Plains All American Pipeline L.P. ([stock]PAA[/stock]) continues its practice of rewarding unitholders with incremental cash distributions. The partnership has yet again raised its quarterly cash distribution, payable on all of its outstanding limited partner units, to 97 cents per unit.
The new distribution reflects a 1.3% growth over the quarterly distribution of 95.75 cents per unit paid in February 2011 and an increase of 3.7% from the quarterly distribution of 93.50 cents per unit paid in May 2010. The new distribution will be paid on May 13, 2011 to unit holders of record as of May 3, 2011.
The partnership has a long history of increasing distributions to unit holders. With this distribution, Plains has increased the quarterly distribution to limited partners in 26 out of the past 28 quarters. Plains' consistent distribution hikes over the past seven quarters illustrate the partnership’s commitment to provide returns to unit holders, enhancing unit holder value.
Plains' peer Enterprise Products Partners LP ([stock]EPD[/stock]) also increased its quarterly cash distribution rate in January 2011. The increased quarterly distribution of 59 cents per unit reflects a growth of 1.3% over the quarterly distribution of 58.25 per unit paid in November 2010 and an increase of 5.4% from the quarterly distribution of 56 cents per unit paid in February 2010.
Robust revenues generated by Plains All American enabled it to surpass the Zacks Consensus estimates per unit in the fourth quarter and fiscal year 2010. The partnership seems to continue unabated its performance streak into the first quarter of 2011 with announcement of EBITDA crossing its prior guidance of $ 280 million to $ 310 million set for the quarter.
Plains All American Pipeline currently retains a Zacks #3 Rank (short-term Hold rating). We also maintain a long-term Neutral rating on the stock.
Houston, Texasbased Plains All American is engaged in the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas and other natural gas related petroleum products. The partnership is also involved in the development and operation of natural gas storage facilities.
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