---------------------- Forwarded by Michael Burke/Houston/Eott on 01/29/2000 
06:28 PM ---------------------------


Scott Vonderheide@ENRON
01/28/2000 03:16 PM
To: Michael Burke/Houston/Eott@EOTT
cc:  

Subject: Plains All American Yield  

Mike-
I spoke with two analysts this afternoon on why Plains' All American has a 
lower yield than EOTT.  I have calls out to two others that follow both MLPs.

Solomon Smith Barney's view -
PAA still has capacity to make acquisitions.  They will still have a debt to 
total capital ratio of around 30% even after trading loss.  They raised $50 
million equity before trading loss, will net around $100 million from sale of 
linepack and are rumored to be asking between $100 and $150 million for pipe 
from California to Texas.  Solomon expects PAA to continue making the minimum 
quarterly distribution and in 9 - 12 months thinks they will be back in the 
growth game and distribution increases are likely.

The perception is that EOTT's cash coverage is not as strong and a 
distribution increase is not as likely at this point.

A.G. Edward's view -
PAA was "on a roll" and had bright prospects before the trading loss.  The 
trading loss was a setback, but they still have the flexibility to do more 
transactions after the sale of linepack and the California to Texas pipeline 
are sold.

Before the trading loss they could have done a $500 million deal.  Now they 
can probably still do a $250 million deal.  The market liked the approach 
they were taking and thinks they can get back on track.

He also felt there is a good chance they will be able to increase the 
distribution within the next year.


I will give you additional feedback when I get it.

Scott