Thu, Feb. 5, 10:44 AM
- Plains All American Pipeline (PAA -0.4%) announces plans to build two new crude oil pipelines and associated gathering systems in west Texas and New Mexico, adding more reach to other expansions to move Permian Basin production to markets.
- The projects will increase infrastructure to move output from the Delaware Basin part of the Permian; one will be a batched system, meaning it will be able to transport condensate separate from other types of crude.
- The move comes even as the company said it was lowering its growth projections due to lower commodity prices.
Wed, Feb. 4, 6:58 PM
- Plains All American Pipeline (NYSE:PAA) reports a 26% increase in Q4 earnings as lower costs offset weaker revenue, and declares a distribution of $0.675/unit for the period.
- PAA says it will cut its expansion capital spending by 9% Y/Y to $1.85B from $2.03B in 2014, and lowers the midpoint of its adjusted earnings target for 2015 by 6.5% to $2.35B and cut its distribution growth target for this year.
- Says it is lowering its 2015 distribution growth target for PAA to 7%, which would equate to a distribution increase for Plains GP (NYSE:PAGP) of ~21%.
- Earnings at PAA's pipeline business rose 26% Y/Y to $267M, due to high volumes of crude, higher tariff rates and the acquisition of a 50% interest in the BridgeTex line completed in 2014.
- The facilities segment’s earnings fell 11%, mostly from the impact of re-contracting capacity originally at higher rates at its natural gas storage operations.
- Supply and logistics profit fell 17%, reflecting less favorable natural- as liquids and crude oil markets.
Wed, Feb. 4, 5:00 PM
Tue, Feb. 3, 5:35 PM
- ACXM, ADEP, AFFX, AFOP, ALL, APU, ATML, AWH, BDN, BGC, BKD, BMR, CATM, CBG, CDNS, CEB, CINF, CLW, CMRE, CNW, DATA, ENS, EPM, ESS, EXAR, FBHS, FEIC, FMC, FORM, FOXA, G, GEOS, GIL, GLUU, GMCR, GPRE, HI, HUBG, ININ, IRBT, LCI, LNC, MAA, MAC, MTGE, MTRX, MUSA, NE, NXPI, ORLY, OSUR, PAA, PAGP, PMT, PNNT, PRE, PRU, PSEC, QUIK, RE, RRTS, RXN, SPB, SU, SYA, THG, TTMI, TWO, TYL, UA, UGI, UHAL, WFT, WGL, WSTL, YUM
Tue, Feb. 3, 2:49 PM
- Veteran energy analyst Christopher Eades recommends a half-dozen safe oil majors, oilfield services firms and transport MLPs as the best bets to ride out the current storm - Halliburton (HAL +4%), Pioneer Natural Resources (PXD +2.2%), Hess (HES +3.2%), Occidental Petroleum (OXY +2.1%), Enterprise Products Partners (EPD +1.4%) and Plains All American Pipeline (PAA +2.4%) - all companies with strong balance sheets, strong growth prospects, and healthy yield levels with no dividend cuts on the table.
- Eades says he is "more enthusiastic about MLPs than I've been in some time," as the group has essentially given up two years’ worth of gains yet cash flow fundamentals have been largely unchanged - "to me, that sounds like a good opportunity, particularly in a world still so starved for yield."
Fri, Jan. 30, 9:44 AM
- Plains All American Pipeline's (PAA -0.2%) Canadian subsidiary says it is beginning to look for workers at its new crude-by-rail unit train terminal in Kerrobert, Saskatchewan, due to start up mid-2015.
- Initial capacity at the terminal will be one unit train, or 70K bbl/day, with capacity to expand to two trains daily.
- PAA also ships crude from other manifest terminals in Western Canada, and will have capacity to transport around 100K bbl/day once Kerrobert is operating.
Thu, Jan. 15, 6:36 PM
- Plains All American Pipeline (NYSE:PAA) subsidiary Midstream Canada is ordered by the National Energy Board to submit to an independent third-party audit of all its nationally regulated pipelines in Alberta, Saskatchewan, Manitoba and Ontario.
- The company has had two spills in Alberta in recent years: The Rainbow pipeline near Peace River leaked ~37K barrels of oil in 2011 and the Rangeland pipeline spilled ~3.8K barrels near Sundre in 2012.
- Once the audit of 5K km of Plains pipelines is complete, the NEB will review the results and levy fines or halt operations if necessary.
Thu, Jan. 15, 11:42 AM
- A new report from J.P. Morgan’s energy team reminds investors that despite the Q4 meltdown from declining crude oil prices, MLPs still clawed out a 5% total return in 2014, far better than the -8% total return for the overall energy sector.
- Still, the firm is sticking with top blue chip MLPs and defensive natural gas names, tabbing six Outperform-rated stocks that can stand some volatility as part of a growth and income portfolio: EPD, KMI, PAA, BWP, DM, EQM.
- Others are more pessimistic on the group: S&P Capital IQ's Stewart Glickman says there isn't a single E&P MLP that has healthy fundamentals, though some companies such as PAA and RGP are now cheap enough to be potentially good deals.
- Renaissance Capital's Nick Einhorn thinks a better alternative is to invest in funds that own groups of the MLPs.
- ETFs: AMLP, AMJ, MLPL, YMLP, MLPI, MLPA, MLPN, EMLP, MLPG, MLPX, MLPS, MLPY, AMU, YMLI, ZMLP, AMZA, ENFR, ATMP, MLPC, MLPW, IMLP, OSMS, YGRO, MLPO
Thu, Jan. 8, 9:14 AM
Dec. 10, 2014, 7:15 PM
- Some energy limited partnerships - pipeline operators or wholesale distributors, with less risky business models than oil E&P companies - have escaped much of the carnage in energy stocks and may make attractive investments, MarketWatch's Philip Van Doorn writes.
- These 12 energy LPs, most of which fell today amid the energy sector rout, actually have posted gains since Nov. 1: TCP, EEQ, EEP, DM, BPL, SHLX, SGU, BIP, SRLP, APU, SEP, SPH.
- Credit Suisse analyst John Edwards recently said many energy LPs look oversold; his top picks in the sector include EEP as well as NGLS, GEL, OKS, CNNX, PAA, BWP and AM.
Dec. 2, 2014, 7:21 PM
- A fresh report this week from BofA Merrill Lynch’s MLP team highlights which MLPs may be mostly insulated from the carnage in oil prices, as long as the situation does not deteriorate further: Enterprise Products (NYSE:EPD), Magellan Midstream (NYSE:MMP), Buckeye Pipeline ([BPL), Energy Transfer (NYSE:ETP), Plains All American (NYSE:PAA), and - even though it is now a corporation rather than a parent of three MLP entities - Kinder Morgan (NYSE:KMI).
- The firm considers these MLPs as relatively lower-risk because of their diverse asset bases, investment grade balance sheets, low direct commodity sensitivity, seasoned management teams and solid organic growth outlook.
Nov. 28, 2014, 10:20 AM| Nov. 28, 2014, 10:20 AM | 17 Comments
Nov. 24, 2014, 4:56 PM
- Plains All American Pipeline (NYSE:PAA) says it plans to provide additional pumps to increase the takeaway capacity of the Cactus Pipeline in response to higher regional production forecasts and shipper demand.
- Installation of booster stations along the Texas pipeline will result in an increase in throughput from ~250K bbl/day to ~330K bbl/day.
- The Cactus Pipeline is expected to be in service in April 2015; the expansion will be completed in Q4 2015.
Nov. 6, 2014, 7:43 AM
- Plains All American Pipeline (NYSE:PAA) agrees to acquire Occidental Petroleum's (NYSE:OXY) 50% stake in BridgeTex Pipeline for $1.075B.
- PAA says the acquisition of the new 300K bbl/day crude oil pipeline running from the Permian Basin to the Houston Gulf coast area will strengthen its access to the Gulf coast.
- Magellan Midstream Partners (NYSE:MMP), which owns the remaining 50% interest in BridgeTex, is buying the southern leg of the pipeline system running from Houston to Texas City for $75M.
- OXY says the deals are part of its attempt to streamline its business.
Nov. 5, 2014, 6:49 PM
- Plains All American Pipeline (NYSE:PAA) reported a 40% jump in Q3 earnings, as producers sent more crude through its transportation and storage facilities.
- Profit at PAA’s transportation business rose 16% Y/Y due to higher crude oil production in the areas it serves and the company’s own recently completed growth projects; supply and logistics saw a 14% gain driven by a favorable crude market and growth in crude oil lease gathering volumes.
- PAA maintains its FY 2014 EBITDA forecast of $2.175B and sets its 2015 preliminary adjusted EBITDA guidance at $2.35B-$2.5B, which it says "reflects a cautious and prudent approach that acknowledges uncertainties associated with the recent decreases in oil prices and related differentials as well as the potential drilling reductions by producers in various crude oil resource plays."
- Says it will pay a distribution of $0.66/unit for the period, up 10% Y/Y.
- PAA also announces plans to construct a new 226-mile pipeline from the Plains Basin pipeline system at Duncan, Okla., to Longview, Tex., supported by long-term commitments.
Nov. 5, 2014, 5:31 PM
PAA vs. ETF Alternatives
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.
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