All American anticipates strong adjusted free cash flow generation of approximately $1.80 billion for 2026, excluding changes in assets and liabilities[4] - Adjusted Free Cash Flow after Distributions for the year was impacted by cash distributions paid to preferred and common unitholders, which are critical for assessing available cash for distributions and debt repayments[22] - Cash provided by operating activities for continuing operations was $2.452 billion for the twelve months ended December 31, 2025, compared to $2.236 billion in 2024, reflecting a 9.7% increase[31] - Cash distributions paid to common unitholders in Q4 2025 totaled $268 million, up from $223 million in Q4 2024, a 20.2% increase[40] - Adjusted Free Cash Flow for Q4 2025 was $(1,219) million, compared to $365 million in Q4 2024, showing a significant decline[43] Assets and Liabilities - Total assets increased to $30,169 million as of December 31, 2025, compared to $26,562 million in 2024, indicating growth in the company's asset base[27] - Total debt rose to $11,262 million as of December 31, 2025, from $7,621 million in 2024, leading to a long-term debt-to-total book capitalization ratio of 52%[28] - Current liabilities decreased slightly to $4,902 million as of December 31, 2025, from $4,924 million in 2024[61] - Senior notes increased to $9,118 million as of December 31, 2025, compared to $7,141 million in 2024, indicating a rise of 28%[61] Acquisitions and Divestitures - Plains All American successfully raised $750 million in senior unsecured notes in November 2025, aimed at reducing commercial paper and funding the Cactus III acquisition[4] - The company completed the acquisition of Cactus III in the fourth quarter of 2025, contributing to the growth strategy despite a flat Permian production profile expected for 2026[3] - The pending sale of the Canadian NGL business is expected to close by the end of Q1 2026, with the company retaining all NGL assets in the U.S. and crude oil assets in Canada[5] - The company is undergoing a divestiture of its Canadian NGL Business, which may impact business relationships and operating results[66] Operational Metrics - Revenues for the three months ended December 31, 2025, were $10,565 million, a decrease of 12.2% from $12,035 million in the same period of 2024[26] - Total revenues for the twelve months ended December 31, 2025, were $44,262 million, a decrease of 9% from $48,889 million in 2024[59] - Crude oil pipeline tariff volumes for Q4 2025 totaled 10,079 thousand barrels per day, an increase of 11.7% from 9,028 thousand barrels per day in Q4 2024[53] - NGL fractionation volumes for Q4 2025 were 150 thousand barrels per day, up 8.7% from 138 thousand barrels per day in Q4 2024[53] Cost Management - The company is focused on achieving approximately $100 million in cost savings through efficiency initiatives by 2027, with about half expected to be realized in 2026[4] - Total capital expenditures for the twelve months ended December 31, 2025, amounted to $719 million, up from $571 million in 2024, indicating a 25.9% increase[33] - The company’s total maintenance capital expenditures for the twelve months ended December 31, 2025, were $211 million, down from $242 million in 2024, indicating a decrease of 12.8%[33] Market and Economic Conditions - Economic conditions, including potential recession and high inflation, could affect demand for crude oil and midstream services[66] - There is a risk of significant declines in North American crude oil and NGL production due to reduced producer cash flow and other factors[66] - The company faces competition that may exert downward pressure on rates, volumes, and margins[66] - Future performance may be impacted by the successful operation of joint ventures and the integration of acquired assets[66] - The company is exposed to environmental liabilities and litigation that may not be covered by insurance[66] - The impact of societal sentiment regarding the hydrocarbon energy industry could influence consumer preferences and regulatory actions[66] - The company is monitoring the pace of natural gas infrastructure development and its effect on crude oil production growth in the Permian Basin[69] - The company is subject to risks related to capital markets, including increased costs of capital and liquidity concerns[69]

HOUSTON, Feb. 06, 2026 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported fourth-quarter and full-year 2025 results, announced 2026 guidance and provided the following highlights: Fourth Quarter and Full-Year 2025 Results Fourth-quarter and full-year 2025 Net income attributable to PAA of $342 million and $1.435 billion, respectively, and 2025 Net cash provided by operating activities of $785 million and $2.94 billion, respectivelyDelive ...

Key Takeaways Plains All American is expected to post Q4 revenues of $11.55B, a 6.85% year-over-year decline.Plains All American relies heavily on fee-based, long-term contracts that support steady cash flow.Plains All American completed the EPIC Crude acquisition, adding assets with long-term volume commitments.Plains All American Pipeline, L.P. (PAA) is expected to post a decline in the top and bottom lines when it reports fourth-quarter 2025 results on Feb. 6, 2026, before market open. The Zacks Consensu ...

The midstream energy space is generally less vulnerable to fluctuations in oil and natural gas prices. Despite this, the outlook for the Zacks Oil and Gas - Pipeline MLP industry is gloomy. With the conservative spending of exploration and production companies, demand for transportation and storage assets is not going to be lucrative.Despite these developments, players like Enterprise Products Partners LP (EPD) , Energy Transfer LP (ET) and Plains All American Pipeline LP (PAA) are well-positioned to sail t ...

These companies offer high-yielding and steadily rising income streams.The S&P 500's dividend yield is a paltry 1.1% these days. That's approaching its all-time low. As a result, fewer stocks are offering compelling income streams right now. However, there are some enticing options available. Delek Logistics Partners (DKL +0.46%), Hess Midstream (HESM +1.04%), and Plains All American Pipeline (PAA +0.92%) currently offer yields of up to 9%. Even better, all three companies recently increased their payouts. ...