Plains All American Pipeline(US:PAA) ZACKSยท2025-08-08 14:51Core Insights - Plains All American Pipeline, L.P. (PAA) reported second-quarter 2025 adjusted earnings of 36 cents per unit, exceeding the Zacks Consensus Estimate of 30 cents by 20% and up from 31 cents in the same quarter last year [1][8] PAA's Total Revenues - Net sales for the quarter were $10.64 billion, missing the Zacks Consensus Estimate of $12.05 billion by 11.7% and down 16.6% from $12.76 billion in the year-ago quarter [2] Highlights of PAA's Earnings Release - Total costs and expenses were $10.4 billion, a decrease of 16.3% year over year, attributed to lower purchases and related costs [3] - Net interest expenses rose to $133 million, an increase of 19.8% from the prior-year quarter [3] - The company agreed to divest substantially all of its NGL business for approximately $3.75 billion, with expected closing in Q1 2026, pending regulatory approval [3] PAA's Segmental Performance - The Crude Oil segment's adjusted EBITDA was $580 million, up 0.7% from the year-ago quarter, driven by higher tariff volumes and contributions from recent acquisitions, though offset by fewer market opportunities and lower commodity prices [4] Financial Update - As of June 30, 2025, cash and cash equivalents were $459 million, up from $348 million as of December 31, 2024 [6] - Long-term debt increased to $8.21 billion from $7.21 billion as of December 31, 2024, with long-term debt-to-total book capitalization rising to 46% from 42% [6] PAA's 2025 Guidance - For 2025, PAA expects adjusted EBITDA to be in the range of $2.80-$2.95 billion and adjusted free cash flow anticipated at $870 million, excluding changes in assets and liabilities [7][9]