"Midstream energy stocks are the companies involved in the processing, transportation, and storage of crude oil, natural gas, and natural gas liquids. These companies operate in the "midstream" sector, which falls between the upstream (exploration and production) and downstream (refining and marketing) sectors of the energy industry. They are far less susceptible to spot benchmark pricing moves, as most sector leaders have locked in contracts for their services, some of which run for years."
"One of the best ideas for investors seeking to diversify their portfolios with energy exposure at current pricing is master limited partnerships, or MLPs. They pay substantial and dependable dividends, and many energy master limited partnerships are midstream companies that control the movement or storage of oil and natural gas through contract pricing with major oil producers. We screened our 24/7 Wall Street midstream MLP research database, looking for top companies that pay ultra-yielding high distributions to their shareholders."
Midstream energy companies handle processing, transportation, and storage of crude oil, natural gas, and natural gas liquids between upstream production and downstream refining. These companies are less susceptible to spot benchmark pricing because many sector leaders lock in long-term contracts for their services. Master limited partnerships (MLPs) dominate midstream infrastructure and often control movement or storage of hydrocarbons through contract pricing with major producers. MLPs typically distribute most cash flow and commonly yield about 5% to 8% annually, providing steady income for investors. Stable, fee-based revenues reduce exposure to commodity price volatility. A screening of a midstream MLP research database identified four top companies poised to pay dependable distributions every 90 days.
Read at 24/7 Wall St.
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