Plains All American, Plains GP downgraded at Wolfe, preferring gas focus (NASDAQ:PAA)

Plains All American Pipeline (NASDAQ:PAA) and Plains GP Holdings (NASDAQ: PAGP) are trading lower on Monday after Wolfe Research downgraded both names to Peer Perform from Outperform and sees better long-term prospects for companies focused on natural gas and natural gas liquids Plains’ oil-centric infrastructure assets.

Plains (PAA) is a good value, trading at less than 8x 2023 EBITDA with an attractive yield and modest buybacks, Wolfe’s Keith Stanley said, but he prefers to be more selective at this point in the cycle.

The analyst said he wants to use the recent stock rally to narrow his buy list to companies with better strategic export positioning – such as Cheniere (LNG), Targa Resources (TRGP) and Energy Transfer (ET) – unique Haynesville positioning and/or potential catalyst setups such as Equitrans Midstream (ETRN).

The EPA’s statement that Permian Basin ozone is not now being reached could dampen Plains (PAA) future growth, Patient Tech Investor wrote in a recent analysis published on Seeking Alpha. Plains All American, Plains GP downgraded at Wolfe, preferring gas focus (NASDAQ:PAA)

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