Plains All American Q2 Earnings Beat Estimates, Sales Decrease Y/Y

Plains All American Pipeline, L.P. PAA reported second-quarter 2025 adjusted earnings of 36 cents per unit, which beat the Zacks Consensus Estimate of 30 cents by 20%. In the year-ago quarter, the firm reported earnings of 31 cents per unit.

PAA’s Total Revenues

Net sales of $10.64 billion missed the Zacks Consensus Estimate of $12.05 billion by 11.7%. The top line also decreased 16.6% from the year-ago quarter’s figure of $12.76 billion.

Highlights of PAA’s Earnings Release

Costs and expenses amounted to $10.4 billion, down 16.3% year over year. The decrease was due to lower purchases and related costs.

Net interest expenses were $133 million, up 19.8% from the prior-year quarter’s level.

The firm executed agreements to divest substantially all of its NGL business for total cash consideration of approximately $3.75 billion ($5.15 billion CAD), with expected closing in the first quarter of 2026, pending regulatory approval.

PAA’s Segmental Performance

The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $580 million, up 0.7% from the year-ago quarter’s figure. This increase was due to higher tariff volumes on its pipelines, tariff escalations and contributions from recently completed bolt-on acquisitions, largely offset by fewer market opportunities and lower commodity prices.

Adjusted EBITDA from NGL Discontinued Operations was $97 million, down 7.6% from the prior-year period’s figure. This decrease was due to lower iso-to-normal butane spread benefits in the second quarter of 2025.

PAA’s Financial Update

As of June 30, 2025, cash and cash equivalents totaled $459 million compared with $348 million as of Dec. 31, 2024.

As of June 30, 2025, long-term debt was $8.21 billion compared with $7.21 billion as of Dec. 31, 2024.

As of June 30, 2025, long-term debt-to-total book capitalization was 46% compared with 42% as of Dec. 31, 2024.

PAA’s 2025 Guidance

For 2025, Plains All American expects adjusted EBITDA to be in the range of $2.80-$2.95 billion. Adjusted free cash flow is anticipated to be 870 million (excluding changes in assets and liabilities).

PAA remains focused on disciplined capital investments, anticipating full-year 2025 growth capital and maintenance capital of $475 million and $230 million, respectively.

PAA’s Zacks Rank

The company currently has a Zacks Rank #4 (Sell). 

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

Clearway Energy Inc. CWEN recorded second-quarter 2025 earnings of 28 cents per share, which lagged the Zacks Consensus Estimate of 67 cents by 58.2%.

CWEN’s long-term (three to five years) earnings growth rate is 38.65%. The Zacks Consensus Estimate for 2025 sales is pinned at $1.45 billion, implying a year-over-year increase of 5.8%.

CNX Resources Corporation CNX reported second-quarter 2025 operating earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 51.3%.

CNX’s long-term earnings growth rate is 53.04%. The Zacks Consensus Estimate for 2025 sales is pinned at $1.91 billion, implying a year-over-year increase of 30.2%.

ONEOK Inc. OKE reported second-quarter 2025 operating earnings of $1.34 per share, in line with the Zacks Consensus Estimate.

OKE’s long-term earnings growth rate is 7.68%. The Zacks Consensus Estimate for 2025 sales is pinned at $34.86 billion, implying a year-over-year increase of 60.6%.

 

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This article originally published on Zacks Investment Research (zacks.com).

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