and high natural gas prices?

thanks, Toddyhill!

From the looks of it, you need a pretty strong constitution to stick with them over the long term. Since it looks like they are mostly in transmission/transportation, I can't really understand the volatility, unless they are just caught up in broad market moves.

ToddyHill said:

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Enterprise Product Partners (EPD). Based in Houston. They export quite a bit of Liquified Natural Gas to Europe. It's not a sexy stock, but pays a nice 7% dividend.

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… are you confusing LNG for NGL's? Same words (kind of) but those are very different things.

Yeah I am. Thanks for the clarification

I would encourage you to do your own due diligence. In the case of EPD, they do have pipelines that allows the transport of hydrocarbons from point A to point B. However, EPD will also purchase hydrocarbons and process them into value-added hydrocarbons.

I'm very pro energy in my stock portfolio presently. Both the Dow, Nasdaq, and S&P were down today but I'm up as I've moved much of my portfolio into energy plays. I am of the strong opinion this Green Energy initiative will benefit the O&G industry.

Epd, kmi, wmb, oke, mmp, enb ... look at all pipelines.

I agree. I also own MMP and MPLX (and ET as I posted earlier) in the midstream category. On the oil front I own XOM. I like the dividends but they also haven't been hit as hard in this market. All my own opinion.

ET

COP

OVV

European equity

Cheniere (LNG) and EQT. Kind of missed the "trade", which was 6+ months ago, but probs still room for more upside, just with more risk. Energy is not "on sale" like it was

350 Euro gas, I think your best bet is research balance sheets and a portfolio of credit default swaps at this point.

It's just a K-1 right? Not that big of a deal tax wise, just a pain

What is simple for some is not simple for all. And these things become a HUGE mess when they are sold - most have no idea how to record that correctly because you have to account for the ordinary gain on the sale as well as the capital gain.

So yeah - just a K1 - that causes a lot of extra complication to your tax return.

I did a return once that had over 40 of these - the time spent on his return was like 5 times what it normally was. He was shocked when he got the bill. I told him he should send it to his investment advisor for not warning him of the extra complication of his tax return!

gigemhilo said:

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What is simple for some is not simple for all. And these things become a HUGE mess when they are sold - most have no idea how to record that correctly because you have to account for the ordinary gain on the sale as well as the capital gain.

So yeah - just a K1 - that causes a lot of extra complication to your tax return.

I did a return once that had over 40 of these - the time spent on his return was like 5 times what it normally was. He was shocked when he got the bill. I told him he should send it to his investment advisor for not warning him of the extra complication of his tax return!

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This is precisely why I don't invest in MLPs. I would guess that after all the added complexity, costs, and taxes - an average MLP yield is LESS to the investor than a comparable C-Corp of the same industry.


I certainly wouldn't hold them in an IRA

Quote:

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MLP units held within an IRA are taxed in basically the same manner as MLP units held in a taxable account. The major difference is that only the UBTI, the ordinary income, and possibly a portion of any capital gains are taxable in the IRA. Since the UBTI amount is provided to the partner on Schedule K-1, Partner's Share of Income, Deductions, Credits, etc., the other line items can be safely ignored.

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