Plains All American Pipeline
This remains a top MLP pick across Wall Street. Plains All American Pipeline L.P. (NYSE: PAA) is primarily engaged in midstream crude oil activities, including transportation, gathering, marketing and terminaling.
Top analysts feel the company deserves a premium valuation given its leverage to the Permian and attractive organic growth backlog. The company owns an extensive network of pipeline transportation, terminaling, storage and gathering assets in key crude oil and NGLs producing basins and transportation corridors and at major market hubs in the United States and Canada. On average, Plains All American handles more than 6 million barrels per day of crude oil and NGLs in its Transportation segment.
Investors still receive a 7.91% distribution. BofA Securities has set its price objective at $13. The consensus target price is $11.56, and shares have been trading a little above $8 recently.
This smaller-cap stock could be a solid play for aggressive investors. ProPetro Holding Corp. (NYSE: PUMP) is an oilfield services company that engages in the provision of hydraulic fracturing and other complementary services. It operates through the following segments.
The Hydraulic Fracturing segment intends to optimize hydrocarbon flow paths during the completion phase of horizontal shale wellbores. The Cementing segment provides isolation between fluid zones behind the casing to minimize potential damage to hydrocarbon-bearing formations or the integrity of freshwater aquifers, and it provides structural integrity for the casing by securing it to the earth.
The Coil Tubing segment involves injecting coiled tubing into wells to perform various completion well intervention operations. The Flowback segment consists of production testing, solids control, hydrostatic testing and torque services. The Surface Drilling segment offers cost-effective, preset surface air drilling services to target depths of approximately 4,000 feet in areas of fragile geology.
Stifel’s $10 price target is well above the $8.43 consensus target. The shares have retreated from $10 in recent days.
With West Texas Intermediate crude pushing through the $60 a barrel level, many on Wall Street are pounding the table on the sector as a go-to trade and place to be for 2021. These five stocks offer aggressive investors a way to play the sector plus get some solid share count leverage.
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