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Plains All American (PAA) to Post Q4 Earnings: What's in Store?

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Plains All American Pipeline L.P (PAA - Free Report) is scheduled to release fourth-quarter 2023 earnings on Feb 9 before market open. The firm delivered a positive earnings surprise of 45.83% in the last quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors at Play

PAA’s fourth-quarter earnings are expected to have benefited from contributions coming from the acquired assets of Rattler Midstream's Southern Delaware Basin crude gathering system and LM Energy’s Touchdown crude gathering system. The expected improvement in oil tariff volumes is likely to have boosted earnings.

A reduction in debt levels is also going to reduce interest expenses and is likely to have boosted margins in the fourth quarter.

Expectations

The Zacks Consensus Estimate for PAA’s earnings is pegged at 37 cents per unit, implying a year-over-year increase of 12.12%. The same for sales stands at $18.41 billion, calling for a year-over-year improvement of 42.13%.

The Zacks Consensus Estimate for fourth-quarter pipeline tariff volumes is pegged at 8,279 thousand barrels per day, up 33.6% year over year.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for PAA this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.

Earnings ESP: Plains All American Pipeline has an Earnings ESP of +6.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, PAA carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors can consider the following players from the same sector that also have the right combination of elements to beat on earnings in the upcoming releases.

Energy Transfer (ET - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter earnings on Feb 14 after market close. It has an Earnings ESP of +0.69% and a Zacks Rank of 1 at present.

ONEOK (OKE - Free Report) is likely to pull off an earnings beat when it reports fourth-quarter 2023 earnings on Feb 26 after market close. It currently has an Earnings ESP of +1.63% and a Zacks Rank of 3.

Atlas Energy Solutions Inc. (AESI - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter 2023 earnings on Feb 27 before market open. It has an Earnings ESP of +2.48% and carries a Zacks Rank of 3 at present.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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