Plains All American Pipeline, L.P. (PAA) will cut its quarterly distribution by 50.0 percent to $0.18 per common unit in 2020. This follows a 20.0 percent increase by the MLP last year.
The next distribution will be payable on May 15, 2020 to holders of record at the close of business on May 1, 2020.A new annual rate of $0.72 per unit yields 12.0% at a stock price of $6.01 for PAA.
In the company's press release announcing actions in response to industry challenges to further strengthen the company's financial position Chairman and CEO of Plains All American Willie Chiang states: “These actions include significantly reducing and continuing to challenge our capital program, reducing our distribution, progressing asset sales, and reducing costs, while remaining focused on operating safely and responsibly.”
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"), and natural gas. PAA owns a 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 more than 6 million barrels per day of crude oil and NGL in its Transportation segment. PAA is headquartered in Houston, Texas.