VNR
Posted: Wed Oct 23, 2013 10:55 am
rather lengthy article with a lot of detail. here's intro--
http://seekingalpha.com/article/1763552 ... e_readmore
Vanguard Natural Resources: Still Time To Wade In
Oct 23 2013, 10:15 | 4 commentsby: Casey Hoerth |
It's been getting hard to find deals in the energy space. Many of the faster-growing shale names have leapt up. And dividend-paying majors, for example ConocoPhillips (COP), is up almost 30% on the year. Pipelines have been expensive for awhile and now some of the upstream MLP names are gaining traction, too.
If you're looking for a deal in the energy space and like income (who doesn't?), may I suggest Vanguard Natural Resources (VNR). Vanguard is an upstream MLP which acquires mature oil and gas properties and pays unitholders much of the free cash flow. As an MLP, Vanguard pays no corporate taxes. And as you may imagine, Vanguard therefore typically offers a high distribution yield. The partnership operates in the following areas in order of production: the Arkoma Basin in Arkansas and Oklahoma, the Permian Basin in West Texas and New Mexico, the Big Horn Basin in Wyoming and Montana, the Piceance Basin in Colorado, South Texas, the Williston Basin in North Dakota and Montana, and the Wind River and Powder Basins in Wyoming and Mississippi.
I believe Vanguard is a worthy investment right now for a few reasons: Its conservative capital spending regimen keeps that high distribution relatively safe. Its hedging policy is close to cost-free, yet secures cash flow to unitholders very well. Vanguard has adopted a contrarian strategy to acquisitions, opting for natural gas acreage which has much less buying competition. Finally, and most importantly right now, the valuation is still very reasonable.
http://seekingalpha.com/article/1763552 ... e_readmore
Vanguard Natural Resources: Still Time To Wade In
Oct 23 2013, 10:15 | 4 commentsby: Casey Hoerth |
It's been getting hard to find deals in the energy space. Many of the faster-growing shale names have leapt up. And dividend-paying majors, for example ConocoPhillips (COP), is up almost 30% on the year. Pipelines have been expensive for awhile and now some of the upstream MLP names are gaining traction, too.
If you're looking for a deal in the energy space and like income (who doesn't?), may I suggest Vanguard Natural Resources (VNR). Vanguard is an upstream MLP which acquires mature oil and gas properties and pays unitholders much of the free cash flow. As an MLP, Vanguard pays no corporate taxes. And as you may imagine, Vanguard therefore typically offers a high distribution yield. The partnership operates in the following areas in order of production: the Arkoma Basin in Arkansas and Oklahoma, the Permian Basin in West Texas and New Mexico, the Big Horn Basin in Wyoming and Montana, the Piceance Basin in Colorado, South Texas, the Williston Basin in North Dakota and Montana, and the Wind River and Powder Basins in Wyoming and Mississippi.
I believe Vanguard is a worthy investment right now for a few reasons: Its conservative capital spending regimen keeps that high distribution relatively safe. Its hedging policy is close to cost-free, yet secures cash flow to unitholders very well. Vanguard has adopted a contrarian strategy to acquisitions, opting for natural gas acreage which has much less buying competition. Finally, and most importantly right now, the valuation is still very reasonable.