Plains GP Holdings, LPNYSE
Tue, Oct. 4, 2:56 PM
- Plains All American Pipeline (PAA -1.5%) is upgraded to Overweight from Equal Weight, and ONEOK (OKE -3.9%) is downgraded to Equal Weight from Overweight at Morgan Stanley.
- PAA looks attractive, “given its Permian basin positioning, with dominant gathering market share and underutilized assets that will benefit from increasing Permian crude production,” Stanley says, expects that by 2019 PAA will generate twice the EBITDA growth from additional capacity utilization than reflected by current consensus estimates.
- Valuations on near-term cash flows limits upside for OKE, the firm says, while noting that the company's fundamentals remain healthy, and it is optimistic about the coming natural gas liquids cycle in 2018-20.
- The firm's stock price targets are $37 for PAA and $50 for OKE, while it also maintains an Equal Weight rating and $14 target on Plains GP Holdings (PAGP -0.2%).
Fri, Sep. 30, 9:53 AM
Sat, Sep. 10, 8:25 AM
- Energy MLPs enjoyed a lift this week (at least until yesterday) following news of the Enbridge-Spectra merger, particularly those lacking sponsorship by producers that may be targets for consolidation.
- Credit Suisse sees logical players to be involved in combinations to secure access to opportunities and capital including ETE/ETP, EPD, MMP, PAA/PAGP, OKE/OKS, WPZ, PSX/PSXP, MPC/MPLX, TRGP, NS/NSH, GEL and TEP/TEGP.
- FBR Capital says MLP valuations have improved ~45% from lows reached early this year, and expects macro trends to lift the sector; the firm thinks CAPL could enjoy double-digit growth for nearly seven years, and says MMLP is another notable outperformer whose valuation reflects more than enough discount for a distribution cut (which the firm is forecasting) - it also likes ENLK, EEP, TLP, SRLP, USAC, WLKP and USDP,
- RBC notes favorable sentiment in the MLP realm, highlighting attractive valuations particularly at ETP, BWP and AMID, and sees dropdown stories - out of favor YTD - such as VLP and SHLX offering visible growth that can support the stocks over the next 12 months.
- ETFs: AMLP, AMJ, KYN, TYG, KYE, SRV, CEM, MLPI, NML, FEN, NTG, KMF, MLPA, EMLP, FMO, AMZA, FEI, JMF, SRF, CBA, MLPN, GMZ, MLPX, GER, EMO, TTP, CTR, MLPS, CEN, SMM, DSE, FPL, AMU, MIE, JMLP, ENFR, ATMP, IMLP
Fri, Aug. 26, 1:54 PM
- Sentiment is improving and "recovery emerging” around energy MLPs, Citi's Faisel Khan says, citing Improving commodity prices and tighter credit spreads as the main reasons, as some companies are positioning for volume growth.
- The analyst offers six "value picks": TRGP, OKS, NS, BWP, TLLP and CQP.
- Khan's "key thematic picks" are Energy Products Partners (NYSE:EPD), as a play on growth in natural gas liquids, Plains All American Pipeline (NYSE:PAA) and Plains GP Holdings (NYSE:PAGP) on growth in the Permian basin, and EnLink Midstream (NYSE:ENLC), as a play on Oklahoma expansion.
Tue, Aug. 16, 10:58 AM
- Plains All American Pipeline (PAA +0.6%) and Plains GP Holdings (PAGP +0.8%) are resumed with Buy ratings at Citigroup, which cites Plains' simplified ownership and governance structure.
- PAA’s agreement with PAGP affiliate Plains AAP LP eliminates PAA’s incentive distribution rights and economic rights associated with PAA’s 2% general partner interest, in exchange for 245M newly issued PAA common units and the assumption of all of AAP’s outstanding debt.
- The firm says the terms are much as it expected, materially reducing the risk to PAA's investment grade rating, and that the simplification is welcome news for investors.
Tue, Aug. 2, 4:55 PM
Mon, Aug. 1, 5:35 PM
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Wed, Jul. 13, 10:40 AM
- Plains All American Pipeline (PAA -0.3%) and Plains GP Holdings (PAGP +0.1%) are both upgraded to Neutral from Underperform at Baird, which says the new ownership and governance structure is simpler and leaner, and the distribution cuts are credit positive and sustainable.
- Baird, which raises its price target on PAA to $30 from $14 and on PAGP to $12 from $5, says it holds PAA's execution capability in high regard and models above-market Permian volume capture and below-market declines elsewhere.
- But Wunderlich's Jeff Birnbaum thinks investors may be too optimistic about the near-term benefits of the simplification move, keeping his Hold rating on both units as "the stocks are already pricing in a significant cash flow recovery where there could still be substantial choppiness along the way."
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%.
Fri, Jul. 8, 12:39 PM
- Plains GP Holdings (PAGP +0.7%) is downgraded to Equal Weight from Overweight at Barclays, while raising its price target on the stock to $11 from $8.
- Barclays believes Plains All American Pipeline (PAA +1.6%) is unlikely to be able to generate coverage above 1.0x for at least the next couple of years at current distribution levels, and probably will prompt a 25% distribution cut at PAGP.
- The firm reduces its 2017 dividend and target yield estimates to $0.69/share from $0.924 and to 6% from 11%, respectively.
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, 12:58 PM
- Plains All American Pipeline (PAA -0.6%) and Plains GP Holdings (PAGP -3.3%) are reiterated with Neutral ratings and respective $26 and $11 price targets at Credit Suisse. which says the main takeaway from PAA's investor day was management's description of PAA's ongoing strategy of increasing integration and utilization of existing capacity.
- The firm says it was impressed with PAA's expectations to generate $1B by 2020 through leveraging its expansive footprint with little to no incremental capex; of the $1B, $600M was expected to come from the transportation and facilities segments, with $400M from supply and logistics.
- Credit Suisse expects margins to begin to recover significantly in 2018 and thereafter due to increasing crude margins and arbitrage opportunities.
- Now read Plains All American Pipeline and its distribution
Wed, May 4, 4:34 PM
- Plains GP Holdings (NYSE:PAGP): Q1 EPS of $0.14 misses by $0.07.
- Revenue of $4.11B (-30.8% Y/Y) misses by $2.55B.
Tue, May 3, 5:35 PM
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Thu, Apr. 7, 4:45 PM
- Plains GP Holdings (NYSE:PAGP) declares $0.231/share quarterly dividend, in line with previous.
- Forward yield 11.31%
- Payable May 13; for shareholders of record April 29; ex-div April 27.
Fri, Apr. 1, 6:54 PM
- The huge investor outflow from MLPs has created a handful of major value opportunities in the space, Simmons analysts say, naming Enterprise Products Partners (NYSE:EPD) and Holly Energy Partners (NYSE:HEP) as their top Buy ideas.
- The firm believes that not all MLPs are as financially solid as they claim, preferring names that can fully cover current distribution payments and have financed growth projects in 2016 and EBITDA outlook clarity.
- Simmons also names EnLink Midstream Partners (NYSE:ENLK) as a higher risk/higher reward play for more aggressive investors; the firm rates ENLK, EPD, HEP and Delek Logistics Partners (NYSE:DKL) at Outperform.
- Rated Neutral: KMI, JPEP, NS, EEP, PAA, PAGP, OKS, ENLC.
- Now read High dividend stock has 46 dividend hikes, earnings estimates rising, insiders are buying