PAA & PAGP Update - May 24

[dan_s]

I expect PAA and PAGP to raise their quarterly dividends later this year.

PAA beat my Q1 2021 forecast by a wide margin. As U.S. oil production increases, so will their revenues.
Their current DCF coverage is more than 2X
Using excess free cash flow after dividends to pay down debt this year
Balance sheet should be a good shape at year-end, so they can shift to paying higher dividends.

I have updated my forecast/valuation model for PAA and posted it to the EPG website.

PAA is an MLP and PAGP is a C-Corp that pays identical dividends.