|Bid||21.78 x 1300|
|Ask||21.79 x 2200|
|Day's Range||21.33 - 21.89|
|52 Week Range||19.34 - 27.60|
|Beta (3Y Monthly)||1.03|
|PE Ratio (TTM)||6.16|
|Forward Dividend & Yield||1.44 (6.27%)|
|1y Target Est||N/A|
Lower RIN costs, completion of the Alkylation project at the Krotz Springs refinery and higher crack spreads buoy Delek US Holdings' (DK) refining unit in second-quarter 2019.
Wilmington, DE, based Investment company Argyll Research, Llc (Current Portfolio) buys Plains All American Pipeline LP during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Argyll Research, Llc. Continue reading...
The operators of two new pipelines in West Texas shale fields are offering discounted prices to attract shippers accustomed to high fees to move oil to export hubs, according to the pipeline companies and federal filings. "We see the Permian as over-piped," said Matthew Blair, an analyst at Tudor Pickering.
Plains All American Pipeline (PAA) reports better-than-expected Q2 earnings and revises full-year guidance, taking into consideration strong performance of the segments.
U.S. pipeline operator Plains All American Pipeline LP expects to begin partial service on its 670,000-barrel-per-day (bpd) Cactus II pipeline next week, Chief Executive Willie Chiang said on Tuesday. Houston-based Plains has filled about half the crude line, which runs from the Permian Basin in West Texas to the U.S. Gulf Coast. It plans to start full operation by the first quarter of 2020, Chiang told investors on a conference call.
Investment company Northwestern University (Current Portfolio) buys Black Stone Minerals LP, Plains All American Pipeline LP during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Northwestern University. Continue reading...
U.S. West Texas Intermediate (WTI) crude in Midland traded in positive territory for the first time in more than a month on Monday on expectations a new pipeline from the nearby Permian basin will begin operation soon, traders said. WTI Midland for September traded as strong as 15 cents per barrel above benchmark futures, the strongest level since late June. Plains All American Pipeline LP set rates for its 670,000-barrel-per-day (bpd) Cactus II pipeline from the Permian basin to the Corpus Christi area on Friday, effective the same day, triggering expectations among market participants the line will begin service soon.
(Bloomberg) -- Oil traders will be paying for President Donald Trump’s tariffs on steel.On Friday, Plains All American Pipeline LP issued tariff rates to ship on its 670,000 barrel-a-day Cactus II pipeline moving oil from the prolific Permian Basin to Corpus Christi, Texas.While the tariff detailed the difference in rates between those with long-term volume commitments and those looking to ship on a monthly, spot basis, it also included a small footnote that outlined an additional peculiar surcharge.This additional surcharge, at 5 cents a barrel, will be effective April 1 of next year and is in connection to “increased construction costs as a result of governmental regulation and tariffs.” The filing with the Federal Energy Regulatory Commission adds that this fee will be assessed until such capital expenditures have been recovered by the owner.Trump’s tariffs on metal were put into place last year to aid the domestic steel industry as it competes with imports from abroad.It’s not the first time the oil industry has been impacted by steel tariffs. Last year, ConocoPhillips said that prices for steel used in pipes, valve fittings and other equipment rose by 26% since the start of 2018.Plains All American had earlier requested the federal government for relief from higher ferrous prices for Cactus II, citing that the duties will add $40 million to the cost of its Permian pipeline. The request was denied, however.To contact the reporter on this story: Catherine Ngai in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Joe CarrollFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Plains All American Pipeline LP said on Friday it will tack on a fee for users of a new oil pipeline to pay for the cost of the Trump administration's tariffs on imported steel, with analysts and traders calling it the first U.S. energy pipeline operator to do so. In addition to the steel levies announced last year, President Donald Trump on Thursday said he plans to expand U.S. tariffs to $300 billion in Chinese imports, escalating a trade dispute that has increased costs for American consumers of everything from steel to electronics to shoes.
A San Antonio-based midstream company names a new president as it prepares to open two Permian Basin pipelines to the Corpus Christi market before the end of the year.
West Texas Intermediate crude at Magellan East Houston this week traded at the weakest level in almost a year as new pipelines from the Permian Basin to the U.S. Gulf Coast hub have begun operations, traders said. Line filling of pipelines owned by EPIC Crude Pipeline LLC and Plains All American Partners LP has eased an inland crude oil bottleneck, pushing Houston prices lower and prompting pipelines to cut transportation rates, traders and analysts said. "Houston prices should weaken with more supply and limited new storage at refineries," a trader said.
Plains All American Pipeline is the latest midstream company working on a solution to improve the flow of oil from northern production basins.
Oil stocks have looked more lively recently. U.S. crude oil is up 25.85% year to date, with West Texas Intermediate (WTI) recently trading around $57.15 a barrel. That comes as the Organization of Petroleum Exporting Countries (plus non-members including Russia) holds one of its regular meetings at its headquarters in Vienna, Austria. It has committed to extending the agreed cutbacks in production of 1.2 million barrels per day (MBPD).And then we have various conflicts in the Middle East, which makes U.S. (particularly Texan) and North American production that much more important to global oil supplies. WTI is also moving in sync with Brent Crude spot prices, which recently traded at $63.27 a barrel, as shown in the graph below:InvestorPlace - Stock Market News, Stock Advice & Trading TipsWTI Spot (CL1) vs Brent Spot (CO1) (Source: Bloomberg)Now, this is really good for oil exploration and production (E&P) companies. But for a more defensive means of investing in oil -- whether it be rallies higher or subsides -- I recommend that we go to the midstream pipelines.Pipelines have less exposure to the ups and downs in the price of oil. However, they do benefit from demand -- the higher the demand, the more oil that flows through the pipes. * 10 Stocks That Should Be Every Young Investor's First Choice I'm seeing further evidence that that's exactly what we should see for a while, given the market conditions. Put 'Er There PartnerNow, the stocks that I'm recommending aren't just common stocks but partnerships as passthrough securities. Passthroughs get their name from how they pass on their dividends to shareholders. Investors get their cut of the majority of the operating profits directly passed through to them in the form of checks or credits in their brokerage accounts. These checks do not get taxed at the company level thanks to Ronald Reagan and his signing of the Tax Reform Act of 1986.With those checks, unit holders also get a cut of all of the tax deductions and credits, including depreciation, depletion and other bits that effectively shields much of the checks from current-year income tax liabilities.This makes these checks even more valuable on an after-tax basis.But there are a couple of drawbacks and one additional benefit.The first drawback is that for each bit of each check that gets a tax benefit, the unitholder's cost basis in the units gets reduced. So, if and when the unit holder sells the units, then they will pay capital gains taxes if the units are priced higher than the adjusted cost basis.And the second drawback is that unit holders need to hold their units in a taxable account and not an IRA. This is also because of the Tax Reform Act of 1986. Because unit holder income isn't taxed regularly like stock in a regular company, the act sets up a particular rule.If tax-shielded investments such as passthroughs are held in an IRA and the net taxable dividends in an account exceeds $1,000 in a specific tax year, then that income would become taxable under the IRS Unrelated Business Taxable Income (UBTI) rules. So, to avoid having non-taxable dividend checks from passthrough units becoming taxable, it's best to have them held in regular taxable accounts.But there is one additional benefit to these oil stocks. If you don't sell your units before your death, then your estate will inherit your units and the cost basis gets reset to the then-current value. That means your beneficiaries will not owe one dime in income taxes on the units. (Of course, there's still the death tax, but that's another matter.) In Oil Stocks, The Pipes are CallingPipeline units are very attractive generators of dividend checks.Passthrough pipeline units were widely sold off after the Tax Cut & Jobs Act (TCJA), as some feared that the attraction of lower general corporate tax rates would draw institutional investors away.But for us individual investors, the tax-shielded dividends remain very attractive because the TCJA did nothing to reverse the great parts of Reagan's 1986 tax deal.Pipeline Partners Pounce! (Source: Bloomberg)Folks are now catching on to this. As a result, the market for pipeline units has been climbing since last December, as you can see in the Alerian Infrastructure Total Return Index above. Oil Stocks to Buy: Plains GP Holdings (PAGP)Right now, if you want to focus on the crude pipes, buy first into units of Plains GP Holdings (NYSE:PAGP).Plains owns general partnership (GP) interests in Plains All American Pipelines (NYSE:PAA), which has oil gathering and storage facilities as well as pipeline and other transportation structures around North America. The transportation unit moves nearly 5 million barrels per day of crude and natural gas liquidsIts customers are a who's who in the oil market, including Marathon Petroleum (NYSE:MPC), ExxonMobil (NYSE:XOM), Phillips 66 (NYSE:PSX) and others.Revenues are up over the past year by some 29.9%, and while operating margins are a little thin at 6.7%, remember that the company moves a lot of petroleum.Plains GP Holdings (PAGP, Source: Bloomberg)The company has little debt compared to its vast assets and pays out the majority of its profits, as it must under tax law, to unit holders. The dividend check payouts yield 5.7%, and all of the unit checks payouts are completely shielded. Oil Stocks to Buy: Magellan Midstream Partners (MMP)The next units to buy into are in Magellan Midstream Partners (NYSE:MMP). Magellan runs a massive network of assets to store, transport and distribute petroleum and related products. These range from crude oil to refined products. It has a network of 12,000 miles of pipe and 50 terminals to gather and transport its contracted liquids. And for storage, it has the ability to store 85 million barrels of petroleum liquids.The company's up- and downstream customers include Shell (NYSE:RDS.A, NYSE:RDS.B), Kinder Morgan (NYSE:KMI) and Marathon Petroleum.It is well structured to transport domestic products as well as to provide marine transport access for imported and exported petroleum -- ever more important with the U.S. now being the largest producing nation on the planet.Revenues are up over the trailing year by 12.7%. And for its crude oil businesses, revenues continue to surge on average by 14.2% over the past three years alone. Operating margins are very high -- particularly for a midstream company -- at 36.5%, which drives an impressive return on shareholder's equity of 56%.It has ample cash on hand and debts are a bit more than some of its peers at 55.1% of assets, but with ample cashflows and margins it's not too big a worry. The quarterly dividend distribution is running at $1.005 for a current yield over 6% and is projected to be raised again this year. The MMP stock dividend has risen for the past five years alone at an average annual rate of 11.47%.Magellan Midstream Partners LP (Source: Bloomberg)It is a bit more expensive, with a price-to-book ratio sitting at 5.6x. But the underlying actual book value is up nicely from last year. And so far for 2019, shareholders have enjoyed a return of 16%. Oil Stocks to Buy: Enterprise Product Partners LP (EPD)And the third units to buy into are in Enterprise Product Partners LP (NYSE:EPD). Enterprise Product Partners is a Limited Partnership, with unit holders having interests in four businesses.The first is the crude oil pipelines, which bring in about 30% of revenue from 5,400 miles of pipe as well as storage facilities and marine terminals and also has an oil market company.At its core is the strategic Seaway Pipeline that connects the U.S. oil hub in Cushing, Oklahoma, with the markets in Texas and beyond.Second is the natural gas liquids business, with processing plants, pipelines and storage facilities. It generates about 45% of revenues for unit holders.Third is the refined products and chemicals business. It processes petroleum chemicals and transports the goods to a host of manufacturers and refiners. It generates about 15% of revenue for unit holders.Fourth are the natural gas pipelines, with 19,000 miles of pipe in the core gas markets of Texas and Louisiana.Enterprise Product Partners LP (Source: Bloomberg)Revenues are up over the past year by 24.9%. And margins are great at 13.5%. Like the other partnerships, debt is low compared to its assets at a level of 46.2%.Units are priced a bit more at 2.6x the net book value of the partnership's assets, and the unit holder's dividend yield sits around 6%.Now that I've presented some of my favorite stocks in the petroleum industry, perhaps you might like to see more of my market research and recommendations for further safe growth and bigger reliable income. For more - look at my Profitable Investing. Click here to learn more.Neil George is the editor of Profitable Investing and does not have any holdings in the securities mentioned above. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks That Should Be Every Young Investor's First Choice * 5 IPO Stocks to Buy -- According to Wall Street Analysts * The Top 10 Best Sectors in the Market for 2019 The post 3 Oil Stocks to Buy, Whatever Oil Prices Do appeared first on InvestorPlace.