PAGP
Plains GP Holdings, LP
Industrial/Transportation
12/18/2014
Presented
| Date | 12/16/2014 |
| Price | $23.21 |
| Market Cap | $4.76B |
| Ent Value | $21.49B |
| P/E Ratio | 52.1x |
| Book Value | $1.71 |
| Div Yield | 3.3% |
| Shares O/S | 205.05M |
| Ave Daily Vol | 1,780,000 |
| Short Int | 1.51% |
Current
| Price | $18.50 |
| Market Cap | $3.65B |
| Plains GP Holdings, L.P., through its 22.1% limited partner interest in Plains AAP, L.P., is engaged in the transportation, storage, terminalling, and marketing of crude oil, refined products, natural gas liquids (NGL), and natural gas in the United States and Canada. The company operates through three segments: Transportation, Facilities, and Supply and Logistics. The Transportation segment is involved in transporting crude oil and NGL on pipelines, gathering systems, trucks, and barges. As of December 31, 2013, this segment had owned and leased assets comprising 16,900 miles of active crude oil and NGL pipelines and gathering systems; 24 million barrels of active, above-ground tank capacity; 744 trailers; and 130 transport and storage barges, as well as 62 transport tugs. The Facilities segment provides storage, terminalling, and throughput services for crude oil, refined products, NGL, and natural gas; NGL fractionation and isomerization services; and natural gas and condensate processing services. As of December 31, 2013, this segment owned and operated approximately 74 million barrels of crude oil and refined products storage capacity; 23 million barrels of NGL storage capacity; 97 billion cubic feet of natural gas storage working capacity; 17 billion cubic feet of base gas; 11 natural gas processing plants; 1 condensate stabilization facility; 7 fractionation plants; 24 crude oil and NGL rail terminals; and 1,250 miles of active pipelines. The Supply and Logistics segment is involved in merchant-related activities, such as purchase of crude oil, cargos, NGL; storage of inventory and NGL; and resell or exchange, and transport of crude oil and NGL. As of December 31, 2013, it owned 12 million barrels of crude oil and NGL line fill; 843 trucks and 982 trailers; and 7,400 crude oil and NGL railcars. PAA GP Holdings LLC operates as a general partner of the company. Plains GP Holdings, L.P. was founded in 2013 and is based in Houston, Texas. |
Publicly traded companies mentioned herein: Plains All American Pipeline, L.P. (PAA), Plains GP Holdings LP (PAGP), SemGroup Corporation (SEMG)
Highlights
The presenter “really likes” the risk/ reward setup with Plains GP Holdings (PAGP) in the low $20s. He is long shares of the GP, and based on his calculations he said there is just $150 million of commodity sensitivity out of over $2 billion of EBITDA that is largely derived from fee-based cash flow (and, PAGP should generate $2.5 billion of EBITDA in 2015, up nearly 20% year-over-year, he added). Overall, he sees the potential for shareholders to earn a total return of 50%+ over the next 12-24 months, without much downside risk.
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