Is Plains All American Pipeline Stock a Buy?
The energy sector is in the doldrums thanks to COVID-19, with even some of the most reliable segments of the industry feeling the pinch. In recent years Plains All American Pipeline (NYSE: PAA) has gotten itself into better fighting shape, which is helping it deal with today's travails. But is that enough to make this midstream partnership and its over-10% yield a buy?
Earlier in 2020 oil prices plunged below zero. Contemplate that for a moment, since it means that oil producers were, effectively, paying customers to take oil. There were some unique technical reasons for the price decline, and it was temporary, but it is still a massive statement about the supply and demand dislocation caused by the coronavirus pandemic. No segment of the industry has been immune to the impact, driven heavily by the demand decline as countries around the world effectively shut down their economies to slow the spread of COVID-19.
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Source Fool.com
