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

- NYSE
  • Aug. 21, 2014, 11:35 AM
    • Plains All American Pipeline (PAA -0.5%) announces plans to construct a 440-mile pipeline from its Cushing, Okla., terminal to Valero's (VLO +0.2%) Memphis refinery, to provide capacity of up to 200K bbl/day of domestic sweet crude.
    • PAA expects total project investment of ~$900M and completion in late 2016.
    • PAA says the Diamond pipeline project is underpinned by a long-term shipping agreement with VLO and a related contract for storage and terminalling services at the Cushing terminal.
    • VLO holds an option until Jan. 2016 to become a partner in the pipeline and purchase a 50% interest.
    | 2 Comments
  • Aug. 7, 2014, 6:49 PM
    • Plains All American (NYSE:PAA) stopped short of saying during today's earnings conference call that it is seeking a ruling from the U.S. government on whether it can export crude condensate, but said it will be ready to do so.
    • When an analyst asked if PAA had applied for a ruling, CEO Greg Armstrong declined comment, but when another analyst commented that there was no reason to think PAA's volumes wouldn't be eligible to be exported, the CEO said "the only thing that may get in our way is political arbitrariness."
    • PAA has an 80K bbl/day condensate stabilizer in Gardendale, Tex., that is being expanded to 120K; its output can move to Corpus Christi or Houston via pipelines that are joint ventures with Enterprise Products Partners, one of the companies that received export approval from the Commerce Department.
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  • Aug. 6, 2014, 6:23 PM
    • Plains All American Pipeline (NYSE:PAA) reports Q2 earnings matched analyst expectations, as higher costs masked growth in the company's transportation segment.
    • Q2 revenue rose 8.7% Y/Y to $11.2B, but total costs and expenses increased 9.3%.
    • PAA's transportation business posted adjusted earnings growth of 37% to $229M, mostly on stronger crude pipeline volume; meanwhile, the facilities segment reported adjusted profit fell 10% to $138M, but adjusted earnings for the supply and logistics business slipped 6% to $144M.
    • As a result of its H1 performance and its outlook for near baseline performance for the remainder of the year, PAA raises its full-year adjusted EBITDA guidance by $25M to a midpoint of $2.175B.
    • Says it remains on track to achieve its 10% distribution growth objective for 2014.
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  • Aug. 6, 2014, 5:13 PM
    • Plains All American Pipeline (NYSE:PAA): Q2 EPS of $0.50 in-line.
    • Revenue of $11.19B (+8.6% Y/Y) beats by $680M.
    • Press Release
    | 3 Comments
  • Jul. 16, 2014, 3:18 PM
    • Plains All American (PAA +1.2%) says it is considering building new condensate-only pipelines and storage tanks in the Permian Basin in west Texas as output increases, an issue that has taken on more urgency after the U.S. told two Eagle Ford operators that condensate could be exported if it has been run through a stabilizer.
    • Condensate makes up much of the output from the Eagle Ford, where newer pipeline and storage infrastructure is better suited to segregate it from more traditional light crudes, PAA VP of pipeline business development Sam Brown says.
    • While condensate has traditionally been mixed with other Permian crude as it moves to markets, Brown believes midstream companies will look at ways to segregate it as output volumes increase.
    | 3 Comments
  • Jul. 14, 2014, 4:40 PM
    • White Cliffs Pipeline plans to begin the commissioning this month of its expansion project, a looping of the existing crude oil pipeline from Platteville, Colo., to Cushing, Okla., to become fully operational in August.
    • White Cliffs capacity will increase to ~150K bbl/day from 76K, helping to meet the rising demand for midstream services by offering long-haul transportation from the Denver Julesburg Basin.
    • Rose Rock Midstream (NYSE:RRMS) will continue as pipeline operator; other owners are Plains All American Pipeline (NYSE:PAA), Western Gas Partners (NYSE:WES) and Noble Energy (NYSE:NBL).
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  • Jun. 4, 2014, 5:59 PM
    • Plains All American Pipeline (PAA) says it expects adjusted EBITDA for Q2 to exceed the mid-point of its quarterly guidance by 8%-10%, driven by continued strong fundamentals and favorable market conditions.
    • Last month, PAA provided midpoint adjusted EBITDA guidance of $455M for Q2 based on a guidance range of $430M-$480M.
    | 7 Comments
  • May. 15, 2014, 10:57 AM
    • The Los Angeles Fire Department says a ruptured oil pipe has caused ~10K gallons of crude oil to spill onto the city's streets.
    • The oil covers a half-mile area and is knee-high in some places after spurting 15-20 feet into the air from a burst 20-inch pipe; the flow of oil to the pipe was remotely shut down within 10 minutes of the burst being detected, but the leak continued for another 45 minutes.
    • A Bloomberg report says the pipeline is owned by Plains All American (PAA -0.8%).
    | 5 Comments
  • Apr. 11, 2014, 11:46 AM
    • The port of Corpus Christi, Tex., near the Eagle Ford oil fields of south Texas, is undergoing its biggest expansion in years as energy companies add docks so they can ship more crude to other U.S. ports and perhaps eventually to foreign ports.
    • Pipeline company NuStar Energy (NS) officially opened a third ship dock at the port, doubling its loading capacity to 400K bbl/day and enabling NS to handle Panamax-class vessels, which can carry 350K-500K barrels, at loading rates of up to 30K bbl/hour.
    • Other companies expanding or improving their Corpus Christi docks to move more Eagle Ford crude include Trafigura, Magellan Midstream Partners (MMP), Plains All American (PAA) and Martin Midstream Partners (MMLP).
    | 3 Comments
  • Mar. 5, 2014, 11:59 AM
    • Robert W. Baird refreshes its outlook for master limited partnerships with six downgrades: five high-growth partnerships that now look fairly valued - NGL Energy Partners (NGL -1.8%), New Source Energy (NSLP -4%), Plains GP Holdings (PAGP -0.3%), Summit Midstream Partners (SMLP -0.6%) and Tallgrass Energy Partners (TEP -2.7%) - and are cut to Neutral from Outperform, and a reduction for Whiting USA Trust II (WHZ -0.7%) to Underperform from Neutral on elevated commodity risk.
    • The firm recommends recycling capital into its top investment ideas: ONEOK Partners (OKS -1.2%), Plains All American Pipeline (PAA +0.9%), Rose Rock Midstream (RRMS +0.2%) and Crosstex Energy LP (XTEX -1.5%)
    • Despite downgrading multiple high-quality MLPs, Baird says its long-term bullish view on the sector remains unchanged (Briefing.com).
    | 3 Comments
  • Mar. 4, 2014, 10:43 AM
    • Utilities that meet takeover criteria outlined by Warren Buffett this weekend for another “major” acquisition after paying more than $5B last year for electricity provider NV Energy include Wisconsin Energy (WEC +1.8%) and Alliant Energy (LNT +1.1%), Bloomberg speculates.
    • WEC and LNT operate in states with favorable regulatory environments, and LNT is expanding into renewable energy, which Buffett has signaled could be a focus for large investments, according to Morningstar; pipeline MLPs such as Plains All American (PAA) and MarkWest Energy (MWE) also could appeal to Buffett, a Baird analyst says.
    • Berkshire Hathaway (BRK.A, BRK.B) “is likely looking at a lot of small, regulated utilities that have a lot of growth on the table where his low cost of capital is an incredible advantage,” Morningstar's Mark Barnett says.
    | 13 Comments
  • Feb. 5, 2014, 5:59 PM
    • Plains All American Pipeline (PAA) flat AH after reporting its Q4 earnings fell 13%, hurt by weaker adjusted results at its supply and logistics business.
    • Supply/logistics fell 22% in adjusted profit, mostly due to less favorable crude oil market conditions, particularly narrower crude oil differentials in the Permian Basin and Gulf Coast regions.
    • Transportation segment posted adjusted earnings growth of 8%, mostly on higher oil pipeline volume; facilities segment adjusted profit added 20%, mostly the result of increased crude oil rail activities.
    • Raised 2014 capital spending plans to $1.7B, $300M higher than PAA's earlier target.
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  • Feb. 5, 2014, 4:19 PM
    • Plains All American Pipeline, L.P. (PAA): Q4 EPS of $0.76 beats by $0.05.
    • Revenue of $10.63B (+12.6% Y/Y) misses by $600M.
    | 2 Comments
  • Feb. 5, 2014, 12:10 AM
  • Feb. 4, 2014, 5:35 PM
  • Jan. 7, 2014, 6:58 PM
    • Emerging Wall Street consensus is that the MLP sector may have seen its best days, and the MLP analyst team at Merrill Lynch cautions in a new report that volatility may lurk in the sector.
    • While Merrill believes the triple threat of increasing interest rates, volatile commodity pricing and overall MLP equity supply may combine to produce a choppy year, the firm upgrades three top names to buy to add to four top picks for 2014.
    • The top four: Energy Transfer Partners (ETP), whose distributable cash flow as of Sept. 30 totaled $2.3B vs. $1.3B a year earlier; MarkWest Energy (MWE), who will be able to process 3.7B cf/day in the Marcellus shale within a few years; Plains All American (PAA), a top name to buy at most Wall Street firms; and Western Refining Logistics (WNRL), which has not yet paid a distribution.
    • Upgraded to Buy: GLP, MMLP, TLLP.
    • ETFs: AMJ, AMLP, MLPG, MLPI, MLPN, MLPY, MLPL, MLPW, MLPS, YMLP, MLPA, EMLP, AMU, IMLP, MLPJ, ATMP, YMLI.
    | 10 Comments
PAA vs. ETF Alternatives
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.