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What's in Store for Plains All American's (PAA) Q2 Earnings?

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Plains All American Pipeline, L.P. (PAA - Free Report) is set to report second-quarter 2022 results on Aug 3, after market close. The firm owns and operates midstream energy infrastructure, and provides logistics services for crude oil and natural gas liquids.

The company reported a negative earnings surprise of 16.2% in the last quarter.

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

Factors at Play

Plains All American’s second-quarter earnings are likely to have gained from strong production in the Permian region, which resulted in increasing volumes in its Permian JV and long-haul systems. The firm’s earnings are also expected to have benefitted from a favorable commodity price environment.

The firm repaid outstanding debts, which strengthened its balance sheet and lowered capital serving costs in the second quarter, boosting its margin. Lower outstanding units due to repurchase are also likely to have had a positive impact on second-quarter earnings.

Expectation

The Zacks Consensus Estimate for second-quarter 2022 earnings per unit is pegged at 24 cents, which indicates an increase of 4.4% from the year-ago reported figure.

The Zacks Consensus Estimate for second-quarter 2022 total revenues is pegged at $13.45 billion, which implies an increase of 35.4% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model conclusively predicts an earnings beat for Plains All American this time around. 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. That is the case here, as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The firm’s Earnings ESP is +4.51%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Plains All American currently carries a Zacks Rank #2.

Other Stocks to Consider

Investors can consider a few other players from the same sector that also have the right combination of elements to post an earnings beat for the to-be-reported quarter.

DT Midstream, Inc. (DTM - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 3, before market open. DT Midstream has an Earnings ESP of +1.32% and sports a Zacks Rank #1 at present.

The Zacks Consensus Estimate for DTM’s 2022 earnings per share suggests a year-over-year rise of 14.87%.

Occidental Petroleum (OXY - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 2, after market open. OXY has an Earnings ESP of +1.78% and a Zacks Rank #2 at present.

Occidental Petroleum’s long-term (three to five years) earnings growth is pegged at 12.36%. The Zacks Consensus Estimate for OXY’s 2022 earnings per share suggests a year-over-year rise of 309.4%.

Delek US Holdings, Inc. (DK - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 4, before market open. Delek US Holdings has an Earnings ESP of +4.07% and sports a Zacks Rank #1 at present.

Delek US Holdings’ long-term (three to five years) earnings growth is pegged at 16.96%. The Zacks Consensus Estimate for DK’s 2022 earnings per share suggests a year-over-year rise of 353.5%.

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

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