LONDON, UK / ACCESSWIRE / August 29, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Plains All American Pipeline, L.P. (NYSE: PAA), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=PAA. The Company, which is one of the largest energy infrastructure and logistics companies in North America, and Plains GP Holdings, L.P. (NYSE: PAGP), holding Company owning and managing Plains American Pipeline, announced on August 25, 2017 their planned actions to reduce debt by approximately $1.4 billion. For immediate access to our complimentary reports, including today's coverage, register for free now at:

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PAA Continues to Generate Meaningful Y-O-Y Growth in Fee-Based Segments

Greg Armstrong, Chairman and Chief Executive Officer of PAA, mentioned that the Company is taking significant steps to strengthen its financial position and enhance PAA's long-term franchise value for all stakeholders. PAA has leading crude oil midstream positions in nearly all US regions and trading hubs and the premier network in the Permian Basin. Greg believes that PAA has very attractive long-term growth opportunities and it continues to generate meaningful year-over-year growth in its fee-based segments.

PAA Adopted Measures to Reduce Debt by $1.4 Billion

Greg Armstrong believes that the steps the Company has taken represent a solid, executable, and measurable plan that will help to reduce debt by approximately $1.4 billion and enable the Company to reach its targeted credit metrics within the next 6 quarters. These actions will minimize, if not eliminate, common equity issuance to fund PAA's current and future routine capital projects and position it for sustainable multi-year distribution growth in 2019, underpinned by healthy fee-based distribution coverage.

Conference Call Held on August 24, 2017

On August 24, 2017, PAA's Board of Directors held a conference call to discuss the steps in a bid to turnaround its business and reduce the debt.

  • Reduce Annual Distribution Outflow by $725 Million Annually: The Company aims to change its annualized distribution per unit to $1.20, starting with Q3 distribution payable in November 2017. This is likely to reduce annual distribution outflow by about $725 million per year, representing $1.1 billion over 6 quarters.
  • Completion of $700 Million Pending Sales: The Board of Directors have under taken the decision to complete the pending non-core/strategic asset sales totaling approximately $700 million, and reduce the hedged crude oil and NGL inventory volumes and related debt by approximately $300 million.
  • Fund Expansion Capital Program with Non-Convertible Preferred Equity and Asset Sale Proceeds: The Company has agreed to fund its Q2 2017 and full-year 2018 expansion capital program totaling approximately $1.15 billion, with a combination of non-convertible, perpetual preferred equity totaling approximately $600 million, and a portion of the asset sale proceeds.
  • Remaining Asset Sales Proceeds to Steadily Reduce Total Debt: PAA's Board of Directors have agreed to apply retained cash flow and remaining asset sales proceeds, with a view to steadily reduce total debt from $11.15 billion at June 30, 2017, to approximately $9.7 billion by March 31, 2019.

About Plains All American Pipeline, L.P.

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, natural gas liquids, natural gas, and refined products. PAA 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.

Plains GP Holdings, L.P.

Founded in 2013, Plains GP Holdings is a publicly traded entity formed as a holding company to own and manage Plains American Pipeline. The Company owns a non-economic controlling interest in the general partner of PAA and an indirect 14% limited partner interest in PAA, one of the largest energy infrastructure and logistics companies in North America. The Company is headquartered in Houston, Texas.

Last Close Stock Review

On Monday, August 28, 2017, Plains All American Pipeline's stock closed the trading session at $20.49, climbing 1.49% from its previous closing price of $20.19. A total volume of 6.90 million shares were exchanged during the session, which was above the 3-month average volume of 3.27 million shares. Shares of the Company have a PE ratio of 16.03 and have a dividend yield of 10.74%. The stock currently has a market cap of $14.78 billion.

At the close of trading session on Monday, August 28, 2017, Plains GP Holdings' stock price marginally rose 0.81% to end the day at $21.17. A total volume of 6.87 million shares were exchanged during the session, which was above the 3-month average volume of 1.66 million shares. The Company's shares are trading at a PE ratio of 32.27 and have a dividend yield of 10.39%. At Monday's closing price, the stock's net capitalization stands at $6.05 billion.

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