Plains All American Pipeline's (PAA) unit performance has been a bit disappointing over the last year. Though the master limited partnership returned 6% year-to-date, the twelve month return just stands at a meager 1%.
Compared to other pipeline businesses, Plains All American Pipeline exhibits only a mediocre return. The company performed much better than Kinder Morgan Energy Partners (KMP), for instance, but was hugely outperformed by Energy Transfer Equity (ETE) over the same time period.
Over a one-year performance measurement period, Kinder Morgan Energy Partners lost 11% of its value and Enbridge Inc. (ENB) 1%. Energy Transfer Partners (ETP) gained 20% while units of Energy Transfer Equity skyrocketed 61%.
(Source: Yahoo Finance)
3 key themes supporting an investment in Plains All American Pipeline
Strong market presence
Plains All American Pipeline owns 18,000 miles of active pipelines, has a liquids storage capacity of more than 115
The relentless winter weather this year has certainly spawned discontent for many across America. Fortunately, the threat of more snow and ice will soon give way with the onset of spring and the arrival of warmer days. Many participants in capital markets have also found themselves mired in an extended spell of discontentment that has spanned for more than a decade. But unlike the steady changing of the seasons, the problems that continue to plague investment markets may persist in a seemingly endless winter that never turns to spring. And with this discontent comes risks that should continue to be evaluated carefully when managing investment portfolios today.
The critical flaw with capital markets is deeply ingrained. It has little to do with the stock market and its ability to go up. If anything, the rising stock market is just one of the many symptoms of the underlying problem. Instead, it
As the CEO of Kinder Morgan, Inc. (KMI), Richard Kinder has found no reason to stop buying his company's stock. The head officer and chairman of the board has purchased over 1.12 million shares since the start of December 2013. As seen in the chart below, the officer has steadily been adding to his position over the past year. His purchases have been mirrored with additional insider buying from Director John Michael Stokes, VP Dax Sanders, Director Fayez Sarofim, and VP James Street. The information can be found here.
Kinder Morgan is the largest midstream energy company in North America. The company transports everything from natural gas, to crude oil, and even carbon dioxide. Kinder Morgan owns an interest in roughly 80,000 miles of pipelines and operates in over 180 terminals. KMI owns the general partnership interest in Kinder Morgan Partners along with the general partner