A master limited partnership (MLP) is organized similar to a limited partnership and it is traded publicly on one of the stock exchanges. MLPs are limited to enterprises that engage in only certain types of businesses. These businesses are primarily engaged in natural resources, such as petroleum and natural gas extraction and transportation. To qualify for MLP status, a partnership must generate at least 90 percent of its income from activities related to the production, processing or transportation of oil, natural gas and coal. MLPs are exempt from corporate income tax at both the state and federal levels and may record a pro-rated share of depreciation on their own tax forms to reduce liability.
"A century ago oil was just an obscure commodity; today it is almost as vital to human existence as water."
Below is a list of these companies along with their current yield and projected percentage increase in price based upon their one year projected price target. As you can see, these companies appear to be great investments based solely on their current yield. But by adding in their projected one year price target, an investor can easily see why I'm currently interested in accumulating positions in these companies at these prices.
Hopefully others will find this newly added section of E&P MLPs helpful in providing ideas for further investigation.