- After seeing their cash flow performance crushed during the downturn of 2020, Plains GP Holdings appears to be seeing a recovery starting with their cash-generating engine firing up.
- After seeing their operating cash flow sink lower year-on-year in the first quarter of 2021, they have thankfully seen their second quarter results push ahead year-on-year.
- This saw management further raise their guidance and provides hope of a turning point, which given the price of oil, could see their financial performance recover to its 2019 level.
- Even more important than boosting their free cash flow, this will help expedite achieving their deleveraging target that has been holding back returning more cash to unitholders.
- Since it appears that higher distributions should follow, this means that my bullish rating is being maintained.
For further details see:
Plains GP Holdings: Cash-Generating Engine Firing Up, Higher Distributions To Follow