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Plains All American (PAA) Q1 Earnings Top Estimates, Sales Lag

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Plains All American Pipeline, L.P. (PAA - Free Report) reported first-quarter 2024 adjusted earnings of 41 cents per unit, which surpassed the Zacks Consensus Estimate of 39 cents by 5.1%. The bottom line remained flat year over year.

The company reported GAAP earnings of 29 cents per unit compared with 52 cents in the year-ago period.

Total Revenues

Net sales of $12 billion missed the Zacks Consensus Estimate of $13.2 billion by 8.8%. The top line also declined 2.8% from the year-ago quarter’s figure of $12.3 billion.

 

Highlights of the Release

Total costs and expenses amounted to $11.6 billion, down 2% year over year. The decrease was primarily due to a decline in purchases and related costs.

Net interest expenses totaled $95 million, down 3.1% from the prior-year quarter’s level.

Segmental Performance

The Crude Oil segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $553 million, up 7% from the year-ago quarter’s figure. This increase was due to higher tariff volumes on its pipelines, tariff escalations and contributions from acquisitions.

Adjusted EBITDA for the NGL segment came in at $159 million, down 17% from the prior-year period’s figure. The decrease was due to lower realized frac spreads.

Financial Update

As of Mar 31, 2024, cash and cash equivalents were $331 million compared with $450 million as of Dec 31, 2023.

As of Mar 31, 2024, long-term debt was $7.308 billion compared with $7.305 billion as of Dec 31, 2023.

As of Mar 31, 2024, long-term debt-to-total book capitalization was 41%, which remained unchanged from the figure recorded as of Dec 31, 2023.

Guidance

For 2024, Plains All American expects adjusted EBITDA in the range of $2.625-$2.725 billion. Adjusted free cash flow is anticipated to be $1.55 billion (excluding changes in assets and liabilities).

PAA remains focused on disciplined capital investments, anticipating full-year 2024 investment and maintenance capital of $375 million and $230 million, respectively.

Zacks Rank

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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The company delivered an average earnings surprise of 10% in the last four quarters. The Zacks Consensus Estimate for 2024 earnings is pegged at $4.68 per share.

TotalEnergies SE (TTE - Free Report) reported first-quarter 2024 operating earnings of $2.14 (€1.97) per share, which surpassed the Zacks Consensus Estimate of $1.96 by 9.2%.

TTE’s long-term (three to five years) earnings growth rate is 4.4%. The Zacks Consensus Estimate for 2024 earnings is pegged at $9.18 per share.

ONEOK, Inc. (OKE - Free Report) reported first-quarter 2024 operating earnings per share of $1.09, which missed the Zacks Consensus Estimate of $1.13 by 3.5%.

OKE’s long-term earnings growth rate is 3.3%. The Zacks Consensus Estimate for 2024 earnings is pegged at $4.98 per share.

 

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