10 Best Pipeline and MLP Stocks to Invest In According to Analysts

3. Plains All American Pipeline L.P. (NASDAQ:PAA)

Upside Potential According to Analysts: 12.62%

Plains All American Pipeline L.P. (NASDAQ:PAA) is a subsidiary of Plains GP Holdings, L.P. It is a key player in North American midstream energy, specializing in crude oil and NGL logistics. The company operates in two segments, namely Crude Oil and NGL.

The Crude Oil segment focuses on gathering and transporting crude via pipelines, trucks, barges, and railcars, while also providing terminaling, storage, and related services, including merchant activities. While the NGL segment handles natural gas processing, NGL fractionation, storage, transportation, and terminaling. They deal with ethane, propane, butane, and natural gasoline, essential for heating, engines, and industrial fuels.

Plains All American Pipeline L.P. (NASDAQ:PAA)’s extensive infrastructure across the US and Canada supports the efficient movement of crude oil and NGLs, serving producers and consumers. Plains All American plays a vital role in connecting energy supply with demand.

In the Q4 2024 results, Plains All American Pipeline L.P. (NASDAQ:PAA) reported revenue of $12.04 billion, missing estimates by $1.36 billion, while EPS was $0.42 and EBITDA was $729 million.

The company’s Chairman and CEO Willie Chiang was noted as saying during his closing comments:

“We remain confident as we enter 2025 with strong operational momentum and are well positioned to play offense in continuing to deliver value to our unitholders”.

He continued to reiterate on the company’s financials, stating:

“Our balance sheet strength provides significant financial capacity and flexibility. Secondly, we continue to demonstrate capital discipline and the ability to execute on our efficient growth initiatives including growing the business both organically and inorganically through accretive and synergistic bolt-on acquisitions.”

Regarding Plains All American Pipeline L.P. (NASDAQ:PAA) future plans, Executive Vice President and Chief Financial Officer, Al Swanson stated a recent change in the operating model of NGL. Notably, the company would be shifting toward a fee-based model, with roughly 45% of 2025 revenues expected to come from fee-based activities.