Plains All American Pipeline, L.P. and Plains GP Holdings announced their quarterly distributions with respect to the second quarter of 2019. Both have extensive pipeline and crude oil storage operations throughout Oklahoma.
PAA announced a quarterly cash distribution of $0.36 per common unit ($1.44 per unit on an annualized basis), which is unchanged from the distribution paid in May 2019.
PAGP announced a corresponding quarterly cash distribution of $0.36 per Class A share ($1.44 per Class A share on an annualized basis), which is unchanged from the distribution paid in May 2019. With respect to PAA’s Series A Preferred Units, PAA announced a quarterly cash distribution of $0.525 per Series A Preferred Unit, or $2.10 on an annualized basis. Each of these distributions will be payable on August 14, 2019 to holders of record of each security at the close of business on July 31, 2019.
The PAGP cash distribution is expected to be a non-taxable return of capital to the extent of a Class A Shareholder’s tax basis in each PAGP Class A Share and a reduction in the tax basis of that Class A Share. To the extent any cash distribution exceeds a Class A Shareholder’s tax basis, it should be taxable as capital gains.