Plains All American rises after $670 mln deal for three pipeline systems

• January 8, 2025

** U.S. midstream company Plains All American PAA up 5.2% to $18.55 in morning trade

** Company, after markets closed on Tuesday, announced three acquisitions in a cash deal of $670 million

** PAA acquired Ironwood Midstream Energy, which owns an Eagle Ford Basin gathering system, from EnCap Flatrock Midstream; acquired Medallion Midstream's Delaware Basin crude oil gathering business from The Energy & Minerals Group; and acquired the remaining 50% interest in Midway Pipeline LLC from a subsidiary of CVR Energy

** Also announced a 20% increase in the quarterly dividend payable in February 2025

** RBC Capital analysts see the transactions driving "incremental cash flow growth and stronger capital return to common unitholders"

** PAA is up 8.5% YTD