Matt Denegre, our intern from the SMU MBA program, just sent me the updated MLP Watch List. It will be available on the website on Monday. It is updated each weekend. Just sign in and click on the MLP tab.
At the closing prices on August 12, the high quality energy sector Master Limited Partnerships ("MLPs") we track for our members offer incredible tax deferred cash distributions. Plus, these companies have a very high percentage of their revenues locked in by hedging and long-term contracts.
When you buy and MLP you actually own "units" in a publicly traded partnership. The cash "distributions" to unit holders are technically not dividends. You are taxed on your share of the partnerships taxible income, which is always much less than the distributions.
Current Yields
> We have 8 upstream MLPs that now yield 4.6% to 9.5%
> We have 13 midsteam MLPs that now yield 5.7% to 10.0%
Actually, the midsteam MLP have less risk since they have virtually no commodity price risk. They get paid under long-term contracts for transporting and processing oil, natural gas liguids, natural gas and coal.
Our MLP Watch List gives EPG members an excellent way to compare MLPs to their peers. It is a great screening tool.
If you are worried about the market, our MLPs offer a great place to hide and get paid for waiting to see what happens.
MLPs offer high yield and safety
MLPs offer high yield and safety
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group