Plains All American Pipeline LP (PAA)

[Timothy Smith]

The company just announced it is raising its distribution payout by just under ten percent (9.8%) Y/Y and is upping the midpoint of its guidance for EBITDA in 2013 by 5%.

The company has beat earnings estimates five of the last six quarters and consensus earnings estimates have gone up nicely over the past two months.

After the latest distribution increase, PAA yields more than 5% and has more than doubled its payouts over the last decade by frequent and consistent distribution raises.

The company recently bought $125mm of storage assets from Chesapeake Energy (CHK). It also spent $500mm recently to buy crude oil rail terminals which I think is good strategic move given oil moved by rail improved better than 40% in 2012 as pipelines have failed to keep up with the huge increase in domestic oil production. Analysts expect six percent sales growth after almost 15% sales increases in FY2012.