Secular Trend: Best-of-Breed Pipeline Firms
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Created by Steve Old Boy
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Date updated:08-17-2008

Oil/gas pipeline firms tend to have nice dividend yields and relatively steady revenues. Due to the secular forces at work, it's a good bet they'll continue to be profitable investments over the long term.

In compiling this watch list, I leaned on a few simple criteria. Each company must have:
• Wide moat rating (Morningstar) — this decision pretty much took care of itself, for the reasons mentioned below
• C or better stewardship grade (Morningstar)
• C or better stock grade (Navellier)

The reason for the apparent redundancies in the list is that many of these companies are organized as GPs/MLPs. This gives investors a couple different options depending on whether they're seeking mainly income or growth, among other considerations. Some background info:
http://en.wikipedia.org/wiki/Master_limited_partnership

Pipeline operators tend to be profitable as all get out. It seems to be a lot easier to make $ by moving and storing oil/gas than by extracting or refining it. Plus a network of pipelines and terminals isn't such an easy set of assets for a potential competitor to duplicate (which probably explains why the widest moats in the oil/gas industries tend to be found here). When the markets aren't chasing the flavor of the month, they tend to revert back to fundamentally sound companies like these.

symbol name last price % change open
  • +
  • BGH
    Buckeye Gp Holdin
  • $27.05
  • -2.03%
  • $27.48

No Analysis added

People owning BGH also tend to own: CLMTEPRLVLTMATRMOVNEOLPNR

TheStreet.com Rating: B What is this?

  • +
  • BPL
    Buckeye Partners
  • $50.74
  • -1.36%
  • $51.04

Significant recent insider buying activity.

People owning BPL also tend to own: ACASALDBBNKCWLZDBVFCCYGSIC

TheStreet.com Rating: B What is this?

  • +
  • BWP
    Boardwalk Pipelin
  • $27.30
  • -0.73%
  • $27.41

Significant recent insider buying activity.

People owning BWP also tend to own: CHUSTKLBACCCVXCXDEO

TheStreet.com Rating: B- What is this?

  • +
  • EPD
    Enterprise Pt Uts
  • $29.33
  • +0.07%
  • $29.29

The Enterprise family of companies is an intriguing play. Dan Duncan, Chairman & CEO, owns a boatload of shares. Despite the limited rights unitholders have in a MLP, it's probably safe to say his interests are aligned with theirs. Plus with Enterprise's diverse holdings, investors can get exposure to a massive nationwide network of assets.

People owning EPD also tend to own: ABTDGXFMDGSKJNJJOSBJTX

TheStreet.com Rating: B What is this?

  • +
  • EPE
    Enterprise Gp Hld
  • $36.01
  • -1.69%
  • $36.67

The Enterprise family of companies is an intriguing play. Dan Duncan, Chairman & CEO, owns a boatload of shares. Despite the limited rights unitholders have in a MLP, it's probably safe to say his interests are aligned with theirs. Plus with Enterprise's diverse holdings, investors can get exposure to a massive nationwide network of assets.

People owning EPE also tend to own: AAEPDIWALUVOMGTLMBWP

TheStreet.com Rating: B- What is this?

  • +
  • KMP
    Kinder Morgan Ene
  • $55.99
  • -0.41%
  • $56.20

The creme de la creme. As Morningstar's analysts put it, Richard Kinder is a rare visionary and definitely a great steward of shareholders' capital.

People owning KMP also tend to own: DMLPEEPKYEPAATRUARXTCALP

TheStreet.com Rating: A- What is this?

  • +
  • KMR
    Kinder Morgan Mng
  • $48.37
  • -0.41%
  • $48.47

The creme de la creme. As Morningstar's analysts put it, Richard Kinder is a rare visionary and definitely a great steward of shareholders' capital.

People owning KMR also tend to own: BEPCSCODBCECVEDDFRPNBR

TheStreet.com Rating: No Rating What is this?

  • +
  • MGG
  • $0.00
  • 0.00%
  • $N/A

No Analysis added

People owning MGG also tend to own: AAPLCSCODBTKMVISNCTPCLPUDC.OB

TheStreet.com Rating: No Rating What is this?

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