We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Plains All American (PAA) Deepens Focus on Permian Basin
Read MoreHide Full Article
Plains All American Pipeline L.P. (PAA - Free Report) has decided to make additional investments in the Permian Basin region to further strengthen and expand its existing assets in the region. The primary reason to invest and strengthen its midstream assets is backed by expected higher production by the producers in the Permian Basin.
Per the new development, Plains All American’s management has decided to invest more than 80% of its planned capital expenditure for 2018/19 in the Permian Basin. Plains All American will spend nearly $1B in 2019, up from the previous expenditure target of $650 million.
Importance of Permian Basin
Per the recent U.S. Energy Information Administration release, Permian Basin production is expected to average 3.3 million barrels per day (BPD) in 2018 and further increase to 3.9 million BPD in 2019. These will create room for higher takeaway volumes from the region.
The Drilled but Uncompleted Wells (DUCs) in the Permian Basin are gradually rising over the past few months. The improving DUCs support the visibility of continued production growth. In addition, production from multi-well pad drilling and pipeline constraints create the need for the addition of more midstream assets in the region, and Plains All American is exactly doing the same.
The partnership’s Sunrise Expansion and Cactus II pipeline, on becoming fully operational, will add nearly 1.17 million barrels of transportation capacity.
Plains All American and ExxonMobil (XOM - Free Report) entered into a joint venture for the construction of a crude oil transportation pipeline to deliver crude from multiple locations in the Permian basin to the Texas Gulf Coast. The partnership expects to transport more than 1 million barrels of crude oil and condensate per day.
Looking Ahead
The partnership is poised to benefit from its fee-based earnings and the ongoing decline in debt level, further boosting the performance of the company.
In addition, divestiture of the non-core assets and focus on strengthening its core operations are going to have a positive impact on Plains All American’s operations.
Price Movement
Plains All American’s units have gained 11.7% in the past 12 months against its industry’s decline of 5.3%.
Zacks Rank & Key Picks
Plains All American currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same industry are Enterprise Products Partners L.P. (EPD - Free Report) and TC PipeLines, LP , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enterprise Products Partners and TC PipeLines reported positive earnings surprise of 10.87% and 9.72%, respectively, in the last reported quarter.
The Zacks Consensus Estimate for 2018 earnings for Enterprise Products Partners and TC PipeLines has moved up 13.2% and 5.8%, respectively, in the past 60 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Plains All American (PAA) Deepens Focus on Permian Basin
Plains All American Pipeline L.P. (PAA - Free Report) has decided to make additional investments in the Permian Basin region to further strengthen and expand its existing assets in the region. The primary reason to invest and strengthen its midstream assets is backed by expected higher production by the producers in the Permian Basin.
Per the new development, Plains All American’s management has decided to invest more than 80% of its planned capital expenditure for 2018/19 in the Permian Basin. Plains All American will spend nearly $1B in 2019, up from the previous expenditure target of $650 million.
Importance of Permian Basin
Per the recent U.S. Energy Information Administration release, Permian Basin production is expected to average 3.3 million barrels per day (BPD) in 2018 and further increase to 3.9 million BPD in 2019. These will create room for higher takeaway volumes from the region.
The Drilled but Uncompleted Wells (DUCs) in the Permian Basin are gradually rising over the past few months. The improving DUCs support the visibility of continued production growth. In addition, production from multi-well pad drilling and pipeline constraints create the need for the addition of more midstream assets in the region, and Plains All American is exactly doing the same.
The partnership’s Sunrise Expansion and Cactus II pipeline, on becoming fully operational, will add nearly 1.17 million barrels of transportation capacity.
Plains All American and ExxonMobil (XOM - Free Report) entered into a joint venture for the construction of a crude oil transportation pipeline to deliver crude from multiple locations in the Permian basin to the Texas Gulf Coast. The partnership expects to transport more than 1 million barrels of crude oil and condensate per day.
Looking Ahead
The partnership is poised to benefit from its fee-based earnings and the ongoing decline in debt level, further boosting the performance of the company.
In addition, divestiture of the non-core assets and focus on strengthening its core operations are going to have a positive impact on Plains All American’s operations.
Price Movement
Plains All American’s units have gained 11.7% in the past 12 months against its industry’s decline of 5.3%.
Zacks Rank & Key Picks
Plains All American currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the same industry are Enterprise Products Partners L.P. (EPD - Free Report) and TC PipeLines, LP , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enterprise Products Partners and TC PipeLines reported positive earnings surprise of 10.87% and 9.72%, respectively, in the last reported quarter.
The Zacks Consensus Estimate for 2018 earnings for Enterprise Products Partners and TC PipeLines has moved up 13.2% and 5.8%, respectively, in the past 60 days.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>