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Plains All American (PAA) Q2 Earnings & Revenues Top Estimates

·4 min read

Plains All American Pipeline, L.P. PAA 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.

Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise

 

Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise
Plains All American Pipeline, L.P. Price, Consensus and EPS Surprise

Plains All American Pipeline, L.P. price-consensus-eps-surprise-chart | Plains All American Pipeline, L.P. Quote

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.

Zacks Rank

Plains All American currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Enterprise Products Partners L.P.  EPD reported second-quarter 2022 adjusted earnings per limited partner unit of 64 cents, beating the Zacks Consensus Estimate of 63 cents by 1.6%.

The Zacks Consensus Estimate for Enterprise Products Partners’ earnings per unit for 2022 suggests year-over-year growth of 18.6%. The firm reported a positive surprise of 3.4% in the last four quarters, on average.

Shell Midstream Partners, L.P. SHLX reported second-quarter 2022 adjusted earnings per limited partner unit of 33 cents, down 8.3% year over year.

The Zacks Consensus Estimate for Shell Midstream Partners’ earnings per unit for 2022 and 2023 has moved up 10.9% and 2.6% year over year, respectively.

PBF Logistics LP PBFX reported second-quarter 2022 adjusted earnings per unit of 62 cents, which surpassed the Zacks Consensus Estimate of 53 cents by 16.9%.

The Zacks Consensus Estimate for PBF Logistics’ total revenues for 2022 has moved up 2.5% year over year. The firm reported a positive earnings surprise of 11.8% in the last four quarters, on average.


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