Plains All Amer Stock Price, News & Analysis

Plains All American Pipeline (PAA) announced the renewal and extension of its two credit facilities, raising the initial borrowing capacity to $2.7 billion. The new facilities comprise a $1.35 billion Senior Unsecured Revolving Credit Facility maturing in 2026 and a $1.35 billion Senior Secured Hedged Inventory Facility maturing in 2024. This move aligns with PAA's financial strategy of ensuring ample credit capacity for operations and reflects reduced capital requirements. The previous facilities had lower borrowing capacities of $1.6 billion and $1.4 billion.

On August 24, 2021, Plains All American Pipeline and Plains GP Holdings announced significant governance amendments. These changes eliminate 'director designation' rights, mandating public elections for all directors, including Kayne Anderson's previously designated director, Kevin McCarthy. Effective August 19, 2021, this reform underscores a commitment to enhancing governance practices. Kevin McCarthy will serve as a director until the Annual Meeting in May 2022 and will be nominated for election. Plains aims for improved alignment with investor interests following these governance enhancements.

Plains All American Pipeline (PAA) reported a second-quarter 2021 net loss of $220 million, highlighting the challenges faced despite higher Adjusted EBITDA of $579 million. The company completed the sale of its natural gas storage assets for $850 million, incurring a non-cash impairment charge of $475 million. Full-year Adjusted EBITDA guidance was raised by $25 million to $2.175 billion, while Free Cash Flow after Distributions is forecasted at $1.35 billion. Notably, a strategic joint venture with Oryx Midstream is expected to enhance value.

Plains All American (PAA) and Oryx Midstream Holdings have entered into a definitive agreement to merge their assets in the Permian Basin into a joint venture, Plains Oryx Permian Basin LLC. The JV will consist of 65% ownership by Plains and 35% by Oryx, and will be operator by Plains. The transaction aims to enhance operational flexibility, connectivity, and cash flow while being structured as a cashless, debt-free entity. The JV is expected to capture $50 million in annual synergies, with growth potential in the Permian region.

Plains All American Pipeline (PAA) will announce its second-quarter 2021 earnings after market close on August 3, 2021. A joint webcast will be held at 5:30 p.m. ET, covering PAA's performance, capitalization, liquidity, and financial guidance. PAA operates midstream energy infrastructure, transporting over 5 million barrels per day of crude oil and natural gas liquids across North America. Detailed presentation materials will be available prior to the call, with an audio replay and transcript accessible afterward on their website.

Plains All American Pipeline (PAA) announced a quarterly cash distribution of $0.18 per common unit for Q2 2021, consistent with May 2021's distribution. The corresponding amount for Plains GP Holdings (PAGP) is also $0.18 per Class A share. PAA's Series A Preferred Units will see a distribution of $0.525 per unit. These distributions are payable on August 13, 2021, to holders of record by the close of business on July 30, 2021. The PAGP distribution is anticipated to be a non-taxable return of capital up to the shareholder's tax basis.

Plains All American (PAA) announced a definitive agreement to sell its Pine Prairie and Southern Pines natural gas storage facilities to Hartree Partners for $850 million. This transaction is part of Plains’ effort to exceed its $750 million asset sales target for 2021, aimed at generating free cash flow and reducing debt. The sale includes approximately 70 billion cubic feet of gas capacity and is expected to close in Q3 2021, pending regulatory approvals. Plains will recognize a non-cash loss of approximately $480 million as part of this transaction.

Plains All American Pipeline reported Q1 2021 results with net cash flow from operations of $791 million and net income of $422 million. Adjusted EBITDA for the quarter was $546 million. The company raised its 2021 Free Cash Flow outlook by $100 million to about $400 million, while also reducing total capital guidance by $65 million. Despite a 49% drop in adjusted net income year-over-year and significant declines in segment EBITDA due to reduced tariff volumes and asset sales, the outlook for energy demand recovery remains optimistic, according to CEO Willie Chiang.