Plains All American Pipeline L.P. shares rose to a 52-week high of $25.04 on Monday, extending a strong run that has lifted the stock 51% over the past 12 months.
The pipeline operator’s adjusted earnings for the second quarter came in at $0.41 per unit, beating Wall Street’s forecast of $0.39. Revenue totaled $17.69 billion, a 39% increase over analyst projections of $12.75 billion. The company’s crude oil segment generated adjusted EBITDA of $690 million, up more than $100 million from the first quarter, while overall partnership EBITDA reached $738 million.
Plains All American raised its full-year adjusted EBITDA target to a range of $2.88 billion, plus or minus $75 million, and lifted its growth capital budget to between $400 million and $450 million, up from the prior $350 million. The company now expects full-year free cash flow of approximately $1.75 billion and maintains a leverage ratio of 3.3 times.
The stock’s recent performance has drawn attention from platforms such as InvestingPro, which flagged the shares as undervalued and cited potential upside. Plains All American’s dividend yield stands at 6.8%, providing additional appeal to income-focused investors.
Despite the strong operational results, the company adopted a cautious stance on longer-term guidance, reflecting broader macroeconomic uncertainties in the energy sector.
