Company Overview - Plains All American Pipeline, L P (NASDAQ: PAA) is one of the largest oil and gas transportation and storage companies operating in the US and Canada [1] - The company is analyzed for its attractiveness to fixed-income investors [1] Investment Firm Background - Khaveen Investments is a Macroquantamental Hedge Fund managing a globally diversified portfolio [1] - The firm employs a multifaceted investment approach combining top-down and bottom-up methodologies [1] - Core investment strategies include global macro, fundamental, and quantitative strategies [1] - The firm serves accredited investors globally, including HNW Individuals, Corporates, Associations, and Institutions [1] - Specialized expertise lies in transformative fields such as Artificial Intelligence, Cloud Computing, 5G, Autonomous & Electric Vehicles, FinTech, Augmented & Virtual Reality, and the Internet of Things [1] Analyst Disclosure - The analyst has no stock, option, or derivative positions in the mentioned companies and no plans to initiate any within the next 72 hours [1] - The article expresses the analyst's own opinions and is not compensated by any company mentioned [1]

Financial Data and Key Metrics Changes - The company reported third quarter adjusted EBITDA net to PAA of $659 million, benefiting from higher Permian volumes across its gathering, intra-basin, and long-haul footprint [10] - The adjusted EBITDA guidance for 2024 has been updated to a range of $2.725 billion to $2.775 billion, with expectations to be towards the top end of this range [5][12] - The company expects to generate approximately $1.45 billion of adjusted free cash flow for 2024, with $1.15 billion allocated to common and preferred distributions [11] Business Line Data and Key Metrics Changes - Permian volume growth remains on track, with an original forecast of 200,000 to 300,000 barrels a day for 2024, driven primarily by organic growth from completions across the system [6][19] - The NGL business is on track to complete the Fort Saskatchewan fractionation expansion project on schedule and on budget in the first half of 2025 [6] Market Data and Key Metrics Changes - The company has seen substantial organic growth in Permian gathering volumes, with modest growth from acquisitions [19] - The TMX start-up has reduced exports from the Gulf Coast of heavy crude by about 150,000 to 200,000 barrels a day, impacting the heavy side of the market [41] Company Strategy and Development Direction - The company continues to pursue bolt-on acquisitions to advance its efficient growth strategy, recently acquiring the Fivestones Permian gathering system [7] - The focus remains on generating significant multi-year free cash flow, maintaining capital discipline, and returning capital to investors while preserving financial flexibility [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of the U.S. energy industry, expecting benefits from improved energy policy and regulatory frameworks [14] - The company is well-positioned to navigate through a volatile macro environment, with a focus on improving the durability of earnings [15] Other Important Information - The company settled two lawsuits related to the 2015 oil spill in California, booking a charge of $120 million to its overall Line 901 accrual [8] - Moody's upgraded the company's rating to Baa2 with a stable outlook, achieving a mid BBB rating at all three credit rating agencies [13] Q&A Session Summary Question: About Permian gathering volumes and organic growth - Management noted substantial organic growth as the primary driver of strong Permian gathering volumes, with modest contributions from acquisitions [19] Question: Future leverage targets with lower current leverage - Management confirmed they do not intend to lower their leverage range of 3.25 to 3.75x, focusing on maximizing free cash flow and capital efficiency [21][22] Question: Early discussions with producers for 2025 budget - Management indicated that initial producer forecasts align with their expectations for continued growth in the 200,000 to 300,000 barrels a day range [28][29] Question: Impact of public valuation markers on bolt-on deals - Management emphasized that while midstream assets are highly valued, they will remain disciplined in evaluating transactions [31][33] Question: Thoughts on the water business and potential disposals - Management stated they have no current exposure to the water business but would consider opportunities that offer synergies [35][36] Question: Canadian platform growth initiatives - Management highlighted the focus on completing the Fort Saskatchewan project and potential opportunities for synergies in the Canadian market [38] Question: Changes in crude flows and impacts on storage assets - Management reported that throughput at Cushing reached all-time records, with no significant impacts on their assets from changes in crude flows [41] Question: NGL segment operations after contract changes - Management noted a shift from margin-based to fee-based business, leading to steadier volumes and financial performance [72]

Plains All American Pipeline, L.P. (PAA) reported third-quarter 2024 adjusted earnings of 37 cents per unit, which surpassed the Zacks Consensus Estimate of 31 cents by 19.4%. The bottom line also improved 5.7% from 35 cents in the year-ago quarter.The company reported GAAP earnings of 22 cents per unit compared with 20 cents in the year-ago period.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.PAA’s Total Revenues Net sales of $12.74 billion beat the Zacks Consensus Estimate of $1 ...

HOUSTON, Nov. 08, 2024 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today reported third-quarter 2024 results. Third-Quarter Results Reported net income attributable to PAA of $220 million and net cash provided by operating activities of $692 millionDelivered solid Adjusted EBITDA attributable to PAA of $659 millionProgressed our efficient growth strategy with a small bolt-on acquisition of a Permian gathering systemExited the quarter with 3.0x l ...

Covering Plains All American Pipeline (NASDAQ: PAA ) seems a must for those interested in world and U.S. oil markets. The company includes easy to understand summary details, difficult to find elsewhere, of overall fossil fuel-based inventories, uses and other elements important to I have been an investor for several decades enduring the 87 crash, 2000 crash, and 08 crash. I do use trading systems developed with TradeStation. I have enjoyed the rewards from both buy and hold and trading. My professional exp ...

HOUSTON, Oct. 02, 2024 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today announced their quarterly distributions with respect to the third quarter of 2024 and also announced timing of third quarter 2024 earnings. Third Quarter Distribution Declaration PAA and PAGP announced the following quarterly cash distributions: PAA Common Units – $0.3175 per Common Unit ($1.27 per unit on an annualized basis), which is unchanged from the distribution paid ...

Core Viewpoint - Plains All American Pipeline, L.P. and Plains GP Holdings reported strong second-quarter 2024 results, raising their full-year 2024 Adjusted EBITDA guidance, reflecting resilience in their business model and market adaptability [1][2]. Financial Performance - Reported net income attributable to PAA was $250 million for Q2 2024, down 15% from $293 million in Q2 2023 [3]. - Adjusted EBITDA attributable to PAA for Q2 2024 was $674 million, an increase of 13% from $597 million in Q2 2023 [4][38]. - Adjusted Free Cash Flow for Q2 2024 was $421 million, excluding changes in assets and liabilities [2][4]. Guidance Update - The mid-point of guidance for full-year 2024 Adjusted EBITDA attributable to PAA was raised by $75 million to a new range of $2.725 - $2.775 billion [2]. - Full-year 2024 Adjusted Free Cash Flow guidance remains at $1.55 billion [2]. Segment Performance - Crude Oil Segment Adjusted EBITDA increased by 9% in Q2 2024 compared to Q2 2023, driven by higher tariff volumes and contributions from acquisitions [8]. - NGL Segment Adjusted EBITDA saw a significant increase of 52% in Q2 2024 compared to the same period in 2023, attributed to improved margins and recovery from prior year turnarounds [9]. Capital Structure - The company successfully priced a public offering of $650 million of unsecured senior notes at 5.7% due in 2034 [2]. - Total assets as of June 30, 2024, were $27.453 billion, with total liabilities at $13.875 billion [26]. Cash Flow and Distributions - Net cash provided by operating activities for Q2 2024 was $653 million, a decrease of 26% from $888 million in Q2 2023 [3][31]. - The distribution per common unit declared for the period was $0.3175, up 19% from $0.2675 in Q2 2023 [3].

Core Insights - Plains All American Pipeline, L.P. and Plains GP Holdings reported strong second-quarter 2024 results and raised full-year 2024 Adjusted EBITDA guidance [1][2]. Financial Performance - Reported net income attributable to PAA was $250 million for Q2 2024, down 15% from $293 million in Q2 2023 [3][11]. - Net cash provided by operating activities was $653 million, a decrease of 26% from $888 million in Q2 2023 [3][30]. - Adjusted EBITDA attributable to PAA reached $674 million, reflecting a 13% increase from $597 million in Q2 2023 [2][37]. - Adjusted Free Cash Flow was $421 million, excluding changes in Assets & Liabilities [2][8]. Guidance Update - The mid-point of guidance for full-year 2024 Adjusted EBITDA attributable to PAA was raised by $75 million to a new range of $2.725 - $2.775 billion [2][12]. - Full-year 2024 Adjusted Free Cash Flow guidance remains at $1.55 billion [2]. Segment Performance - Crude Oil Segment Adjusted EBITDA increased by 9% to $576 million in Q2 2024, driven by higher tariff volumes and tariff escalations [11][12]. - NGL Segment Adjusted EBITDA surged by 52% to $94 million, primarily due to improved margins from iso-to-normal butane spread benefits [12][11]. Capital Structure - Successfully priced a public offering of $650 million of unsecured senior notes at 5.7% due 2034 [2]. - Total debt as of June 30, 2024, was $7.976 billion, with a long-term debt-to-total book capitalization ratio of 41% [26][25]. Distribution Information - Distribution per common unit declared for the period was $0.3175, a 19% increase from $0.2675 in Q2 2023 [3][2].

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits. One company value investors might notice is Plains All American Pipeline (PAA) . PAA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. Finally, investors should note that PAA has a P/CF ratio of 6.08. This figure highlights ...

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