MLP Stock List: Earn Reliable Income from These Energy Partnerships Income Investors 2017-05-11 12:20:10 MLP stocksMLPsMLPbest MLP stocks 2017pipeline MLP stocksbest MLP investmentMLP stocks listbest MLP dividend stocksenergy MLP stocksinvesting in MLP stocksnatural gas MLP stocks This article provides an in-depth look at the comprehensive list of MLPs trading in the stock market, and how to pick the best MLP stocks for 2017. Dividend Stocks,Income Investors,News https://www.incomeinvestors.com/wp-content/uploads/2016/08/iStock_14175250_SMALL-150x150.jpg

MLP Stock List: Earn Reliable Income from These Energy Partnerships

Best MLP Stocks 2017

Master limited partnerships, or MLPs, have been one of Wall Street’s best-kept secrets. A lot of them offer much higher yields than regular stocks while also providing a level of dividend safety. Because MLP stocks are not really the trending tickers nowadays, information about them can be limited. In this article, we are going to take a look at the comprehensive list of MLPs trading in the U.S. stock market and some of the ways to identify the best MLP stocks for 2017.

Investing in MLP Stocks

Very often, income investors have to choose between two sets of stocks: those with a high dividend yield, or those with high dividend safety. This is because the prices of blue-chip companies known for their dividend safety have already been bid up, and since dividend yield moves inversely to stock price, their yield is no longer impressive. Is there a way to earn above-average and yet reliable income in today’s stock market? Well, MLPs are certainly a group of stocks worth considering.

Before we go over the list of MLPs trading in today’s market, let’s first look at what an MLP is and where it came about.

MLPs are limited partnerships that are traded on stock exchanges. Investors can buy and sell MLPs just as they would regular stocks. The vast majority of MLPs are in the oil and gas business. However, they are quite a bit different from regular oil and gas companies.

The first main difference is in taxes. On October 22, 1986, President Ronald Reagan signed the Tax Reform Act. The act was known for reducing certain tax privileges while cutting overall taxes and lowering rates for businesses and families. But there was another, lesser-known result of this legislation. In order to encourage domestic energy development, the legislation allowed a certain group of energy infrastructure companies to pay no corporate tax. The tax benefit sparked the much-needed capital investments in America’s energy sector and led to the creation of MLPs. (Source: “General Explanation Of The Tax Reform Act Of 1986,” Joint Committee on Taxation, May 4, 1987.)

In order to get the tax benefits, MLPs must generate at least 90% of their income from qualifying sources. These sources include the production, processing, storage, and transportation of natural resources and minerals. Today, most of the MLPs are involved in the oil and gas business.

Other than paying no taxes at the corporate level, MLPs also stand out in terms of distributions. One of the reasons why investors are willing to provide capital to these partnerships is their mandate. MLPs are required by law to distribute almost all their available cash to unitholders in the form of quarterly cash distributions. Furthermore, a lot of MLPs are growth-oriented. Their goal is to provide investors with a steadily increasing stream of income. Looking back, there are quite a few MLPs that have been consistently growing their payout.

There is also a difference in terminology. Usually, when we talk about stocks, we are referring to common shares of publicly traded companies. MLPs, on the other hand, are structured as limited partnerships. As a result, when an investor invests in an MLP stock, they are buying common units of the partnership and become a unitholder, rather than a shareholder. Moreover, dividends paid by MLP stocks are called distributions.

Types of Master Limited Partnerships

As you can see from the list near the end of this article, there are several types of master limited partnerships. The vast majority of MLPs come from the oil and gas sector. Within that sector, the midstream oil and gas segment is known for having the largest number of MLPs. They are involved in the gathering, processing, compression, transportation, and storage of oil and gas.

Although most oil and natural gas MLP stocks are in involved in midstream services, there are also upstream MLPs and downstream MLPs. Upstream MLPs are involved in the exploration and production of oil and gas, while downstream MLPs are in the business of refining, marketing, and distributing products derived from crude oil and natural gas.

Other than upstream, midstream, and downstream oil and gas partnerships, MLPs may also engage in the business of propane distribution, oilfield services, and marine transportation.

Outside of oil and gas, there are more than a dozen MLPs coming from coal and other natural resources sectors. Furthermore, there are real estate businesses and investment entities structured as MLPs. In total, over 130 MLPs are currently trading on U.S. stock exchanges.

Best MLP Investment

MLPs are income investments. Therefore, the No. 1 reason to invest in MLPs is to collect their distributions.

The role of dividends today doesn’t seem to be as important as before. The average dividend yield of S&P 500 companies is now below two percent, which is less than half of its historical average. MLPs, on the other hand, have kept dishing out oversized distributions. Many MLPs provide distribution yields north of five percent.

Of course, a high dividend yield shouldn’t be the only requirement for income investors. Even in today’s market, there are plenty of stocks with ultra-high yields. But those stocks are rarely good investments because of their dividend safety, or rather the lack of it. As long-term investors, buying an ultra-high-yield stock before its dividend is cut can turn out to be a very expensive lesson.

So, how should investors go about when it comes to MLP investing? Well, in my opinion, there is one group of MLPs that could be solid enough to justify as long-term investments: midstream MLPs. To be more specific, I’m looking at pipeline MLP stocks.

Best MLP Dividend Stocks

One of the most important factors to take into account when considering MLPs is commodity price risk. As we know, most MLPs come from the oil and gas sector. If you have paid any attention to what’s going on in the markets in recent years, you would know that the situation in the oil and gas sector is far from sunshine and rainbows. Due to the downturn in oil and gas prices, some energy companies have fallen deep into the doldrums. Quite a few have slashed their dividends, and some have gone out of business altogether.

However, not all investors have given up on the energy sector. Investments such as energy stocks, oil ETFs, and energy MLP stocks still have an audience.

For instance, midstream MLPs, and particularly pipeline MLPs, have proven themselves to be the more resilient type. And that’s in part due to the nature of their business.

You see, energy companies use pipelines to move energy products from point A to point B. Suppose an MLP owns and operates oil pipelines. An oil company would tell the MLP that it has a certain number of barrels to transport and would pay the MLP a set fee per barrel. Because the MLP is not drilling new wells, it doesn’t have to worry too much about the price of oil.

In other words, pipeline MLPs make money by operating what are essentially energy toll roads.

Of course, if a business is lucrative, chances are competitors will enter the market. And with increasing competition, profitability would decline. So, has that affected pipeline MLPs’ business?

As it turns out, pipeline MLPs don’t really need to worry about competition that much. First, building pipelines requires a significant amount of capital. Second, even if you have the money, getting the regulatory approvals that are necessary to build a pipeline is not an easy process. Furthermore, if a pipeline is already in place, it’s almost certain that the authorities won’t allow someone to lay a competing line. For one thing, it just doesn’t make economic sense to have two sets of energy infrastructure doing the exact same thing. It’s similar to electricity distributors: in each area, one company is responsible for all the business. Therefore, pipeline MLP stocks are essentially monopolies.

In the U.S., the vast majority of oil and natural gas products are transported through pipelines. Companies can also use trucks and rail cars, but when it comes to efficiency, these methods of transportation simply cannot compete with pipelines.

So, pipeline MLPs make solid money, but what about expenses? Well, building a pipeline is obviously an expensive endeavor. But once the pipeline is put in place, the cost of maintaining it is small compared to the amount of cash it generates. Therefore, pipeline MLPs can distribute most of the cash they earn to investors.

MLP Stocks List

Natural Resources: Oil and Gas  Exchange  Ticker
Midstream 
American Midstream Partners LP NYSE AMID
Antero Midstream Partners LP NYSE AM
Arc Logistics Partners LP NYSE ARCX
Archrock Partners LP NASDAQ APLP
Azure Midstream Partners LP NASDAQ FISH
Blueknight Energy Partners L.P. NASDAQ BKEP
Boardwalk Pipeline Partners, LP NYSE BWP
Buckeye Partners, L.P. NYSE BPL
Cheniere Energy Partners LP NYSEMKT CQP
Columbia Pipeline Partners LP NYSE CPPL
CONE Midstream Partners LP NYSE CNNX
Crestwood Equity Partners LP NYSE CEQP
CSI Compressco LP NASDAQ CCLP
DCP Midstream LP NYSE DCP
Delek Logistics Partners LP NYSE DKL
Dominion Midstream Partners LP NYSE DM
Enable Midstream Partners LP NYSE ENBL
Enbridge Energy Partners, L.P. NYSE EEP
Energy Transfer Partners LP NYSE ETP
Energy Transfer Equity LP NYSE ETE
EnLink Midstream Partners LP NYSE ENLK
Enterprise Products Partners L.P. NYSE EPD
EQT GP Holdings LP NYSE EQGP
EQT Midstream Partners LP NYSE EQM
Genesis Energy, L.P. NYSE GEL
Hess Midstream Partners LP NYSE HESM
Holly Energy Partners, L.P. NYSE HEP
Magellan Midstream Partners, L.P. NYSE MMP
Martin Midstream Partners L.P. NASDAQ MMLP
Midcoast Energy Partners LP NYSE MEP
MPLX LP NYSE MPLX
NGL Energy Partners LP NYSE NGL
Noble Midstream Partners LP NYSE NBLX
NuStar Energy L.P. NYSE NS
NuStar GP Holdings, LLC NYSE NSH
Oneok Partners LP NYSE OKS
PBF Logistics LP NYSE PBFX
Penntex Midstream Partners LP NASDAQ PTXP
Phillips 66 Partners LP NYSE PSXP
Plains All American Pipeline, L.P. NYSE PAA
Rice Midstream Partners LP NYSE RMP
Sanchez Production Partners LP NYSEMKT SPP
Shell Midstream Partners LP NYSE SHLX
Southcross Energy Partners LP NYSE SXE
Spectra Energy Partners, LP NYSE SEP
Summit Midstream Partners LP NYSE SMLP
Tallgrass Energy Partners LP NYSE TEP
TC Pipelines, LP NYSE TCP
Tesoro Logistics LP NYSE TLLP
TransMontaigne Partners L.P. NYSE TLP
Usa Compression Partners LP NYSE USAC
USD Partners LP NYSE USDP
Valero Energy Partners LP NYSE VLP
VTTI Energy Partners LP NYSE VTTI
Western Gas Equity Partners LP NYSE WGP
Western Gas Partners, LP NYSE WES
Western Refining Logistics LP NYSE WNRL
Williams Partners LP NYSE WPZ
World Point Terminals LP NYSE WPT
Upstream
Atlas Energy Group LLC OTCMKTS ATLS
Black Stone Minerals LP NYSE BSM
Breitburn Energy Partners LP OTCMKTS BBEPQ
Dorchester Minerals LP NASDAQ DMLP
EV Energy Partners, L.P. NASDAQ EVEP
Kimbell Royalty Partners LP NYSE KRP
Legacy Reserves LP NASDAQ LGCY
Memorial Production Partners LP NASDAQ MEMP
Mid-Con Energy Partners LP NASDAQ MCEP
Vanguard Natural Resources, LLC OTCMKTS VNRSQ
Viper Energy Partners LP NASDAQ VNOM
Downstream
Alon USA Partners LP NYSE ALDW
Calumet Specialty Products Partners, L.P NASDAQ CLMT
Crossamerica Partners LP NYSE CAPL
CVR Refining LP NYSE CVRR
Global Partners LP NYSE GLP
Sprague Resources LP NYSE SRLP
Star Gas Partners LP NYSE SGU
Sunoco LP NYSE SUN
Westlake Chemical Partners LP NYSE WLKP
Oilfield Services
Cypress Energy Partners LP NYSE CELP
Seadrill Partners LLC NYSE SDLP
Propane
AmeriGas Partners, L.P. NYSE APU
Ferrellgas Partners, L.P. NYSE FGP
Suburban Propane Partners LP NYSE SPH
Marine Transportation
Capital Product Partners L.P. NASDAQ CPLP
Dynagas LNG Partners LP NASDAQ DLNG
GasLog Partners LP NYSE GLOP
Golar LNG Partners LP NASDAQ GMLP
Hoegh LNG Partners LP NYSE HMLP
KNOT Offshore Partners LP NYSE KNOP
Navios Maritime Partners L.P. NYSE NMM
Navios Maritime Midstream Partners LP NYSE NAP
Teekay LNG Partners L.P. NYSE TGP
Teekay Offshore Partners L.P. NYSE TOO
Natural Resources – Coal
Alliance Resource Partners, L.P. NASDAQ ARLP
Alliance Holdings GP, L.P. NASDAQ AHGP
CNX Coal Resources LP NYSE CNXC
Foresight Energy LP NYSE FELP
Natural Resource Partners LP NYSE NRP
Rhino Resource Partners, L.P. OTCMKTS RHNO
Westmoreland Resource Partners LP NYSE WMLP
Natural Resources – Other
Ciner Resources LP NYSE CINR
CVR Partners LP NYSE UAN
Emerge Energy Services LP NYSE EMES
Enviva Partners LP NYSE EVA
Green Plains Partners LP NASDAQ GPP
Hi-Crush Partners LP NYSE HCLP
OCI Partners LP NYSE OCIP
Pope Resources A Delaware LP NASDAQ POPE
SunCoke Energy Partners LP NYSE SXCP
Terra Nitrogen Company, L.P. NYSE TNH
Real Estate 
Brookfield Property Partners LP NYSE BPY
Landmark Infrastructure Partners LP NASDAQ LMRK
New England Realty Associates LP NYSEMKT NEN
StoneMor Partners L.P. NYSE  STON
Investment / Financial
AllianceBernstein Holding LP NYSE AB
America First Multifamily Investors LP NASDAQ ATAX
Apollo Global Management LLC NYSE APO
Ares Management LP NYSE ARES
Blackstone Group LP NYSE BX
The Carlyle Group LP NASDAQ CG
Compass Diversified Holdings NASDAQ CODI
Ellington Financial LLC NYSE EFC
Fortress Investment Group LLC NYSE FIG
Icahn Enterprises LP NYSE IEP
JMP Group Inc. NYSE JMP
KKR & Co. L.P. NYSE KKR
Oaktree Capital Group LLC NYSE OAK
Och-Ziff Capital Management Group LLC NYSE OZM
Other Businesses
Brookfield Infrastructure Partners L.P. NYSE BIP
Brookfield Renewable Partners LP NYSE BEP
Cedar Fair, L.P. NYSE FUN
Royal Hawaiian Orchards LP OTCMKTS NNUTU

The Bottom Line on MLP Stocks

MLPs can be solid income generating instruments. But just like any other type of stocks, they do carry a degree of risk. That risk may come from the worsening of business conditions to the point where an MLP can no longer meet its distribution obligations. So even though some MLP stocks have proven track records of delivering consistent payouts, they are not risk-free. Before investing in any of them, it’s important to check that the partnership can generate enough recurring business to cover its distributions, and that it doesn’t have a capital expenditure plan so aggressive that it may affect its payout to investors.

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