- After five painful years with three separate distribution reductions, Plains All American Pipeline has recently announced an intention to increase their distributions.
- If approved by the board, which seems very likely, this will amount to a very solid near 21% increase.
- Their operating cash flow outperformed expectations during 2021 and whilst their guidance for 2022 is rather flat and underwhelming, at least distribution coverage should remain very strong.
- This will help them continue deleveraging whilst also providing scope for further distribution growth.
- Since this should mark a new era of distribution growth beginning, I believe that maintaining my buy rating is appropriate.
For further details see:
Plains All American Pipeline: A New Era Of Distribution Growth Beginning