UBS restated its Buy rating and $25 price target for Plains All American Pipeline on June 16, following the company's disclosure of enhanced capital expenditure for 2026. Plains All American estimates growth capital spending will increase to $400 million to $450 million net to PAA this year, up from around $350 million. The additional budget is driven by expansion plans in the company's Permian long-haul, Canadian gathering, and Permian gathering operations. UBS noted that the global oil setting has strengthened since the start of the year, enabling the company to advance many high-return projects, and sees the increased growth capital as a positive that will drive incremental profitability at a competitive rate of return.
Plains All American Pipeline LPUBS reiterates Buy rating and raises growth capex estimate, signaling positive financial outlook.
UBS Group AG