Plains All American Pipeline LP
) extended its practice of sharing more benefits with its
unitholders by increasing the cash distribution rate. The
partnership has increased its quarterly cash distribution by 2.2%
sequentially and 10% year over year to 57.50 cents per unit on
all of its outstanding limited partner units. It will be paid on
May 15, 2013, to unitholders of record as of May 3.
As a result of this revision, Plains All American Pipeline's
annualized cash distribution rate will be $2.30 per unit. The new
annual cash distribution yield will be 4.09%, which is higher
than the industry average of 2.61%.
Plains All American Pipeline has a long history of increasing
distributions to boost their income. With the latest
distribution, the partnership has hiked quarterly cash
distribution to its limited partners in 34 out of the past 36
quarters and in 15 consecutive quarters. The last hike was in Jan
2013. Quarterly cash distribution increased 3.7% sequentially to
56.25 cents per unit.
The market reacted positively toward the cash-distribution-hike
and the unit price increased 2.7% and closed at $56.23 as of Apr
8, 2013. The strong financial performance of Plains All American
Pipeline increases investors' expectation.
The partnership, in turn, boosts their confidence through
distribution hikes at regular intervals. Plains All American
Pipeline is consistently posting strong results backed by organic
growth as well as contribution from its acquired assets.
ONEOK PARTNERS (OKS): Free Stock Analysis
PLAINS ALL AMER (PAA): Free Stock Analysis
PVR PARTNERS LP (PVR): Free Stock Analysis
SUNOCO LOGISTIC (SXL): Free Stock Analysis
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Apart from Plains All American Pipeline, some other partnerships
with exposure to natural gas have recently raised their quarterly
cash distribution rates.
ONEOK Partners L.P.
PVR Partners L.P.
Sunoco Logistics Partners L.P.
) increased quarterly distribution by 3.6%, 1.9% and 5%
sequentially to 71 cents, 55 cents, 54.50 cents per unit,
Houston-based Plains All American Pipeline owns assets
strategically located in well-established oil producing regions,
catering to the major U.S. refinery and distribution markets. The
partnership currently has a Zacks Rank #3 (Hold).