Plains All American Pipeline's (PAA) Q2 results are likely to be pressured by the company's recent sale of its Canadian natural gas liquids (NGL) business, UBS Securities said Thursday in a report.
UBS now expects about $40 million in NGL segment profit, down from $148 million in Q1, and $675 million in crude, up from $582 million. It lifted its Q2 EBITDA estimate to $715 million from $710 million, versus $730 million in Q1.
Plains has several near- to medium-term growth drivers, including small organic projects that offer stronger returns than acquisitions, 2026 hedging and firmer crude prices that may help in 2027, and rising Permian Basin oil volumes as new gas pipelines start up in Q4, the report said.
Plains' higher capital-spending plan reflects growth projects across its long-haul system and gathering operations in the Permian, as well as its Canadian gathering network, the report said.
Q2 results are due Aug. 7.
UBS maintained its buy rating on Plains stock with a $25 price target.
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