Plains All-American Pipeline LP (PAA) Update - June 12

Plains All-American Pipeline LP (PAA) Update - June 12

Postby dan_s » Wed Jun 12, 2019 3:02 pm

We will be sending out an updated profile on PAA in the morning.

I've been updating all of our profiles for the companies in our High Yield Income Portfolio. All of the midstream companies we've updated so far (AM, ENLC, MMP, OMP, OKE and PAA) are in really good shape, but PAA may lead the pack in that category. Which is way they recently increase their quarterly dividend by 20% and give every indication they will keep increasing dividends. PAA has two big pipelines from the Permian Basin to the Texas Coast that will be ramping up throughput starting later this year. They are going to have a BIG impact on PAA's revenues and DCF.

PAA is an MLP. If you don't like MLP's, check out PAGP. It is a C-Corp. that pays an identical dividend, but the annual yield is slightly lower because of the higher share price.

PAA, OKE and MMP have the highest "safety rating" just because of their size.

There is a perception of more risk for AM and OMP because their growth is tied to the growth of their parent companies AR and OAS.

We are still working on EPM, MINDP, BKEP and MPLX.

For those of you that like Viper Energy Partners LP (VNOM), which is now taxed as a C-Corp., take a look at Brigham Minerals (MNRL). It is run by the same team that built Brigham Exploration and sold it for over $4 Billion. Like VNOM, MNRL is acquiring mineral interests and paying a nice dividend. It is also a C-Corp. I am working on them to host a luncheon for us this summer.
Dan Steffens
Energy Prospectus Group
Posts: 22606
Joined: Fri Apr 23, 2010 8:22 am

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