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IPO Report: Plains GP Holdings, L.P. (PAGP)

By  +Follow October 14, 2013 6:43PM
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Plains GP Holdings, L.P. (PAGP) is an Incentive Distribution Rights (see below) carve-out from the parent, Plains All American Pipeline, L.P (PAA), which has a $17.5 billion market cap.

Five IPOs are scheduled for this week. The full IPO calendar can be found at IPOpremium.

PAGP is based in Houston, Texas, Plains GP Holdings, L.P. (PAGP) scheduled a $3 billion IPO at a price range mid-point of $23.50, for Thursday, October 17, 2013.

The S-1 was filed October 7, 2013.  Manager, Joint Managers:  Barclays; Goldman;  J.P. Morgan; BofA Merrill; Citigroup; UBS;  Wells Fargo.   Co-Managers:  Baird; Oppenheimer; Stifel; BBVA; BNP PARIBAS; DNB Markets; ING; Mitsubishi UFJ;  Mizuho; Piper Jaffray; PNC; Scotiabank-Howard Weil; SMBC Nikko; SOCIETE GENERALE; SunTrust Robinson; BB&T; CIBC; Ladenburg Thalmann; Regions; Simmons; Stephens; Tudor

Summary

PAGP is an Incentive Distribution Rights (see below) carve-out from the parent, Plains All American Pipeline, L.P (PAA), which has a $17.5 billion market cap.

The yield on the parent PAA is currently 4.7%.  The projected yield for PAGP (the public portion of PAA’s Incentive Distribution Rights) is 2.5%, which will increase if PAA’s growth continues.

Valuation

Valuation Ratios

IPO Mrkt

Price /

Price /

Price /

Dividend

12 months ended 6/13

Cap (mm)

Sls

Erngs

BkVlue

Yield

Plains GP Holdings, L.P. (PAGP)

$14,241

n/a

n/a

n/a

2.5%

Plains All American Pipeline, L.P. (PAA)

$17,500

0.4

10.7

19.4

4.7%

Glossary

Conclusion

The current rating on PAGP is positive.  PAPG is a big IPO and we don’t see much downside risk.  Because of expected Quantitative Easing from the Fed interest rates should stay low, which is a positive for PAPG.  As long as the market is stable at least, PAPG should be bought on the IPO, with moderate to low expectations.

Business

PAGP’s parent — Plains All American Pipeline, L.P. (PAA) with $17.5 billion market cap — is carving out its Incentive Distribution Rights (IDRs).  

Plains All American Pipeline, L.P. (Plains) is engaged in the transportation, storage, terminalling and marketing of crude oil and refined products, as well as in the processing, transportation, fractionation, storage and marketing of natural gas liquids (NGL)

21% of the IDRs are being offered on the IPO, as Class A stock.  The only asset of PAGP is its 128 million shares of class A common stock in the Identive Distribution Rights vehicle, PAGP.

See organization chart here

Incentive distribution rights (IDRs)

IDRs are the risky frosting on the distribution cake  and only get paid if minimum distributions are exceeded by the parent: IDR payments are explicitly tied to distribution growth of the parent.

The yield on the parent PAA is currently 4.7%.  The projected yield for PAGP (the public portion of PAA’s Incentive Distribution Rights) is 2.5%, which will increase if PAA’s growth continues.

PAA’s IDRs and its indirect interest in PAA’s 2% general partner interest entitles PAGP’s stockholders to receive (through several corporate vehicles, see organziationchart)  without duplication:

    •15% of all cash distributed in a quarter after $0.2250 has been distributed in respect of each common unit of PAA for that quarter;

    •25% of all cash distributed in a quarter after $0.2475 has been distributed in respect of each common unit of PAA for that quarter; and

    •50% of all cash distributed in a quarter after $0.3375 has been distributed in respect of each common unit of PAA for that quarter.

PAGP owns 21% of the incentive distribution rights from the parent, PAA, through several corporate vehicles.

5% stockholder pre-IPO

“Existing Owners” refer to the entities and individuals that own capital interests in AAP and GP LLC  including, but not limited to, PAA Management, L.P. (“PAA Management”) and certain entities and individuals affiliated with Occidental Petroleum Corporation (“Oxy”), The Energy & Minerals Group (“EMG”), and Kayne Anderson Investment Management Inc (“Kayne Anderson”).

See organization chart here

Use of proceeds

PAGP will distribute the expected IPO proceeds of $2.9 billion to distribute to the Existing Owners, see above.

 

 


 

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Results for pagp
Breaking News
31 Aug 15 20:25:04
$PAGP: Plains Group Holdings, LP Analyst Rating Update: http://t.co/vWTta9gUyj
Houston Chronicle
31 Aug 15 14:40:30
RT @kfeser: (continued) Houston Fortune 500 gainers: $EOG 1.3%, $KBR 1.1%, $PAGP & $NGLS & $APC 0.9%, $APA 0.8%, $SE +0.7%
Katherine Feser
31 Aug 15 14:36:16
(continued) Houston Fortune 500 gainers: $EOG 1.3%, $KBR 1.1%, $PAGP & $NGLS & $APC 0.9%, $APA 0.8%, $SE +0.7%
Forex Binary Option
31 Aug 15 12:18:08
RT @AmericanBanking: Weekly Investment Analysts’ Ratings Changes for Plains GP Holdings $PAGP http://t.co/IJaOJ5d9nz
US Banking News
31 Aug 15 12:12:27
Weekly Investment Analysts’ Ratings Changes for Plains GP Holdings $PAGP http://t.co/IJaOJ5d9nz
US Banking News
31 Aug 15 12:06:10
$PAGP - Weekly Investment Analysts' Ratings Changes for Plains GP Holdings #PAGP http://t.co/MfOku5oN8Q
Consumer News
31 Aug 15 11:57:57
Weekly Investment Analysts’ Ratings Changes for Plains GP Holdings $PAGP http://t.co/2HfKvCZ40j #acn
Ticker Report
31 Aug 15 11:56:55
Weekly Investment Analysts’ Ratings Changes for Plains GP Holdings $PAGP http://t.co/7lxtiirYVI
Dakota Financial
31 Aug 15 11:55:53
Weekly Investment Analysts’ Ratings Changes for Plains GP Holdings $PAGP http://t.co/JvCo86qzaH
stockschamp
31 Aug 15 08:06:24
Gains Over 2500% In one Trade.. Subscribe Here! http://t.co/8WvnrVmkBS .. $PAG $PAGP $PAH
Breaking News Now
31 Aug 15 00:14:03
$PAGP: Company Shares of Plains Group Holdings, L.P. (NYSE:PAGP …: http://t.co/YT2JWP381u
$teph
30 Aug 15 04:06:20
$PAGP low base building http://t.co/NBZWmObBrt http://t.co/tTKs1EoxjH
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29 Aug 15 18:14:29
chartguy89: 2015 Trending Stocks: PAGP +2.75% Stock Charts $PAGP Plains GP Holdings http://t.co/h7Cro2JeUy
chartguy89
29 Aug 15 18:06:16
PAGP +2.75% Stock Charts $PAGP Plains GP Holdings LP Cl A (NYSE) Last Updated: 08/29/2015 20:06:22 PAGP Stock http://t.co/uNsJM7ZYnN
Katherine Feser
28 Aug 15 14:43:37
Houston stock gainers this week $CAM 47.8% $FTI 14.2% $NOV 11.9% $BHI 10.5% $MRC 8.7% $HAL 8.1% $NGLS 6.9% $MRO 5.8% $BPL 5.2% $PAGP 4.9%
Analyst Actions
28 Aug 15 12:14:04
$PAGP: Analyst action by Scotia Howard Weil on Plains GP Holdings: http://t.co/nj9QvSUml1 http://t.co/BgalhqSYs2
ProTradersNews
28 Aug 15 10:13:03
$PAGP: Notable Session Mover: Plains Group Holdings, L.P. (NYSE:PAGP): http://t.co/bZbaTjVpGs
BreakingStocksNews
28 Aug 15 02:01:01
$PAGP: Jefferies Group Lowers Plains GP Holdings Price Target to $23.00 …: http://t.co/W6TZ6IK7Rt
ProTradersNews
28 Aug 15 01:56:02
$PAGP: Plains Group Holdings, L.P. (NYSE:PAGP): http://t.co/iP8BazVzMg
DailyStockPicks
27 Aug 15 23:41:52
$ANFI huge bounce play as short attack put in doubt. 100%-200% upside potential $ARE $PSEC $PAGP investors read http://t.co/L1jwUV6Bag
The Legacy News
27 Aug 15 07:44:15
Plains GP Holdings Earns Sector Perform Rating from Analysts at Howard Weil $PAGP http://t.co/Z1VURwRwBC
InvestWithConf
26 Aug 15 22:45:03
$PAGP is rated BUY, 32.8% upside by Wall Street analysts based on average ratings/targets http://t.co/B6gtJhaMVV http://t.co/V0Ip3QFgvt
BreakingStocksNews
26 Aug 15 14:56:07
$PAGP: Zacks Short Term Rating on Plains Group Holdings, LP (NYSE:PAGP): http://t.co/65xBhGfRmQ
ProTradersNews
26 Aug 15 09:30:01
$PAGP: New SEC Filing for PAGP: Form 8-K (No. 0001193125-15-302852): http://t.co/gvFE4lgAXj
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26 Aug 15 09:29:03
NEW SEC Filing for $PAGP filed a moment ago: http://t.co/gXjUo4VdNc http://t.co/K4E4VfnUPC
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26 Aug 15 08:43:05
What To Sell: 3 Sell-Rated Dividend Stocks PAGP, ABY, MRO $PAGP http://t.co/eoXM6lJfAR
WKRB News
26 Aug 15 07:51:32
Plains GP Holdings Coverage Initiated at Howard Weil $PAGP http://t.co/vWQStYUf92
Analyst Actions
26 Aug 15 07:05:02
$PAGP: Analyst action by Scotia Howard Weil on Plains GP Holdings: http://t.co/nj9QvSUml1 http://t.co/uAjqf0vIOo
ProTradersNews
26 Aug 15 06:55:03
$PAA $PAGP: Deadline in Lawsuit for Investors in Plains All American Pipeline …: http://t.co/SsTNjwg2QY
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26 Aug 15 05:45:05
Initiations 8/24: $VTVT, $CYRN, $TNAV, $NK, $TSRO, $ZBRA, $RNG, $JUNO, $UAL, $SCMP, $BABA, $PAA, $M, $ININ, $PAGP http://t.co/GiIcMlsMNe
StockNewsWires
25 Aug 15 21:28:03
$PAGP: Plains Group Holdings, LP Short Interest Update: http://t.co/4fkVTn2Si9
Robert Grattan
25 Aug 15 16:00:34
RT @kfeser: Houston stocks faring better than the S&P 500 (-10.9%) in the last week: $BPL -2.7% $SYY -5.1% $NOV -6% $WM -6.7% $GPI & $PAGP …
LimitedHangOut
25 Aug 15 15:40:53
RT @kfeser: Houston stocks faring better than the S&P 500 (-10.9%) in the last week: $BPL -2.7% $SYY -5.1% $NOV -6% $WM -6.7% $GPI & $PAGP …
Melissa Aguilar
25 Aug 15 15:40:09
RT @kfeser: Houston stocks faring better than the S&P 500 (-10.9%) in the last week: $BPL -2.7% $SYY -5.1% $NOV -6% $WM -6.7% $GPI & $PAGP …
Richard Stubbe
25 Aug 15 15:39:19
RT @kfeser: Houston stocks faring better than the S&P 500 (-10.9%) in the last week: $BPL -2.7% $SYY -5.1% $NOV -6% $WM -6.7% $GPI & $PAGP …
Katherine Feser
25 Aug 15 15:37:54
Houston stocks faring better than the S&P 500 (-10.9%) in the last week: $BPL -2.7% $SYY -5.1% $NOV -6% $WM -6.7% $GPI & $PAGP -8% $CNP -10%
ProVesting
25 Aug 15 14:55:02
$PAGP: New Insider Transaction on PAGP by EVP & COO (U.S.): http://t.co/ArbEPKp3F2
Insider Alerts
25 Aug 15 14:54:09
NEW insider transaction on $PAGP reported a moment ago: http://t.co/jNnjUvNqwc
Sleek Money
25 Aug 15 08:51:38
Plains GP Holdings Receives New Coverage from Analysts at Howard Weil $PAGP http://t.co/6J9GJ7kIpt
stockschamp
25 Aug 15 08:27:21
This Service Made 20,000% Gains In the Last Month! Subscribe Here http://t.co/8WvnrVmkBS .. $PAG $PAGP $PAH
ClosingBell Tips
24 Aug 15 22:12:06
24DV4NC3D gave $PAGP a BUY rating - #oversold http://t.co/T9ce41vJOr
WallStreetConsensus
24 Aug 15 19:16:28
Initiations 8/24: $VTVT, $CYRN, $TNAV, $NK, $TSRO, $ZBRA, $RNG, $JUNO, $UAL, $SCMP, $BABA, $PAA, $M, $ININ, $PAGP http://t.co/RwZ0aPXgBh
Analyst Actions
24 Aug 15 17:06:01
$PAGP: Analyst action by Jefferies on Plains GP Holdings: http://t.co/FLsca8e5rm http://t.co/3Ixr9gjaoU
Consumer News
24 Aug 15 15:02:26
Plains GP Holdings Rating Reiterated by Scotiabank $PAGP http://t.co/9oOUshg0W4 #acn
MarketBeatCom
24 Aug 15 14:31:31
Plains GP Holdings LP's sector perform rating reiterated at Scotiabank. $22.00 PT. http://t.co/gvjaxJvk72 $PAGP #PAGP
US Consumer News
24 Aug 15 14:31:20
Plains GP Holdings LP's sector perform rating reiterated at Scotiabank. $22.00 PT. http://t.co/CkvZBF3UJm $PAGP #PAGP
FirstToMarkets
24 Aug 15 14:30:07
Plains GP Holdings, L.P. Reiterated Rating by Scotiabank (Ranked 86th) to Sector Perform with 22 PT $PAGP #PAGP http://t.co/ZwyKkGYAik
US Banking News
24 Aug 15 14:28:50
Scotiabank Reiterates Sector Perform Rating for Plains GP Holdings $PAGP http://t.co/SQuT7olJ5b
Ticker Report
24 Aug 15 14:26:59
Scotiabank Reiterates Sector Perform Rating for Plains GP Holdings $PAGP http://t.co/Z7TieaT4yT
Dakota Financial
24 Aug 15 14:25:30
Scotiabank Reiterates Sector Perform Rating for Plains GP Holdings $PAGP http://t.co/kQqVavwU5r
				
				
By  +Follow October 14, 2013 6:43PM
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