Business Analysis of Plains All American Pipeline

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Plains All American Pipeline

PLAINS ALL AMERICAN PIPELINE

Business Overview

Plains All American Pipeline, L.P., through its subsidiaries, engages in the transportation, storage, terminalling, and marketing of crude oil, natural gas liquids (NGL), natural gas, and refined products in the United States and Canada. Its Transportation segment transports crude oil and NGL through pipelines, gathering systems, trucks, and barges. As of December 31, 2016, this segment owned and leased 19,200 miles of active crude oil and NGL pipelines and gathering systems; 31 million barrels of active and above-ground tank capacity; 810 trailers; 120 transport and storage barges; and 60 transport tugs. The company's Facilities segment provides storage, terminalling, and throughput services for crude oil, refined products, NGL, and natural gas; and NGL fractionation and isomerization, and natural gas and condensate processing services. As of December 31, 2016, it owned and operated approximately 80 million barrels of crude oil and refined products storage capacity; 32 million barrels of NGL storage capacity; 97 billion cubic feet of natural gas storage working capacity; 31 billion cubic feet of base gas; 9 natural gas processing plants; 1 condensate processing facility; 8 fractionation plants; 34 crude oil and NGL rail terminals; 6 marine facilities; and 1,000 miles of active pipelines. Its Supply and Logistics segment purchases crude oil at the wellhead, pipeline, terminal, and rail facilities; purchases cargos at load port and various locations in transit; stores inventory, and NGL and natural gas; purchases NGL; resells or exchanges crude oil and NGL; transports crude oil and NGL on trucks, barges, railcars, pipelines, and ocean-going vessels; and purchases and sells natural gas. As of December 31, 2016, it owned 14 million barrels of crude oil and NGL linefill; 5 million barrels of crude oil and NGL linefill; 820 trucks and 1,065 trailers; and 10,660 crude oil and NGL railcars. The company was founded in 1998 and is headquartered in Houston, Texas.

Plains All American Pipeline

Plains All American Pipeline


R&P Rank: 132
Sector: Oil & Gas
Industry:Oil & Gas Distribution
H.Q Location:Texas
Website: www.paalp.com
Company Address:
333 CLAY STREET, SUITE 1600, HOUSTON TX 77002
Ph:713-654-4100

Business Analysis of Plains All American Pipeline

The Oil & Gas Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Plains All American Pipeline compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Plains All American Pipeline to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Plains All American Pipeline with an interactive chart.

  1. Revenue Growth: Plains All American Pipeline reported a revenue growth of -12.8% year-on-year during 2016. Oil & Gas Distribution Industry grew at -12.3% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Plains All American Pipeline spent 91.2% of its total revenues on COGS. Oil & Gas Distribution industry average (COGS share of revenue) in the same period was 75.2%
  3. R&D share of Revenues: Plains All American Pipeline R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Plains All American Pipeline spent 1.4% of its total revenues on Sales, Marketing, and General Administration (SG&A). Oil & Gas Distribution industry average SG&A spending in the same period was 3.7%
  5. Inventory share of Revenues: As a percentage of revenue, Plains All American Pipeline spent 7.6% of its total revenues on Inventories. Oil & Gas Distribution industry average Inventory spending in the same period was 4.8%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Plains All American Pipeline invested 12.8% of its total revenues on Accounts Payable (A/P) Oil & Gas Distribution industry average Accounts Payable investment in the same period was 10.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Plains All American Pipeline invested 11.3% of its total revenues on Accounts Receivable (A/R). Oil & Gas Distribution industry average Accounts Receivable investment in the same period was 10.6%
  8. PP&E share of Revenues: As a percentage of revenue, Plains All American Pipeline invested 68.7% of its total revenues on Property, Plants, and Equipments (PP&E). Oil & Gas Distribution industry average PPE investment in the same period was 155.8%
  9. Intangibles share of Revenues: As a percentage of revenue, Plains All American Pipeline invested 11.6% of its total revenues on Intangibles. Oil & Gas Distribution industry average Intangibles investment in the same period was 39.0%
  10. Net Margins: Plains All American Pipeline Net Margins in the year 2016 were 3.6%. Oil & Gas Distribution industry average Net Margins in the same period were 3.9%

Sector and Industry Association of Plains All American Pipeline

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Plains All American Pipeline is associated with Oil & Gas Sector and Oil & Gas Distribution Industry.

Oil & Gas sector is comprised of the following industries: Oil & Gas Production; Oil & Gas Distribution; Oil & Gas Equipment and Services; Alternative Energy. The definitions for each of the industries is as follows:

  • Oil & Gas Production industry includes companies primarily engaged in operating oil & gas properties. Key activities may include exploration for crude petroleum and natural gas; drilling, completing, and equipping wells; and all other activities in the preparation of oil and gas up to the point of shipment from the producing property. It also includes companies engaged in crude petroleum refining and producing gasoline, kerosene, distillate fuel oils, residual fuel oils, and lubricants, through fractionation or straight distillation of crude oil.
  • Oil & Gas Distribution industry includes companies primarily engaged in the pipeline transportation of petroleum, natural gas, and other commodities. It also includes companies primarily engaged in the wholesale and retail distribution of petroleum and petroleum products.
  • Oil & Gas Equipment and Services industry includes companies primarily engaged in drilling wells for oil or gas field operations for others on a contract or fee basis. It also includes companies providing exploration services and machinery & equipment for oil and gas field operations.
  • Alternative Energy industry includes companies that develop or manufacture renewable energy equipment utilizing sources such as solar, wind, geothermal, hydro, and waves. It also includes companies that produce alternative fuels such as methanol, ethanol, hydrogen and biofuels that are mainly used to power vehicles.

Industry Ranking of Plains All American Pipeline

With $20.2 billion revenues, Plains All American Pipeline ranked number 5 of all the companies in the US Oil & Gas Distribution industry. There were a total of 69 public companies in the US Oil & Gas Distribution industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Oil & Gas Distribution industry by revenues during 2016 were:

  1. Energy Transfer Equity ($37.5 billion)
  2. World Fuel ($27 billion)
  3. Enterprise Products Partners ($23 billion)
  4. Energy Transfer Partners ($21.8 billion)
  5. Plains All American Pipeline ($20.2 billion)
  6. Plains GP Holdings ($20.2 billion)
  7. Sunoco ($15.7 billion)
  8. Kinder Morgan ($13.1 billion)
  9. NGL Energy Partners ($11.7 billion)
  10. Sunoco Logistics ($9.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Plains All American Pipelineand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of plains-all-american-pipeline

World Fuel (INT) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

World Fuel Services Corp with $27 billion revenues in the year 2016 was the number 2 Oil & Gas Distribution company. Read this report to know the top competitors of World Fuel and identify growth and cost optimization opportunities of World Fuel

Enterprise Products Partners (EPD) Business Analysis – Analyze Historical Performance, Strategic...

Enterprise Products Partners L P with $23 billion revenues in the year 2016 was the number 3 Oil & Gas Distribution company. Read this report to know the top competitors of Enterprise Products Partners and identify growth and cost optimization opportunities of Enterprise Products Partners

Energy Transfer Partners (ETP) Business Analysis – Analyze Historical Performance, Strategic...

Energy Transfer Partners, L.P. with $22 billion revenues in the year 2016 was the number 4 Oil & Gas Distribution company. Read this report to know the top competitors of Energy Transfer Partners and identify growth and cost optimization opportunities of Energy Transfer Partners

Plains GP Holdings (PAGP) Business Analysis – Analyze Historical Performance, Strategic...

Plains GP Holdings LP with $20 billion revenues in the year 2016 was the number 6 Oil & Gas Distribution company. Read this report to know the top competitors of Plains GP Holdings and identify growth and cost optimization opportunities of Plains GP Holdings

Sunoco (SUN) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Sunoco Lp with $16 billion revenues in the year 2016 was the number 7 Oil & Gas Distribution company. Read this report to know the top competitors of Sunoco and identify growth and cost optimization opportunities of Sunoco

Kinder Morgan (KMI) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Kinder Morgan, Inc. with $13 billion revenues in the year 2016 was the number 8 Oil & Gas Distribution company. Read this report to know the top competitors of Kinder Morgan and identify growth and cost optimization opportunities of Kinder Morgan

Revenues Analysis

Plains All American Pipeline (PAA) Revenues And Revenue Growth From 2012...

This report provides the last five years revenues and revenue growth of Plains All American Pipeline Lp (PAA) from 2012 to 2016. Plains All American Pipeline generated a total of $20.2 billion revenues during 2016. Plains All American Pipeline reported a revenue growth of -12.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Plains All American Pipeline (PAA) Revenues And Revenue Growth From 2002...

This report provides the last fifteen years revenues and revenue growth of Plains All American Pipeline Lp (PAA) from 2002 to 2016. Plains All American Pipeline generated a total of $20.2 billion revenues during 2016. Plains All American Pipeline reported a revenue growth of -12.8% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Plains All American Pipeline (PAA) Revenue Growth Comparison With Industry Growth...

This report provides a comparison of Plains All American Pipeline Lp (PAA) revenue growth with Oil & Gas Distribution industry growth during the last five years from 2012 to 2016. Plains All American Pipeline reported a revenue growth of -12.8% year-over-year during 2016. The Oil & Gas Distribution industry growth was -12.3% year-over-year during 2016. Plains All American Pipeline growth was slower than the industry during 2016.