Plains All American Pipeline, L.P. and Plains GP Holdings Announce Distributions
October 10 2017 - 04:05PM
Business Wire
Plains All American Pipeline, L.P. (NYSE: PAA) and Plains GP
Holdings (NYSE: PAGP) today announced their quarterly distributions
with respect to the third quarter of 2017.
Consistent with the action plan communicated on its August 25,
2017 conference call, PAA announced a quarterly cash distribution
of $0.30 per common unit ($1.20 per unit on an annualized basis).
PAGP announced a corresponding quarterly cash distribution of $0.30
per Class A share ($1.20 per Class A share on an annualized basis).
Such distributions represent a 45% reduction relative to the
quarterly distributions paid in August 2017. Cash retained will be
used to reduce indebtedness. With respect to PAA’s Series A
Preferred Units, PAA announced a payment-in-kind (“PIK”) of the
quarterly distribution, which will result in the issuance of an
additional 1,366,593 Series A Preferred Units. The PIK amount
equates to a quarterly distribution of $0.525 per Series A
Preferred Unit, or $2.10 annualized. These distributions will be
payable on November 14, 2017 to holders of record of each security
at the close of business on October 31, 2017.
For its Series B Preferred Units issued on October 10, 2017, PAA
announced an initial partial-period distribution of $5.9549 per
Series B Preferred Unit, which will be payable on November 15, 2017
to holders of record at the close of business on November 1,
2017.
The PAGP cash distribution is expected to be a non-taxable
return of capital to the extent of a Class A Shareholder’s tax
basis in each PAGP Class A Share and a reduction in the tax basis
of that Class A Share. To the extent any cash distribution exceeds
a Class A Shareholder’s tax basis, it should be taxable as capital
gains.
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 ("NGL"), 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. On average, PAA handles over 5 million
barrels per day of crude oil and NGL in its Transportation segment.
PAA is headquartered in Houston, Texas. More information is
available at www.plainsallamerican.com.
PAGP is a publicly traded entity that owns an indirect,
non-economic controlling general partner interest in PAA and an
indirect limited partner interest in PAA, one of the largest energy
infrastructure and logistics companies in North America. PAGP is
headquartered in Houston, Texas. More information is available at
www.plainsallamerican.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20171010006636/en/
Plains All American Pipeline, L.P. and Plains GP HoldingsBrett
Magill, (866) 809-1291Manager, Investor Relations
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