JP Morgan Downgrades Plains All American to Neutral with $20 PT.
PorAinvest
jueves, 18 de septiembre de 2025, 10:21 am ET1 min de lectura
PAA--
The downgrade follows reports of increased levels of mercaptans, naturally-occurring sulfur compounds, in the crude oil being delivered to various origin points. Plains has stated that starting October 1, it will charge a half-dollar fee per barrel that fails to meet mercaptan specifications on some of its pipelines in the Gulf Coast region [1].
The quality issues could potentially force Gulf Coast refiners, particularly those in the Corpus Christi region, to seek alternative crude oil sources. Plains is still investigating the cause of the contamination, making it difficult to assess the impact on U.S. crude exports. Over 2 million barrels per day (bpd) of crude oil are exported from Corpus Christi [1].
Despite these challenges, Plains has been actively engaged in acquisitions and strategic initiatives to bolster its operations. In September 2025, Plains All American and Plains GP Holdings agreed to acquire a 55% stake in Epic Crude Holdings, LP from Diamondback Energy and Kinetik Holdings Inc. for $1.2 billion [2].
Investors should closely monitor the situation as it could affect the company's financial health and stock performance. Plains All American continues to face elevated risks, including large debt levels and one-off items impacting financial results [2].
JP Morgan Downgrades Plains All American to Neutral with $20 PT.
September 12, 2025 - JP Morgan has downgraded Plains All American Pipeline (PAA) to a Neutral rating with a target price of $20 per share. This move comes amidst recent quality issues affecting the company's crude oil pipelines in the Permian shale basin, which link to the Corpus Christi export hub in Texas [1].The downgrade follows reports of increased levels of mercaptans, naturally-occurring sulfur compounds, in the crude oil being delivered to various origin points. Plains has stated that starting October 1, it will charge a half-dollar fee per barrel that fails to meet mercaptan specifications on some of its pipelines in the Gulf Coast region [1].
The quality issues could potentially force Gulf Coast refiners, particularly those in the Corpus Christi region, to seek alternative crude oil sources. Plains is still investigating the cause of the contamination, making it difficult to assess the impact on U.S. crude exports. Over 2 million barrels per day (bpd) of crude oil are exported from Corpus Christi [1].
Despite these challenges, Plains has been actively engaged in acquisitions and strategic initiatives to bolster its operations. In September 2025, Plains All American and Plains GP Holdings agreed to acquire a 55% stake in Epic Crude Holdings, LP from Diamondback Energy and Kinetik Holdings Inc. for $1.2 billion [2].
Investors should closely monitor the situation as it could affect the company's financial health and stock performance. Plains All American continues to face elevated risks, including large debt levels and one-off items impacting financial results [2].
Divulgación editorial y transparencia de la IA: Ainvest News utiliza tecnología avanzada de Modelos de Lenguaje Largo (LLM) para sintetizar y analizar datos de mercado en tiempo real. Para garantizar los más altos estándares de integridad, cada artículo se somete a un riguroso proceso de verificación con participación humana.
Mientras la IA asiste en el procesamiento de datos y la redacción inicial, un miembro editorial profesional de Ainvest revisa, verifica y aprueba de forma independiente todo el contenido para garantizar su precisión y cumplimiento con los estándares editoriales de Ainvest Fintech Inc. Esta supervisión humana está diseñada para mitigar las alucinaciones de la IA y garantizar el contexto financiero.
Advertencia sobre inversiones: Este contenido se proporciona únicamente con fines informativos y no constituye asesoramiento profesional de inversión, legal o financiero. Los mercados conllevan riesgos inherentes. Se recomienda a los usuarios que realicen una investigación independiente o consulten a un asesor financiero certificado antes de tomar cualquier decisión. Ainvest Fintech Inc. se exime de toda responsabilidad por las acciones tomadas con base en esta información. ¿Encontró un error? Reportar un problema
Comentarios
Aún no hay comentarios