PPAAPlains All American Pipeline, L.P.

Plains All American gathers oil from Permian Basin wells and pipes it to the coast.

The partnership neither produces oil nor sells it on the end market — it charges for moving it. What matters to it is therefore not the barrel price but volume: how much oil passed through the pipe. While drilling continues in the basin, volume grows almost regardless of whether oil is expensive or cheap.

A pipeline is an asset that cannot be quickly reproduced: it needs rights of way, permits and years of construction. The partnership form implies distributing cash flow to unitholders rather than accumulating it. Risks: slower drilling in the basin, excess pipeline capacity depressing tariffs, and the particular tax treatment of units for an investor.