These Pipeline Companies Are Great, but Which Is the Best?

Updated

When it comes to the midstream segment, it's clear that some companies are in place to succeed. Demand far outstrips supply, so those that are well diversified with future plans are likely to take the lion's share of the growth. For Motley Fool analyst Taylor Muckerman, the one company that stands out is Kinder Morgan Energy Partners . While it's expensive compared with its peers, its portfolio of assets is second to none, especially when supplemented with capital expenditures.

If that company doesn't fit your investing style, analyst Joel South offers his take on Boardwalk Pipeline Partners . This natural gas-focused operator offers a tremendous distribution yield above 7% and is diversified into the mid-continent and Utica shale regions. Those interested in high distribution yields would be well served by taking a deeper dive here.

A different vehicle to play the midstream segment
It's easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and it's one that investors should commit to memory because of its sheer size -- it's the fourth largest energy company in the U.S. -- not to mention its enormous potential for profits. In The Motley Fool's premium research report on Kinder Morgan, we break down the company's growing opportunity -- as well as the risks to watch out for -- to uncover whether it's a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor's resource.


The article These Pipeline Companies Are Great, but Which Is the Best? originally appeared on Fool.com.

Joel South and Taylor Muckerman have no position in any stocks mentioned. The Motley Fool recommends Kinder Morgan. The Motley Fool owns shares of Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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