Plains All-American Pipeline LP (PAA & PAGP) - Aug 8

[dan_s]

Note below is from Mizuho Securities this morning (8/8)
Their price target for PAA is $15.00

Last week, PAA reported stronger than expected 2Q22 results (adj EBITDA
of $615mn vs. Mizuho/Street est. $540mn), boosting adj. EBITDA guidance
to $2,375mn (+$100mn). Commodity price strength and strong spread
opportunities in both ‘Crude Oil’ and ‘NGL’ once again featured prominently
in the ‘beat and raise,’ but management highlighted Permian volume growth
has begun to materialize in the former. In ‘NGL,’ management opined on
the low-hanging opportunity set in and around Empress. PAA repurchased
another ~$50mn of equity in 2Q22 and lowered its YE22 leverage guidance to
~4.0x (-0.25x). With leverage in check, more comprehensive capital allocation
guidance could come as soon as 3Q22. We raise our PT to $15 (+$1) on higher
estimates.

PAA and PAGP pay the same dividend
PAA is an MLP
PAGP is a C-Corp