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

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  • 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, 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
  • 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
  • Dec. 9, 2015, 2:39 PM
    • Janney analyst Nathan Judge says distribution cuts are not likely for most MLPs, but names Plains All American Pipeline (PAA +8.3%), Azure Midstream Partners (AZUR -0.3%), JP Energy Partners (JPEP +2.1%) and ONEOK Partners (OKS +5.2%) as MLPs with "high leverage and poor coverage" that could follow Kinder Morgan's footsteps.
    • The analyst also includes Vanguard Natural Resources (VNR -3.6%), a different case, saying that "while its current coverage and debt position is better than Kinder Morgan’s, the partnership potentially faces much lower EBITDA and cash flow in 2017 as hedges roll off."
    • Judge emphasizes that he is not actually predicting cuts, only naming companies that might be in the same sort of circumstances as KMI, as most of the midstream/downstream space is "seeing continued strong performance from assets and are able to comfortably cover distribution and likely grow them."
    | Dec. 9, 2015, 2:39 PM | 30 Comments
  • Dec. 2, 2015, 3:44 PM
    | Dec. 2, 2015, 3:44 PM | 86 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, 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
  • 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.
    • ETFs: AMLP, AMJ, KYN, MLPL, TYG, SRV, KYE, CEM, MLPI, NML, FEN, NTG, MLPA, KMF, EMLP, FMO, MLPN, SRF, FEI, JMF, CBA, MLPX, GMZ, EMO, MLPS, TTP, CTR, AMU, CEN, GER, AMZA, SMM, MIE, DSE, ENFR, FPL, ATMP, JMLP
    | Oct. 22, 2015, 3:30 PM | 51 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. 6, 2015, 3:58 PM
    • Plains All American Pipeline (PAA -2.8%) suffers at least five analyst downgrades following yesterday's cut in 2015 distribution growth guidance to 6% from the 7% figure achieved in 2014, and that it is evaluating leaving the distribution flat in 2016 as a “transition year” before returning to distribution growth.
    • "With PAA trading at a 7.7% yield, management may decide it is more effective to fund its substantial capex backlog with more internally generated cash vs. maintaining a below-average growth rate for PAA,” Wunderlich's Jeff Birnbaum writes in downgrading shares to Hold from Buy with a $37 price target, reduced from $56.
    • With transportation and facilities projects ramping up, PAA's S&L margins could contract, the analyst adds.
    • In downgrading PAA as well as Plains GP Holdings (PAGP -0.7%) to Neutral, Baird notes that much sooner than firm expected, the impact of infrastructure overbuild due to over-financed, overspending midstream players looks to reduce 2016 marketing margins as differentials collapse.
    • PAA also was downgraded at Goldman, Deutsche Bank and UBS.
    | Aug. 6, 2015, 3:58 PM | 12 Comments
  • Aug. 5, 2015, 3:21 PM
    • Plains All American Pipeline (PAA -11.1%) and Plains GP Holdings (PAGP -20.4%) are both sharply lower even as the companies met analyst expectations for Q2 earnings (I, II).
    • But PAA lowered its estimate for FY 2015 adjusted EBITDA by $50M to $2.278B, not including contributions from its Line 901, which ruptured and spilled oil along the California coastline in May; PAA booked a $65M Q2 charge related to the incident.
    • PAA also issued a cautious outlook, saying high crude oil and refined product inventory levels will influence oilfield activity and crude oil production levels over the next 6-12 months.
    • Even worse, management hinted on this morning's earnings conference call that distribution growth could be in jeopardy in 2016 as competition increases among pipelines while oil prices fall.
    • In response, PAA is downgraded to Neutral from Buy at UBS.
    | Aug. 5, 2015, 3:21 PM | 13 Comments
  • May 21, 2015, 11:23 AM
    • Cleanup teams continue to work around the clock to remove patches of crude oil that stained a beach and fouled Pacific waters near the Santa Barbara, Calif., coastline from a pipeline rupture that could become the biggest oil spill to hit the area since 1969.
    • Tuesday's spill could be as large as 2,500 barrels (105K gallons), 5x more than the original estimate, in a worst-case scenario outlined by pipeline owner Plains All American Pipeline (PAA -3.2%), which also estimates 500 barrels may have reached the ocean.
    • PAA says it is investigating if pump malfunctions along the line, which led to the line’s temporary shutdown, may have played a role in the spill.
    • The pipe that burst was built in 1991 and had been tested a few weeks ago, but the results had not yet come in, the company says.
    • California Gov. Brown has declared a state of emergency in Santa Barbara County, a move that frees up additional state funding and resources to help in the cleanup.
    | May 21, 2015, 11:23 AM | 1 Comment
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.