Plains All American Pipeline, L.P. (PAA) Company Bio
Plains ALL American Pipeline LP engages in the transportation, storage, terminalling, and marketing of crude oil, natural gas liquids, natural gas, and refined products in the United States and Canada. The company operates in three segments: Transportation, Facilities, and Supply and Logistics. The company was founded in 1998 and is based in Houston, Texas.
PAA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Plains All American Pipeline Lp. To summarize, we found that Plains All American Pipeline Lp ranked in the 77th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 426.33%. In terms of the factors that were most noteworthy in this DCF analysis for PAA, they are:
30% of the company's capital comes from equity, which is greater than only 13.21% of stocks in our cash flow based forecasting set.
Plains All American Pipeline Lp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -3.28. This coverage rate is greater than that of merely 14.54% of stocks we're observing for the purpose of forecasting via discounted cash flows.
As a business, Plains All American Pipeline Lp experienced a tax rate of about 0% over the past twelve months; relative to its sector (Energy), this tax rate is higher than just 0% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
REGI, FRO, HMLP, IMO, and TALO can be thought of as valuation peers to PAA, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
Inter Pipeline Ltd. has signed a deal to acquire the Milk River pipeline system from a subsidiary of Plains All American Pipeline LP, in exchange for its 100 per cent ownership interest in the Empress II and 50 per cent ownership interest in the Empress V straddle plants.
The oil pipeline industry is shifting out of a growth phase and consolidation is likely, Plains All American Pipeline ([[PAA]] -1.2%) CEO Willie Chiang told the Barclays CEO Energy-Power conference."As we go forward and times are continuing to be more challenging, I think you're going to see more [consolidation], Chiang...
The macro challenges in the quarter, an upcoming election, a strategy shift from producers, and increased discussion of renewables made for an eventful 2Q earnings season across energy. Today's note discusses some of the key takeaways from earnings season and, particularly, the implications for midstream. Results for 2Q and outlooks...
Because prices have tumbled, dividend yields have skyrocketed, enabling investors to pick up some big-time payouts at bottom-of-the-barrel valuations. Three such opportunities are master limited partnerships Plains All American Pipeline (NYSE: PAA), Crestwood Equity Partners (NYSE: CEQP), and Magellan Midstream Partners (NYSE: MMP). Units of Plains All American have cratered about 55% this year and currently trade at around $8.