Plains GP Holdings LP (PAGP) CEO and Chairman of the Board Greg Armstrong (Insider Trades)Â purchased 50,000 shares of the company on March 1.
Plains GP Holdings owns an indirect, noneconomic controlling general partner interest in Plains All American Pipeline (PAA, Financial), an energy infrastructure and logistics company headquartered in Houston. Plains GP Holdings has a market cap of $16.51 billion.
Including the above transaction, Armstrong acquired 500,620 shares in four transactions since 2015. Armstrong’s earliest insider buy with the company of 37,552 shares at an average per share price of $41.65, decreased one-third in value since the initial transaction in August 2015. In 2017 to date, Armstrong’s most recent transaction is the sole insider trade with the company. In the three years prior to 2017, the number and volume of total insider purchases of the company increased with each subsequent year. In 2014, there were a total of two Plains GP Holdings insider trades amounting to 38,679 shares, compared to a total of five insider trades amounting to 683,439 shares. For more information about insider transactions with Plains GP Holdings, click here.
For the year ended Dec. 31, 2016, the company reported total revenue of $20.182 billion. This is down in comparison to the $23.152 billion reported in the previous year. Total costs and expenses also decreased from $21.894 billion to $19.192 billion, and net income attributable to the company also decreased from $118 million to $94 million when comparing the same time periods.
For the three months ended on Dec. 31, 2016, the company reported revenues of $5.952 billion, up from $4.996 billion in the fourth quarter of 2015. Net income for the fourth quarters of 2015 and 2016 was $247 million and $126 million. Plains GP Holdings annual revenue follows a decreasing trend line, while the company’s annual net income follows an increasing trend line. For more PAGP financial statistics, click here.
The company announced the completion of its public offering of 48.3 million Class A shares representing limited partner interest, including 6.3 million Class A shares issued pursuant to the underwriters’ option, which the underwriters exercised in full. The total net proceeds of the public offering, which amounted to about $1.474 billion, will be used to purchase AAP Class A units.
Plains GP Holdings also announced its entrance into a definitive agreement with Noble Midstream Partners LP (NBLX, Financial) to form a 50/50 joint venture with the purpose to acquire Advantage Pipeline for $133 million. Advantage Pipeline owns a major pipeline located in the southern Delaware Basin with a capacity of 150,000 barrels per day. Armstrong commented that the company is “pleased to be entering into this strategic partnership with Noble Midstream Partners.”
Jim Simons (Trades, Portfolio) increased his holding in Plains GP Holdings while Steven Cohen (Trades, Portfolio) decreased his stake in the company during the fourth quarter of 2016. Simons increased his position by 203.12% from the third quarter of 2016, purchasing 132,721 shares at an average per share price of $34.28. Cohen sold nearly half of his position, or 414,124 shares, at an average per share price of $34.28 after recently taking a holding in the company amounting to 841,321 shares at an average per share price of $30.15 in the previous quarter. The total estimated gain of the holdings is -14% and 11%. For more information about guru trades with Plains GP Holdings, click here.
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