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Plains All American Pipeline Has Outperformed Its Peers in 2018

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Price performance

So far in 2018, Plains All American Pipeline (PAA) stock has risen nearly 10% and outperformed its peers. Enterprise Products Partners (EPD) and Energy Transfer Partners (ETP) have risen nearly 2% year-to-date. MPLX (MPLX) has fallen nearly 6%. The Alerian MLP ETF (AMLP) has fallen nearly 8% during the same period.

The above graph compares the four MLPs’ YTD performances.

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Crude oil prices

Crude oil prices have risen nearly 23% in 2018. Higher prices are likely the key factor driving crude-centric stocks like Plains All American Pipeline. To learn more about the latest factors driving crude oil prices, read Libya and Gasoline Inventories Pushed Oil Prices Higher. We’ll discuss Plains All American’s key financial metrics later in this series.

Series overview

In this series, we’ll compare the four largest MLPs by market capitalization—Enterprise Products Partners, Energy Transfer Partners, MPLX, and Plains All American Pipeline. The series doesn’t include Williams Partners (WPZ). Williams Partners will cease trading as a separate entity if its proposed merger with Williams Companies (WMB) goes through.

In this series, we’ll compare the distributions, yields, leverage, capital spending, distributable cash flows, and valuation of the four selected MLPs.

Next, we’ll discuss which of the four MLPs looks attractive based on the current valuation.

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