Momentum Stock Watch: Plains All American Pipeline, L.P. (PAA)

Company Profile:

Plains All American Pipeline, L.P. is a publicly traded master limited partnership that owns and operates midstream energy infrastructure and provides logistics services for crude oil, NGLs and natural gas. Plains owns an extensive network of pipeline transportation, terminalling, storage and gathering assets in key crude oil and NGL producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, Plains handles more than 5 million barrels per day of crude oil and NGL in its Transportation segment. Plains is headquartered in Houston, Texas.

Recent News:

In the second quarter, the company reported total revenues of $8,080 million. Quarterly revenues were up 33% from $6,078 million in the year-ago quarter.

The company confirmed in late August it divested a 30-percent stake in BridgeTex Pipeline Co., eliminating any need for Plains to seek external equity financing, according to Bank of America Merrill Lynch.

The company expects to review its quarterly cash distribution to investors and possibly increase the distribution as early as the first quarter of 2019.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

PAA’s strengths can be seen in its better profitability and better Solvency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, RSI is strong in the bullish zone and MACD is trying to cross back up. We rate Plains All American Pipeline, L.P. (PAA) a STRONG BUY.

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