How does Plains All American's Q2 results compare to those of its main competitors in the midstream sector?
Answer Overview
Based on the information you shared, the press release only contains details about PlainsâŻAllâŻAmerican Pipeline, L.P.âs (PAA) secondâquarterâŻ2025 performance. It does not include any financial or operational results for other midâstream companies, so a direct, dataâdriven comparison cannot be made from this single source alone.
Below is a concise summary of what we know about PlainsâŻAllâŻAmericanâs Q2âŻ2025 results, followed by a practical framework you can use to compare those results with its main midâstream peers (e.g., KinderâŻMorganâŻ(KMI), WilliamsâŻ(WMB), EnterpriseâŻProductsâŻ(EPD), EnbridgeâŻ(ENB), and others). I also note the typical metrics analysts examine when benchmarking midâstream firms, so you can gather the missing competitor data and perform a thorough sideâbyâside analysis.
1. PlainsâŻAllâŻAmerican Q2âŻ2025 Highlights (as reported)
| Metric | Reported Value | Context/Notes |
|---|---|---|
| Revenue | Not disclosed in the excerpt | Usually broken out by feeâbased transportation, storage, processing, and marketing. |
| Adjusted EBITDA | Not disclosed in the excerpt | A key profitability gauge for midâstream firms; often presented as a percentage of revenue. |
| Net Income / EPS | Not disclosed in the excerpt | Indicates bottomâline performance and shareholder earnings. |
| Operating Cash Flow | Not disclosed in the excerpt | Shows cash generation from core operations. |
| Capital Expenditures (CapEx) | Not disclosed in the excerpt | Important for assessing growth investment versus cash generation. |
| Dividend Yield / Payout | Not disclosed in the excerpt | Midâstream companies are often valued on dividend sustainability. |
| Key Operational Highlights | Solid results; specific operational metrics (e.g., barrels of oil equivalent transported, storage capacity utilization) not provided. | May include pipeline throughput, new contracts, or service expansions. |
Because the full press release wasnât included, the exact numbers for the above items are not available here. If you have access to the complete earnings release (or the companyâs FormâŻ8âK/10âQ), you can pull the exact figures and plug them into the comparison table below.
2. Typical Competitors in the Midstream Space
| Company | Ticker | Primary Business Segments |
|---|---|---|
| KinderâŻMorgan | KMI | Natural gas pipelines, NGLs, crude oil pipelines, storage, terminals |
| Williams Companies | WMB | Natural gas liquids (NGL) pipelines, processing, storage, LNG export |
| Enterprise Products Partners | EPD | NGL pipelines, crude oil pipelines, LNG, petrochemical, storage |
| Enbridge | ENB | Crude oil & liquids pipelines, natural gas, renewable energy assets |
| TC Energy (formerly TransCanada) | TRP | Natural gas pipelines, liquids pipelines, power generation |
| ONEOK | OKE | NGL gathering, processing, transportation, storage |
These firms are commonly benchmarked against PlainsâŻAllâŻAmerican because they operate similar feeâbased, assetâintensive businesses and are also considered âdefensiveâ dividendâpaying stocks in the energy sector.
3. Comparative Framework (What to Look For)
| Category | What to Compare | Why It Matters |
|---|---|---|
| Revenue Growth YoY / QoQ | % change in total revenue and segment revenue (e.g., transportation, processing). | Shows demand trends for midstream services and the impact of commodity volume shifts. |
| Adjusted EBITDA Margin | Adjusted EBITDA Ă· Revenue (often expressed as a %). | Reflects operating profitability, independent of capital structure and nonârecurring items. |
| Net Income & EPS | Absolute numbers and YoY % change. | Indicates bottomâline strength and earnings per share for investors. |
| Operating Cash Flow vs. CapEx | Free cash flow = Operating cash flow â CapEx. | Determines whether the company can fund dividends, buybacks, and growth internally. |
| Dividend Yield & Payout Ratio | Dividend per share Ă· share price; payout = dividends Ă· adjusted EPS. | Midâstream investors often prioritize yield and sustainability. |
| Leverage Ratios | Net debt / Adjusted EBITDA; Debt/Equity. | Assess financial risk; midâstream firms carry substantial debt to fund asset builds. |
| Asset Utilization / Throughput | Barrels of oil equivalent (BOE) moved, storage capacity utilization, NGL processing volumes. | Directly tied to fee revenue generation. |
| Capital Expenditure Plans | Total planned CapEx for the full year; spend on new pipelines, expansions, or acquisitions. | Indicates growth trajectory and future revenue potential. |
| Guidance vs. Consensus | Managementâs Q3/FullâYear outlook compared to analyst expectations. | Signals confidence (or caution) and can drive stock price reaction. |
How to Populate the Table
Collect Data â Pull the Q2âŻ2025 earnings releases (or FormâŻ10âQ/8âK filings) for each competitor. Most companies publish a âKey Financial Metricsâ table that includes revenue, adjusted EBITDA, net income, cash flow, dividend, and CapEx.
Standardize Units â Ensure all numbers are expressed in the same currency (USD) and timeframe (quarterly). Adjust for any seasonality if you want a YoY comparison.
Calculate Ratios â Use the raw numbers to compute the margins, free cash flow, leverage, and payout ratios listed above.
Benchmark â Place PlainsâŻAllâŻAmericanâs metrics sideâbyâside with each peer. Highlight where PAA outperforms (e.g., higher EBITDA margin) or lags (e.g., higher leverage).
Interpret â Provide a narrative:
âPlains All American posted an adjusted EBITDA margin of 42%, versus 38% for Kinder Morgan and 45% for Williams, indicating stronger operational profitability. However, its net debtâtoâEBITDA ratio of 3.1x is higher than the sector average of 2.5x, suggesting greater leverage risk.â
4. Suggested Next Steps for a Full Comparison
Obtain Full Q2âŻ2025 Results for PAA â Download the complete press release or the FormâŻ8âK filed on AugustâŻ8,âŻ2025. Note the exact figures for revenue, EBITDA, net income, cash flow, CapEx, and dividends.
Gather Peer Data â For the same quarter (Q2âŻ2025, ending JuneâŻ30,âŻ2025), collect the earnings releases of the competitors listed above. Most are available on their investorârelations websites or via SEC filings.
Create a Comparison Spreadsheet â Input the data, compute the ratios, and use conditional formatting to flag bestâinâclass and underâperforming metrics.
Contextualize with Market Trends â Consider macro factors that affect all midâstream firms (e.g., oilâprice volatility, naturalâgas price spreads, regulatory changes, pipeline permitting environment).
Draft a Narrative Summary â Summarize where Plains All American stands relative to peers, highlighting any competitive advantages (e.g., higher feeâbased revenue mix, superior dividend yield) or concerns (e.g., higher leverage, slower capex growth).
5. Bottom Line (Based on Available Information)
- What We Know: PlainsâŻAllâŻAmerican reported âsolidâ Q2âŻ2025 results, but the excerpt does not include the quantitative metrics needed for a precise comparison.
- What We Donât Know: Specific revenue, EBITDA, cash flow, dividend, and leverage numbers for both Plains and its competitors.
- Action Required: Retrieve the full earnings data for PAA and its peers, then apply the comparative framework above to evaluate how PAAâs performance stacks up against the broader midâstream sector.
If you can provide the missing numerical data (or point me to the full earnings releases), I can instantly generate a detailed sideâbyâside comparison with actual percentages and figures.