Might be some of the reason CPLP has taken off: finance.yahoo.com
The high yielding master limited partnership (MLP) sector, where firms pay out the bulk of their income to unit holders in lieu of corporate taxes, has been mixed over the last month with select components moving by more than 5% in either direction. Over the weekend, Barron's touted the prospects for a pair of recent losers in the space, and investors will be watching to see whether the optimism is on target.
As a whole, the MLPs Index lagged the S&P 500 by -3.5% in the month ended Friday on a near even split of winners and losers.
Plains All American Pipeline (NYSE: PAA - News), which was in the top-15 U.S.-listed equity holdings of 19 13F-filing asset managers at the end of the third quarter, was touted by Barron's after a -4% one-month decline. The newspaper notes Wells Fargo's estimate that 80% of the company's revenue is fee-based, enabling the firm to hike its distribution by 8% over the past five years. Currently Plains All American pays out $3.75 or 6.1% to unit holders annually. The report also notes the company's 77% interest in PAA Natural Gas Storage (NYSE: PNG - News).
Elsewhere in the MLP space, Barron's likes 2008 Anadarko Petroleum (NYSE: APC - News) carve-out Western Gas Partners (NYSE: WES - News), which yields a solid 5% in annual distributions to unit holders. Again referencing Wells Fargo's analysis, the report notes that Western could hike distributions by 14% annually in the next three years after a 13% rise over the past 12 months. The stock has slipped fractionally over the last month.
It will be interesting to see whether Plains All American and Western Gas get the "Barron's Bounce" following the paper's bullish sentiment. Meanwhile, investors will continue to watch pro-favorites Enterprise Products Partners (NYSE: EPD - News) and Kinder Morgan Energy Partners (NYSE: KMP - News), top-yielding MLPs Capital Product Partners (NASDAQ: CPLP - News) and Encore Energy Partners (NYSE: ENP - News), and one-month high-fliers Eagle Rock Energy Partners (NASDAQ: EROC - News) and Exterran Partners (NASDAQ: EXLP - News). |
