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    MLPs: The Stealth Commodity Play

    Thu, 03/03/2011 - 11:44 EDT - Seeking Alpha
    • BWP
    • CPNO
    • EPD
    • Jens Heycke
    • KMP
    • MWE
    • NGLS
    • OKS

    Jens Heycke submits:Many investors think of Master Limited Partnerships (MLPs) as interstate pipelines that operate like toll roads and are agnostic to commodity prices. The reality is that long-haul "toll road" pipelines account for less than half of MLP sector profits and many MLPs actually have substantial commodity price exposure. Obviously, MLPs like Linn Energy (LINE), that actually produce oil, gas, or coal have direct commodity exposure. But beyond these companies, the numerous MLPs involved in the natural gas liquids (NGLs) value chain have more exposure than many investors realize. The most exposed of this group are G&P MLPs, which gather and process natural gas - companies like Markwest Energy (MWE), Copano Energy (CPNO), and Targa Resources (NGLS). Many of these companies receive revenue in the form of the NGLs extracted during processing. Because of this, these MLPs are effectively long on NGLs. NGLs are substitutes for petroleum products in some typesComplete Story »

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      Dan Pritch submits: Yesterday hailed the launch of the first MLP ETF (Master Limited Partnerships) which have been crushing the S&P500 this year from a capital appreciation and yield standpoint.

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      By Harry Domash:Given the shaky global economy, this might be a good time to consider Master Limited Partnerships (MLPs), in particular, those that operate natural gas pipelines. Many pipeline operators, relatively immune to economic downturns, already paying dividends equating to 5% to 7% yields, will probably grow their payouts substantially over the next few years. About MLPs

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    • Desperately Seeking Yield Through Equities: Part 8 - Master Limited Partnerships

      Philip Mause submits: Master Limited Partnerships (MLPs) offer another opportunity for investors to obtain attractive yields in the equity sector. Because MLPs are partnerships, the tax treatment that an investor is subject to is a bit unique and requires special attention. However, MLPs offer opportunities for both solid dividend yield and considerable appreciation in value over time.

    • Buy Targa: Dividend Yield Of 6.3%, Cheap Valuations

      By Qineqt:We have a positive stance on Targa Resources Partners L.P (NGLS) due to the stock offering cheaper valuations and having one of the highest dividend yields (6.3%) as compared to its peers.

    • The Index Approach to Master Limited Partnerships

      Hard Assets Investor submits: Energy and natural resource master limited partnerships [MLPs] have yet to catch on among many investors, despite their numerous advantages, such as high yields, stable income and immunity to volatility in commodities prices.

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