IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
Relative valuation derived from Industrials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
11.1%
Sector: 8.9%
Dividend Analysis audit
HIGH RISK
8.17%
Trailing Yield
$8.17
Per $100 Invested
High yield may not be sustainable given weak profitability.
Est. Payout Ratio
25%SAFE
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, PLAINS GP HOLDINGS LP (PAGP) receives a "Buy" rating with a composite score of 53.6/100, ranked #94 out of 4446 stocks. Key factor scores: Quality 50/100, Value 80/100, Momentum 55/100. This is quantitative analysis only — not investment advice.
PLAINS GP HOLDINGS LP (PAGP) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does PLAINS GP HOLDINGS LP Do?
Plains GP Holdings, L.P., together with its subsidiaries, owns and operates midstream energy infrastructure in the United States and Canada. The company operates in two segments, Crude Oil and Natural Gas Liquids (NGLs). The company engages in the transportation of crude oil and NGLs on pipelines, gathering systems, and trucks. As of December 31, 2021, this segment owned and leased assets comprising 18,300 miles of crude oil and NGL pipelines and gathering systems; 38 million barrels of above-ground tank capacity; and 1,275 trailers. It engages in the provision of storage, terminalling, and throughput services primarily for crude oil, NGLs, and natural gas; NGL fractionation and isomerization services; and natural gas and condensate processing services. As of December 31, 2021, this segment owned and operated approximately 74 million barrels of crude oil storage capacity; 28 million barrels of NGL storage capacity; four natural gas processing plants; a condensate processing facility; nine fractionation plants; 16 NGL rail terminals; four marine facilities; and 110 miles of pipelines. As of December 31, 2021, this segment owned 15 million barrels of crude oil and 2 NGL linefill; 3 million barrels of crude oil and 1 NGL linefill in pipelines owned by third parties and other inventory; 640 trucks and 1,275 trailers; and 3,900 NGL railcars. The company offers logistics services to producers, refiners, and other customers. PAA GP Holdings LLC operates as a general partner of the company. Plains GP Holdings, L.P. was incorporated in 2013 and is headquartered in Houston, Texas. PLAINS GP HOLDINGS LP (PAGP) is classified as a mid-cap stock in the Industrials sector, specifically within the Transportation industry. The company is led by CEO Willie C. W. Chiang and employs approximately 4,100 people, headquartered in HOUSTON, Texas. With a market capitalization of $4.7B, PAGP is one of the notable companies in the Industrials sector.
As of April 2026, PLAINS GP HOLDINGS LP receives a Buy rating with a composite score of 53.6/100 and 4 out of 5 stars from the Blank Capital Research quantitative model.PAGP ranks #94 out of 4,446 stocks in our coverage universe. Within the Industrials sector, PLAINS GP HOLDINGS LP ranks #14 of 752 stocks, placing it in the top 10% of its Industrials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
PAGP Stock Price and 52-Week Range
PLAINS GP HOLDINGS LP (PAGP) currently trades at $23.58. The stock lost $0.03 (0.1%) in the most recent trading session. The 52-week high for PAGP is $24.00, which means the stock is currently trading -1.8% from its annual peak. The 52-week low is $16.61, putting the stock 42.0% above its annual trough. Recent trading volume was 938K shares, suggesting relatively thin trading activity.
Is PAGP Overvalued or Undervalued? — Valuation Analysis
PLAINS GP HOLDINGS LP (PAGP) carries a value factor score of 80/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 3.03x, compared to the Industrials sector average of 28.33x — a discount of 89%. The price-to-book ratio stands at 0.34x, versus the sector average of 2.23x. The price-to-sales ratio is 0.10x, compared to 0.50x for the average Industrials stock. On an enterprise value basis, PAGP trades at 4.14x EV/EBITDA, versus 5.70x for the sector.
Based on these multiples, PLAINS GP HOLDINGS LP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
PLAINS GP HOLDINGS LP Profitability — ROE, Margins, and Quality Score
PLAINS GP HOLDINGS LP (PAGP) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.1%, compared to the Industrials sector average of 8.9%, which is within a healthy range. Return on assets (ROA) comes in at 5.1% versus the sector average of 3.3%.
On a margin basis, PLAINS GP HOLDINGS LP reports gross margins of 9.3%, compared to 35.8% for the sector. The operating margin is 3.0% (sector: 6.2%). Net profit margin stands at 3.4%, versus 3.9% for the average Industrials stock. Revenue growth is running at -10.5% on a trailing basis, compared to 6.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
PAGP Debt, Balance Sheet, and Financial Health
PLAINS GP HOLDINGS LP has a debt-to-equity ratio of 8.0%, compared to the Industrials sector average of 70.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 0.96x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $1.10B. Cash and equivalents stand at $1.18B.
PAGP has a beta of 0.53, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for PLAINS GP HOLDINGS LP is 85/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
PLAINS GP HOLDINGS LP Revenue and Earnings History — Quarterly Trend
In TTM 2026, PLAINS GP HOLDINGS LP reported revenue of $46.44B. Net income for the quarter was $1.58B. Gross margin was 9.3%. Operating income came in at $1.42B.
In FY 2025, PLAINS GP HOLDINGS LP reported revenue of $44.26B. Net income for the quarter was $1.69B. Gross margin was 8.6%. Revenue grew -11.6% year-over-year compared to FY 2024. Operating income came in at $1.43B.
In Q3 2025, PLAINS GP HOLDINGS LP reported revenue of $11.58B. Net income for the quarter was $504M. Gross margin was 8.6%. Revenue grew -9.1% year-over-year compared to Q3 2024. Operating income came in at $483M.
In Q2 2025, PLAINS GP HOLDINGS LP reported revenue of $10.64B. Net income for the quarter was $283M. Gross margin was 8.3%. Revenue grew -17.7% year-over-year compared to Q2 2024. Operating income came in at $237M.
Over the past 8 quarters, PLAINS GP HOLDINGS LP has demonstrated a growth trajectory, with revenue expanding from $12.93B to $46.44B. Investors analyzing PAGP stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
PAGP Dividend Yield and Income Analysis
PLAINS GP HOLDINGS LP (PAGP) currently pays a dividend yield of 8.2%. At this yield, a $10,000 investment in PAGP stock would generate approximately $$817.00 in annual dividend income.
PAGP Momentum and Technical Analysis Profile
PLAINS GP HOLDINGS LP (PAGP) has a momentum factor score of 55/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 36/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 7/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
PAGP vs Competitors — Industrials Sector Ranking and Peer Comparison
Comparing PAGP against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full PAGP vs S&P 500 (SPY) comparison to assess how PLAINS GP HOLDINGS LP stacks up against the broader market across all factor dimensions.
PAGP Next Earnings Date
No upcoming earnings date has been announced for PLAINS GP HOLDINGS LP (PAGP) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy PAGP? — Investment Thesis Summary
The bull case for PLAINS GP HOLDINGS LP rests on several quantitative strengths. The value score of 80/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 85/100) reduces downside risk.
In summary, PLAINS GP HOLDINGS LP (PAGP) earns a Buy rating with a composite score of 53.6/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on PAGP stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
PLAINS GP HOLDINGS LP (PAGP) Deep Dive Analysis
Published on March 24, 2026
Action RatingBuy
Sections
Executive Summary
We initiate coverage on Plains GP Holdings (PAGP) with a Buy rating. This rating is primarily driven by the company's compelling valuation, as evidenced by its significantly lower P/E and EV/EBITDA ratios compared to the industrials sector. While revenue growth has been negative recently, the company's strong free cash flow generation and relatively stable profitability metrics suggest an undervalued opportunity in the midstream energy infrastructure space.
The key takeaway is that PAGP, despite its recent revenue decline, presents a potentially attractive investment due to its discounted valuation relative to its peers and its ability to generate substantial free cash flow. However, investors should carefully consider the risks associated with the energy sector, including commodity price volatility and regulatory changes, before investing.
Business Strategy & Overview
Plains GP Holdings operates in the midstream energy sector, focusing on the transportation, storage, and processing of crude oil and natural gas liquids (NGLs). The company's revenue is primarily derived from fees charged for these services, making it somewhat insulated from direct commodity price fluctuations, although indirect impacts are undeniable. PAGP's strategy revolves around maintaining and expanding its existing infrastructure network, which includes pipelines, storage facilities, and processing plants, to capitalize on the growing demand for energy transportation and storage in North America.
The company operates through two segments: Crude Oil and NGLs. The Crude Oil segment focuses on the transportation and storage of crude oil, while the NGLs segment handles the fractionation, storage, and transportation of natural gas liquids. This diversification allows PAGP to capture opportunities across different segments of the midstream energy value chain. The company's extensive network of assets provides it with a competitive advantage in serving producers, refiners, and other customers in key energy-producing regions.
PAGP's strategic positioning is centered on providing reliable and efficient midstream services to its customers. The company invests in maintaining and upgrading its infrastructure to ensure the safe and efficient transportation and storage of energy products. Furthermore, PAGP seeks to expand its network through strategic acquisitions and organic growth projects, allowing it to increase its market share and capture new opportunities. The company's focus on operational excellence and customer service is crucial for maintaining its competitive edge in the midstream energy sector.
The industry context for PAGP is characterized by increasing energy production in North America, driven by technological advancements in shale drilling. This increased production necessitates the expansion of midstream infrastructure to transport and process the growing volumes of crude oil and NGLs. PAGP is well-positioned to benefit from this trend, as its existing network and strategic investments allow it to capitalize on the growing demand for midstream services. However, the company also faces challenges, including regulatory scrutiny, environmental concerns, and competition from other midstream operators.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-10.5%
Sector: 6.4%
-264% VS SCTR
Economic Moat Analysis
Plains GP Holdings possesses a narrow economic moat, primarily derived from its extensive network of midstream assets and the associated cost advantages. The company's network of pipelines, storage facilities, and processing plants creates a barrier to entry for new competitors, as replicating such a vast infrastructure would require significant capital investment and time. This existing infrastructure allows PAGP to offer competitive pricing and reliable services to its customers, strengthening its position in the market.
The network effect, while present, is not as strong as in other industries. The value of PAGP's network increases as more customers connect to it, but the incremental benefit diminishes as the network becomes more saturated. Furthermore, the presence of alternative transportation methods, such as rail and trucking, limits the network effect to some extent. However, the efficiency and cost-effectiveness of pipelines provide a significant advantage over these alternative methods, particularly for large volumes of crude oil and NGLs.
Switching costs for PAGP's customers are moderate. While customers may incur costs associated with changing transportation and storage providers, these costs are not prohibitive. However, the reliability and established relationships that PAGP has built with its customers create a degree of stickiness, making it less likely for customers to switch to competitors unless there is a significant price or service advantage. The company's focus on customer service and operational excellence further strengthens these relationships.
Intangible assets, such as brand reputation and regulatory permits, also contribute to PAGP's narrow moat. The company's reputation for safety and reliability is crucial for attracting and retaining customers, particularly in the energy sector, where environmental and safety concerns are paramount. Furthermore, obtaining the necessary regulatory permits for constructing and operating midstream infrastructure can be a lengthy and complex process, creating a barrier to entry for new competitors. However, these intangible assets are not as strong as those found in other industries, such as pharmaceuticals or technology.
Efficient scale is a factor in certain segments of the midstream energy sector, particularly in pipeline transportation. The high fixed costs associated with building and operating pipelines create economies of scale, making it difficult for smaller competitors to compete effectively. PAGP's extensive pipeline network allows it to achieve lower per-unit costs compared to smaller operators, providing it with a cost advantage. However, this advantage is not insurmountable, as larger competitors with similar scale can also achieve similar cost efficiencies.
Financial Health & Profitability
Plains GP Holdings' financial health presents a mixed picture. While the company boasts strong free cash flow generation and a relatively low debt-to-equity ratio compared to the sector, its revenue growth has been negative, and its margins are relatively thin. The company's revenue for the latest twelve months (TTM) is $44.26 billion, a decrease from $50.07 billion in FY2024 and $48.71 billion in FY2023, indicating a declining revenue trend. This decline is a concern, as it suggests potential challenges in the company's ability to maintain its market share or capitalize on growth opportunities.
Despite the revenue decline, PAGP's net income remains relatively strong at $1.69 billion for the TTM period. This is higher than the $1.07 billion reported in FY2024 and comparable to the $1.43 billion in FY2023, suggesting that the company has been able to manage its costs effectively despite the revenue decline. The company's gross margin for the TTM period is 9.3%, which is relatively low compared to the sector average of 35.8%. Similarly, its operating margin of 3.1% is lower than the sector average of 6.2%. These lower margins indicate that PAGP operates in a highly competitive environment and has limited pricing power.
PAGP's return on equity (ROE) of 11.1% is slightly higher than the sector average of 9.2%, indicating that the company is generating a reasonable return on its equity investments. The company's balance sheet appears to be relatively healthy, with total cash of $1.18 billion and total debt of $1.10 billion. The company's debt-to-equity ratio of 8.00 is significantly lower than the sector average of 70.00, suggesting that it is not overly leveraged. However, its current ratio of 0.96 indicates that it may have some liquidity challenges in the short term.
The company's free cash flow generation is a significant strength. With a free cash flow of $2.18 billion for the TTM period, PAGP has ample cash to invest in growth opportunities, reduce debt, or return capital to shareholders. This strong free cash flow provides the company with financial flexibility and enhances its ability to weather economic downturns.
Analyzing the quarterly financial history reveals some volatility in the company's performance. While revenue has fluctuated from quarter to quarter, net income has generally remained stable. The company's gross and operating margins have also shown some variability, reflecting the impact of commodity price fluctuations and operational factors. However, the overall trend suggests that PAGP has been able to maintain its profitability despite the challenging market conditions.
Valuation Assessment
Plains GP Holdings appears significantly undervalued based on several key valuation metrics. The company's price-to-earnings (P/E) ratio of 3.0x is substantially lower than the industrials sector average of 27.7x, suggesting that the market is undervaluing PAGP's earnings potential. Similarly, its enterprise value-to-EBITDA (EV/EBITDA) ratio of 1.0x is significantly lower than the sector average of 5.7x, indicating that the company's enterprise value is not fully reflecting its earnings before interest, taxes, depreciation, and amortization.
The company's strong free cash flow generation further supports the undervaluation thesis. With a free cash flow of $2.18 billion and a market capitalization of $4.68 billion, PAGP has a high free cash flow yield, indicating that it is generating a significant amount of cash relative to its market value. This high free cash flow yield suggests that the company has the potential to generate attractive returns for investors through dividends, share repurchases, or debt reduction.
However, it is important to consider the company's negative revenue growth when assessing its valuation. The company's revenue has declined in recent years, which may be a factor contributing to its low valuation multiples. Investors may be concerned about the company's ability to maintain its earnings and cash flow in the face of declining revenue. Therefore, it is crucial to assess the underlying drivers of the revenue decline and the company's strategies for addressing this challenge.
Despite the revenue decline, the company's strong profitability and free cash flow generation suggest that it is still a valuable business. The low valuation multiples may reflect the market's concerns about the energy sector in general, rather than specific issues with PAGP's business. The company's focus on providing essential midstream services and its extensive network of assets provide it with a degree of stability and resilience, which may not be fully reflected in its current valuation.
Overall, PAGP appears to be undervalued based on its P/E ratio, EV/EBITDA ratio, and free cash flow yield. While the company's negative revenue growth is a concern, its strong profitability and free cash flow generation suggest that it has the potential to generate attractive returns for investors. The Buy rating is supported by the belief that the market will eventually recognize the company's intrinsic value and re-rate its stock accordingly.
Risk & Uncertainty
Several risks and uncertainties could negatively impact Plains GP Holdings' business and financial performance. One of the most significant risks is commodity price volatility. While PAGP primarily generates revenue from fees for its services, its business is indirectly affected by fluctuations in crude oil and NGL prices. Lower commodity prices can lead to reduced production, which in turn can decrease the demand for PAGP's transportation and storage services. This could result in lower revenue and profitability for the company.
Regulatory changes also pose a significant risk to PAGP. The midstream energy sector is subject to extensive regulation at the federal, state, and local levels. Changes in regulations related to pipeline safety, environmental protection, and transportation of hazardous materials could increase the company's operating costs and limit its ability to expand its network. Furthermore, increased regulatory scrutiny could delay or prevent the approval of new projects, hindering the company's growth prospects.
Competition from other midstream operators is another risk factor. The midstream energy sector is highly competitive, with numerous companies vying for market share. Increased competition could lead to lower fees for PAGP's services, reducing its revenue and profitability. Furthermore, competitors may develop new technologies or business models that could disrupt PAGP's existing operations.
Leverage, while currently manageable, presents a potential risk. Although PAGP's debt-to-equity ratio is lower than the sector average, the company still has a significant amount of debt outstanding. This debt could limit the company's financial flexibility and increase its vulnerability to economic downturns. Furthermore, rising interest rates could increase the company's borrowing costs, reducing its profitability.
Concentration risk is also a factor to consider. PAGP's business is concentrated in certain geographic regions and with certain customers. A disruption in these regions or a loss of key customers could have a significant negative impact on the company's revenue and profitability. Therefore, it is crucial for PAGP to diversify its geographic footprint and customer base to mitigate this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWPAGP's rock-bottom valuation multiples (P/E of 3x, EV/EBITDA of 1x) offer substantial upside potential as the market re-rates the stock to reflect its strong free cash flow generation.
BULL VIEWThe company's extensive midstream infrastructure network provides a competitive advantage and positions it to benefit from the growing demand for energy transportation and storage in North America.
BULL VIEWPAGP's relatively low debt-to-equity ratio and strong free cash flow generation provide it with financial flexibility to invest in growth opportunities, reduce debt, and return capital to shareholders.
The Bear Case
BEAR VIEWPAGP's declining revenue trend raises concerns about its ability to maintain its earnings and cash flow in the face of increasing competition and regulatory challenges.
BEAR VIEWThe company's low gross and operating margins indicate that it operates in a highly competitive environment and has limited pricing power, potentially hindering its ability to improve profitability.
BEAR VIEWCommodity price volatility and regulatory changes pose significant risks to PAGP's business, potentially leading to reduced demand for its services and increased operating costs.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score PAGP and 4,400+ other equities.
PLAINS GP HOLDINGS LP exhibits a 70% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
5.1%
Sector: 3.3%
Gross Margin
Pricing power and cost efficiency
9.3%
Sector: 35.8%
Operating Margin
Core business profitability
3.0%
Sector: 6.2%
Net Margin
Bottom-line profitability
3.4%
Sector: 3.9%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $817 annually in dividends at the current trailing rate.
Plains GP Holdings (NYSE: PAGP) outlines $3.75B NGL sale, $2.9B crude deal and pay vote
Plains GP Holdings (PAGP) has released its proxy statement detailing the agenda for its May 20, 2026, annual shareholder meeting, which includes the election of four Class I directors, the ratification of PricewaterhouseCoopers as auditor, and an advisory vote on 2025 executive pay. The company highlighted strategic moves from 2025, such as agreeing to sell its Canadian NGL business for approximately $3.75 billion and acquiring the EPIC crude system for about $2.9 billion. Management also targets $100 million in cost savings by 2027 and reported strong 2025 returns for both PAGP and Plains All American (PAA), alongside a 10% distribution increase.
