23.60 0.00 (0.00%)
After hours: 5:39PM EDT
|Bid||0.00 x 800|
|Ask||0.00 x 800|
|Day's Range||23.08 - 23.81|
|52 Week Range||18.38 - 26.95|
|PE Ratio (TTM)||24.84|
|Earnings Date||Aug 6, 2018 - Aug 10, 2018|
|Forward Dividend & Yield||1.20 (5.12%)|
|1y Target Est||26.30|
Plains All American Pipeline (PAA) is an attractive pick and is likely to reward investors with better returns, courtesy of these four factors.
Netflix shares are under pressure, after its membership growth numbers came in well below analysts' forecasts. The video streaming service reported quarterly profit of 85 cents a share , beating the consensus estimate of 79 cents a share. Revenue was below Street forecasts.
The U.S. Commerce Department has denied what appears to have been the first request by a pipeline company to be exempted from the Trump administration’s 25% tariff on imported steel pipe. Plains said Monday that it was “disappointed” by the decision but intended to move forward with the project as planned.
Plains All American Pipeline LP's request for an exemption from steel-import tariffs was rejected by the US government.
Zacks.com highlights: Plains All American Pipeline, Regional Management, AutoZone and Fifth Third Bancorp
Of the four MLPs that we’re discussing in this series, Enterprise Products Partners (EPD) received the most “buy” recommendations from the analysts surveyed by Reuters. All of the analysts surveyed by Reuters rated Enterprise Products Partners as a “buy.” In comparison, 94% of the analysts covering MPLX (MPLX) rated it as a “buy.” Nearly 76% of the analysts covering Energy Transfer Partners (ETP) rated it as a “buy.”
The short interest in Plains All American Pipeline (PAA) rose to 12.6 million shares on June 15 from 10.0 million shares on May 31. A rise in the short interest indicates that more investors expect the stock price to fall in the near future. Notably, investors’ expectations could be wrong. The short interest in Plains All American Pipeline as a percentage of its float is 3.0%—higher than its five-year average of ~1.6%.
For Q2, the energy sector is expected to report 23.8 percent year-over-year revenue growth and 142.5 percent earnings growth, according to FactSet. While geopolitical tensions typically don’t bode well for the broader market, the energy sector is one area where companies could benefit, as oil prices get pushed higher from shifting supply and demand.
Currently, Energy Transfer Partners’ (ETP) net debt-to-adjusted EBITDA stands at ~5.1x—the highest among the four MLPs that we’re discussing in this series. We’re also analyzing Enterprise Products Partners (EPD), MPLX (MPLX), and Plains All American Pipeline (PAA). MPLX’s ratio is the lowest at 3.5x. Enterprise Products Partners’ ratio stands at ~4.2x.
Enterprise Products Partners (EPD) spent $3.4 billion on capital projects in 2017. For 2018, the company expects to invest nearly $3.3 billion in growth capital projects. The projects should contribute to Enterprise Products Partners’ future earnings. In May, the company started construction on its ethylene export terminal. Read Enterprise Products Partners Is Up 6% This Year: What’s Ahead? to learn more.
Plains All American Pipeline, L.P. and Plains GP Holdings announced they will release second-quarter 2018 earnings after market close on Tuesday, August 7,
Plains All American Pipeline, L.P. (NYSE: PAA) and Plains GP Holdings (NYSE: PAGP) today announced their quarterly distributions with respect to the second quarter of 2018. PAA announced a quarterly cash distribution of $0.30 per common unit ($1.20 per unit on an annualized basis), which is unchanged from the distribution paid in May 2018. PAGP announced a corresponding quarterly cash distribution of $0.30 per Class A share ($1.20 per Class A share on an annualized basis), which is unchanged from the distribution paid in May 2018.
MPLX’s (MPLX) DCF (distributable cash flow) grew 43% in 2017 over 2016—the highest growth among the four MLPs that we’re discussing in this series. The growth was driven by contributions from logistics and storage assets acquired from Marathon Petroleum (MPC). MPLX acquired assets from Marathon Petroleum in February. The acquired assets and growth projects should continue to drive the company’s future earnings growth.
Buckeye Partners Is Near Its 2008 Lows: Can It Recover? Buckeye Partners (BPL) was trading at a very high distribution yield of 14.6% on July 5. BPL’s peers NuStar Energy (NS), Magellan Midstream Partners (MMP), and Plains All American Pipeline (PAA) are trading at distribution yields of 10.4%, 5.5%, and 6.2%, respectively.
Energy Transfer Partners (ETP) is trading at a high yield of ~11.8%. MPLX (MPLX) and Enterprise Products Partners (EPD) are trading at attractive yields of 7.3% and 6.2%, respectively. Plains All American Pipeline (PAA) is trading at a yield of ~5.1%. In comparison, the Alerian MLP Index’s yield stands at ~7.9%. Currently, MLPs offer an attractive spread over the US ten-year Treasury yield, which stood at 2.84% on July 5.
Enterprise Products Partners (EPD) is trading at a forward EV-to-EBITDA multiple of ~13x—lower than its five-year average multiple of 14.4x, which indicates possible undervaluation. Similarly, Energy Transfer Partners (ETP) is trading at a forward EV-to-EBITDA multiple that’s lower compared to its five-year average.
So far in 2018, Plains All American Pipeline (PAA) stock has risen nearly 10% and outperformed its peers. Enterprise Products Partners (EPD) and Energy Transfer Partners (ETP) have risen nearly 2% year-to-date. MPLX (MPLX) has fallen nearly 6%. The Alerian MLP ETF (AMLP) has fallen nearly 8% during the same period.
DALLAS , June 29, 2018 /PRNewswire/ -- Alerian announced today the real-time launch of the Alerian Midstream Energy Index, a broad-based composite of North American energy infrastructure companies. Constituents ...
Midstream energy companies' changing business model should boost their credit quality, Moody's Investors Service says in new report, published in conjunction with a podcast on the topic. "As mature midstream companies strive to largely self-fund their projects while simplifying their business model and preserving cash flow, they are also reducing their dependence on capital markets for funding," said Amol Joshi, a Moody's Vice President. As investors in midstream master limited partnerships (MLPs) continue to grapple with slowing distribution growth or outright distribution cuts, MLPs will increasingly simplify their structures, reset incentive distribution rights, sell assets with limited growth prospects, or consider consolidating, Joshi says.