Latest news with #WillieChiang
Globe and Mail
12 hours ago
- Business
- Globe and Mail
Why Plains All American Pipeline Stock Was a Winner on Wednesday
Plains All American Pipeline (NASDAQ: PAA) stock was the pipeline to increased gains for investors on Wednesday. They traded the shares up by nearly 4% on news of an important divestment, and that rate easily beat the essentially flat-lining S&P 500 index. Selling the Canadian NGL business After market close on Tuesday, Plains and its majority owner, Plains GP Holdings (NASDAQ: PAGP), disclosed that they had finalized agreements to sell "substantially all" of their natural gas liquids (NGL) business. The acquirer is a Canadian peer company, Keyera, and the deal is to be effected in cash. The price is roughly 5.15 billion Canadian dollars ($3.79 billion). The sale is expected to close in the first quarter of 2026, subject to the applicable regulatory approvals and closing conditions. Plains added that, accounting for a potential one-time "special distribution" estimated at $0.35 per unit to both Plains common unit holders and Plains GP shareholders, it will reap total proceeds of around $3 billion from the divestment. The special distribution payment is subject to approval by Plains's board of directors. Following the sale, Keyera will own Plains' Canadian NGL assets, but Plains will retain those in its native U.S. The latter company's crude oil assets in Canada are not part of the deal. A win-win, says the seller In its press release on the deal, Plains quoted CEO Willie Chiang as saying that it's "a win-win transaction for both Plains and Keyera. Plains is exiting the Canadian NGL business at an attractive valuation while Keyera is receiving highly complementary and critical infrastructure in a strategic market." Judging by their collective reaction, Plains investors agree with this assessment. It will provide the company with gobs of capital while slimming its operational structure and allowing it to concentrate more on the crude oil segment. Should you invest $1,000 in Plains All American Pipeline right now? Before you buy stock in Plains All American Pipeline, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Plains All American Pipeline wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor 's total average return is992% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
a day ago
- Business
- Yahoo
Keyera to acquire Plains' Canadian natural gas liquids business for $3.77bn
Keyera has entered into a definitive agreement to purchase the Canadian natural gas liquids (NGL) business of Plains All American Pipeline and Plains GP for C$5.15bn ($3.77bn) in cash. This acquisition is set to expand Keyera's presence in the NGL market by creating a NGL corridor from Western to Eastern Canada by placing all assets under Canadian ownership. Furthermore, the combined platform provides access to high-demand markets via liquefied petroleum gas export facilities on the west coast, while also connecting to significant consumption centres in Eastern Canada and the US. The assets involved in the transaction encompass NGL fractionation, storage, and rail and truck terminals across Alberta, Saskatchewan, Manitoba and Ontario. The transaction is anticipated to close in the first half of 2026, subject to customary closing conditions including regulatory approvals. Keyera president and CEO Dean Setoguchi said: 'This is a highly strategic acquisition that strengthens our core business and accelerates our growth trajectory. The assets we are acquiring are high-quality, synergistic, and strongly aligned with our operational footprint and expertise. 'This transaction enhances our ability to serve customers, capture meaningful operational efficiencies, and deliver sustainable long-term value for shareholders, while also helping to reinforce Canada's position as a global energy leader.' While Plains will divest its Canadian NGL business, it will retain a substantial portion of its assets in the US, as well as all of its crude oil assets in Canada, as part of the transaction. The company will utilise the proceeds from the transaction to undertake disciplined bolt-on mergers and acquisitions to enhance and broaden the crude oil-focused portfolio and optimise its capital structure. The restructuring and sale of the remaining Canadian crude assets are projected to result in entity-level tax payable in Canada of approximately $360m. Plains chairman and CEO Willie Chiang said: 'Today's announcement is a win-win transaction for both Plains and Keyera. Plains is exiting the Canadian NGL business at an attractive valuation while Keyera is receiving highly complementary and critical infrastructure in a strategic market. 'Successful completion of this transformative transaction advances our efficient growth strategy and establishes Plains as the premier pure play crude oil midstream entity with highly strategic assets linking North American supply to key demand centres.' "Keyera to acquire Plains' Canadian natural gas liquids business for $3.77bn" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
