- Plains All American Pipeline (PAA +5.4%) jumps to a 52-week high after Q2 earnings fell from the previous quarter but easily topped analyst expectations, as revenue jumped by a third to $8.1B.
- PAA's Q2 profit fell to $100M from $188M during the year-ago quarter, largely because the company is spending more to build major new pipelines stretching from the Permian Basin to Texas Gulf coast refining and export hubs.
- PAA is currently building the Cactus II oil pipeline after recently expanding the BridgeTex oil pipeline with Magellan Midstream, and PAA and Exxon (NYSE:XOM) announced plans in June to create a construct a multibillion-dollar Texas pipeline that would carry more than 1M bbl/day of oil and condensate.
- PAA raises FY 2018 guidance for adjusted EBITDA in its transportation segment to $1.535B and in its fee-based business to $2.225B from a respective $1.29B and $2.02B in 2017; full-year average daily volumes transported are forecast to rise 14% to $5.925B.
- Plains GP Holdings (PAGP +4.4%) also enjoys strong gains following its Q2 results.
- Now read: Plains All-American Pipeline Problems To Slam Permian Output
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