Plains All-American Pipeline LP (PAA & PAGP) - May 18

Post Reply
Posts: 34570
Joined: Fri Apr 23, 2010 8:22 am

Plains All-American Pipeline LP (PAA & PAGP) - May 18

Post by dan_s »

Note from Neal Dingmann at Truist Financial.

Plains remains well positioned to financially benefit from Permian growth given the
limited capital required and ample capacity as tariff volumes continues to increase.
We believe company expectations of 500 mbopd could be slightly conservative based
on current and forecast D&C activity. We estimate the company has among the best
dividend yield, FCF yield and EBITDA with ample opportunity for shareholder return
give PAA also has among the lowest leverage. We increase our price target based on
our slightly higher volume estimates.
We are raising our price target on PAA to $17 from $15.

PAA is an MLP. PAGP, a C-Crop. is in our High Yield Income Portfolio. They pay identical quarterly dividends.

At the time of this post, PAA was trading at $13.48 and PAGP was trading at $14.03. < My current valuation of PAGP is $18.00.
Dan Steffens
Energy Prospectus Group
Post Reply