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Re: oldberkeley post# 9198

Friday, 11/28/2014 1:23:13 PM

Friday, November 28, 2014 1:23:13 PM

Post# of 29407
PAGP: This is a valuation call for me. PAGP is the general partner of PAA and is slated to grow at 21% in 2015, the growth rate increases to 26% if their current deal goes through (no reason it wouldn't as of now). Combing through the information graciously provided to the public here MLP Data Sheet
shows that within the comparable GP sub-sector PAGP is undervalued. The current yield on PAGP is 2.93%, where other GP's have a lower yield with similar growth rates. WGP at 1.86%, ENLC at 2.5% and TRGP at 2.57%. The difference seems small but I think it is significant enough to move PAGP back into the 2.5% range common of it's peers. Currently to get back to par (if we call par 2.5%) PAGP has a 17% upside and a 26% growth rate for 2015. The weakness started a few weeks ago when a secondary share offering occurred, though the market didn't seem to care that no new shares were issued, just shares own by a different company to raise funds for the current deal. Hope that makes some sense, if not please ask. I think this is the first time I've ever posted analysis of my own.

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