3 Reasons to Buy This Solid MLP


In this video, Motley Fool energy analyst Joel South gives us one stock he really loves, Kinder Morgan (NYS: KMI) . He likes the stability of the company's fee-based assets, including its regulated pipelines that guarantee a fixed rate of return. He also likes the company for how large its asset footprint is, with a huge number of pipelines connecting to every major energy region in North America, as well as a large amount of production; Kinder Morgan is the second largest oil producer in Texas. Finally, he likes the company's stewardship; the large amount of internal ownership of the company is a great sign, and he values management's philosophy that investor money belongs to investors, not to KMI management.

The surge in oil and natural gas production from hydraulic fracturing and horizontal drilling is creating massive bottlenecks in takeaway capacity. However, this problem for producers creates a massive and immensely profitable opportunity for midstream companies. Like KMI, Energy Transfer Partners helps alleviate the gluts in supply with 23,500 miles of transformational pipelines. To see if ETP and its industry-leading yield will be a fit for you, click on this detailed premium report, which will supply you with a thorough analysis of this attractive midstream.

The article 3 Reasons to Buy This Solid MLP originally appeared on Fool.com.

Joel South has no positions in the stocks mentioned above. Taylor Muckerman has no positions in the stocks mentioned above. The Motley Fool owns shares of Kinder Morgan. Motley Fool newsletter services recommend El Paso Pipeline Partners LP and Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published