PAA Stock Fair Value – PLAINS ALL AMERICAN PIPELINE Reports FY2022 Q4 Earnings with Total Revenue Down 41.6%, Net Income Unchanged.

Earnings report

PAA Stock Fair Value – PLAINS ALL AMERICAN PIPELINE ($NASDAQ:PAA) reported their fiscal year 2022 fourth quarter earnings on February 8, 2023. The company, which is one of the leading transportation and storage of crude oil and natural gas in the United States and Canada, reported total revenue of USD 263.0 million, a decrease of 41.6% from the same period in the previous year. Despite the decrease in total revenue, net income was reported at USD 12952.0 million, unchanged from the same period in the prior year. PLAINS ALL AMERICAN PIPELINE is an integrated midstream energy company that primarily engages in the transportation, storage and marketing of crude oil and natural gas for a wide range of customers. It also offers product exchange services, crude oil and condensate marketing, and other related services.

However, the drop in total revenue may put pressure on the stock in the near term. Despite the drop in revenue, investors have remained bullish on the company due to its strong financials, ample liquidity and its commitment to providing shareholders with continual value creation. Overall, PLAINS ALL AMERICAN PIPELINE reported mixed results for FY2022 Q4, with total revenue decreasing while net income remaining unchanged from the previous year. Investors will be keeping a close eye on the company’s performance in the upcoming quarters to see if it can make up for the shortfall in total revenue and increase its profits in the coming years.

Price History

PLAINS ALL AMERICAN PIPELINE reported its FY2022 Q4 earnings on Wednesday. The stock opened at $12.6 and closed at $12.7, up 1.0% from its prior closing price of $12.6. Despite the decrease in total revenue, net income remained unchanged from the same period last year. This increase was primarily driven by higher operating costs, including personnel and maintenance expenses.

Overall, PLAINS ALL AMERICAN PIPELINE reported a decrease in total revenue and operating expenses for FY2022 Q4, but net income remained unchanged from the same period last year. Despite the decrease in total revenue, the company’s stock was up 1.0% from its prior closing price. With the decrease in capital expenditures and operating expenses, PLAINS ALL AMERICAN PIPELINE remains in a strong financial position for the remainder of FY2022. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for PAA. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for PAA. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for PAA. More…

Key Ratios Snapshot

Some of the financial key ratios for PAA are shown below. More…

Analysis – PAA Stock Fair Value

GoodWhale has conducted an analysis of PLAINS ALL AMERICAN PIPELINE’s financials and concluded that its intrinsic value is around $15.8. This value was determined using the company’s proprietary Valuation Line, which considers various factors such as the company’s current performance, balance sheet and market conditions. The current stock price of PLAINS ALL AMERICAN PIPELINE is $12.7, indicating that the stock is undervalued by 19.7%. This could be a good opportunity for investors looking for a bargain as the intrinsic value suggests that the stock is worth more than its current price. Investors should take into account both the intrinsic value of PLAINS ALL AMERICAN PIPELINE and its current stock price when making investment decisions. The difference between the two offers insight into the potential return on investment that could be gained in the future. Taking into account both the intrinsic value and current stock price can help investors make educated decisions about investing in PLAINS ALL AMERICAN PIPELINE. More…

Peers

Plains All American Pipeline LP, Plains GP Holdings LP, MPLX LP, and Valero Energy Corp are all leading companies in the oil and gas industry. They are all engaged in the transportation, storage, and marketing of crude oil and refined petroleum products. These companies have a significant impact on the global energy market.

– Plains GP Holdings LP ($NASDAQ:PAGP)

Plains GP Holdings LP is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for the crude oil, natural gas, and natural gas liquids industries in the United States and Canada. The company’s market cap is $2.37B as of 2022 and its ROE is 79.65%. The company is headquartered in Houston, Texas.

– MPLX LP ($NYSE:MPLX)

MPLX LP is a publicly traded master limited partnership that owns and operates a diversified portfolio of midstream energy assets. The company’s assets include crude oil and refined products pipelines, storage facilities, and terminals. MPLX LP is headquartered in Findlay, Ohio.

MPLX LP has a market cap of $32.72 billion as of 2022. The company has a return on equity of 20.4%. MPLX LP’s assets include crude oil and refined products pipelines, storage facilities, and terminals. The company is headquartered in Findlay, Ohio.

– Valero Energy Corp ($NYSE:VLO)

Valero Energy Corp is a publicly traded company with a market capitalization of $49.03 billion as of 2022. The company is engaged in the business of refining and marketing petroleum products and related services. Valero Energy Corp has a return on equity of 30.7%.

Summary

Investors have been closely monitoring the financial performance of Plains All American Pipeline (PAA) in the fourth quarter of FY2022. Total revenue for the quarter came in at USD 263 million, representing a 41.6% decrease from the same period in the prior year. Despite the significant drop in revenue, PAA managed to maintain its net income of USD 12952 million, demonstrating resilience in face of challenging market conditions. Taking into account these results, investors should take a closer look at PAA’s financial performance when considering investing in the company. On the other hand, PAA’s debt ratio is higher than the industry average, indicating that the company is highly leveraged and is carrying a significant amount of debt.

Investors should also consider PAA’s operational efficiency and competitive positioning compared to other players in the energy sector. Lastly, investors should analyze PAA’s dividend payout to assess whether or not it has enough cash flow to sustain dividend payments over time. Overall, investors should consider these factors when investing in PAA.