Why This Big Midstream Partnership Fell 17% in August

Shares of midstream oil and gas partnership Plains All American (NYSE: PAA) fell 17% in August. Almost all of that drop, however, transpired on one day. At its nadir, Plains' units were down over 27% last month.

The full-month decline actually represents a partial recovery from the worst of the drop. Note that general partner Plains GP Holdings, L.P. (NYSE: PAGP) also fell by 17% in July, which makes sense, since its results are basically tied to Plains' results.

The main driver of the steep price drop was Plains All American's August 7th announcement that second-quarter results were weaker than expected. It also lowered its full-year guidance at that time and, to make matters even worse, it provided a less-than-inspiring outlook for 2018.

Source: Fool.com