Plains All American Pipeline, L.P. (NYSE: PAA) and Plains GP Holdings (NYSE: PAGP) today announced their quarterly cash distributions. The distributions will be payable on February 14, 2014 to holders of record of each security at the close of business on January 31, 2014.
PAA increased its quarterly cash distribution to $0.6150 per unit ($2.46 per unit on an annualized basis) on all of its outstanding limited partner units. This distribution represents an increase of 9.3% over the quarterly distribution of $0.5625 per unit ($2.25 per unit on an annualized basis) paid in February 2013 and an increase of approximately 2.5% over the quarterly distribution of $0.6000 per unit ($2.40 per unit on an annualized basis) paid in November 2013. As of this distribution, PAA will have increased its quarterly distribution to limited partners in 37 out of the past 39 quarters and consecutively in each of the past 18 quarters. Based on a continuation of solid baseline financial performance, strong distribution coverage and expected contributions to cash flow from our organic capital program, PAA is targeting to increase its quarterly distribution per unit payable in November 2014 by 10% over the distribution per unit paid in November 2013.
PAGP announced a quarterly cash distribution of $0.12505 per Class A share, which is prorated for the partial quarter following the closing of its initial public offering (“IPO”) on October 21, 2013. This distribution corresponds to a full-quarter, non-prorated cash distribution of $0.15979 per Class A share ($0.63914 per Class A share on an annualized basis), reflecting a 7.2% increase over the initial quarterly distribution rate of $0.14904 per Class A share included in PAGP’s IPO prospectus. Based on PAA’s 2014 distribution growth target and PAA’s current units outstanding, PAGP estimates that its November 2014 quarterly distribution would increase by approximately 25% relative to the initial distribution rate included in PAGP’s IPO prospectus.
Plains All American Pipeline, L.P. is a publicly traded master limited partnership that provides midstream energy infrastructure and logistics services for crude oil, natural gas liquids (“NGL”), natural gas and refined products. 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 over 3.5 million barrels per day of crude oil and NGL on its pipelines. PAA is headquartered in Houston, Texas.