Piping Hot Yields: Why Plains All American's Distribution Is A Bargain

(13min)

Summary

  • Exxon Mobil's strategic M&A and focus on high-margin traditional oil and gas have driven its market cap growth, outpacing peers.
  • Plains All American Pipeline offers a compelling 7.1% yield, strong cash flow coverage, and undervaluation, despite facing pipeline overcapacity and recontracting risks.
  • PAA's disciplined capital allocation and strategic NGL investments position it for long-term growth, supported by Permian production increases.
  • For income-focused investors, PAA presents significant upside potential within the midstream sector, driven by Permian growth and improved fundamentals.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More »

Dollar pipeline

TimArbaev

Introduction

Exxon Mobil (XOM) is firing on all cylinders.

As we can see below, it has left its peers in the dust when it comes to growing its market cap after the pandemic. The Texas giant is now bigger than

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This article was written by

Leo Nelissen profile picture
37.8K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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