Plains All American just isn't worth the risk for most dividend investors. The (WMB) - free report >>, Baker Hughes Company (BKR) - free report >>, Plains Group Holdings, L.P. (PAGP) - free report >>, DCP Midstream Partners, LP (DCP) - free report >>. 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.
The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. It generates handsome fee-based revenues since it has a giant network of pipeline assets, transporting roughly 25% of crude volumes being produced in North America. @themotleyfool #stocks $PAA. To be fair, Plains All American entered 2020 in far better shape than it was just a few years ago. Visit performance for information about the performance numbers displayed above. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. So Plains All American was in better shape than it had been when it was forced to handle today's COVID-19-related headwinds, but in the end that wasn't enough to save the distribution. This is the backdrop against which midstream entities like Plains All American Pipeline are operating.
This coupled with plentiful crude oil supply, has kept the commodity in the bearish territory. Facilities saw a 1% increase in that number. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The master limited partnership's financial debt to EBITDA ratio was over six times in 2018. Through this ownership interest, Plains GP has access to a huge network of pipeline and terminalling assets. See you at the top! The two earlier cuts were meant to help Plains All American get its balance sheet into better shape -- and, as noted above, they were indeed helpful in that regard. 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. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. Plains All American just isn't worth the risk for most dividend investors.
Earlier in 2020 oil prices plunged below zero. 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. Earlier in 2020 oil prices plunged below zero. In its latest weekly release, Baker Hughes Company (BKR - Free Report) reported successive decline in the oil rig tally in the United States for 11 weeks. Over the first half of 2020 the pipeline group saw a 3% decline in EBITDA, facilities EBITDA was up 8%, and supply and logistics was down by 70%. 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. The master limited partnership's financial debt to EBITDA ratio was over six times in 2018. Earlier in 2020 oil prices plunged below zero. Nilanjan Banerjee Contemplate that for a moment, since it means that oil producers were, effectively, paying customers to take oil. Contemplate that for a moment, since it means that oil producers were, effectively, paying customers to take oil. Thus, midstream companies will continue to generate handsome fee-based revenues since their business models are relatively more stable.