DTM - Plains All American Plains GP downgraded at Wolfe preferring gas focus

Plains All American Pipeline ( NASDAQ: PAA ) and Plains GP Holdings ( NASDAQ: PAGP ) trade lower Monday after Wolfe Research downgraded both names to Peer Perform from Outperform, seeing better long-term prospects for firms focused on natural gas and natural gas liquids than Plains' oil-centered 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 bounce to narrow his Buy list to companies with better strategic positioning around exports - such as Cheniere ( LNG ), Targa Resources ( TRGP ) and Energy Transfer ( ET ) - unique Haynesville positioning, and/or potential catalyst set-ups, such as Equitrans Midstream ( ETRN ).

The EPA's declaration that the Permian Basin is now non-attainment with respect to ozone may add a damper to Plains' ( PAA ) future growth, Patient Tech Investor wrote in an analysis published recently on Seeking Alpha .

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