Plains All American Pipeline, L.P.
 (PAA)

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  • Wed, Feb. 10, 11:57 AM
    • Plains GP Holdings (PAGP +9.4%) is downgraded to Neutral from Outperform with an $8 price target, cut from $14, at Credit Suisse, after shares already dropped ~25% this week after disappointing Q4 results at PAGP and at Plains All American Pipeline (PAA -0.2%).
    • The firm believes management’s 2016 guidance is ~4% too high since it assumes $47.50/bbl crude, noting that storage continues to build, which means crude prices and volumes would deteriorate further.
    • Credit Suisse expects flat distributions until 2019 when it expects coverage to return to management's targeted 1.05x-1.10x, but notes that further deterioration could pressure PAA to re-examine the distribution to take added steps to strengthen the balance sheet.
    • Credit Suisse maintains its Neutral rating for PAA while slashing the price target to $19 from $33.
    | Wed, Feb. 10, 11:57 AM | 16 Comments
  • Tue, Feb. 9, 6:29 PM
    • Plains All American (PAA, PAGP) execs spent a good chunk of their earnings conference call today talking about the creditworthiness of their customers.
    • PAA said its exposure to at-risk producers is small, with only ~2% of its adjusted EBITDA guidance at risk due to struggling producers who have signed onto its pipelines.
    • Surely it is hard to imagine an E&P firm struggling to raise cash defaulting to the firm it relies on to ship its oil and gas... but not impossible, as shown by the very fact that MLPs are having to address this issue on their quarterly calls, Bloomberg's Liam Denning writes.
    • Denning notes that PAA's guidance for 2016 diluted net income/unit is in a wide range of $1.00-$1.61, which illustrates oil's very cloudy outlook.
    • PAA also revealed that Moody's would not be giving the company's recently issued convertibles 50% equity treatment, as had been assumed, but 25% instead.
    • Earlier: Plains All American Pipeline misses expectations (Feb. 8)
    | Tue, Feb. 9, 6:29 PM
  • Mon, Feb. 8, 6:18 PM
    • Plains All American Pipeline (NYSE:PAA) -1.5% AH, following a 13.2% plunge in today's regular session, as it fell short of expectations for both Q4 earnings and revenues.
    • PAA reports Q4 adjusted EBITDA of $563M, down 5% Y/Y, while FY 2015 adjusted EBITDA was $2.17B; in November, the company had forecast a range with a midpoint of $595M in Q4 EBITDA and $2.2B in full-year EBITDA.
    • PAA says Q4 results were pushed $15M lower by broken commitments from producers, another $15M was shifted from Q4 2015 to Q1 2016 after unseasonably warm weather delayed inventory draws from natural gas liquids storage, and severe weather in west Texas and the Mid-continent cut volumes and cost the company another $5M.
    • Distributable cash flow fell to $383M in Q4 from $415M in the year-ago quarter.
    • Plains GP Holdings (NYSE:PAGP) reports a quarterly distribution of $0.231/unit, unchanged Q/Q.
    | Mon, Feb. 8, 6:18 PM | 12 Comments
  • Mon, Feb. 8, 4:16 PM
    • Plains All American Pipeline (NYSE:PAA): Q4 EPS of $0.38 misses by $0.08.
    • Revenue of $5B (-47.1% Y/Y) misses by $2.3B.
    • Press Release
    | Mon, Feb. 8, 4:16 PM | 6 Comments
  • Mon, Feb. 8, 3:22 PM
    | Mon, Feb. 8, 3:22 PM | 46 Comments
  • Sun, Feb. 7, 5:35 PM
    | Sun, Feb. 7, 5:35 PM | 13 Comments
  • Wed, Feb. 3, 11:46 AM
    • PBF Energy's (PBF, PBFX) logistics arm said yesterday it would purchase four refined product terminals from Plains All American Pipeline (NYSE:PAA) for $100M, in a move that doubles PBF's nationwide fuel storage capacity with more than 4M barrels of tanks in the Philadelphia area, giving it greater freedom to trade in a key market.
    • Analysts say the terminals - which provide connections to major pipelines such as Colonial and Buckeye, truck racks and marine facilities - will give PBF more flexibility to swap, blend and market products in a broader geography, which may be more important following PBF's purchase last year of the Chalmette, La., refinery.
    • The deal also offers some immediate revenue upside as storage lease rates have risen sharply in recent months alongside inventories; storage companies on the east coast reportedly are getting $0.50/bbl per month or more on storage contracts, up from $0.20 a few years ago.
    | Wed, Feb. 3, 11:46 AM | 9 Comments
  • Fri, Jan. 15, 2:30 PM
    • Even as downtrodden energy MLPs plunge along with the rest of the sector, RBC Capital's Elvira Scotto upgrades Spectra Energy Partners (SEP -3.4%) to Outperform from Sector Perform with a $58 price target price, seeing the recent decline as an attractive entry point into a well-positioned, defensive MLP with visible cash flow growth potential.
    • SEP's cash flow and growth project backlog are underpinned primarily by long-term fee-based contracts with high credit quality counterparties, Scotto notes.
    • However, the firm downgrades Plains All American Pipeline (PAA -6.7%) to Sector Perform from Outperform with a $23 target, cut from $36, saying that while it views PAA's recent private placement of convertible preferred units positively, it sees little catalyst to move the units higher over the next 12 months.
    | Fri, Jan. 15, 2:30 PM | 4 Comments
  • Thu, Jan. 14, 3:26 PM
    • Energy stocks are broadly higher as U.S. crude oil bounces off $30/bbl to end pit trading at $31.22, +2.6%; the SPDR Energy ETF (XLE +5.1%) soars 5%, with 36 of its 40 equity components trading higher, after closing yesterday at its lowest level since September 2010.
    • Exxon Mobil (XOM +5.5%) and Chevron (CVX +5.9%) are the Dow's top two gainers; and pipeline companies sport strong showings with Kinder Morgan (KMI +8.2%), Plains All American Pipeline (PAA +11.7%) and Williams Cos. (WMB +27.4%) among the biggest winners.
    • Among other major energy movers: ETE +22.6%, BP +7.6%, MRO +7.5%, OXY +7.1%, PBR +7%, COP +7%, RDS.A +6.7%, SE +6.1%, PSX +6.1%, ETP +6.1%, EPD +5.3%, APA +5%, E +4.6%, HES +4.1%, MPC +4.1%.
    • Amid overwhelmingly negative sentiment, a few analysts are venturing out to say the worst may be over or nearly so: Deutsche Bank’s Torsten Slok thinks "we now have the worst behind us in terms of the negative impact of falling oil prices on the economy," and Gluskin Sheff’s David Rosenberg argues that the oil selloff is getting “long in the tooth.”
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Thu, Jan. 14, 3:26 PM | 89 Comments
  • Wed, Jan. 13, 6:22 PM
    • Troubles at Southcross Energy Partners (NYSE:SXE), which last week said it would suspend cash distributions, offers an example of how distress in the energy industry has begun to flow beyond the production sector, WSJ reports.
    • Midstream companies have been viewed as more insulated from commodity price cycles than upstream firms, but pressure on the group has increased as oil and gas prices continue to slump; SXE's revenue relies primarily on the volume of natural gas it gathers and processes, and its revenues have dropped as customers cut back on drilling and production or - in the case of Swift Energy - went out of business.
    • "The Eagle Ford is uneconomical-full stop. Our clients are going out of business left and right," a source close to SXE who considers the company a single-shale player, tells WSJ.
    • Other midstream companies have experienced varying degrees of stress, but even larger peers that have not shown distress - such as Plains All American Pipeline (NYSE:PAA), which is raising $1.5B - are under pressure to strengthen their balance sheets.
    • Companies such as Kinder Morgan (NYSE:KMI) and Tallgrass Energy Partners (NYSE:TEP) that operate large interstate pipeline systems and have signed long-term contracts with a more diverse base of customers are in a better position than smaller processors such as SXE whose businesses are more concentrated, says Baird analyst Frank Murphy.
    | Wed, Jan. 13, 6:22 PM | 27 Comments
  • Wed, Jan. 13, 11:45 AM
    • Plains GP Holdings (PAGP -7.5%) is downgraded to Hold from Buy at Stifel after Plains All American Pipeline (PAA -6.5%) announced a private placement of perpetual convertible preferred units expected to generate proceeds of ~$1.5B.
    • Stifel views the move as positive for PAA unitholders but negative for PAGP, as the firm had expected PAGP's cash flow growth to be driven by common unit issuance at PAA, so it cuts its rating given the reduced need for common equity at PAA.
    • PAA and PAGP were both downgraded to Neutral from Overweight at J.P. Morgan.
    | Wed, Jan. 13, 11:45 AM
  • Tue, Jan. 12, 10:23 AM
    | Tue, Jan. 12, 10:23 AM | 22 Comments
  • Tue, Jan. 12, 8:51 AM
    • Plains All American Pipeline (NYSE:PAA) declares $0.70/share quarterly dividend, in line with previous.
    • Forward yield 13.75%
    • Payable Feb. 12; for shareholders of record Jan. 29; ex-div Jan. 27.
    | Tue, Jan. 12, 8:51 AM | 6 Comments
  • Mon, Jan. 4, 3:48 PM
    • Enterprise Products Partners (EPD +3%) maintains strong early gains after announcing that it raised its quarterly distribution by 1.3% while planning to recommend a 5.2% increase for FY 2016's annual distribution.
    • EPD also said affiliates of Enterprise Products Company and its general partner plan to purchase $200M in EPD common units during Q1 through the partnership's distribution reinvestment plan and/or at-the-market equity issuance program.
    • The news is providing support across the MLP sector, which is in the green in an otherwise dismal showing for stocks; the ALPS Alerian MLP ETF (AMLP +0.6%) - which includes EPD, Magellan Midstream (MMP +1.3%), Energy Transfer Partners (ETP +3.7%), Plains All American (PAA +4.9%), Williams Partners (WPZ +2.4%), Buckeye Partners (BPL -0.5%), ONEOK Partners (OKS +0.3%), Enbridge Energy Partners (EEP +3.4%), Sunoco Logistics (SXL +0.6%) and Targa Resources Partners (NGLS -3%) - edges higher for its best level since late November.
    | Mon, Jan. 4, 3:48 PM | 9 Comments
  • Dec. 22, 2015, 1:30 PM
    | Dec. 22, 2015, 1:30 PM | 44 Comments
  • Dec. 21, 2015, 2:45 PM
    • Plains All American Pipeline (PAA +3.9%) is higher despite receiving a downgrade to Perform from Outperform at Oppenheimer, which believes PAA appears has few attractive options for 2016 and that more clarity is required about its plan of action.
    • The firm expects PAA to need equity worth about $1B in 2016 to sustain leverage of 4.5x, but "with an all-in cost of equity greater than 20%, the common equity market is effectively closed" to PAA, thus requiring "non-traditional methods to secure its 2016 business plan."
    • Although PAA's current stock valuation appears to already include some expectations of a distribution cut, Oppenheimer says it needs more clarity regarding the solution the company chooses.
    • Oppenheimer believes the energy infrastructure operating environment is not nearly as bad as the market makes it seem, but says the one company meriting concern is PAA.
    | Dec. 21, 2015, 2:45 PM | 11 Comments
Company Description
Plains All American Pipeline LP is engaged in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as in the processing, transportation, fractionation, storage and marketing of natural gas liquids.