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Plains All American Pipeline LP (NASDAQ:PAA), a $12.3 billion market cap energy infrastructure company with annual revenues of $47.8 billion, announced Monday that its board of directors approved changes to executive compensation, including an extension of a long-term incentive grant for Chief Executive Officer Willie Chiang and new retention awards for two other senior executives. According to InvestingPro analysis, the company maintains a GOOD financial health score, suggesting strong operational performance. The information is based on a press release statement filed with the Securities and Exchange Commission.
The board approved a five-year extension of the expiration date for Chiang’s 2018 promotional grant, moving the expiration from October 2025 to October 2030. The grant, which consists of 500,000 phantom units, retains its original vesting terms and conditions. According to the filing, 25% of the phantom units will vest when the company achieves distributable cash flow (DCF) per common unit of at least $3.00 on a trailing four-quarter basis, and 75% will vest when DCF per common unit reaches $3.50. The grant also includes distribution equivalent rights (DERs), which vest in stages based on DCF thresholds or specific distribution dates.
The board also approved special retention grants for Jeremy Goebel, Executive Vice President and Chief Commercial Officer, and Chris Chandler, Executive Vice President and Chief Operating Officer. Goebel received a five-year award of 545,550 phantom units, which will vest on the August 2030 distribution date, contingent on continued service. Chandler received a three-year award of 327,350 phantom units, vesting on the August 2028 distribution date, also contingent on continued service.
DERs associated with these new grants will vest incrementally over the award periods, with specific portions paid out annually or quarterly, depending on the executive and grant terms. The phantom units and DERs are also set to vest upon termination of employment in certain circumstances, such as death, disability, termination without cause, change of control, or board-approved retirement.
Plains All American Pipeline LP is listed on the Nasdaq under the ticker symbol PAA. The company currently offers an attractive dividend yield of 8.69% and appears undervalued according to InvestingPro Fair Value analysis. For detailed insights into PAA’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Plains All American reported its second-quarter 2025 earnings, highlighting an adjusted EBITDA of $672 million. This figure surpassed UBS’s estimate of $669.4 million and was slightly above the consensus expectation of $670.5 million. The company is undergoing strategic changes, including the sale of its NGL business and an increase in capital expenditure for growth projects. UBS has maintained its Buy rating on Plains All American, setting a price target of $25. Stifel also reiterated its Buy rating with a $23 price target, noting that the quarterly results aligned with their expectations. Plains All American emphasized its commitment to creating unitholder value, particularly through the deployment of proceeds from its NGL business. The company maintains a positive outlook on the oil market amidst these strategic shifts.
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