Plains All American Pipeline LP (NYSE:PAA) and Plains GP Holdings LP (NYSE:PAGP) posted their quarterly distributions pertaining to Q4 2017. The company reported a quarterly cash distribution of $0.30 a common unit, which is unchanged from the payment done in November 2017. Plains GP reported a corresponding quarterly cash payout of $0.30 per Class A share, which is same from the distribution compensated in November 2017.
Pertaining to PAA’s Series ‘A’ Preferred Units, Plains All American reported a payment-in-kind of the quarterly payout, which will lead in the issuance of another around 1.393 million Series ‘A’ Preferred Units. The payment-in-kind sum equates to a quarterly payout of $0.525 per Series ‘A’ Preferred Unit, or $2.10 annualized. These payouts will be paid on February 14, 2018 to holders as of record date January 31, 2018.
The Plains GP Holdings cash distribution is projected to be a non-taxable capital return to the extent of a Class ‘A’ Shareholder’s tax basis in each Plains GP Class ‘A’ Share and a decline in the tax basis of that Class ‘A’ Share. To the extent any distribution surpasses a Class ‘A’ Shareholder’s on tax basis, it should be chargeable as capital gains.
Plains All marks as a publicly traded MLP that owns and runs midstream energy infrastructure and offers logistics services for crude oil, NGL, and natural gas. Plains All American owns a broad network of pipeline transportation, storage, gathering assets and terminalling in key NGL and crude oil producing basins as well as transportation corridors and at key market hubs in Canada and the United States. On average, PAA manages more than five million barrels a day of NGL and crude oil in its Transportation division.
In the last trading session, the stock price of Plains All American Pipeline gained more than 1% to close the day at $22.96. The gains came at a share volume of 3.23 million compared to average share volume of 3.18 million.