Plains All American Pipeline LP (PAA) will lower its quarterly distribution from $0.70 to $0.55 per unit. The last time the distribution was raised was in October 2015.

The distribution will be payable on November 14, 2016 to holders of record at the close of business on October 31, 2016.

Consistent with its stated intent in early July when the pending simplification transaction was announced, PAA announced a quarterly cash distribution of $0.55 per common unit ($2.20 per unit on an annualized basis), which equates to a 21% reduction to the quarterly distribution paid in August 2016. Additionally, PAA announced a payment-in-kind ("PIK") of the quarterly distribution with respect to its Series A Preferred Units, which will result in the issuance of an additional 1,262,522 Series A Preferred Units. The PIK amount equates to a quarterly distribution of $0.525 per Series A Preferred Unit, or $2.10 annualized.

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.