watch list - NSLP

[mikelp]

Dan: here's an MLP to consider for the EPG High-Yield Income watch list. Possibly worth kicking the tires and looking under the hood.

NSLP is an upstream energy MLP, and it includes an oil services business. Current yield > 9%

http://www.newsource.com/

Here's some info on NSLP recently from Fool:

>>>>>>>>>>>>>>>>>>>>>>
New Source Energy Partners (NSLP) is the smallest and newest upstream MLP, having IPOed in 2013, and it drills out of the Hunton formation of central Oklahoma, where it owns 20.6 million barrels of reserves -- 71% high-margin liquids.

New Source Energy Partners has grown its reserves (45%) and production (44%) in just one year through a series of six oil and gas acquisitions, but what makes it a unique MLP opportunity is its oil services business. In November of 2013, New Source Energy began purchasing oil service companies. To date, its four acquisitions total $160.8 million and its oil services operations include the Permian, Eagle Ford, and Marcellus/Utica shales, with plans to expand into the Bakken.

The fast-growing oil services business is expected to bring in $170 million in revenue in 2015 at an EBITDA margin of 25%-29%, and grow revenues by 369% from 2013 to 2015. Finally, investors should be aware that although it's a new upstream MLP, New Source Energy has one of the best management teams in the industry:

29 year track record drilling in Hunton, 98% success rate
37.9% net margin vs 9.6% industry average
12.9% return on assets vs 3.5% industry average
24.2% return on equity vs 7.6% industry average

>>> other info from DoubleDividendStocks.com:

We just added another relatively new stock, New Source Energy Partners LP, (NYSE:NSLP), to our High Dividend Stocks By Sector Tables, due to its 9%-plus dividend yield, and its bright future prospects for growing its distributions. Oklahoma-based NSLP went public in February 2013, and is engaged in the acquisition and development of oil and natural gas properties in the United States. It operates as a subsidiary of New Source Energy LLC, which is controlled by David Chernicky, NSLP's largest shareholder.

NSLP should benefit greatly from the expertise of New Source LLC, which has completed and produced successfully from 98% of the wells it has drilled in Oklahoma's Hunton Formation since 1999.

In addition to making 6 accretive Exploration & Production acquisitions since its February 2013 IPO, NSLP also added an Oilfield Services division in Q4 2013, which has already ramped up its revenues, (up 50%), and EBITDA, (up 39%), in Q1 2014. NSLP's Oil Field Services division specializes in "the pressure control platform and full service well testing and flowback services, in addition to renting critical equipment needed for well completion".

Dividends/Distributions: NSLP has increased its quarterly distribution 3 times since its IPO, and is already 10% above its targeted minimum distribution. It should be going ex-dividend soon. There should be even more distribution growth ahead. Here's how- in its June 2014 investor presentation, NSLP shows a major ramp up in Revenue and EBITDA for the 2nd half of 2014, due to more expected contributions from its new Services division. Indeed, the company announced on June 26. 2014 that it had acquired 2 Oklahoma-based services companies - Erick Flowback Services, and Rod's Production Services.
<<<<<

[dan_s]

It is hard to evaluate any company this new, but it does look promising.