Plains All American Pipeline, L.P.

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  • Dec. 7, 2015, 6:35 PM
    • The Kinder Morgan (NYSE:KMI) contagion triggered a selloff throughout the entire MLP space today as fears of a wave of yield cuts have spread throughout the market.
    • "While KMI is no longer an MLP, it is viewed as a leading indicator for MLPs," Pointe Capital's Dan Willard says. “If times are challenging for KMI, then many assume it is for all.”
    • Credit Suisse analyst John Edwards agrees; in response to the possibility of a KMI dividend cut, Edwards downgrades the MLP space and names Plains All American (NYSE:PAA), Williams Partners (NYSE:WPZ) and Energy Transfer Partners (NYSE:ETP) as the three names most at risk of a dividend cut due to their high leverage.
    • Moody's today changed its outlook on PAA to Negative from Stable while affirming the company's Baa2 rating, saying it is concerned about PAA's 5.4x debt-to-EBITDA ratio and sub-1x distribution coverage ratio.
    • The continuing slide in crude oil prices obviously is weighing on MLP prices, but year-end selling also may be playing a major role - not just tax-loss harvesting, but the “year-end liquidation of a losing trade," says Michael Shaoul of Marketfield Asset Management.
    • Shaoul says fund redemptions are part of the problem, as “the packaging of MLPs into large liquid ETF and mutual fund portfolios means that liquidation pressure is generally felt across the sector regardless of the underlying quality of the enterprise."
    | Dec. 7, 2015, 6:35 PM | 92 Comments
  • Dec. 2, 2015, 3:44 PM
    | Dec. 2, 2015, 3:44 PM | 86 Comments
  • Nov. 18, 2015, 12:58 PM
    • Two planned crude and condensate pipelines serving the DJ Basin in Colorado are merging into a single project, FuelFix reports.
    • The merger brings together the 200K bbl/day Saddlehorn Pipeline and the 130K bbl/day Grand Mesa Pipeline into a single 340K bbl/day pipeline running from Colorado to the Cushing, Okla., hub more than 550 miles away.
    • Saddlehorn is a joint venture owned by Magellan Midstream Partners (MMP -0.8%) and Plains All American Pipeline (PAA -3.2%), each with 40% stakes, and Anadarko Petroleum (APC -0.5%) with 20%; Grand Mesa is 100% owned by NGL Energy Partners (NGL +5.9%).
    • Each company will own the capacity it is bringing to the combined pipeline, with Saddlehorn owning 190K bbl/day and Grand Mesa owning the remaining 150K; MMP will head construction and operation of the pipeline.
    | Nov. 18, 2015, 12:58 PM | 7 Comments
  • Nov. 13, 2015, 9:32 PM
    • U.S. pipeline regulators order Plains All American Pipeline (PAA, PAGP) to shut down and clean out a California crude oil pipeline system to prevent corrosion after a separate but nearby pipeline ruptured and fouled Santa Barbara beaches last May.
    • The U.S. Pipeline and Hazardous Materials Safety Administration says Plains must purge oil from Line 903, a 130-mile pipeline that runs from Gaviota, Calif., inland to Kern County, as well as three shut offshore oil pipelines operated by Freeport McMoRan (NYSE:FCX) that normally feed Line 903.
    • The agency says surveys have shown that Line 903 has "similar corrosion characteristics" as Line 901, which ruptured and spilled more than 100K gallons of crude onto beaches and into the ocean last May.
    • Line 901 has been shut and empty since the spill, with the damaged section removed shortly thereafter; Line 903 also is shut but PHMSA says it has been "full of crude oil" since May except for a small section.
    | Nov. 13, 2015, 9:32 PM | 22 Comments
  • Nov. 7, 2015, 8:25 AM
    • With Keystone XL nixed by Pres. Obama, the Canadian energy industry - and its opponents - are turning their attention to the three pipelines proposed to carry oil sands volumes from Alberta to Canada’s Pacific and Atlantic coasts and avoid crossing into the U.S.
    • Alberta believes Kinder Morgan’s (NYSE:KMI) Trans Mountain expansion to the Pacific and TransCanada’s (NYSE:TRP) Energy East line to the Atlantic have the best chances for success, while Enbridge’s (NYSE:ENB) Northern Gateway is seen as less likely because of strident local opposition.
    • ENB also has been waiting since 2012 for a U.S. decision on a permit to nearly double the capacity of its Alberta Clipper cross-border pipeline, but the company notes the existing line is already fully operating and was permitted in 2009.
    • Analysts say the Keystone denial will embolden opponents, making all pipelines more difficult to build, and is a blow not just to Canadian companies but to U.S. pipeline firms such as Plains All American (PAA, PAGP) and Energy Transfer (ETE, ETP, SXL) that already are delaying projects (I, II) in response to lower oil prices and tougher environmental reviews.
    • Meanwhile, a major beneficiary could be Venezuela, who produces heavy crude similar to Canada’s oil sands and whose economy relies largely on shipping it to the same U.S. Gulf coast refineries that Keystone was meant to supply.
    | Nov. 7, 2015, 8:25 AM | 185 Comments
  • Nov. 5, 2015, 11:59 AM
    • Plains All American Pipeline (PAA -2.3%) is downgraded to Neutral from Buy with a $38 price target, cut from $46, at Credit Suisse after PAA lowered its EBITDA guidance by ~13% and reiterated its outlook for “a tough 2016 in terms of volumes and margins.”
    • On top of the downgrade, the firm also trims its price target for Plains GP Holdings (PAGP -3.1%) to $20 from $26.
    • PAA also is downgraded to Hold from Buy at Stifel, as management undergoes a review to right size its 2016 growth budget, determine the best sources of capital and cut operating costs; as domestic crude oil production declines and competition increases, the firm expects PAA to experience lower transportation volume growth and margins.
    | Nov. 5, 2015, 11:59 AM | 10 Comments
  • Nov. 4, 2015, 7:43 PM
    • Plains All American Pipeline (NYSE:PAA) said today that it plans to cut its 2016 capital budget by as much as 30% from this year's $2.2B and may sell some assets.
    • PAA also lowered its full-year 2015 EBITDA guidance to $2.17B-$2.23B from an original estimate of $2.23B-$2.325B, but said it would off on offering 2016 guidance until it had a better sense of how oil producers would be spending their capital.
    • "Based on our outlook for challenging industry conditions and competitive dynamics over the next 12-15 months, it’s clear 2016 will be a challenging year for PAA,” Chairman/CEO Greg Armstrong said in today's earnings conference call.
    • PAA fell 11.4% in today's trade, while shares of parent company Plains GP Holdings (NYSE:PAGP) fell 19.1%.
    • Earlier: Plains All American -7% as Q3 revenues cut in half, EBITDA falls 8%
    | Nov. 4, 2015, 7:43 PM | 6 Comments
  • Nov. 4, 2015, 10:45 AM
    • Plains All American Pipeline (PAA -6.9%) opens sharply lower after Q3 earnings topped estimates while revenues fell nearly 50% Y/Y, as the oil price slump and production cutbacks ate into its profit.
    • PAA says Q3 adjusted EBITDA - its preferred gauge of performance - fell to $497M, down 8% Y/Y but $17M above the midpoint of its guidance range, while Q3 net income slipped to $249M from $323M a year ago.
    • The biggest hit came in the supply and logistics segment, where adjusted profit fell 33% Y/Y, mostly due to lower profit margins and less oil moving through the pipes PAA owns closest to the wellhead.
    • PAA also says it will issue a quarterly distribution of $0.70/unit "next week," up 6.1% from the $0.66 paid in the year-ago quarter, while Plains GP Holdings (PAGP -15.9%) will pay a quarterly distribution of $0.231/share, up 21.1% Y/Y.
    | Nov. 4, 2015, 10:45 AM | 8 Comments
  • Nov. 3, 2015, 5:03 PM
    • Plains All American Pipeline (NYSE:PAA): Q3 EPS of $0.28 beats by $0.03.
    • Revenue of $5.6B (-49.7% Y/Y) misses by $1.52B.
    | Nov. 3, 2015, 5:03 PM | 13 Comments
  • Nov. 2, 2015, 5:35 PM
  • Oct. 22, 2015, 3:30 PM
    • MLPs are under pressure following Kinder Morgan's (KMI -5.7%) disappointing Q3 report in which it cut guidance for 2016 distribution growth (I, II)
    • KMI is no longer classified as an MLP but its relevance to the group remains strong, and MLPs have needed to rely on access to the capital markets; 24/7's Jon Ogg explains that KMI's vagueness about its plans to access new capital has dragged down the entire MLP sector today: MMP -3.5%, EPD -3.2%, ETP -3.1%, ETE -2.2%, WMB -1.8%, PAA -1.4%.
    • "There is just no getting away from the fact that a major energy company with a market capitalization of $69B just said that its access to public equity now comes at such a cost that it will go elsewhere, [which] should cause at least a few ripples of concern across the industry," Bloomberg's Liam Denning writes.
    • Brace for more waiting games from MLPs this quarter, Wunderlich's Jeff Birnbaum says, expecting many companies to delay providing their 2016 forecasts until later in the year when they have better indications from upstream companies about their plans, which could lead to renewed selling after a 20% gain in the Alerian MLP Index since it bottomed Sept. 29.
    | Oct. 22, 2015, 3:30 PM | 51 Comments
  • Oct. 7, 2015, 9:32 AM
    • Plains All American Pipeline (NYSE:PAA) declares $0.70/share quarterly dividend, 0.7% increase from prior dividend of $0.695.
    • Forward yield 8.51%
    • Payable Nov. 13; for shareholders of record Oct. 30; ex-div Oct. 28.
    | Oct. 7, 2015, 9:32 AM | 5 Comments
  • Sep. 14, 2015, 10:43 AM
    • Plains All American Pipeline (PAA +0.2%), responsible for an oil spill that blackened California beaches, kept shoddy records on emergency training and how it would protect pristine coastline in the event of a break, federal regulators said Friday.
    • Among its findings, the Pipeline and Hazardous Materials Safety Administration said PAA failed to properly document pressure tests on tanks and failed to keep adequate records on how it would prevent spills in sensitive environmental areas, or respond if one did occur.
    • The cause of the California pipeline break is still under investigation, and prosecutors are considering possible charges.
    | Sep. 14, 2015, 10:43 AM | 13 Comments
  • Sep. 11, 2015, 12:44 PM
    • While Goldman Sachs sees crude oil prices staying roughly flat at $45/bbl a year from now and warning of a potential collapse to $20, the firm also downgrades a wide swath of MLP and pipeline companies as it forecasts heightened risk to capital spending leading to lower distribution growth.
    • The firm downgrades Plains All American (NYSE:PAA), ONEOK Partners (NYSE:OKS), Memorial Production Partners (NASDAQ:MEMP), Enable Midstream Partners (NYSE:ENBL) and Dominion Midstream (NYSE:DM) to Sell from Neutral; it cuts Emerge Energy (NYSE:EMES), Rose Rock Midstream (NYSE:RRMS), Concho Resources (NYSE:CXO) and RSP Permian (NYSE:RSPP) to Neutral from Buy.
    • However, Goldman sees some opportunities despite the challenging outlook, preferring "stocks with assets leveraged to demand-pull (vs. supply-push)" such as Kinder Morgan (NYSE:KMI); the firm also upgrades Spectra Energy (NYSE:SE), Whiting Petroleum (NYSE:WLL) and Encaca (NYSE:ECA) to Buy from Neutral, and BP, TransCanada (NYSE:TRP) and Gran Tierra Energy (NYSEMKT:GTE) to Neutral from Sell.
    | Sep. 11, 2015, 12:44 PM | 90 Comments
  • Sep. 3, 2015, 12:38 PM
    • Holly Energy Partners (HEP +0.3%) agrees to acquire Enbridge’s (ENB +2.8%) 50% stake in the Frontier Pipeline for an undisclosed amount.
    • The Frontier pipeline is a 296-mile crude oil route that runs from Casper, Wyo., to Frontier Station, Utah, and has a capacity of 72K bbl/day; the line brings Canadian and Rocky Mountain crude oils south to refineries in the Salt Lake City area.
    • Plains All American (PAA +1.5%) owns the remaining 50% interest and will continue to operate the Frontier line.
    | Sep. 3, 2015, 12:38 PM | 1 Comment
  • Aug. 25, 2015, 6:45 PM
    • Rose Rock Midstream (NYSE:RRMS) is downgraded to Hold from Buy with a $35 price target, cut from $57, by the MLP analyst team at U.S. Capital Advisors, which also reduces its price target for Semgroup (NYSE:SEMG) to $60 from $84.
    • The firm says dropdowns are a major part of the RRMS story, as it struggles to see how SEMG can make accretive dropdowns into RRMS without taking meaningful asset writedowns; it also expects the White Cliffs pipeline to face margin and/or volume pressure once the new DJ Basin pipelines come online in 2016.
    • The firm also cuts price targets on 11 other stocks: KMI, MMP, CPPL, SMLP, PAA, PAGP, SE, WPZ, NGLS, TRGP, NFG.
    • Top picks include EPD, CQP, TEP and RMP.
    | Aug. 25, 2015, 6:45 PM | 33 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.