Oil And Gas Pipeline Picks
August 12, 2011
– Comments (2) |
RELATED TICKERS: ETP
, BWP
, WHX
We looked at exploration and production companies and oil service companies too. Can’t leave out the oil and gas pipeline stocks! These are yet another great way to expand your portfolio within the energy industry. Some of these are relatively new to TKO and may be new to you. However,Jared Cummans assures these picks are great because of the high yields.
"WHITING USA TRUST ONE (
WHX) – DIVIDEND YIELD OF 17.1%
Whiting USA Trust is a royalty of Whiting Petroleum Corporation (WLL) and was founded in 2007. The subsidiary represents the right to receive 90% of the net proceeds from Whiting’s interests in oil and natural gasproducing pipelines, the majority of which lie in the Rocky Mountain and Gulf Coast regions of the US. The company then passes on distributions to its shareholders, allowing it to pay out a robust yield. But investors should be wary that while this stock is paying out a dividend of 17%, its 19% losses on the year may be of some major concern to those who are unsure of how this stock will fair in our current environment.
BOARDWALK PIPELINE PARTNERS, LP (
BWP) – DIVIDEND YIELD OF 7.9%
Another MLP, Boardwalk is primarily engaged in the transportation and storage of liquid natural gas. In fact, in 2010 their systems carried approximately 10% of the nation’s average daily consumption of natural gas, making them a major player in the oil & gas pipeline sector. The company has over 14,000 miles of pipeline through out 12 states, as well as three subsidiaries to keep operations focused in different regions across the US. BWP is one of the larger companies on this list, as their market cap comes in at just over $5 billion with a P/E ratio of nearly 23. But while the 7.9% yield seems like an attractive option, investors should consider that BWP’s current quarterly earnings growth (yoy) is -72%, painting a hazy future for this stock in the near term. You can also get NatGas exposure."
Find additional reserach here:
http://turnkeyoil.com/2011/08/12/oil-and-gas-pipeline-picks/
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