Pipeline Powerhouse Plains All American Beats On Earnings with Flat EBITDA: Details
Portfolio Pulse from Lekha Gupta
Plains All American Pipeline, L.P. (NASDAQ:PAA) reported Q3 earnings with revenue of $11.995 billion, missing expectations but with flat Y/Y adjusted EBITDA at $718 million. The Crude Oil Segment saw a 7% increase in adjusted EBITDA, while the NGL Segment experienced a 17% decrease. Adjusted earnings per unit were $0.41, beating consensus. The company announced a 19% increase in annualized common distribution to $1.27 per unit and expects flat adjusted EBITDA in 2026 for the Crude Oil segment. PAA shares rose 1.68% to $17.52. Exposure to PAA can also be gained through InfraCap MLP ETF (NYSE:AMZA) and Alerian MLP ETF (NYSE:AMLP).
May 03, 2024 | 3:07 pm
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POSITIVE IMPACT
Alerian MLP ETF (AMLP) provides exposure to PAA, which has reported a stable EBITDA and increased its distribution, indicating a positive outlook.
Given AMLP's exposure to PAA, the ETF stands to gain from PAA's positive earnings announcement and distribution increase, potentially attracting more investors.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
InfraCap MLP ETF (AMZA) offers exposure to PAA, which reported mixed Q3 earnings but showed resilience with stable EBITDA and a distribution increase.
As an ETF that includes PAA, AMZA may see a positive impact due to PAA's overall positive earnings report and its ability to maintain stable financial performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Plains All American Pipeline reported mixed Q3 earnings with a revenue miss but stable EBITDA and a beat on adjusted earnings per unit. The company also increased its distribution by 19%.
Despite missing revenue expectations, PAA's stable EBITDA, earnings beat, and significant distribution increase positively impact investor sentiment, leading to a short-term stock price increase.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100