Plains All American Q4: EPS Beat, Focus On Growth Strategy, Positive Outlook & More

Plains All American Pipeline, L.P. PAA reported fourth-quarter revenue of $12.402 billion, missing the consensus of $13.742 billion.

Adjusted EPS was 42 cents, flat year-over-year, beating the consensus of 40 cents.

The adjusted EBITDA attributable to PAA fell 1% Y/Y to $729 million. The Crude Oil Segment Adjusted EBITDA rose 1% Y/Y to $569 million on higher tariff volumes, escalations, and contributions from acquisitions.

NGL segment Adjusted EBITDA fell 9% YoY to $154 million due to lower weighted average frac spreads.

The company ended the year with a 3.0x leverage ratio. PAA’s operating cash flow for the year was $2.49 billion compared to $2.73 billion. Adjusted free cash flow was $1.25 billion in the year.

2025 Outlook: Plains All American sees adjusted EBITDA attributable to PAA of $2.80 billion – $2.95 billion, with adjusted free cash flow of $1.15 billion. This includes a reduction of around $580 million due to previously announced bolt-on transactions completed in the first quarter.

As announced earlier, the company disclosed distribution increase of $0.25 per unit payable February 14, 2025, representing a 20% aggregate increase in the annualized distribution vs.2024 levels, leading to new annual distribution of $1.52 per unit.

Plains All American expects the leverage ratio to be at or below the low end of the leverage target range of 3.25x to 3.75x.

The company targets growth capital of around $400 million and maintenance capital of about $240 million, net to PAA.

Willie Chiang, Chairman and CEO of Plains said, “We remain confident entering 2025, with strong operational momentum and focus on executing our efficient growth strategy. Our strong performance and positive outlook combined with the contribution from recent bolt-on acquisitions continues driving meaningful cash flow and underpins increasing returns to unitholders all while maintaining capital discipline and financial flexibility.”

Investors can gain exposure to the stock via InfraCap MLP ETF AMZA and Alerian MLP ETF AMLP.

Price Action: PAA shares are up 0.35% at $20.08 premarket at the last check Friday.

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