Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.


$1,230 in Instant Income?

$1,230 in Instant Income?Our top income expert recently pulled the wraps off his breakthrough moneymaking technique. And he proved beyond a shadow of a doubt how you can use it to generate instant cash payouts of up to $1,230 (or more). Over and over again. But then he took things a big step further and guaranteed you can make $1 million by following his program. And the second he did, our phones went nuts! Space is limited — get the details here.



Some Bright Spots in the Gloom

By Robert Rapier on January 13, 2016

In last week’s MLP Investing Insider, I covered last year’s top performers among the publicly traded partnerships. Refining MLPs shone thanks to plummeting oil prices and a crude export ban that allowed them to buy oil on the cheap and export the refined fuels made from it.

Crude oil prices are certainly still depressed, but I don’t think they will stay below $40/bbl all year. Further, the crude oil export ban that so greatly benefitted refiners during the shale oil boom is no more.

Thus, while I think refiners will still perform well as long as crude oil prices remain depressed, there is a lot more downside risk in the sector than there was a year ago. So I think it’s unlikely that refiners will repeat as top performers in 2016.

Who might this year’s winners be? It’s early of course, but we can look to fourth-quarter returns for some guidance as to which partnerships had momentum at the end of last year. Bear in mind that it was an abysmal quarter for most MLPs.


  • Q4 2015 Return = Q4 2015 equity return including distributions
  • EV = Enterprise value in millions as of Jan. 11, 2016
  • EBITDA = Earnings before interest, tax, depreciation and amortization for the trailing 12 months (TTM), in millions
  • Debt/EBITDA = Net debt at the end of the most recently reported fiscal quarter divided by TTM EBITDA
  • FCF = Levered free cash flow for the most recent fiscal quarter, in millions
  • Yield = Annualized yield based on the most recent quarter’s distribution

Note that 8Point3 Energy Partners (NASDAQ: CAFD) conducted its IPO in June, so its data is only for part of a year. Also, note that its data is for Q2, while the rest of the list which shows Q3 free cash flow.

Three of the companies on the list — CAFD, Enviva Partners (NYSE: EVA), and Green Plains Partners (NASDAQ: GPP) are all involved in renewable energy and are thus likely to benefit from rules adopted late in 2015. This includes not only the spending bill that extended tax credits for renewable energy last month, but also the Environmental Protection Agency’s decision to raise quotas for ethanol that must be blended into the gasoline supply above previously proposed volumes.

The other pattern is that several of the standouts are high-growth partnerships with well-capitalized sponsors. This category includes Shell Midstream Partners (NYSE: SHLX), Phillips 66 Partners (NYSE: PSXP), Columbia Pipeline Partners (NYSE: CPPL), Antero Midstream Partners (NYSE: AM) and Spectra Energy Partners (NYSE: SEP).

Of the group, SHLX and PSXP are the most expensive, but they clearly benefit from their sponsor’s name recognition and large inventory of assets that can be sold to the affiliated MLP.

The worst performers in Q4 were the beaten-down oil and gas producing partnerships. Those that manage to stay solvent should rebound as oil prices recover, but there is still significant downside risk in the group. Bankruptcy may loom for some. As always we will attempt to identify momentum shifts in MLP Profits this year as we strive to stock the portfolios with 2016’s big winners.

(Follow Robert Rapier on Twitter, LinkedIn, or Facebook.)

You might also enjoy…


R.I.P Bull Market—Here’s How To Protect Your Wealth

I hope you’ve enjoyed the phenomenal bull market of the past eight years…

Because it’s about to come to a screeching halt.

The Federal Reserve’s nearly decade-long spending spree has finally come to an end.

With no other options left at their disposal, the Fed has no other choice than to raise interest rates to keep inflation in check.

And that leaves you with two options…

Do nothing and suffer the agony of watching the profits you’ve accumulated over the years evaporate right before your eyes…

Or reposition your portfolio and invest in companies which prosper as inflation rises and interest rates soar.

I think the choice is clear. And I’ll show you the best new positions you can take if you click here.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.