| Plains All American Pipeline Follows Expansion Projects - Analyst Blog | |
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On Mar 18, we have issued an updated research report on Plains All American Pipeline, L.P. PAA. Systematic investments in organic projects and acquisitions have boosted the partnership’s performance and are expected to drive performance in the future as well. Its practice of paying cash distribution at regular intervals is commendable. However, stringent government regulations, coupled with dependence on third-party service providers at the Supply & Logistics segment, are expected to offset these positives.
In fourth-quarter 2014, this Zacks Rank #3 (Hold) stock’s both earnings and revenues missed the Zacks Consensus Estimate. On a year-over-year basis, the top and bottom lines decreased primarily due to lower sales at the partnership’s Facilities, and Supply & Logistics segments.
We note that Plains All American is an organization with assets in several mineral-rich regions. The partnership’s systematic investments in infrastructure ventures at the Permian Basin, South Texas/Eagle Ford area, Rocky Mountains and Gulf Coast in the U.S.; and Manito, South Saskatchewan, Rainbow in Canada are appreciable.
Plains All American invested around $2.03 billion in 2014 as expansion capital expenditure and plans to spend $1.75–$1.95 billion in 2015.
During 2014, the partnership completed a 113-mile extension of the Oklahoma crude oil pipeline and the White Cliffs Expansion project, and acquired 50% interest in BridgeTex Pipeline Company from Occidental Petroleum Corporation OXY. These initiatives will enable Plains All American to serve more upstream players, while boosting revenues.
Apart from investments in growth projects, Plains All American continues to pay regular cash distributions to improve unitholder wealth. In Feb 2015, the partnership paid a quarterly distribution of 67.5 cents, up around 2.3% sequentially.
On the flip side, stringent government regulations to transport and process crude oil, natural gas, natural gas liquids and refined products remain our main concerns. Any change in rules might impact Plains All American’s cost of operations negatively.
Key Picks from the Sector
Some better-ranked stocks in the sector include Valero Energy Partners LP VLP and EnLink Midstream Partners, LP ENLK. Valero Energy sports a Zacks Rank #1 (Strong Buy), while EnLink Midstream holds a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PLAINS ALL AMER (PAA): Free Stock Analysis Report OCCIDENTAL PET (OXY): Free Stock Analysis Report VALERO EGY PTNR (VLP): Free Stock Analysis Report ENLINK MIDST LP (ENLK): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Occidental Petroleum est une société de production minière de pétrole basée aux Etats-Unis D'Amerique. Occidental Petroleum est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 51,8 milliards US$ (48,4 milliards €). La valeur de son action a atteint son plus haut niveau récent le 16 mars 2012 à 99,99 US$, et son plus bas niveau récent le 16 octobre 2020 à 10,00 US$. Occidental Petroleum possède 764 580 032 actions en circulation. |