Plains All American Pipeline
Yet one more company that’s no stranger to MLP enthusiasts, like InvestorPlace Editor Jeff Reeves, is Houston-based Plains All American Pipeline (NYSE:PAA). It’s engaged in the transportation, storage, terminal and marketing of crude oil and refined products, and unlike our first three companies, it’s also involved in similar operations for natural gas. PAA runs 18,700 miles of pipeline, operates terminals capable of holding 20 million barrel of oil and runs 83 transport and storage barges and 46 transport tug boats. PAA moves oil and gas on land and sea.
The biggest operator in our group, PAA generates revenues at just over $34 billion, with net income last year at just under $1 billion, a nearly 90% jump over 2010. Analyst estimates suggest 2012 will be almost as good, with just a slight downturn expected in 2013. PAA’s $1.07 per share quarterly dividend seems modest, but it still provides investors with a 5% dividend yield.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he is long XOM.