Core Viewpoint - Plains All American Pipeline, L.P. (PAA) and Plains GP Holdings (PAGP) announced their quarterly distributions for the fourth quarter of 2025 and the timing for their earnings release [1][4]. Distribution Declaration - PAA and PAGP declared a quarterly cash distribution of $0.4175 per Common Unit and Class A Share, which is an increase of $0.0375 from the previous distribution in November 2025, representing a 10% annualized increase [7]. - PAA also announced a quarterly distribution of $21.02 per Series B Preferred Unit, payable on February 17, 2026 [2]. Earnings Timing - The companies will release their fourth quarter 2025 earnings before market open on February 6, 2026, followed by a conference call at 9:00 a.m. CT to discuss the earnings [4]. Company Overview - PAA operates midstream energy infrastructure and logistics services for crude oil and natural gas liquids, handling approximately nine million barrels per day [5]. - PAGP holds a non-economic controlling general partner interest in PAA and is one of the largest energy infrastructure and logistics companies in North America [6].

Core Insights - Three stocks with strong value characteristics and a buy rank are highlighted for investors to consider on November 28 Group 1: Interface, Inc. (TILE) - Interface, Inc. is a modular carpet products company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 8.8% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 15.05, significantly lower than the S&P 500's P/E of 25.07 [1] - Interface possesses a Value Score of A [1] Group 2: Universal Health Services, Inc. (UHS) - Universal Health Services, Inc. operates hospitals and outpatient and behavioral health care facilities, also holding a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 6.7% over the last 60 days [2] - The company has a price-to-earnings ratio (P/E) of 11.19, compared to the S&P 500's P/E of 25.07 [2] - Universal Health possesses a Value Score of A [2] Group 3: Plains GP Holdings, L.P. (PAGP) - Plains GP Holdings, L.P. is a midstream infrastructure systems company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 2.9% over the last 60 days [3] - The company has a price-to-earnings ratio (P/E) of 12.89, lower than the industry average of 18.90 [3] - Plains GP possesses a Value Score of A [3]

Group 1 - The topical investment idea for November 2025 focuses on acquiring assets in the energy sector due to positive expectations for the recovery of the hydrocarbon market and increasing demand for energy resources [1] - The analysis combines macro-economic insights with real-world trading experience to identify profitable and undervalued investment opportunities primarily in the U.S. market [1] - The goal is to build a high-yield, balanced portfolio by leveraging deep knowledge in economics and fundamental investment analysis [1] Group 2 - The professional background includes a combination of roles as an Investment Consultant and an Active Intraday Trader, enhancing the ability to maximize returns [1] - The expertise is supported by two university degrees in Finance and Economics, complemented by active practice in management and trading [1] - The analysis aims to provide clear, actionable investment ideas designed to build a balanced portfolio of U.S. securities [1]

Financial Performance - Net income for the nine months ended September 30, 2025, was $1,279 million, a 34% increase from $953 million in the same period of 2024[136] - Net income for the three months ended September 30, 2025, was $504 million, a 67% increase from $301 million in 2024[160] - Basic net income per Class A share for continuing operations increased by 67% to $0.60 for the nine months ended September 30, 2025, compared to $0.36 in 2024[137] - Adjusted EBITDA for the three months ended September 30, 2025, was $806 million, slightly up by 1% from $805 million in 2024[160] - Adjusted EBITDA attributable to PAA for the nine months ended September 30, 2025, was $2,095 million, a 2% increase from $2,051 million in 2024[160] Revenue Changes - Product sales revenues decreased by 9% to $32,389 million for the nine months ended September 30, 2025, compared to $35,606 million in 2024[137] - Services revenues increased by 5% to $1,309 million for the nine months ended September 30, 2025, compared to $1,248 million in 2024[137] - Crude Oil segment revenues for Q3 2025 were $11,559 million, a decrease of 7% compared to $12,444 million in Q3 2024[165] - NGL segment revenues for Q3 2025 were $24 million, an increase of 20% from $20 million in Q3 2024[173] Operating Costs and Expenses - Field operating costs decreased by 9% to $873 million for the nine months ended September 30, 2025, compared to $962 million in 2024[137] - General and administrative expenses increased by 2% to $255 million for the nine months ended September 30, 2025, compared to $251 million in 2024[137] - Field operating costs decreased by 30% in Q3 2025 compared to Q3 2024, primarily due to prior year settlements related to the Line 901 incident[169] - Depreciation and amortization from continuing operations for the three months ended September 30, 2025, was $230 million, a 2% increase from $226 million in 2024[160] Capital Expenditures and Investments - Total capital expenditures for the nine months ended September 30, 2025, amounted to $1.382 billion, significantly higher than $547 million for the same period in 2024[181] - The company projected total investment capital for the year ending December 31, 2025, to be approximately $600 million, with about half allocated to Permian JV assets[182] - Maintenance capital expenditures for Q3 2025 were $36 million, down 25% from $48 million in Q3 2024[165] Debt and Interest Expenses - Interest expense for the three months ended September 30, 2025, increased to $112 million from $97 million in 2024, a rise of 15%[149] - The company issued $1.0 billion in senior notes at 5.95% in January 2025 and $650 million at 5.70% in June 2024, contributing to the increase in interest expense[149] - In January 2025, the company completed the offering of $1.0 billion in senior notes at a 5.95% interest rate, with net proceeds of approximately $988 million used for acquisitions and debt repayment[188] - In September 2025, the company issued $1.25 billion in senior notes, with net proceeds of approximately $1.2 billion used to redeem existing senior notes and fund the EPIC Pipeline acquisition[189] Strategic Changes and Acquisitions - The pending sale of the Canadian NGL Business is expected to close in the first quarter of 2026, representing a strategic shift for the company[133] - A net gain of $31 million was recognized related to the acquisition of the remaining 50% interest in Cheyenne in the first quarter of 2025[148] - PAA acquired 100% of the EPIC Pipeline for approximately $2.9 billion, including $1.1 billion of debt assumed[204] Cash Flow and Liquidity - Net cash provided by operating activities for the first nine months of 2025 was $1.833 billion, compared to $1.592 billion for the same period in 2024, reflecting a year-over-year increase of 15.1%[180] - As of September 30, 2025, the company had a working capital surplus of $218 million and approximately $3.9 billion in liquidity available for ongoing needs[177] Shareholder Distributions - A quarterly cash distribution of $0.38 per Class A share will be paid on November 14, 2025, amounting to an annualized distribution of $1.52 per share[195] - PAA plans to pay a quarterly cash distribution of approximately $0.615 per unit to Series A preferred unitholders on November 14, 2025[197] - PAA will pay a quarterly cash distribution of approximately $21.93 per unit to Series B preferred unitholders on November 17, 2025[198] Risk Management - PAA's risk management policies include the use of derivative instruments to hedge commodity price risks associated with crude oil and power[212] - The company anticipates potential impacts from economic conditions, including inflation and supply chain issues, on demand for midstream services[210] Other Financial Metrics - The average NYMEX Price for crude oil was $67 per barrel for the nine months ended September 30, 2025, down from $78 per barrel in 2024[141] - The overall impact of lower commodity prices and fewer market-based opportunities partially offset the benefits from higher tariff volumes and recent acquisitions[168] - As of September 30, 2025, PAA had outstanding letters of credit of approximately $70 million[205] - PAA has approximately $939 million of unsold securities available under its shelf registration statement as of September 30, 2025[192] - PAA has approximately $1.1 billion of unsold securities available under its PAA Traditional Shelf as of September 30, 2025[193]

Financial Performance - Reported net income attributable to Plains All American of $441 million for Q3 2025, a 100% increase from $220 million in Q3 2024[4] - Adjusted EBITDA attributable to Plains was $669 million for Q3 2025, up 2% from $659 million in Q3 2024[7] - Full-year 2025 Adjusted EBITDA is forecasted to be in the range of $2.84 to $2.89 billion, including approximately $40 million from the acquisition of EPIC[4] - Adjusted Free Cash Flow for Q3 2025 was $303 million, a decrease of 24% compared to $401 million in Q3 2024[7] - Operating income for the three months ended September 30, 2025, was $484 million, compared to $196 million for the same period in 2024, representing a significant increase of 146.9%[26] - Net income attributable to PAA for the three months ended September 30, 2025, was $441 million, up 100.9% from $220 million in the same period of 2024[26] - Net income for the three months ended September 30, 2025, was $529 million, compared to $312 million for the same period in 2024, representing a 69.9% increase[37] - Adjusted EBITDA from Crude Oil for Q3 2025 was $593 million, a 3% increase from $577 million in Q3 2024[9] - Adjusted EBITDA attributable to PAA for Q3 2025 was $669 million, an increase of 1.5% from $659 million in Q3 2024[56] Acquisition and Investments - Plains completed the acquisition of a 100% equity interest in EPIC, with a total purchase price of approximately $1.33 billion, including $500 million of debt[4] - The acquisition of EPIC is expected to yield solid mid-teens returns with a 2026 EBITDA multiple of approximately 10x[4] - Plains anticipates a leverage ratio of approximately 3.5x post-acquisition and upon closing the NGL divestiture expected by Q1 2026[4] - Total investment capital expenditures for the nine months ended September 30, 2025, were $401 million, significantly higher than $232 million in the same period of 2024, indicating a 73% increase[31] Cash Flow and Distributions - Distribution per common unit declared for Q3 2025 was $0.3800, a 20% increase from $0.3175 in Q3 2024[7] - Cash distributions paid to common unit holders for the three months ended September 30, 2025, totaled $267 million, compared to $223 million in 2024, an increase of 19.7%[37] - The common unit distribution coverage ratio for the three months ended September 30, 2025, was 1.61x, down from 1.92x in 2024[37] - Adjusted Free Cash Flow after Distributions for the nine months ended September 30, 2025, is calculated by reducing Adjusted Free Cash Flow by cash distributions paid to preferred and common unitholders[22] Assets and Liabilities - Total assets as of September 30, 2025, were $28,101 million, an increase from $26,562 million as of December 31, 2024[27] - Total liabilities as of September 30, 2025, were $15,112 million, compared to $13,466 million as of December 31, 2024, indicating an increase of 12.9%[27] - Long-term debt-to-total book capitalization ratio increased to 46% as of September 30, 2025, from 42% as of December 31, 2024[28] - Total debt as of September 30, 2025, was $9,452 million, up from $7,621 million as of December 31, 2024, reflecting a 24.1% increase[28] Operational Highlights - The company continues to view the Canadian NGL Business as a component of overall performance, with a potential sale not anticipated to close until the first quarter of 2026[24] - Management emphasizes the importance of non-GAAP financial measures, such as Adjusted EBITDA and Adjusted Free Cash Flow, in assessing operational performance and liquidity[22] - Cash provided by operating activities for continuing operations was $1,836 million for the nine months ended September 30, 2025, compared to $1,597 million for the same period in 2024, reflecting a 15% increase[30] - Net cash provided by operating activities for the nine months ended September 30, 2025, totaled $2,150 million, up from $1,763 million in 2024, representing a 22% increase[30] Risks and Challenges - Economic conditions, including potential recession and high inflation, could affect demand for crude oil and midstream services provided by the company[63] - The company faces risks related to fluctuations in crude oil prices and production levels, particularly in the North American market[63] - Competition in the midstream sector may exert downward pressure on rates, volumes, and margins, impacting overall profitability[63] - Environmental liabilities and regulatory changes could adversely impact the company's operations and financial performance[63] - The company is exposed to risks from natural disasters and cyber attacks that could disrupt operations[63] Personnel and Management - The ability to attract and retain key personnel is essential for maintaining operational efficiency and strategic initiatives[65] - The company is focused on maintaining its credit ratings and managing capital expenditures to support growth and operational stability[65]

Core Insights - Plains All American Pipeline, L.P. and Plains GP Holdings reported strong third-quarter results for 2025, highlighting significant progress in becoming a leading crude oil midstream provider [1][3] - The company is focused on strategic acquisitions and divestitures, including the pending sale of its Canadian NGL business and the acquisition of EPIC Crude Holdings, which is expected to enhance operational efficiency and financial performance [4][6] Financial Performance - Reported net income attributable to Plains All American Pipeline for Q3 2025 was $441 million, a 100% increase from $220 million in Q3 2024 [7] - Adjusted EBITDA attributable to Plains was $669 million for Q3 2025, reflecting a 2% increase from $659 million in Q3 2024 [7][14] - The company achieved a leverage ratio of 3.3x, within its target range of 3.25x - 3.75x [6] Recent Developments - The acquisition of a 55% equity interest in EPIC Crude Holdings was completed, with an additional 45% interest acquired for approximately $1.33 billion, including $500 million of debt [6][14] - The company anticipates solid mid-teens returns from the EPIC acquisition, with a projected 2026 EBITDA multiple of approximately 10x [6][14] - The divestiture of the Canadian NGL business is expected to close in Q1 2026, allowing the company to focus on its core crude oil operations [4][5] Distribution and Cash Flow - The distribution per common unit declared for Q3 2025 was $0.38, a 20% increase from $0.3175 in Q3 2024 [7] - The company reported net cash provided by operating activities of $817 million for Q3 2025, an 18% increase from $692 million in Q3 2024 [7][40] - Adjusted Free Cash Flow for Q3 2025 was $303 million, a 24% decrease from $401 million in Q3 2024, primarily due to increased capital expenditures [7][24]

Core Viewpoint - Plains All American Pipeline, L.P. (PAA) and Plains GP Holdings (PAGP) announced their quarterly distributions for Q3 2025 and the timing for their earnings release [1][4]. Distribution Declaration - PAA announced a quarterly cash distribution of $0.38 per Common Unit and $0.61524 per Series A Preferred Unit, both unchanged from the previous distribution in August 2025 [7]. - PAGP announced a cash distribution of $0.38 per Class A Share, also unchanged from the previous distribution [7]. - The distributions will be payable on November 14, 2025, to holders of record at the close of business on October 31, 2025, for Common Units and Class A Shares, and on November 17, 2025, for Series B Preferred Units [2]. Earnings Timing - PAA and PAGP will release their Q3 2025 earnings before market open on November 5, 2025 [4]. - A conference call will be held at 9:00 a.m. CT (10:00 a.m. ET) to discuss the earnings, which will be accessible via webcast [4]. Company Overview - PAA operates midstream energy infrastructure and logistics services for crude oil and natural gas liquids, handling over nine million barrels per day [5]. - PAGP holds an indirect controlling general partner interest in PAA and is one of the largest energy infrastructure companies in North America [6].

Group 1 - The main investment idea for September 2025 is to acquire assets in the oil and gas industry due to the expected recovery of the oil and natural gas market [1] - The analyst has been active in trading since 2011, focusing on both intraday trading and long-term investment ideas [1] - The analyst's financial analytics have been published in leading media since 2014, indicating a strong presence in the financial market [1] Group 2 - The analyst opened an investment partnership in 2015 and joined a major crypto fund in Ukraine in 2017, showcasing a diverse investment background [1] - The goal of the financial analytics is to provide consultation on main investment ideas in the world and the USA for the near future [1]

Core Viewpoint - Plains All American Pipeline has announced a definitive agreement to acquire a 55% non-operated interest in EPIC Crude Holdings for approximately $1.57 billion, which includes about $600 million of debt, with the transaction expected to enhance cash flow and provide synergistic opportunities [1][4][5] Transaction Details - The acquisition includes a potential earnout payment of $193 million if the pipeline expansion to a capacity of at least 900,000 barrels per day is sanctioned by the end of 2027 [1] - The transaction is anticipated to be immediately accretive to distributable cash flow, with expected mid-teens unlevered returns [1][7] Asset Overview - The EPIC Pipeline provides long-haul crude oil takeaway from the Permian and Eagle Ford basins to the Gulf Coast market at Corpus Christi, with approximately 800 miles of pipelines and an operating capacity of over 600,000 barrels per day [2][6] - EPIC Crude Holdings has around 7 million barrels of operational storage and over 200,000 barrels per day of export capacity [6] Strategic Benefits - The acquisition strengthens Plains' position as a premier crude oil midstream provider and enhances its asset footprint, improving customer connectivity and flexibility [4][5] - The combined assets will allow for additional service offerings and value creation through expanded scale and integration [5][7] Financial Position - Plains plans to finance the acquisition using its balance sheet while maintaining a pro-forma leverage ratio within its established target range [5][7] - The transaction is expected to support additional return of capital opportunities for unit holders [5][7] Completion Timeline - The transaction is expected to be completed by early 2026, pending customary closing conditions, including regulatory clearance [8]

Group 1 - Plains GP Holdings (PAGP) is a notable stock within the Oils-Energy sector, currently ranked 16 in the Zacks Sector Rank, which evaluates the strength of 16 sector groups based on individual stock performance [2] - The Zacks Rank system, which focuses on earnings estimates and revisions, currently assigns Plains GP Holdings a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance in the near term [3] - Over the past 90 days, the Zacks Consensus Estimate for PAGP's full-year earnings has increased by 22.4%, reflecting improved analyst sentiment and a more positive earnings outlook [4] Group 2 - Year-to-date, Plains GP Holdings has gained approximately 2.5%, outperforming the average gain of 1.4% for the Oils-Energy sector as a whole [4] - Plains GP Holdings operates in the Oil and Gas - Production and Pipelines industry, which includes 10 companies and is currently ranked 58 in the Zacks Industry Rank; this industry has seen an average gain of 4.1% this year, indicating that PAGP is slightly underperforming its industry [6] - Another stock in the Oils-Energy sector, Par Petroleum (PARR), has significantly outperformed with a year-to-date return of 82.9% and a Zacks Rank of 1 (Strong Buy) [5][7]