Plains All American Pipeline Reaps $227 Million Profit in Q2
August 12, 2023
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Plains All American ($NASDAQ:PAA) Pipeline L.P. (PLAINS) is a leading North American midstream energy infrastructure company. On Friday, the company reported a second-quarter profit of $227 million. The second-quarter profit was driven by higher crude oil transportation, natural gas liquids transportation and storage, and refined products transportation volumes. The results were also boosted by more favorable market conditions, which enabled the company to reduce its expenses.
The company’s liquidity position remains strong, with over $3 billion of cash and unused borrowing capacity at the end of the quarter. This provides a solid foundation for the company to take advantage of opportunities to grow its business in the future.
Earnings
PLAINS ALL AMERICAN PIPELINE recently announced its earnings report for the second quarter of the FY2023, ending June 30 2021. The report revealed that the total revenue of PLAINS ALL AMERICAN PIPELINE was 9930.0M USD, resulting in a net income of 220.0M USD. This is a 39.3% decrease in total revenue and a 208.4% decrease in net income compared to the same period last year. Despite this, the total revenue of PLAINS ALL AMERICAN PIPELINE has grown steadily from 9930.0M USD to 11602.0M USD in the last three years.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for PAA. More…
| Total Revenues | Net Income | Net Margin |
| 51.23k | 1.13k | 2.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for PAA. More…
| Operations | Investing | Financing |
| 2.91k | -409 | -1.84k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for PAA. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 26.9k | 13.3k | 14.86 |
Key Ratios Snapshot
Some of the financial key ratios for PAA are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 21.5% | 4.1% | 4.3% |
| FCF Margin | ROE | ROA |
| 5.2% | 13.2% | 5.1% |
Market Price
On Monday, Plains All American Pipeline (PLAINS) reported strong second quarter earnings, with $227 million in net income. The stock opened at $14.9 and closed at $15.1, up by 1.0% from the previous closing price of 14.9. These strong results are a testament to the resilience of PLAINS’ business and its ability to adjust to a fluctuating market. Live Quote…
Analysis
GoodWhale has analyzed the fundamentals of PLAINS ALL AMERICAN PIPELINE, with our Star Chart model. Our analysis shows that PLAINS ALL AMERICAN PIPELINE is strong in dividend and medium in asset, growth, and profitability. In addition, PLAINS ALL AMERICAN PIPELINE is classified as a ‘rhino’, a type of company we have determined to have achieved moderate revenue or earnings growth. This type of company may be of interest to investors looking for dividend yields with only moderate growth. PLAINS ALL AMERICAN PIPELINE has a high health score of 9/10 with regard to its cashflows and debt, making it capable to sustain future operations should a crisis arise. More…
Peers
Plains All American Pipeline LP, Plains GP Holdings LP, MPLX LP, and Valero Energy Corp are all leading companies in the oil and gas industry. They are all engaged in the transportation, storage, and marketing of crude oil and refined petroleum products. These companies have a significant impact on the global energy market.
– Plains GP Holdings LP ($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
This impressive performance was largely attributed to increased production volumes in the Permian Basin, as well as higher realized margins from crude oil and natural gas liquids. The company also benefited from a drop in certain transportation and operating costs. These strong results demonstrate the company’s ability to generate consistent returns and cash flows in a volatile energy market, making it an attractive investment opportunity for investors looking to gain exposure to the energy sector.
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