Plains All American vs Permian Resources

This page compares Plains All American (Plains All American Pipeline, L.P.) and Permian Resources (Permian Resources Corp) to explain their business models, financial performance, and market context in neutral terms. Educational content, not financial advice.

This page compares Plains All American (Plains All American Pipeline, L.P.) and Permian Resources (Permian Resources Corp) to explain their business models, financial performance, and market context i...

Comparison Snapshot

Key Financial Metrics

PAA

Metric

PR

$13.45B

Market Cap

$11.84B

6.58%

Potential Profit

27.59%

Hold

Analyst Rating

Buy

Investment Analysis

Plains All American

PAA

Pros

Plains All American operates a large, diversified network of pipeline, storage, and logistics assets across major North American energy basins.
The company maintains a high dividend yield, supported by stable cash flows from long-term infrastructure contracts.
Recent strategic acquisitions and debt refinancing are expected to enhance operational scale and financial flexibility.

Considerations

Plains All American faces exposure to commodity price volatility, which can impact merchant activities and earnings stability.
The company's growth is constrained by regulatory scrutiny and environmental risks associated with pipeline infrastructure.
Analyst sentiment has turned cautious, with some lowering price targets and issuing sell ratings due to valuation concerns.

Permian Resources

PR

Pros

Permian Resources benefits from a low-cost position in the prolific Permian Basin, supporting strong production growth and margins.
The company has a disciplined capital allocation strategy, prioritising free cash flow generation and debt reduction.
Permian Resources has demonstrated operational efficiency and cost control, helping to maintain profitability in volatile oil markets.

Considerations

Permian Resources is highly exposed to fluctuations in oil prices, which can significantly affect revenues and cash flow.
The company's growth strategy depends on continued access to capital markets, which may be constrained in a high-interest-rate environment.
Operational risks include increasing regulatory pressure and competition for resources in the Permian Basin.

About The Companies

Plains All American (PAA)

Plains All American Pipeline, L.P. (PAA) is a midstream energy business that transports, stores and markets crude oil, natural gas liquids (NGLs) and related products across a network of pipelines, terminals and storage facilities. With a market capitalisation around $11.6 billion, the partnership generates much of its income from fee-based contracts and long‑term throughput agreements, which can provide relatively predictable cash flow. That said, volumes and revenue can vary with oil production levels, refinery demand and broader commodity cycles. Investors should note exposure to operational risks (pipeline incidents, weather), regulatory and environmental requirements, and capital‑intensive maintenance and expansion projects. PAA has historically paid distributions, but payouts are subject to company decisions and cash‑flow variability. For those considering the stock, assess balance‑sheet strength, contract mix and volume trends; this summary is educational and not personalised investment advice. Past performance is not a guarantee of future returns and values can fall as well as rise.

Permian Resources (PR)

Permian Resources Corp is an independent oil and natural gas company focused on the acquisition, optimisation, and development of properties primarily in the United States. The company's operations are highly concentrated in the core of the Delaware Basin, a major oil and gas-producing area within the larger Permian Basin. Its asset base includes significant leasehold and royalty acreage across parts of New Mexico and Texas. For investors, Permian Resources represents a focused play on one of North America's most prolific energy regions. Its business strategy centres on efficiently developing these assets to generate returns. As with any company in the energy sector, its performance can be influenced by commodity prices, regulatory changes, and operational factors. It's important for potential investors to consider these risks alongside the company's strategic position.

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Which Baskets Do They Appear In?

Riding The OPEC+ Wave: Midstream Energy Plays

OPEC+ is moving forward with its plan to increase oil production to meet summer demand. This creates an opportunity for companies that transport, store, and process the additional crude oil and natural gas.

Published: July 25, 2025

Explore Basket

Toll Road Businesses

These gatekeepers of modern commerce own indispensable infrastructure and collect fees on the flow of goods, energy, and data. Our analysts have selected companies with durable, recurring revenues from hard-to-replicate physical and digital networks.

Published: June 17, 2025

Explore Basket

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Comparison Snapshot