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Oil Gas Pipelines
Plains All American Pipeline, L.P., through its subsidiaries, engages in the pipeline transportation and midstream services, and gas gathering and processing business. It is based in Houston, Texas. The company has long-term contracts with oil and gas companies and owns 67% of Bluewater Midstream, a significant crude oil export terminal. The company was founded in 1998 and has since grown into one of the largest pipeline companies in North America, moving the energy that helps fuel our economy. Plains All American Pipeline, L.P., a publicly traded master limited partnership (Nasdaq ticker symbol: PAA), is a midstream energy business that owns and operates high-quality, long-haul crude oil and natural gas liquids pipelines, as well as associated storage terminals, tanks, and other infrastructure offering differentiated services for our customers. They have two reportable segments:
* Transportation: Their transportation segment provides crude oil and NGL transportation services from major oil fields in the United States and Canada. Their transportation segment is supported by dedicated assets and the right-of-way land required to operate pipelines. They include long-haul, large diameter pipelines serving major oil producing regions, including the Permian Basin, the Mid-Continent, the Rocky Mountains, and the Gulf Coast. These assets often serve as the primary arteries for crude oil and NGL transportation between major production regions, including the Permian Basin, the Mid-Continent, the Rocky Mountains, and the Gulf Coast.
* Facilities: Their Facilities segment provides storage, terminalling, and throughput services for crude oil, NGLs, and natural gas. The facilities segment also includes their NGL fractionation business, which produces NGL products for the petrochemical industry. The facilities segment intends to maximize their capacity utilization and earnings by charging various fees to third parties for providing these services.
PAA's top-tier management has a proven track record of financial success and has led the company's efforts to become more sustainable in the energy industry. A sampling of recent milestones includes:
* Creating value through smart, strategic growth projects that contribute to a sustainable, low-carbon future.
* PAA and PAG are committed to operating with excellence and reducing their environmental footprint by implementing new technologies and sustainable practices while maintaining high safety standards.
* In 2020, PAA was included in the S&P 500 Climate Change Index, which evaluates companies in the S&P 500 Index on their greenhouse gas emissions and climate-related policies, practices, and performance.
* In 2021, PAA was named the best-performing energy company in Newsweek's 2021 ranking of America's most responsible companies. Previously, PAA was named to the Wall Street Journal's Management Top 250, which ranks the most effectively managed companies in the US.
Financial Information of Plains All American Pipeline, L.P.
Current stock price: $111.67
52-week range: $9.07 - $15.38
Market capitalization: $17.17 billion
Dividend yield: 5.5%
Net income: $794 million
Revenue: $12.06 billion
Earnings per share: $0.91
The company currently pays a dividend of $0.235 per limited partnership unit, which results in a relatively high dividend yield of about 5.5%. Future dividend payments are uncertain and are declared by the board of directors on a quarterly basis. Given the high free cash flow conversion of the business and moderate leverage used, they prioritize capital distribution to unitholders and target a distribution growth rate near the high end of the MLP peer group.
In summary, Plains All American Pipeline, L.P. is a midstream energy business that provides crucial infrastructure to the energy industry, focusing on long-haul crude oil and NGL pipelines. Moreover, the company's experienced management has made significant progress in expanding its business while executing on its strategic priorities.