dennis mccain
  • Home
  • Investing
    • Dividend Kings
    • Div Aristocrats
    • Div Champions
    • Business Dev Cos
    • Monthly Dividends
  • Options
    • Weekly Options

Investing

Ideas and Strategies on Investing.

Previous Articles

Exploration and Production MLPs

3/22/2014

0 Comments

 
The oil and gas industry is divided into three major sectors: upstream, midstream and downstream. The upstream sector is commonly known as the exploration and production (E&P) sector. The upstream sector includes the searching for potential underground or underwater crude oil and natural gas fields, drilling of exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil and/or raw natural gas to the surface.

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."
-- James Buchan, Scottish Journalist.
Exploration and Production MLPs are a group of securities I've become interested in lately for their consistency in their dividend payments. They're also where the majority of profits are made in the oil and gas industry. As a result, I've added a drop down section titled "E&P MLPs" to identify a select few of the companies in this space that I'm interested in investing in. 

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. 


Company
BBEP
EVEP
LGCY
LINE
LRE
MEMP
MCEP
NSLP
QRE
VNR

Yield
9.88%
9.24%
9.04%
10.00%
11.32%
9.59%
9.16%
9.88%
10.43%
8.34%
Today's Price
$19.94
$33.35
$26.10
$28.99
$17.32
$22.95
$22.50
$23.29
$18.70
$29.85
Target Price
$22.09
$41.44
$29.55
$34.38
$18.00
$24.08
$26.57
$25.00
$19.73
$32.46
% Increase
10.78%
24.25%
13.21%
18.59%
1.03%
4.92%
18.08%

7.34%
5.50%
8.74%

Hopefully others will find this newly added section of E&P MLPs helpful in providing ideas for further investigation. 

0 Comments



Leave a Reply.

    Print Friendly Version of this pagePrint Get a PDF version of this webpagePDF

    Picture

    Author

    I am an Individual Investor with specific interest in long term growth and then enhancing my returns with income from dividends and derivatives. I don't recommend stocks to anyone (it's a good way to lose friends) and no one reading this should misinterpret my blog as a recommendation for any type of investment. I am writing this solely for myself and my kids.


    RSS Feed


    Picture
    Top 100 Blogs for Dividend Investors

    Picture
    Follow Me on StockTwits!



    Dividend Growth Stocks
    Dividend Growth Investor


    Picture
    I'm on Seeking Alpha too!

    Archives

    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013


    ADDITIONAL RESOURCES:
    4 Month INDU Chart
    Dividend Ex-Dates
    Bidness Etc
    SharpCharts Voyeur
    StockCharts.com

    FINVIZ
    Seeking Alpha
    BDC Reporter
    Roadmap2Retire
    DivHut
    Dividend Growth Investor

    Dividend Yield

    Stock Market Mentor
    Chart Swing Trader
    Dividend Announcements
    IBD TV
    Stocks to Watch Today
    Dividend Detective

    DISCLAIMER
     I am not a licensed investment adviser, and I am not providing investment advise for you on this site. Please consult with an investment professional before you invest your money. Any opinion expressed here should not be treated as investment advice. I am not liable for any losses suffered by any party because of data or information published on this blog. Past performance is not a guarantee of future performance. Unless your investments are FDIC insured, they may decline in value.

    Picture
Powered by Create your own unique website with customizable templates.