Plains GP Sees Business Expansion as Path to Increased Profits

Plains GP is expected to see increased profits through business expansion in the oil and gas industry, which is expected to recover. The company has a track record of successful acquisitions and has a strong management team with experience in the industry. Plains GP is well-positioned to take advantage of the expected growth in the oil and gas market.

Plains GP Holdings (NASDAQ: PAGP) is poised to see increased profits through its strategic business expansion in the oil and gas industry, as the market is expected to recover. The company's track record of successful acquisitions and its strong management team with industry experience position it well to capitalize on the anticipated growth.

Scotiabank recently lifted the price target on Plains All American Pipeline, L.P. (NASDAQ: PAA) to $20 from $18, maintaining an "Outperform" rating Scotiabank Lifts PT on Plains All American Pipeline, L.P. (PAA) Stock^[1]. This move reflects the positive outlook on the company's deal to acquire ownership stakes in EPIC Crude, which is expected to benefit Plains All American Pipeline and Kinetik.

Plains GP Holdings reported strong Q2 2025 results, with adjusted EBITDA attributable to Plains All American Pipeline, L.P. (NASDAQ: PAA) reaching $672 million. The company's decision to divest its NGL business is projected to close in Q1 2026, improving free cash durability and offering significant financial flexibility and fuel opportunities to streamline the business Scotiabank Lifts PT on Plains All American Pipeline, L.P. (PAA) Stock^[1].

The company's reorganization, including the sale of its loss-making gas business and the acquisition of high-quality oil assets, has led to four out of five analyst forecast revisions to the upside for Plains GP Holdings' earnings per share (EPS) over the past month Plains GP: Business Expansion A Path To Increased Profits^[2]. The $3.75 billion deal to sell its gas business will simplify Plains GP Holdings' existing business model and boost its revenue by $3.75 billion. Approximately $3 billion from this transaction will be used to provide additional financing for investment projects and the acquisition of new oil assets Plains GP: Business Expansion A Path To Increased Profits^[2].

Plains GP Holdings' business idea is linked to the need to ensure efficient and secure supply of energy resources to North America. The company provides full-cycle hydrocarbon delivery services, including pipeline delivery, logistics centers, and distribution of oil and gas between transport vehicles, delivering energy resources to end customers. Its competitive advantage lies in its leading position in the US oil and gas pipeline infrastructure market, with over 20,000 miles of pipelines and storage facilities with a capacity of 72 million barrels Plains GP: Business Expansion A Path To Increased Profits^[2].

The company's financial profile shows that the majority of its profits come from the oil business, with EBITDA expected to be $2.41 billion in 2025. The gas business is expected to contribute $0.45 billion. Following the implementation of its business profile, EBITDA is expected to increase in the first quarter of 2026 due to the acquisition of new assets in the crude oil business Plains GP: Business Expansion A Path To Increased Profits^[2].

Plains GP Holdings faces risks associated with high price volatility in the crude oil and liquefied natural gas market. However, these risks are considered temporary and manageable, given the company's focus on oil assets and its strong management team. The company's external fundamental background, including the recovery of the oil market, also supports its investment attractiveness Plains GP: Business Expansion A Path To Increased Profits^[2].

Plains GP Holdings' stock forecast and targets, based on financial modeling using the Discounted Cash Flow (DCF) method, indicate a fair value of the company. The modeling yields a comparative result, suggesting that Plains GP Holdings' investment attractiveness is supported by its expected restructuring and the recovery of the oil market.