HOUSTON - Plains All American Pipeline, L.P. (NASDAQ:PAA) and Plains GP Holdings (NASDAQ:PAGP) have announced an increase in their quarterly cash distributions for the fourth quarter of 2023. The distributions are set to be paid on February 14, 2024, to holders of record at the close of business on January 31, 2024.
For PAA Common Units, the new distribution will be $0.31 per unit, a $0.05 rise from the previous distribution paid in November 2023. This adjustment translates to a $0.20 increase on an annualized basis, marking a 19% growth.
Similarly, PAGP Class A Shares will also see a distribution of $0.3175 per share, reflecting the same increase in both the per-share amount and the annualized rate of 19%.
Additionally, PAA has declared distributions for its preferred units. Series A Preferred Units will receive $0.61524 per unit, while Series B Preferred Units are set for a distribution of $24.92 per unit, payable on February 15, 2024, to holders of record on February 1, 2024.
In terms of tax implications, the PAGP cash distribution per Class A Share is expected to be a non-taxable return of capital up to the extent of a shareholder's tax basis in each PAGP Class A Share. Any amount above this basis may be taxable as capital gain.
The companies have also scheduled the release of their fourth-quarter 2023 earnings before the market opens on February 9, 2024.
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