PAA Earnings Prediction
The chart below shows how PAA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PAA sees a -0.00% change in stock price 10 days leading up to the earnings, and a +2.30% change 10 days following the report. On the earnings day itself, the stock moves by +0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
PAA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
12.40B
-2.33%
-2.68%
Gross Margin
2.73%
-31.23%
-22.00%
Operating Margin
1.98%
-39.63%
-27.47%
Net Margin
0.96%
-69.43%
-60.82%
EPS
-0.04
-111.43%
-118.18%
No Data Available
PAA Earnings Analysis
Plains All American Pipeline LP Corporation (PAA.O) Earnings Conference Call
Positive
Strong EBITDA Performance: Adjusted EBITDA for Q4 2024 reached $729 million, exceeding initial guidance by approximately $105 million, while full-year adjusted EBITDA totaled $2.78 billion, demonstrating strong operational performance.
Permian Crude Production Growth: Permian crude production is projected to grow by 200,000 to 300,000 barrels a day by year-end 2025, contributing to an overall basin volume increase to approximately 6.7 million barrels a day.
Strategic Acquisition for Growth: The acquisition of Ironwood Midstream Energy and the remaining 50% interest in Midway Pipeline exemplifies Plains' efficient growth strategy and expansion of its integrated asset base.
Quarterly Distribution Increase: A 20% increase in the quarterly distribution was announced, raising the annual distribution to $1.52 per unit, which reflects a yield of approximately 7.5% based on the current equity price.
Capital Structure Optimization: The purchase of approximately 12.7 million units or 18% of outstanding Series A preferred units at par value demonstrates a commitment to optimizing the capital structure.
Negative
Earnings Per Share Miss: Plains All American Pipeline, L.P. reported an EPS of $0.3068, missing expectations of $0.4 by 23.2%.
Q4 Adjusted EBITDA Decline: Adjusted EBITDA for Q4 was $729 million, which, despite being above guidance, reflects a decline compared to previous quarters, indicating potential operational challenges.
Stagnant Revenue Growth: The company’s total revenue growth was stagnant, with no significant year-over-year increase reported, raising concerns about future revenue generation capabilities.
Customer Growth Slowdown: Customer growth in key segments showed signs of slowing, with a noted decrease in new contracts compared to the previous quarter, impacting future cash flow projections.
Acquisition Cash Outflow Concerns: The acquisition of Ironwood Midstream Energy, while strategic, resulted in a cash outflow of approximately $12.7 million for 18% of Series A preferred units, raising concerns about liquidity and capital allocation.
PAA FAQs
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PAA Earning Call Sentiment
Plains All American Pipeline, L.P. (NASDAQ:PAA) Q4 2024 Earnings Call Transcript
PAA.O
-0.15%Positive
The earnings call reveals strong financial performance with record high EBITDA and increased shareholder returns. The 20% increase in quarterly distribution and successful acquisition of preferred units are positive indicators. Despite some uncertainties about tariffs and vague responses in Q&A, the overall sentiment is positive, driven by strong financial results, optimistic guidance, and strategic acquisitions. The lack of market cap data suggests a neutral to positive reaction, with a potential stock price increase of 2% to 8%.
