Plains All American Q1 Earnings Miss Estimates, Sales Increase Y/Y

Plains All American Pipeline, L.P. PAA reported first-quarter 2025 adjusted earnings of 39 cents per unit, which lagged the Zacks Consensus Estimate of 45 cents by 13.3%. In the year-ago quarter, the firm reported earnings of 41 cents per unit. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The company reported GAAP earnings of 49 cents per unit compared with 29 cents in the year-ago period.

PAA’s Total Revenues

Net sales of $12.01 billion missed the Zacks Consensus Estimate of $13.1 billion by 8.4%. However, the top line increased 0.1% from the year-ago quarter’s figure of $12 billion.

Highlights of PAA’s Earnings Release

Total costs and expenses amounted to $11.5 billion, down 1.3% year over year. The decrease was due to increased purchases and related costs.

Net interest expenses totaled $127 million, up 33.7% from the prior-year quarter’s level.

PAA’s Segmental Performance

The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $559 million, up 1% from the year-ago quarter’s figure. This increase was due to higher tariff volumes on pipelines, tariff escalations and contributions from recently completed bolt-on acquisitions, largely offset by higher operating expenses and the impact on its assets from refinery downtime.

Adjusted EBITDA for the NGL segment was $189 million, up 19% from the prior-year period’s figure. This increase was due to higher weighted average frac spreads and NGL sales volumes in the first quarter of 2025.

PAA’s Financial Update

As of March 31, 2025, cash and cash equivalents were $427 million compared with $348 million as of Dec. 31, 2024.

As of March 31, 2025, long-term debt was $8.2 billion compared with $7.21 billion as of Dec. 31, 2024.

As of March 31, 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 $1.095 billion (excluding changes in assets and liabilities).

PAA remains focused on disciplined capital investments, anticipating full-year 2025 growth capital and maintenance capital of $400 million and $240 million, respectively.

PAA’s Zacks Rank

The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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

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