Kinder Morgan Energy Partners LP
Shares of master limited partnership (MLP) stocks can be some of the strongest dividend-paying securities available to investors. These securities typically feature a high level of income while offering investors some attractive tax advantages. Being incorporated as limited partnerships, they do not face double taxation; MLPs are subject to no taxes at the corporate level.
Like Keystone XL before it, another pipeline battle is brewing north of the border. In July, TransCanada (NYSE: TRP) announced that it will push forward on its proposed Energy East pipeline. Here are the four things you should know about the proposal.
1. If completed, Energy East will be one of the longest pipelines in the world.
If approved, the pipeline will ship 1.1 million barrels per day of more »
ONEOK (NYSE: OKE) is spinning off its natural gas utility assets to become just the general partner (GP) of limited partnership ONEOK Partners (NYSE: OKS). That's good for ONEOK shareholders, but doesn't do much to help ONEOK Partners unit holders.
Lots of Partners
Limited partnerships (LPs) usually have general partners (GPs) that run them. The GP handles the day to day tasks, while the limited partners put up more »
The debate surrounding TransCanada's (NYSE: TRP) Keystone XL pipeline has been one of the fact-free varieties. Both sides - industry representatives and environmentalists - stretch the truth a little to justify their case. Let's address two of the biggest myths surrounding the project and what they mean for investors.
Myth #1: Keystone will cut the price of gas at the pump
Bloomberg reports that U.S. “Energy Department researchers so far have found 'nothing of concern'” in a Fracking contamination study. If the final report is as positive, the U.S. oil and natural gas drilling industry will get a boost. Consider Ultra Petroleum (NYSE: UPL), Hi-Crush Partners (NYSE: HCLP), and pipeline giant Kinder Morgan Energy Partners (NYSE: KMP).
Fracking is a new drilling technique. Its proponents say that it has more »
High yielding master limited partnerships are some of the most attractive investments for dividend investors. These partnerships pay out heavy cash distributions and attract investors who want to have a regular stream of income. However, the prospect of regular income is not the sole characteristic of these MLPs. Some of these partnerships have shown considerable price appreciation.
Investors who love income as much as I do are in a tough spot. Despite the pervasive talk of Fed ‘tapering,’ whereby our central bank winds down its policies of monthly bond purchases and abnormally low interest rates, rates remain near historic lows. That’s put a huge dent in the amount of income an individual can procure from traditional income-producing securities like bonds. Anyone with money in the bank more »
The pipeline MLP industry has gained increased recognition of late along with rising crude oil prices. Operators of transport systems have always been good investments for those seeking high yields. At times, they may entice seekers of price appreciation, as well.
Due to the fact that they are some of the best-yielding companies, MLPs are typically priced at a premium. It is likely that this is also because of the more »
The early July explosion of train cars carrying crude oil in Canada quickly turned into a disaster. It also exposed the risks of the increasing use of trains to transport oil. Although pipelines have their own risks, the fallout from this event will help support growth at pipeline giants like Enterprise Products Partners (NYSE: EPD), Kinder Morgan (NYSE: KMP), and TransCanada (NYSE: TRP).
Oil and natural gas drilling more »
There has been a lot of bad press for master limited partnerships and energy limited liability corporations over the past five months. Barron’s initiated a series of articles starting in February criticizing Linn Energy’s (NASDAQ: LINE) accounting. That has escalated into increasing short interest and countless sensational accusations, including Linn Energy as a Ponzi scheme, since an informal U.S. Securities and Exchange investigation was announced in early more »
Recently it was reported by the Energy Information Administration, or EIA, that the US' recoverable amount of oil and gas reserves is 35% greater than in 2011. The shale revolution has unlocked the tremendous potential of the natural gas and oil industry, bringing about a huge increase in the oil and gas pipeline distribution around the U.S. and Canada.
Coal may be unloved in the United States, but the rest of the world seems to like it well enough. BP's annual World Energy Review states that “Coal remained the fastest-growing fossil fuel.” Despite the negative press, investors should be looking at the space.
A Record Year
BP's review notes that “Coal reached the highest share of global primary energy consumption (29.9%) since 1970.” So, it is more »
It has been an ugly week for energy companies with the letters LP or LLC after their name. Limited liability corporations (LLC) and master limited partnerships (MLP) are structured to give companies a tax advantaged business if it distributes income to unit-holders who in turn will pay the taxes on that distribution. The company does not pay taxes on this income.
The best MLP?
Historically, master limited partnerships have been more »
A trailblazing North American energy transportation and distribution company, Enbridge (NYSE: ENB), has been trounced year to date, declining 4.99% compared to the 12.42% return offered by the blue chip average.
Enbridge transports and distributes energy across the United States and Canada. Operating a crude oil and liquids transportation system, Enbridge is additionally operating in the natural gas transmission and midstream businesses. Liquids pipelines, gas distribution, gas pipelines more »
Oiltanking Partners (NYSE: OILT) is a midstream company that provides terminals, pipeline, storage and other related facilities to companies in the United States.
Source: company presentation
The above pie chart shows the revenue profile of the company. It makes all of its revenue from fixed-fee contracts. The largest chunk of revenue comes from the storage-service fees. Oil and gas producers, such as the exploration and production (E&P) companies, have more »
Investing for income is becoming a scary proposition. As stock prices rise and, consequently, yields fall, finding substantial income in today’s market is a tough job. Despite the recent spike in interest rates, rates remain punishingly low for those with savings who want to earn income from their investments.
As a result, investors may be tempted to chase yield from speculative stocks or sectors of the market that are more »
On June 25, President Barack Obama said the pipeline would only extend from Alberta to Texas if it "doesn't significantly exacerbate the problem of carbon pollution."
That casts serious doubts on TransCanada's ability to extend the major project from Canada to more »
Although it remains the country’s largest private sector provider of jobs, the U.S. coal industry is hurting. Domestic utilities are turning to lower-priced natural gas. Environmental opponents are working hard to keep the mineral in the ground. Coal companies have attempted to compensate by reining in costs and ramping up exports. Will it work?
Cheaper and cleaner natural gas has cut coal’s share of U.S. electricity more »
Where will Canada's crude go? Efforts to build new pipelines are being blocked to the south and the west, so now TransCanada (NYSE: TRP) is looking east.
The Energy East Pipeline
TransCanada has submitted a proposal to convert an existing 1,900 mile natural gas pipeline to carry heavy crude oil from Hardisty, Alberta to Quebec City, Quebec. The submission also includes the possibility of a 870 mile extension more »
Kinder Morgan Energy Partners (NYSE: KMP) is making a move into owning resource properties with the intent of leasing them to third parties to mine. The main focus appears to be coal. If Kinder sees value in coal, it might be time for investors to buy in, too.
Kinder Morgan is a giant in the mid-stream oil and gas business. It owns the terminals and pipelines that get such more »
- Page 1 of 6