Plains All American: The 8% Yield And High Oil Concentration Make The Company Interesting Again (Rating Upgrade)

Plains All American Pipeline is upgraded to a buy, benefiting from oil market tailwinds and a streamlined, oil-focused asset base. Post-NGL divestment, PAA will derive 85% of EBITDA from fee-based services, supporting stable and growing distributions with an 8% yield. I expect 2026 EBITDA could reach $2.85 billion if oil prices remain elevated, with potential for upward guidance revision.