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Why Is Plains All American (PAA) Up 5.4% Since Last Earnings Report?
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It has been about a month since the last earnings report for Plains All American Pipeline (PAA - Free Report) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Plains All American due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Plains All American Q2 Earnings & Revenues Top Estimates
Plains All American reported second-quarter 2022 adjusted earnings of 30 cents per unit, which surpassed the Zacks Consensus Estimate of 25 cents by 20%. The bottom line improved 30.4% from the year-ago figure.
For the quarter under review, the partnership reported GAAP earnings of 22 cents per unit against a loss of 37 cents in the year-ago period.
Total Revenues
Total revenues of $16,359 million surpassed the Zacks Consensus Estimate of $13,554 million by 20.7%. The top line improved 64.8% from $9,930 million reported a year ago. The strong performance of its Crude Oil and Natural Gas Liquids (“NGL”) segment boosted the top line.
Highlights of the Release
For the quarter under review, Plains All American’s total costs and expenses were $15,948 million, up 56.9% year over year. The increase was primarily due to higher purchases and related costs.
Total adjusted EBITDA for the quarter was $704 million, up 22% from the year-ago period.
In the quarter, Crude Oil volume was 7,417 thousand barrels per day (Mbls/d) and NGL sales volume was 101 Mbls/d.
Net interest expenses were $99 million, down 7.5% from the year-ago quarter.
The firm reduced its long-term debt level by $412 million in the first half of 2022, which will lower capital servicing costs.
Segmental Performance
The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $494 million compared with $553 million in the year-ago quarter. The NGL Segment’s adjusted EBITDA was $120 million compared with $21 million in the year-ago quarter.
Financial Update
As of Jun 30, 2022, current assets were $6,661 million compared with $6,137 million as of Dec 31, 2021.
As of Jun 30, 2022, Plains All American had long-term debt of $7,986 million compared with $8,398 million as of Dec 31, 2021. The free cash flow was $688 million compared with $60 million in the year-ago period.
As of the same date, its long-term debt-to-total book capitalization was 45%, down from 46% as of Dec 31, 2021.
Guidance
Plains All American expects an adjusted EBITDA of $2,375 million for 2022, up from the previously mentioned $2,275 million. The free cash flow for 2022 is expected to be $1,400 million, up from the prior stated $1,250 million.
Plains All American expects Crude pipeline volumes to average 7410 Mbls/d (up from the previously stated 7,330 Mbls/d) and NGL sales volume to be 140 Mbls/d for 2022. The firm plans to invest $550 million in 2022 to strengthen operations.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Plains All American has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Plains All American has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Plains All American belongs to the Zacks Oil and Gas - Production Pipeline - MLB industry. Another stock from the same industry, Crestwood Equity Partners LP , has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Crestwood Equity Partners LP reported revenues of $1.45 billion in the last reported quarter, representing a year-over-year change of +55.8%. EPS of $0.14 for the same period compares with -$0.49 a year ago.
Crestwood Equity Partners LP is expected to post earnings of $0.42 per share for the current quarter, representing a year-over-year change of +244.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.6%.
Crestwood Equity Partners LP has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Why Is Plains All American (PAA) Up 5.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Plains All American Pipeline (PAA - Free Report) . Shares have added about 5.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Plains All American due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Plains All American Q2 Earnings & Revenues Top Estimates
Plains All American reported second-quarter 2022 adjusted earnings of 30 cents per unit, which surpassed the Zacks Consensus Estimate of 25 cents by 20%. The bottom line improved 30.4% from the year-ago figure.
For the quarter under review, the partnership reported GAAP earnings of 22 cents per unit against a loss of 37 cents in the year-ago period.
Total Revenues
Total revenues of $16,359 million surpassed the Zacks Consensus Estimate of $13,554 million by 20.7%. The top line improved 64.8% from $9,930 million reported a year ago. The strong performance of its Crude Oil and Natural Gas Liquids (“NGL”) segment boosted the top line.
Highlights of the Release
For the quarter under review, Plains All American’s total costs and expenses were $15,948 million, up 56.9% year over year. The increase was primarily due to higher purchases and related costs.
Total adjusted EBITDA for the quarter was $704 million, up 22% from the year-ago period.
In the quarter, Crude Oil volume was 7,417 thousand barrels per day (Mbls/d) and NGL sales volume was 101 Mbls/d.
Net interest expenses were $99 million, down 7.5% from the year-ago quarter.
The firm reduced its long-term debt level by $412 million in the first half of 2022, which will lower capital servicing costs.
Segmental Performance
The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $494 million compared with $553 million in the year-ago quarter. The NGL Segment’s adjusted EBITDA was $120 million compared with $21 million in the year-ago quarter.
Financial Update
As of Jun 30, 2022, current assets were $6,661 million compared with $6,137 million as of Dec 31, 2021.
As of Jun 30, 2022, Plains All American had long-term debt of $7,986 million compared with $8,398 million as of Dec 31, 2021. The free cash flow was $688 million compared with $60 million in the year-ago period.
As of the same date, its long-term debt-to-total book capitalization was 45%, down from 46% as of Dec 31, 2021.
Guidance
Plains All American expects an adjusted EBITDA of $2,375 million for 2022, up from the previously mentioned $2,275 million. The free cash flow for 2022 is expected to be $1,400 million, up from the prior stated $1,250 million.
Plains All American expects Crude pipeline volumes to average 7410 Mbls/d (up from the previously stated 7,330 Mbls/d) and NGL sales volume to be 140 Mbls/d for 2022. The firm plans to invest $550 million in 2022 to strengthen operations.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Plains All American has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Plains All American has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Plains All American belongs to the Zacks Oil and Gas - Production Pipeline - MLB industry. Another stock from the same industry, Crestwood Equity Partners LP , has gained 4.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2022.
Crestwood Equity Partners LP reported revenues of $1.45 billion in the last reported quarter, representing a year-over-year change of +55.8%. EPS of $0.14 for the same period compares with -$0.49 a year ago.
Crestwood Equity Partners LP is expected to post earnings of $0.42 per share for the current quarter, representing a year-over-year change of +244.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.6%.
Crestwood Equity Partners LP has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.