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Plains All Ups Distribution Rate
Plains All American Pipeline LP ( PAA - Analyst Report) continues to share more benefits with its unitholders by increasing the cash distribution rate. The partnership has increased the quarterly cash distribution rate by 2.2% sequentially and 10.3% year over year to 58.75 cents per unit. The new distribution will be paid on Aug 14, 2013, to unitholders of record as of Aug 2.
The hike in the distribution rate is in line with Plains All American Pipeline’s strategy of increasing the 2013 distribution rate by 9% to 10% year over year.
The partnership has been hiking the cash distribution almost every year since 1999. Plains All American Pipeline increased its quarterly distribution to the limited partners in 35 out of the past 37 quarters and consecutively in each of the last 16 quarters.
Plains All American Pipeline’s cash flow from operating activities during the first three months of 2013 was $979 million. A strong financial position allows the partnership to meet the cash requirements for its distribution payment and for future growth projects.
Further, Plains All American Pipeline plans to invest $1.4 billion in 2013 for several projects including the Mississippian Lime pipeline, Rainbow 2 pipeline, Gardendale Gathering System, and extension of the Oklahoma pipeline and the Cactus pipeline projects. These initiatives would add to the partnership’s profitability in the long run, which will in turn enable it to provide higher returns to its unitholders.
Houston, Texas-based Plains All American Pipeline owns assets strategically located in well-established oil producing regions, catering to the major U.S. refinery and distribution markets.
Plains All American Pipeline currently has a Zacks Rank #3 (Hold). However, other stocks from the industry that are presently performing well include Delek Logistics Partners, LP ( DKL - Snapshot Report) with a Zacks Rank #1 (Strong Buy), and Kinder Morgan Management LLC and Atlas Pipeline Partners, L.P. , both with a Zacks Rank #2 (Buy).