Upstream master limited partnerships (MLP) underperformed the Alerian MLP Index last year, thanks to first-half weakness in the price of natural gas liquids (NGL).
A concentrated media campaign raising concerns about the Linn Energy LLC’s (NSDQ: LINE) hedging practices, maintenance capital expenditures and the quality of its assets also spooked individual investors away from the group.
But the completion of Linn Energy’s blockbuster acquisition of Berry Petroleum suggests that the Security and Exchange Commission won’t pursue large-scale accounting changes in this niche industry.
More important, units of our favorite upstream MLPs trade at favorable valuations, offer above-average yields and could enjoy a re-rating as volatile commodity prices prompt investors to gravitate toward heavily hedged names. A solid pipeline of potential asset acquisitions should also support distribution growth.
A number of the top-performing MLPs last year grew their distributions after a fallow period; we look at 15 names whose growth has stalled, highlighting the best values and the potential value traps.
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 Jun. 29, 2022
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.