Spectra's sponsor, Enbridge (ENB), announced a roll-up proposal in May 2018 to acquire the remaining interest in Spectra that it doesn't currently own. If accepted, SEP unitholders will receive 1.0123 common shares of Enbridge per SEP unit, representing a value of about $32 per unit today. As Enbridge laid out (see quote below), the [...]
Buckeye Partners (BPL) traces its roots back to 1886 as the Buckeye Pipe Line Company, part of John D. Rockefeller's Standard Oil empire. Over 30 years ago the business changed its corporate structure to that of a master limited partnership (MLP). Today Buckeye Partners operates a global portfolio of petroleum and petroleum product pipelines [...]
Many pipelines are regulated by the Federal Energy Regulatory Commission (FERC), which has the ability to set rates. Any change in regulations by the FERC could significantly impact cash flows and the rate of an MLP’s distribution growth. The FERC’s job is to ensure that companies charge “just and reasonable” fees and that exploration [...]
Spectra Energy Partners (SEP) is one of America's largest midstream master limited partnerships, or MLPs. Its assets include 170 billion cubic feet of natural gas storage, 5.6 million barrels of crude oil storage, and approximately 16,000 miles of gas and oil pipelines that connect producers, consumers, and exporters with some of North America's most important [...]
Master Limited Partnerships (MLPs) have become one of the most popular types of high-yield dividend stocks in this age of record low interest rates and falling stock yields. That’s especially true now that the worst oil crash in over 50 years has left so many MLPs trading at discounted prices. However, like with [...]
One investing school of thought is that you should find an amazing investor and ride his or her coat tails to fun and profit. This certainly worked out well for those who bet on history’s greatest investor, Warren Buffett, by investing in Berkshire Hathaway (BRK.A, BRK.B). You can view Buffett’s high dividend stock portfolio [...]
In recent years energy transportation and storage stocks and Master Limited Partnerships (MLPs) have become some of the most popular high dividend stocks for income investors to find attractive yields in this record-low interest rate environment. Kinder Morgan (KMI) is one of the oldest names in this space, having helped to popularize the sector with [...]
Master Limited Partnerships (MLPs) have become some of the most popular high dividend stocks over the past decade. In an age of record low interest rates, midstream (i.e. energy gathering, storage, and transportation infrastructure) MLPs’ tollbooth-like business models are especially appealing for investors living off dividends in retirement. These partnerships typically generate a high percentage [...]
Higher interest rates have a number of implications for investors in master limited partnerships (MLPs). Record low interest rates over the last decade have created major challenges for income investors, who through 2007 had enjoyed generous yields on risk-free investments such as savings accounts, money market funds, CDs, and U.S. Treasury bonds. Today, [...]
Master Limited Partnerships (MLPs) such as ONEOK Partners (OKS) have long been a favorite among high-yield income investors. MLPs have appeal thanks to their generally steady cash flows (courtesy of long-term, fixed fee contracts) and business model that involves paying out the majority of distributable cash flow (MLP equivalent of free cash flow) to [...]
Master Limited Partnerships, or MLPs have been an increasingly popular stock sector in recent years thanks to their preferential tax treatment that results in a business model that pays out the majority of cash flow in the form of very generous high-yields. However, as with most high-yield stocks on Wall Street, one needs to [...]
Master Limited Partnerships, or MLPs have become an increasingly popular equity class, and for good reason. With most MLPs concentrated in the midstream sector (i.e. gathering, storage, and transportation of oil & gas), the business model for many MLPs is built around long-term contracted, fixed-fee, tollbooth style cash flow. Since most MLPs pay out [...]