PAA - Plains All American Pipeline: Management May Be Too Optimistic But A 7.6% Yield Isn't Bad

• Plains All American Pipeline is one of the largest midstream partnerships in the United States.
• The company is heavily focused on crude oil, particularly in the Permian Basin.
• The company expects enormous production growth in the Permian going forward but I am skeptical.
• The company has substantial excess capacity so it should have relatively limited capital expenditures going forward.
• The 7.6% yield is quite sustainable and provides a good reward for investors even if growth is not as strong as management hopes.

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