Assessing Plains All American Pipeline's Valuation Amid Recent Share Price Movements

Plains All American Pipeline (PAA) has experienced recent share price growth, outpacing its 1-year total shareholder return. The company's valuation has been assessed, with a fair value of $20.65 per unit, slightly above the recent close. The divestiture of the Canadian NGL business and redeployment of $3 billion will allow Plains to focus on higher-growth and higher-return U.S. crude oil assets, supporting stable throughput and cash flow. However, higher capital spending or softer crude-focused volumes could impact the company's performance.