Plains All-American Pipeline LP (PAA & PAGP) - Aug 10
Posted: Wed Aug 10, 2022 4:01 pm
PAGP closed at $11.42 today. Dividends s/b $0.87 this year for yield of ~7.62%, but their DCF is heading to $2.19 per share this year and $2.40 per share in 2023.
They are focused on lowering debt with free cash flow now, but I think they will raise dividends quite a bit in 2023. They have enough DCF to double the dividend. Non-core asset sales are also reducing debt.
TipRanks: "In the last 3 months, 8 ranked analysts set 12-month price targets for PAA. The average price target among the analysts is $13.81. The 8 price targets range from $12 to $18."
I have updated my forecast/valuation for their strong Q2 results and increased guidance. My current valuation is $18.00, primarily because Plains will benefit from increased Permian Basin production for many years.
They are focused on lowering debt with free cash flow now, but I think they will raise dividends quite a bit in 2023. They have enough DCF to double the dividend. Non-core asset sales are also reducing debt.
TipRanks: "In the last 3 months, 8 ranked analysts set 12-month price targets for PAA. The average price target among the analysts is $13.81. The 8 price targets range from $12 to $18."
I have updated my forecast/valuation for their strong Q2 results and increased guidance. My current valuation is $18.00, primarily because Plains will benefit from increased Permian Basin production for many years.