Almost 18 months of low and ultra-high yield energy MLPs are on sale

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Over the years, energy trading has often been considered a relic of the old school. However, as we learned last winter, the much-hyped electric vehicle revolution has not arrived and probably never will dominate the industry. The current spot price for black gold fell back to its lowest level in nearly a year and hedge funds, while still long against benchmarks, were reported to be shorting gasoline and distillate futures. This while OPEC decided to maintain its production cuts until the end of the year.

This shake-out oil prices held despite the outbreak of war in the Middle East following Hamas’s devastating attack on Israel last October. Now that the war has widened, there are concerns that Iran could become more involved as Israel turns its attention to eliminating Hezbollah and ending Hamas. If oil supplies are threatened in the region, prices could explode.

One of the best ideas for investors looking to add energy to their portfolios at current prices are master limited partnerships (MLPs). They pay high and reliable dividends, and many energy master limited partnerships are midstream companies that control the movement or storage of oil and natural gas by setting contract prices with major oil producers.

We shielded ourselves The 24/7 Wall Street MLP research database that looks for top companies that pay ultra-high yielding distributions to their shareholders. Six top companies hit our screen, including an initial public offering in 2023, and all are poised to pay shareholders incredible and reliable distributions.

Enterprise product partners

Enterprise Products Partners is one of the largest publicly traded partnerships.

This company is one of the largest publicly traded energy partnerships and pays a dividend of 7.28%. Enterprise Products Partners LP (NYSE: EPD ) provides various midstream energy services, including:

• Assembly
• Processing
• Natural gas transportation and storage, fractionation of natural gas liquids (NGL).
• Import and export terminaling
• Offshore production platform services

The company has four reportable business segments:

• Natural gas pipelines and services
• NGL pipelines and services
• Petrochemical services
• Crude Oil Pipelines and Services

A reason for many analysts may like that the stock is the distribution coverage ratio. The company’s coverage ratio is well over 1x, making it relatively less risky in the MLP sector.

Energy transfer

Energy Transfer is one of the largest and most diversified energy companies in North America.

This limited top master partnership is a safe bet for investors looking for energy and income exposure, as the company pays a massive 8.10% dividend. Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with a strategic footprint in all major domestic production basins.

The company is a publicly traded limited partnership with core operations that include:

• Complementary intrastate and interstate natural gas transportation and storage activities
• Crude Oil, Natural Gas Liquids (NGL) and Refined Product Transportation and Terminal Assets
• Fractionation of NGLs
• Various purchasing and marketing assets

After purchase Enable Partners in December 2021, Energy Transfer owns and operates more than 114,000 miles of pipeline and related assets in 41 states, covering all major U.S. producing regions and markets. This further strengthens its leadership position in the midstream sector.

Through her Owned by Energy Transfer Operating, formerly known as Energy Transfer Partners, the company also owns Lake Charles LNG, general partner interests, incentive distribution rights and 28.5 million common units of Sunoco LP (NYSE: SUN ) and partner interests public. and 39.7 million standard units of USA Compression Partners LP (NYSE: USAC).

Hess Midstream

Hess Midstream is a fee-based, growth-oriented midstream company that owns, operates and develops various midstream assets.

This is it Limited partnership in the middle of one of the country’s leading energy companies, which is being acquired by Chevron Corp. (NYSE: CVX ) and pays a dividend of 7.54%. Hess Midstream LP (NYSE: HESM) owns, develops, operates and acquires midstream assets.

The company operates through three segments:

• Assembly
• Processing and storage
• Closing and exporting

Assembly The segment owns natural gas and crude oil gathering systems and manufactures water gathering and disposal facilities.

Her assembly the system consists of approximately:

• 1,350 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with a capacity of approximately 450 million cubic feet per day
• The crude oil gathering system comprises approximately 550 miles of crude oil gathering pipelines

processing and The storage segment comprises:

• Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota
• 50% interest in the Little Missouri 4 gas processing plant located south of the Missouri River in McKenzie County, North Dakota
• Mentor Storage Terminal, a propane storage cavern and rail and truck loading and unloading facility located in Mentor, Minnesota

The terminal and The Export segment owns the Ramberg Terminal Facility, the Tioga Rail Terminal, crude oil railcars, the Johnson’s Corner Header System and a simple oil pipeline gathering system.

Natural Resources Mach

Mach Natural Resources is an independent upstream oil and gas company that acquires, develops and produces oil, natural gas and NGL.

This 2023 IPO it is trading below the initial price. Mach Natural Resources LP (NYSE: MNR ) recently conducted a secondary offering to buy even more producing assets and will pay a whopping 13% expected dividend.

Mach Natural Resources is an independent upstream oil and gas company focused on the acquisition, development and production of oil, natural gas and natural gas liquids reserves in the Anadarko Basin region of western Oklahoma, southern Kansas and the Texas Panhandle.

The analysts from Raymond James noted that Mach is led by Chesapeake Energy co-founder Tom Ward. Mach is another entrant in the E&P MLP space. It is a pure-play operator in the Anadarko Basin, leveraging its strong position (1 million net acres) to become the leading consolidator in the region.

Mach’s middle position and lower base decline (~20%) allows the company to target a lower reinvestment rate (~30%) relative to the overall industry. In addition, it is one of the only exploration and production companies organized as a limited partnership because it is an oil and gas producer.

MPLX

MPLX is a diversified, large-cap master limited partnership formed by Marathon Petroleum.

This company is one of the top holdings of energy exchange-traded fund Alerian MLP and pays a healthy 8% dividend. MPLX LP (NYSE: MPLX ) is primarily engaged in the transportation of crude oil and refined products and stops in the US Midwest and Gulf Coast regions and in the gathering and processing of natural gas in the Northeast since its previous acquisition of MarkWest Energy in 2015. Marathon independent American Refinery Petroleum Corp. (NYSE: MPC) formed MPLX.

Of the company assets include:

• Crude and Refined Pipeline Network
• Inland Maritime Affairs
• Terminals for light products
• Storage caverns
• Refinery tanks
• docks
• Loading racks and associated piping
• Marine terminals for crude oil and light products

MPLX also owns:

• Crude oil and natural gas collection systems
• Pipelines, natural gas, and NGL processing and fractionation facilities in key US supply basins

USA Compression Partners

USA Compression Partners provides natural gas compression services under long-term customer contracts.

While he can lesser known than their peers, this top company pays shareholders a hefty dividend of 9.67%. USA Compression Partners LP (NYSE: USAC) provides natural gas compression services.

The company offers compression services for:

• Oil companies and independent producers
• Processors
• pickers
• Natural gas and crude oil carriers as well as operating stations

US compression The partners primarily provide natural gas compression services to infrastructure applications, including centralized natural gas gathering systems, processing facilities and gas lift applications for crude oil wells.

Grab these energy bargains now

Six top companies providing safe and reliable distribution are important players in the energy infrastructure arena. Those looking for solid total return potential may do well to own these MLP leaders. It is important to note that MLP distributions may contain a repayment of principal.

Those who seek to avoid K-1 troublemakers they can always buy shares in ALPS Alerian MLP (NYSE: AMLP ), which pays a hefty 7.70% dividend. Investors receive a 1099 instead of a K-1.

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