NEW YORK (TheStreet) -- Shares of Plains All American Pipeline  (PAA) - Get Report fell 5.46% to $49.72 in early afternoon trading Thursday after the company priced its public offering of common units.

Plains priced 21 million common units representing limited partner interests at $50 per unit. The offering contains a 30-day option for underwriters to purchase up to an additional 3.15 million units.

The company expects the offering to close on March 3 and expects net proceeds of approximately $1.1 billion, or $1.2 billion if the underwriters exercise the full option.

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Oil prices also declined Thursday after data released by the U.S. Energy Information Administration on Wednesday showed oil inventories climbed 8.4 million barrels to 434.1 million barrels last week. This is the highest level in EIA weekly data history that goes back to August 1982, according to the Wall Street Journal.

The data release comes amid an ongoing global oversupply of crude oil that has kept oil prices down for months.

Meanwhile, data shows the U.S. oil drilling rig count has been declining since October. Oilfield services company Baker Hughes  (BHI) is due to release the latest U.S. rig data on Friday.

A decline in the U.S. rig number should translate to a decrease in domestic oil production. JBC Energy predicts that the decrease in the number of rigs to this point should result in a drop in crude output of 200,000 to 250,000 barrels a day in the second half of 2015, and a further rig count drop should lead to steeper output declines, the Journal noted.

WTI crude was down 3.24% to $49.34 at 12:04 p.m., while Brent crude was down 0.97% to $61.03, according to CNBC.

Separately, TheStreet Ratings team rates PLAINS ALL AMER PIPELNE -LP as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate PLAINS ALL AMER PIPELNE -LP (PAA) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Oil, Gas & Consumable Fuels industry average. The net income increased by 26.2% when compared to the same quarter one year prior, rising from $309.00 million to $390.00 million.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 20.1%. Since the same quarter one year prior, revenues fell by 11.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • PLAINS ALL AMER PIPELNE -LP has improved earnings per share by 15.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PLAINS ALL AMER PIPELNE -LP reported lower earnings of $2.37 versus $2.80 in the prior year. For the next year, the market is expecting a contraction of 7.2% in earnings ($2.20 versus $2.37).
  • The gross profit margin for PLAINS ALL AMER PIPELNE -LP is currently extremely low, coming in at 7.37%. Regardless of PAA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, PAA's net profit margin of 4.12% compares favorably to the industry average.
  • You can view the full analysis from the report here: PAA Ratings Report