Plains All-American Pipeline LP (PAA)

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dan_s
Posts: 34471
Joined: Fri Apr 23, 2010 8:22 am

Plains All-American Pipeline LP (PAA)

Post by dan_s »

I have posted my updated profile and forecast/valuation model for Plains All American Pipeline LP (PAA and PAGP) to the EPG website.

Plains joins the growing group of companies in our High Yield Income Portfolio that will be increasing dividends quarter-after-quarter. If you want a portfolio that generates solid cash flow, then this one is for you. There is also potential for 20% to 30% appreciation of the unit price.

PAA raised its quarterly distribution by 20% last week and they also plan to keep raising distributions by at least 5% per year. Based on my forecast, they should be able to beat that by a wide margin.

The midstream sub-sector is in great shape today and it is a perfect fit for the MLP structure. If you don't like owning MLPs, then take a look at PAGP (a C-Corp).
Dan Steffens
Energy Prospectus Group
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