Contemplate that for a moment, since it means that oil producers were, effectively, paying customers to take oil.

Enjoy more articles by logging in or creating a free account. Relatively speaking, this division is small compared to its fee-based pipeline and facilities operations. Get up-to-the-minute news sent straight to your device. Is Plains All American Pipeline Stock a Buy? Here's which one stands out as the better buy right now. Bitte zusätzlich den Namen der neuen Watchlist angeben. On the one hand, Enbridge should trade at a higher multiple, given its stronger financial profile and greater diversification. Diese Produkte versuchen, The Rockies pipeline is a 550-mile common carrier system that moves fuel in Colorado, South Dakota and Wyoming, along with four terminals having nearly 1.7 million barrels in storage capacity. Magellan Midstream to buy 800 miles of pipeline from Plains All American, {{start_at_rate}} {{format_dollars}} {{start_price}} {{format_cents}} {{term}}, {{promotional_format_dollars}}{{promotional_price}}{{promotional_format_cents}} {{term}}. The energy sector is in the doldrums thanks to COVID-19, with even some of the most reliable segments of the industry feeling the pinch. Here's which one stands out as the better buy right now. However, an EBITDA improvement was another important piece of that puzzle. See you at the top! Those slumps come even though both companies expect to generate lots of cash this year. Those pipelines generate lots of cash, which both companies use to pay attractive dividends (Enbridge yields 7.4% while Plains All American yields 8.6%).

From Inflation to Weather, Challenges for Commodities, Neuemissionen - u.a. {{ARTIKEL.NEWS.HEAD.DATUM | date : "HH:mm" }}, Neue Handelsplattform für strukturierte Produkte. That's its third decrease over the past few years, mixed in with an increase last year that it quickly reversed.

You can follow him on Twitter for the latest news and analysis of the energy and materials industries: While both payouts will catch the attention of. The reason for that is pretty simple: The performance of the master limited partnership's supply and logistics business is tied to energy prices. NEW YORK: The oil pipeline industry is shifting out of a growth phase and consolidation is likely, Plains All American Pipeline LP CEO said on Wednesday, as crude prices languish due to a collapse in demand after the COVID-19 outbreak. The master limited partnership's financial debt to EBITDA ratio was over six times in 2018. "The Los Angeles Terminals and related infrastructure are both beneficial for customers and strategically important for our business," said Armstrong "We look forward to bringing to bear our core values, including safety first and environmental protection among many others, through our expanded footprint to continue to deliver high-quality service. However, Plains All American sells for a ridiculously low valuation these days. Returns as of 10/27/2020.

With limited growth spending likely beyond 2021 because of the current overabundance of oil, Plains All American could significantly boost its dividend once it achieves its targeted credit rating. Enbridge estimates that it can finance between CA$5 billion-CA$6 billion ($3.7 billion-$4.5 billion) of expansion projects per year with retained cash and incremental borrowings while maintaining its credit rating.

Is Plains All American Pipeline Stock a Buy? He graduated from Liberty University with a degree in Biblical Studies and a Masters of Business Administration.

That's pretty robust, but the cuts and the partnership's sensitivity to oil prices have to be kept in mind when you look at the fat 10% yield. Plains let them deteriorate and break. Enbridge and Plains All American are behemoths in the oil pipeline industry. But that wasn't enough to save investors from another cut.

With that in mind, here's how these two pipeline giants currently stack up: Data sources: Enbridge and Plains All American. While both are cheap, Plains All American sells for about half the cash flow multiple of Enbridge.

Plains All American Pipeline is a publicly traded master limited partnership (“MLP”). The transaction is expected to close in the second quarter pending regulatory approvals. There were some unique technical reasons for the price decline, and it was temporary, but it is still a massive statement about the supply and demand dislocation caused by the coronavirus pandemic. Cookies eingesetzt, um Nutzungsdaten beispielsweise zur Ausspielung personalisierter Werbung durch uns und eingebundene Dritte zu erfassen und auszuwerten. Show full articles without "Continue Reading" button for {0} hours.

The Motley Fool recommends Enterprise Products Partners. The lead trial counsel is Barry Cappello of Cappello & Noël. Click here for an importance notice for all interest owners and lease operators regarding business operations during the COVID-19 pandemic. Corporate Headquarters: 333 Clay Street, Suite 1600, Houston, TX 77002 713.646.4100 Original Print Headline: Magellan acquiring 800 miles of pipeline. Kein Portfolio vorhanden. The main driver of these reductions is the company's weaker credit profile, -- including a junk rating by one credit rating agency -- making it more expensive for Plains All American to borrow money. That investment level should support 5% to 7% annual cash flow growth. Tulsa-based Magellan Midstream Partners LP announced Friday it is buying 800 miles of refined-petroleum pipelines in the Southwest and Rocky Mountains for $190 million. A Sputtering Growth Engine Could Ignite an M&A Boom in This Sector, Better Buy: Kinder Morgan vs. Plains All American Pipeline, Things Are Looking Up for This 8.6%-Yielding Oil Stock, Copyright, Trademark and Patent Information. Breaking News Connect with friends faster than ever with the new Facebook app. Severe Weather Since Plains All American Pipeline's initial public offering in 1998, we have built and acquired a diverse portfolio of strategically located assets and today are one of the largest independent midstream energy companies in North America.

mit JB 95.00% Kapitalschutz-Zertifikat mit Barriere auf XPT/USD, Raiffeisen: Aktuelle Zeichnungsprodukte - u.a.

The company operates 6,437 miles of pipelines in the United States, with 480 miles of pipelines under operation in California. No company executives commented publicly on the transaction. Both lines access supplies from several regional refineries and other pipelines, Magellan spokesman Bruce Heine said. This plays a vital role in the movement of U.S. and Canadian energy supplies. Meanwhile, Plains All American has lower dividend payout and leverage ratios.

Please subscribe to keep reading. "These pipelines are a natural extension of our existing refined products distribution system and provide new markets for Magellan to serve.".

Where they differ is that Plains All American trades at a bottom-of-the-barrel valuation because of the outsize impact this year's oil market downturn has had on its operations, giving it a lot more near-term upside as the market continues to recover. In the meantime, the industry, facing moribund prices, is pulling back hard. Read more energy stories that impact Tulsa. The terminal and pipeline infrastructure comprise terminals in Los Angeles County, commonly referred to as the Long Beach, Dominguez Hills and Alamitos Terminals, in addition to approximately 50 miles of bi–directional pipeline providing interconnection between the terminals as well as direct connectivity to all major refineries in the region. That investment level should support 5% to 7% annual cash flow growth. Although there was an increase in 2019, after the most recent change the distribution is now roughly 75% below its 2017 peak on an annualized basis. Canada's Enbridge operates more than 17,000 miles of oil pipelines that transport roughly 3 million barrels of oil each day (BPD). In 2019 supply and logistics accounted for roughly a quarter of Plains All American's adjusted EBITDA -- no wonder the massive oil price decline resulted in a distribution cut.