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What's in Offing for Plains All American (PAA) in Q3 Earnings?

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Plains All American Pipeline, L.P. (PAA - Free Report) is set to report third-quarter 2022 results on Nov 2, after market close. The firm delivered an earnings surprise of 20% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors at Play

Plains All American’s third-quarter earnings are likely to have gained from strong production in the Permian region, which resulted in increasing volumes in its systems.

The firm repaid outstanding debts, which strengthened its balance sheet and lowered capital servicing costs in the third quarter, boosting its margin. Lower outstanding units due to repurchase are also likely to have had a positive impact on earnings.

Expectation

The Zacks Consensus Estimate for third-quarter 2022 earnings per unit is pegged at 28 cents, which indicates an increase of 27.3% from the year-ago reported figure.

The Zacks Consensus Estimate for third-quarter 2022 total revenues is pegged at $14.75 billion, which implies an increase of 36.9% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model predicts a likely earnings beat for Plains All American this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here, as you will see below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: The firm’s Earnings ESP is +1.19%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Plains All American currently carries a Zacks Rank #2.

Other Stocks to Consider

Investors can consider the following players from the same sector that also have the right combination of elements to beat on earnings in this reporting cycle.

Chesapeake Energy Corporation is scheduled to release third-quarter 2022 numbers on Nov 1. CHK has an Earnings ESP of +0.42% and currently carries a Zacks Rank #2.

Chesapeake Energy’s long-term (three to five-year) earnings growth rate is 6.27%. The Zacks Consensus Estimate for Chesapeake’s third-quarter 2022 earnings implies year-over-year growth of 88.2%.

Murphy Oil Corporation (MUR - Free Report) is scheduled to release third-quarter 2022 numbers on Nov 3. MUR has an Earnings ESP of +0.79% and a Zacks Rank #3.

The Zacks Consensus Estimate for third-quarter 2022 earnings of Murphy Oil implies year-over-year growth of 550%.

Diamondback Energy (FANG - Free Report) is scheduled to release third-quarter 2022 numbers on Nov 8. FANG has an Earnings ESP of +0.63% and currently carries a Zacks Rank #3.

FANG’s long-term earnings growth is 21.9%. The Zacks Consensus Estimate for third-quarter 2022 earnings of Diamondback Energy implies year-over-year growth of 118.1%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Plains All American Pipeline, L.P. (PAA) - free report >>

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