Plains All American (PAA) Q1 Earnings & Revenues Top Mark

Plains All American Pipeline, L.P. PAA reported first-quarter 2021 adjusted earnings of 25 cents per unit, which surpassed the Zacks Consensus Estimate by a penny. However, the bottom line declined 54.5% from the year-ago figure.

For the quarter under review, the partnership reported GAAP earnings of 51 cents per unit against a loss of $3.98 in the year-ago period.

Total Revenues

Total revenues of $8.38 billion surpassed the Zacks Consensus Estimate of $7.3 billion by 14.8%. Further, the top line improved 1.4% from $8.27 billion reported a year ago.

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 $7,857 million, down 28.8% year over year. This reduction was owing to lower field operating costs, and general and administrative expenses. The firm’s operating income was $526 million against operating loss of $2,773 million in the prior-year quarter.

Total adjusted EBTIDA for the quarter was $546 million, down 31% from the year-ago period.

Net interest expenses decreased 0.9% year over year to $107 million.

Segmental Performance

In the Transportation segment, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $388 million decreased 12% from the year-ago figure, primarily due to lower tariff volumes in multiple areas served, primarily driven by the impact of excess pipeline capacity in most regions of the country.

In the Facilities segment, adjusted EBITDA summed $171 million, down 19% from the year-ago figure. This fall was primarily due to the impact of asset sales and reduced NGL intersegment fee structure based on market conditions.

The Supply and Logistics segment reported adjusted EBITDA of ($13) million against $141 million in first-quarter 2020.

Financial Update

As of Mar 31, 2021, current assets were $4,424 million compared with $3,665 million at 2020-end.

As of Mar 31, 2021, Plains All American had a long-term debt of $9,338 million compared with $9,382 million on Dec 31, 2020.

As of the same date, its long-term debt-to-total book capitalization was 48%, down from 49% at 2020-end.

Guidance

Plains All American expects 2021 adjusted net income to be 98 cents per unit. The partnership retained 2021 adjusted EBITDA expectation of $2,150 million.

Plains All American lowered its 2021 investment and maintenance capital guidance by $65 million, or 10%. The firm is on track to achieve its asset divestiture target of $750 million.

Zacks Rank

Plains All American currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Devon Energy Corp. DVN reported first-quarter 2021 adjusted earnings of 45 cents, beating the Zacks Consensus Estimate of 35 cents per share by 28.6%.

Matador Resources Company MTDR reported first-quarter 2021 adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 39 cents by 82.1%.

Hess Corporation HES reported first-quarter 2021 adjusted earnings per share of 82 cents, beating the Zacks Consensus Estimate of 44 cents by 86.4%.

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