Plains All American Pipeline, L.P. (PAA) - NYSE
  • Tue, Jul. 12, 12:54 PM
    • Plains All American Pipeline (PAA +11.7%) and Plains GP Holdings (PAGP +11.4%) power higher following last night's agreement to simplify their ownership and governance structure.
    • In the deal valued at ~$7.2B, PAA will issue 245.5M shares to an affiliate of PAGP in exchange for permanently eliminating PAGP's incentive distribution rights and other economic rights, and will give PAA unitholders the right to vote for a unified board of directors; at the expected closing of the deal in Q4, PAA also will assume $593M in debt from the affiliate.
    • PAA will cut its dividend by 21% to $0.55/unit beginning in Q3, and PAGP will cut the dividend on its Class A units by 11% to $0.2065/share.
    • PAGP will remain a publicly traded entity that is treated like a C-corp with a Form 1099 tax reporting structure; the companies say they received a tax opinion stating that the deal would not be taxable for PAA or to shareholders.
    • Piper Jaffray analyst Brian Gamble says the deal appears to improve coverage metrics at PAA, and says PAA's distribution cut came in at the low end of his expectations of 20%-50%.
    | Tue, Jul. 12, 12:54 PM | 6 Comments
  • Thu, May 26, 2:42 PM
    • Little was said at today's investor day on the subject, but Barron's Amey Stone suspects investors are nervous that Plains All American Pipeline (PAA -1.7%) may consolidate its MLP with the general partner, Plains GP Holdings (PAGP -2.9%).
    • One worry about a potential consolidation is that it will threaten the high distributions of the MLP, Wunderlich's Jeff Birnbaum says, and long-term holders also would worry about tax consequences in a restructuring.
    • Birnbaum believes a deal would improve Plains’ financial outlook, "but choices will likely need to be made between PAA’s distribution and leverage," so he awaits a more attractive entry point alongside additional signs of upcoming volume growth.
    • Now read Plains All American Pipeline, Plains GP kept Neutral at Credit Suisse
    | Thu, May 26, 2:42 PM | 19 Comments
  • Thu, May 19, 3:49 PM
    • Plains All American Pipeline (PAA +2.8%) failed to detect and react quickly enough to last year's oil spill on the California coast a year ago and did not do enough to prevent corrosion, the U.S. Pipeline and Hazardous Materials Safety Administration says in its final investigation report.
    • The agency previously said severe corrosion led to a 6-in. gash in the 2-ft.-wide pipe, but the final report examines in greater depth about failures to detect and prevent that corrosion as well as operator error in recognizing the leak.
    • The report is issued on the one-year anniversary of the 120K-gallon spill and two days after PAA was indicted in Santa Barbara County Superior Court on several criminal charges, including four felonies for polluting state waters and three dozen misdemeanors for harming wildlife.
    • Now read Plains All American reiterated Sell at Goldman
    | Thu, May 19, 3:49 PM
  • Thu, May 19, 2:44 PM
    • Plains All American Pipeline (PAA +2.3%) is higher even as Goldman Sachs reiterates its Sell rating and $17 price target, saying Moody's credit downgrade puts PAA in danger of losing its investment grade rating and making it more difficult for the company to use leverage to expand.
    • The firm also notes the increased potential for greater volume decline as PAA's Q1 rig count came in lower than expected (Q1 earnings).
    • Goldman says it likes PAA's asset footprint and acknowledge its potential earnings power upside in a crude production recovery, but wants to see a resolution to its corporate structure and a clear path to deleveraging.
    • Now read Plains' big yield: Sifting the MLP wreckage
    | Thu, May 19, 2:44 PM | 16 Comments
  • Tue, May 17, 12:46 PM
    • Plains All American Pipeline (PAA +2.2%) says the company and one of its employees have been indicted in the failure of a California crude oil pipeline last year.
    • PAA and one of its employees face 46 counts of state law violations in the May 2015 spill at a beach on the Santa Barbara coastline and into the Pacific Ocean.
    • PAA says the spill was an accident, that no criminal behavior occurred and that it will defend itself against the changes.
    • Now read Plains' big yield: Sifting the MLP wreckage
    | Tue, May 17, 12:46 PM | 1 Comment
  • Fri, Apr. 1, 10:59 AM
    • Holly Energy Partners (HEP -2.1%) agrees to acquire crude oil tankage located at HollyFrontier's (HFC -3.8%) Tulsa refinery from an affiliate of Plains All American Pipeline (PAA -2.1%) for $39.5M.
    • In connection with the deal, HEP and HFC say they expect to enter into a 10-year throughput agreement containing minimum quarterly volume commitments from HFC.
    • HEP expects the acquisition will generate minimum annual revenue of $6.1M in the first year and will be immediately accretive.
    • Now read A high-dividend stock with 45 straight dividend hikes, insider buying and rising estimates
    | Fri, Apr. 1, 10:59 AM | 3 Comments
  • Wed, Mar. 2, 2:28 PM
    • While energy supply and demand dynamics may be about to start improving, the benefits are not yet evident in the profit picture for midstream MLPs, Wunderlich's Jeff Birnbaum writes, as declining onshore crude production will continue to challenge midstream operators.
    • E&P guidance and more recent EIA data indicates more significant declines may come in 2016 than expected several months ago, according to Birnbaum.
    • Among individual MLPs, the analyst expects Plains All American (PAA +2.3%) to use its scale, downstream operations and lack of 2016 financing needs as weapons to take share from smaller competitors, and sees a rebound in Gulf of Mexico production as a positive for Genesis Energy (GEL +5.8%).
    • With additional liquified petroleum gas export capacity online in 2016 and the prospect for a more normalized 2016-17 winter, the propane market should tighten relative to a sloppy 2015, which Birnbaum believes will benefit Enterprise Products Partners (EPD +3.5%), Targa Resources (TRGP +1.1%), DCP Midstream Partners (DPM +6.8%) and NGL Energy Partners (NGL -0.1%).
    | Wed, Mar. 2, 2:28 PM | 10 Comments
  • 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
  • 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, 3:22 PM
    | Mon, Feb. 8, 3:22 PM | 51 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.”
    | Thu, Jan. 14, 3:26 PM | 89 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
  • 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
Company Description
Plains All American Pipeline LP is engaged in the transportation, storage, terminal ling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas-related petroleum products. It operates through three business segments: Transportation, Facilities, and Supply... More
Industry: Oil & Gas Pipelines
Country: United States