Plains All American Is Diversifying
While Plains All American was already a big name with its 19,000 miles of pipeline, the company is now making a big move in strengthening its rail fleet, having invested $1 billion in rail depot projects over the past three months. This will not only leave the company much better equipped to deal with the growing need for huge amounts of takeaway capacity in the coming years, it will also allow PAA to deliver oil and natural gas to urban coastal areas where pipelines can't be built. And because the company is transitioning more into a fee-based business model, it gives PAA a dramatic increase to its guaranteed cash flow.
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The article Plains All American Is Diversifying originally appeared on Fool.com.Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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