Plains All American Pipeline and Plains GP Holdings Announce Distributions

Rhea-AI Summary

Plains All American Pipeline (PAA) and Plains GP Holdings (PAGP) announced their quarterly distributions for Q4 2020. PAA's cash distribution remains at $0.18 per common unit ($0.72 annualized), mirroring November 2020 levels. Similarly, PAGP maintains a distribution of $0.18 per Class A share ($0.72 annualized). PAA also declared a quarterly cash distribution of $0.525 for its Series A Preferred Units, totaling $2.10 annually. Distributions are payable on February 12, 2021, to record holders as of January 29, 2021, with PAGP's distribution potentially classified as a non-taxable return of capital.

Positive

• PAA and PAGP maintain consistent quarterly distributions at $0.18 per common/unit and Class A share, indicating stability.
• PAA's Series A Preferred Units distribution at $0.525 suggests ongoing support for preferred shareholders.

Negative

• None.

Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings (Nasdaq: PAGP) today announced their quarterly distributions with respect to the fourth quarter of 2020.

PAA announced a quarterly cash distribution of $0.18 per common unit ($0.72 per unit on an annualized basis), which is unchanged from the distribution paid in November 2020. PAGP announced a corresponding quarterly cash distribution of $0.18 per Class A share ($0.72 per Class A share on an annualized basis), which is unchanged from the distribution paid in November 2020. With respect to PAA’s Series A Preferred Units, PAA announced a quarterly cash distribution of $0.525 per Series A Preferred Unit, or $2.10 on an annualized basis. Each of these distributions will be payable on February 12, 2021 to holders of record of each security at the close of business on January 29, 2021.

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.

PAA 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 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 more than 6 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210107005178/en/

FAQ

What are the quarterly cash distributions for PAA and PAGP for Q4 2020?

For Q4 2020, both PAA and PAGP announced a cash distribution of $0.18 per unit/share.

When will the cash distributions for PAA and PAGP be paid?

The cash distributions will be payable on February 12, 2021, to holders of record as of January 29, 2021.

What is the annualized distribution for PAA and PAGP?

Both PAA and PAGP have an annualized distribution of $0.72 per unit/share.

What is the cash distribution for PAA's Series A Preferred Units?

PAA announced a cash distribution of $0.525 per Series A Preferred Unit, totaling $2.10 on an annualized basis.

Is the PAGP cash distribution taxable?

The PAGP cash distribution may be a non-taxable return of capital up to the tax basis, with excess amounts potentially taxable as capital gains.