The MLP earlier this year announced that a fire at one of its main processing facilities and weak NGLs prices in the second quarter would prevent management from achieving its goal of raising the distribution to at least $0.25 per unit. Nevertheless, the integration of BP’s panhandle system and a solid slate of midstream expansion projects should enable the firm to reach this goal in 2013.
As management continues to reduce the MLP’s exposure to commodity prices, expect the stock’s yield premium to narrow relative to its peers. Assuming an annualized distribution of $1 per unit and a target yield of 7.5 percent, the stock could fetch $13.50 per unit by the end of next year.
Your complete guide to energy investing, from growth stocks to high-yielders.
In October 2012, renowned energy expert Elliott Gue launched the Energy & Income Advisor, a twice-monthly investment advisory that's dedicated to unearthing the most profitable opportunities in the sector, from growth stocks to high-yielding utilities, royalty trusts and master limited partnerships.
Elliott and Roger on Jul. 27, 2017
Balanced portfolios of energy stocks for aggressive and conservative investors.
Our take on more than 50 energy-related equities, from upstream to downstream and everything in between.
Our assessment of every energy-related master limited partnership.
Roger Conrad’s coverage of more than 70 dividend-paying energy names.