Will MLPs Dominate LNG Exports?

Updated
Will MLPs Dominate LNG Exports?

For years, the LNG export game has been dominated by both the national oil companies in major export nations like Qatar, and the integrated major oil companies. As the U.S. looks to start exporting LNG, though, a new group of companies are emerging as a major player: Master Limited Partnerships.

In many ways, the business of owning and operating an LNG facility are ideally suited to the MLP structure. These facilities run on long-term contracts that make revenue streams and cash generation relatively predictable. This is exactly the kind of business an MLP is looking for. Steady cash generation means the company can maintain coverage ratios on their distributions. Tune into the video below, where Fool.com contributor Tyler Crowe takes a look at some other ways in which MLPs and LNG could become best friends, and which MLPs are trying to make a push into the LNG game right now.

The possibility of LNG exports are now a possibility, thanks to the revolution in shale gas drilling in the U.S. For investors, though, the transformation of the domestic energy space is littered with big winners and potential losers. For this reason, we have put together a comprehensive look at three energy companies set to soar during this transformation in the energy industry. Let us help you discover these three companies that are spreading their wings by checking out our special report, "3 Stocks for the American Energy Bonanza." Simply click here and we'll give you free access to this valuable report.


The article Will MLPs Dominate LNG Exports? originally appeared on Fool.com.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter: @TylerCroweFool.The Motley Fool has no position in any of the stocks mentioned. 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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