Latest news with #PlainsAllAmerican
Yahoo
03-07-2025
- Business
- Yahoo
Why Plains All American Pipeline Jumped Nearly 11% in June
Plains All American Pipeline agreed to sell its Canadian NGL business last month. The sale will have several benefits. The deal puts the company in an even better position to grow its high-yielding distribution. 10 stocks we like better than Plains All American Pipeline › Shares of Plains All American Pipeline (NASDAQ: PAA) surged 10.8% in June, according to data provided by S&P Global Market Intelligence. Fueling the oil pipeline company's rally was an agreement to sell its Canadian natural gas liquids (NGL) business to Keyera. Plains All American Pipeline agreed to sell its Canadian NGL business to Keyera for $3.75 billion in cash last month. The master limited partnership (MLP) will retain most of its NGL assets in the U.S. and its Canadian crude oil operations. The company expects the sale to close in the first quarter of 2026. The transaction will transform Plains All American Pipeline into a premier midstream pure-play company specializing in crude oil. The pipeline company will produce more durable cash flows following the sale because it will reduce its direct exposure to commodity price volatility. The company also expects to generate more free cash flow following the deal and have greater financial flexibility. Plains All American Pipeline expects to receive approximately $3 billion in net proceeds from the sale after taxes, transaction costs, and a potential one-time special dividend to investors, which will help offset their potential tax liabilities. The company plans to utilize its enhanced financial flexibility to make bolt-on acquisitions that bolster its crude oil portfolio, optimize its capital structure by potentially repurchasing some of its preferred units, and execute opportunistic common unit repurchases. The transaction will put Plains All American in an even stronger position to continue growing its high-yielding distribution (more than 8% yield). The company expects its leverage ratio to be at or below the low end of its target range (3.25-3.75 times); it was 3.3x at the end of the first quarter. That will give it the flexibility to allocate capital toward initiatives that grow shareholder value. The company has demonstrated that it can use its financial flexibility to enhance value for investors. For example, in January, Plains made three bolt-on acquisitions for $670 million and repurchased 18% of its Series A Preferred Units for $330 million. Those transactions enabled the company to increase its dividend by 20%. Plains All American still trades at an attractive value after last month's surge. The MLP's yield is toward the high end of its peer group despite having very strong financial metrics. Because of that, it's a great option for those seeking sustainable and growing passive income. The company offers two investment options. Those seeking the tax benefits of an MLP can buy units of Plains All American Pipeline and receive a Schedule K-1 federal tax form. Meanwhile, investors who don't want the potential tax complications can buy shares of Plains GP Holdings (NASDAQ: PAGP) and receive a 1099-DIV form. Before you buy stock in Plains All American Pipeline, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Plains All American Pipeline wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $963,866!* Now, it's worth noting Stock Advisor's total average return is 1,050% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool recommends Keyera. The Motley Fool has a disclosure policy. Why Plains All American Pipeline Jumped Nearly 11% in June was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
02-07-2025
- Business
- Globe and Mail
Plains All American Pipeline and Plains GP Holdings Announce Quarterly Distributions and Timing of Second Quarter 2025 Earnings
HOUSTON, July 02, 2025 (GLOBE NEWSWIRE) -- Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) announced today their quarterly distributions with respect to the second quarter of 2025 and also announced timing of second quarter 2025 earnings. Second Quarter Distribution Declaration PAA and PAGP announced the following quarterly cash distributions, each of which will be payable on August 14, 2025 to holders of the respective securities at the close of business on July 31, 2025: PAA Common Units – $0.38 per Common Unit ($1.52 per unit on an annualized basis), which is unchanged from the distribution paid in May 2025. PAGP Class A Shares – $0.38 per Class A Share ($1.52 per Class A Share on an annualized basis), which is unchanged from the distribution paid in May 2025. PAA Series A Preferred Units – $0.61524 per Series A Preferred Unit (approximately $2.46 per unit on an annualized basis). For its Series B Preferred Units, PAA announced a quarterly distribution of $22.23 per Series B Unit (based on the applicable quarterly floating rate), which will be payable on August 15, 2025 to holders of record at the close of business on August 1, 2025. Although equity holders should consult their own tax advisor regarding their particular circumstances, the PAGP cash distribution per Class A Share is expected to be a non-taxable return of capital to the extent of a Class A Shareholder's tax basis in each PAGP Class A Share and a reduction in such tax basis. In addition, to the extent any cash distribution exceeds a Class A Shareholder's tax basis, it should be taxable as a capital gain. Qualified Notices under Treasury Regulation Section 1.1446 with respect to the PAA Common Unit distribution and PAA Series B Preferred Unit distribution will be posted on the Plains website under 'Investor Relations – Unit Information.' Second Quarter 202 5 Earnings Timing PAA and PAGP also announced that they will release second quarter 2025 earnings before market open on Friday, August 8, 2025. Following the announcement, PAA and PAGP will host a conference call at 9:00 a.m. CT (10 a.m. ET) with analysts and investors to discuss earnings. The call will be webcast live on the internet and may be accessed through the "Investors Relations' section of the website at An audio replay will be available on the website after the call. About Plains PAA is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil and natural gas liquids (NGL). PAA owns an extensive network of pipeline gathering and transportation systems, in addition to terminalling, storage, processing, fractionation and other infrastructure assets serving key producing basins, transportation corridors and major market hubs and export outlets in the United States and Canada. On average, PAA handles approximately eight million barrels per day of crude oil and NGL. PAGP is a publicly traded entity that owns an indirect, non-economic controlling general partner interest in PAA and an indirect limited partner interest in PAA, one of the largest energy infrastructure and logistics companies in North America.
Yahoo
19-06-2025
- Business
- Yahoo
A $3.8 Billion Deal Is Making These Ultra-High-Yielding Dividend Stocks Even Safer
Plains All American Pipeline is selling its Canadian NGL business. The deal will lower its earnings volatility and leverage ratio. It will provide the MLP with a huge windfall to allocate in growing shareholder value. 10 stocks we like better than Plains All American Pipeline › Dividend sustainability has been an issue for master limited partnership (MLP) Plains All American Pipeline (NASDAQ: PAA) and its general partner (GP) Plains GP Holdings (NASDAQ: PAGP) over the years. The MLP has cut its distribution several times over the years due to earnings volatility and balance sheet issues, causing its GP to cut its dividend. However, Plains All American Pipeline has taken several steps to reduce its earnings volatility and leverage ratio. Those actions have paid big dividends for investors, as the MLP has steadily rebuilt its payment level. That payout -- which yields over 8% at PAA and is more than 7.5% at PAGP -- is now growing even stronger after the oil pipeline company agreed to sell its Canadian natural gas liquids (NGLs) business for nearly $3.8 billion. It makes these high-yielding dividend stocks a lot safer for income-seeking investors. Plains All American has agreed to sell nearly all of its NGL business to Keyera for about 5.15 billion Canadian dollars (US$3.8 billion). It will retain most of its U.S. NGL business and all its crude oil assets in Canada. The deal has several benefits, including: Sharpen its focus: Plains will become even more of a pure-play crude oil midstream company. Reduce earnings volatility: The Canadian NGL business had direct exposure to commodity price volatility, which caused fluctuations in Plains' earnings. A strong exit point: The MLP is selling the business at 13 times free cash flow, which is a strong valuation. Enhanced free cash flow: Plains will produce more excess free cash flow in the future due to lower capital investments and taxes related to the Canadian NGL business. Increased financial flexibility: The MLP expects to net about $3 billion in proceeds from the sale after taxes, transaction expenses, and a potential one-time special distribution to investors to offset their tax liability related to the sale. Following the transaction, Plains All American Pipeline will produce more durable cash flows to support its distribution payments. It expects to get 85% of its earnings from predictable fee-for-service agreements, up from 80% before the deal. It will also have an even stronger financial profile. The MLP expects its leverage ratio to be at or below the low end of its 3.25-3.75 times target range (it was 3.3x at the end of the first quarter). Plains can use its enhanced financial flexibility to make bolt-on acquisitions, repurchase preferred units, and buy back common units. The sale of Plains' Canadian NGL business continues its transformational strategy to enhance its free cash flow and reduce its leverage ratio so that it can pay a sustainable, growing distribution. This strategy has delivered results. The company has generated a cumulative $8.3 billion of adjusted free cash flow since 2021, which has enabled it to repay debt and grow its distribution. Its leverage ratio has declined by 31%, while the MLP has grown its payout at a 21% compound annual rate. Plains had planned to continue increasing its payout at a healthy rate until it reached its target payout level (about 1.6 times coverage). With its coverage level expected to be around 1.75x this year, Plains estimated that it could increase its payout at around a 10% annual rate in 2026 and beyond before eventually hitting its targeted payout level. While the sale of its Canadian assets will initially cause it to generate less free cash flow this year, it can offset the lost income by wisely allocating the proceeds from the sale to increase its free cash flow per unit. The MLP has a strong record of making accretive investments. For example, earlier this year, Plains bought Ironwood Midstream Energy, Medallion Midstream's Delaware Basin crude oil gathering business, and the remaining 50% interest in the Midway Pipeline for a combined $670 million. In addition, the MLP spent $330 million to repurchase 18% of its Series A Preferred Units. These transactions boosted its free cash flow, enabling Plains to hike its distribution payment by 20%. Plains All American Pipeline has taken significant strides to enhance the durability of its cash flows while reducing its leverage ratio. As a result, its high-yielding payout is on a much more sustainable level, which has also enhanced the safety of Plains GP Holdings' dividend. Because of that, they're attractive options for those seeking a sustainable and steadily rising income stream. Plains All American is best for those desiring a higher yield and are comfortable dealing with the potential tax complications of the Schedule K-1 federal tax form the MLP sends its investors each year. Meanwhile, Plains GP Holdings is best for those seeking ease in filing their taxes with a Form 1099-DIV. Before you buy stock in Plains All American Pipeline, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Plains All American Pipeline wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool recommends Keyera. The Motley Fool has a disclosure policy. A $3.8 Billion Deal Is Making These Ultra-High-Yielding Dividend Stocks Even Safer was originally published by The Motley Fool
Yahoo
19-06-2025
- Business
- Yahoo
Why Plains All American Pipeline Stock Was a Winner on Wednesday
It announced a deal to hive off its Canadian natural gas liquids assets. It will be paid nearly $3.8 billion for these assets. 10 stocks we like better than Plains All American Pipeline › Plains All American Pipeline (NASDAQ: PAA) stock was the pipeline to increased gains for investors on Wednesday. They traded the shares up by nearly 4% on news of an important divestment, and that rate easily beat the essentially flat-lining S&P 500 index. After market close on Tuesday, Plains and its majority owner, Plains GP Holdings (NASDAQ: PAGP), disclosed that they had finalized agreements to sell "substantially all" of their natural gas liquids (NGL) business. The acquirer is a Canadian peer company, Keyera, and the deal is to be effected in cash. The price is roughly 5.15 billion Canadian dollars ($3.79 billion). The sale is expected to close in the first quarter of 2026, subject to the applicable regulatory approvals and closing conditions. Plains added that, accounting for a potential one-time "special distribution" estimated at $0.35 per unit to both Plains common unit holders and Plains GP shareholders, it will reap total proceeds of around $3 billion from the divestment. The special distribution payment is subject to approval by Plains's board of directors. Following the sale, Keyera will own Plains' Canadian NGL assets, but Plains will retain those in its native U.S. The latter company's crude oil assets in Canada are not part of the deal. In its press release on the deal, Plains quoted CEO Willie Chiang as saying that it's "a win-win transaction for both Plains and Keyera. Plains is exiting the Canadian NGL business at an attractive valuation while Keyera is receiving highly complementary and critical infrastructure in a strategic market." Judging by their collective reaction, Plains investors agree with this assessment. It will provide the company with gobs of capital while slimming its operational structure and allowing it to concentrate more on the crude oil segment. Before you buy stock in Plains All American Pipeline, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Plains All American Pipeline wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Keyera. The Motley Fool has a disclosure policy. Why Plains All American Pipeline Stock Was a Winner on Wednesday was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
19-06-2025
- Business
- Globe and Mail
Why Plains All American Pipeline Stock Was a Winner on Wednesday
Plains All American Pipeline (NASDAQ: PAA) stock was the pipeline to increased gains for investors on Wednesday. They traded the shares up by nearly 4% on news of an important divestment, and that rate easily beat the essentially flat-lining S&P 500 index. Selling the Canadian NGL business After market close on Tuesday, Plains and its majority owner, Plains GP Holdings (NASDAQ: PAGP), disclosed that they had finalized agreements to sell "substantially all" of their natural gas liquids (NGL) business. The acquirer is a Canadian peer company, Keyera, and the deal is to be effected in cash. The price is roughly 5.15 billion Canadian dollars ($3.79 billion). The sale is expected to close in the first quarter of 2026, subject to the applicable regulatory approvals and closing conditions. Plains added that, accounting for a potential one-time "special distribution" estimated at $0.35 per unit to both Plains common unit holders and Plains GP shareholders, it will reap total proceeds of around $3 billion from the divestment. The special distribution payment is subject to approval by Plains's board of directors. Following the sale, Keyera will own Plains' Canadian NGL assets, but Plains will retain those in its native U.S. The latter company's crude oil assets in Canada are not part of the deal. A win-win, says the seller In its press release on the deal, Plains quoted CEO Willie Chiang as saying that it's "a win-win transaction for both Plains and Keyera. Plains is exiting the Canadian NGL business at an attractive valuation while Keyera is receiving highly complementary and critical infrastructure in a strategic market." Judging by their collective reaction, Plains investors agree with this assessment. It will provide the company with gobs of capital while slimming its operational structure and allowing it to concentrate more on the crude oil segment. Should you invest $1,000 in Plains All American Pipeline right now? Before you buy stock in Plains All American Pipeline, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Plains All American Pipeline wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor 's total average return is992% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
