JamesBrey
Both Energy Transfer (NYSE:ET) and Plains All American Pipeline (NASDAQ:PAA)(NASDAQ:PAGP) are high-yield investment-grade midstream MLPs (AMLP) that have taken a very similar path in recent years. Both had BBB- credit ratings and had invested aggressively in growth when COVID-19 broke out and the energy industry nearly collapsed due to plunging energy prices. As a result, both MLPs slashed their distributions and capital expenditures while putting maximum focus on paying down their debt.
These efforts have paid off as since then their credit ratings have been bolstered, their balance sheets have been deleveraged, and their distributions are once again on the rise. Most importantly, their unit prices have soared, resulting in outstanding total returns for unitholders who – like us – bought in late 2020:
While the businesses have definitely strengthened their positions over the past few years, the sheer…
