- 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.
For further details see:
Plains All American Pipeline: Management May Be Too Optimistic But A 7.6% Yield Isn't Bad