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Trading Oil & Gas: Some Spicy MLPs to Choose From!

By:
Sébastien Bischeri
Published: Oct 12, 2021, 14:24 GMT+00:00

Let’s focus on less-popular securities to trade energies today: Master Limited Partnership (MLP). How do they work and how can they be profitable?

Trading Oil & Gas: Some Spicy MLPs to Choose From!

In this article:

By the way, a big “thank you!” goes to Simon, one of our readers, who asked us about this last Friday. Feel free to send us your questions or any topics that you would like us to write about in the forthcoming editions, and we’ll try our best to answer them!

Note: Trading positions are available to our premium subscribers.

A good way to diversify the construction of your oil and gas investment portfolio is to use a variety of assets for balanced exposure to the energy sector and its industrial components.

What Is a Master Limited Partnership (MLP)?

To learn in detail what a MLP is, we invite you to read the following article that already contains the necessary basic information you need to know before starting investing in them.

Key Reason for Going Into Those Alternative Investments

The most important advantage is the high-income potential. Indeed, Master Limited Partnerships (MLPs) typically pay high yields to investors, mainly due to the fact that they do not pay corporate income taxes.

Stock Watchlist (Continued)

In the first article about alternative investments, we started a watchlist with some major energy stocks. Today, let’s update it!

As usual, our stock-picks will be shared through this link to our dynamic watchlist (which will be included in the position from now on). It will be updated from time to time as we progress through our portfolio construction process.

Take a look below at a few examples of some indicative metrics:

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Today we picked five oil and gas Master Limited Partnership (MLP) companies that are quoted on the US exchange. Their revenues are as stated below:

Revenue (in billion US dollars):

  • Enterprise Products Partners LP (EPD) $26.67B
  • Energy Transfer LP (ET) $38.95B
  • Magellan Midstream Partners LP (MMP) $2.37B
  • MPLX LP (MPLX) $8.51B
  • Plains All American Pipeline LP (PAA) $23.59B

In summary, those alternative investments may present stable benefits and diversify your energy portfolio… So, what MLPs do you guys trade? I’ve already selected mine, as well as the exact positions associated with them.

As always, we’ll keep you, our subscribers, well-informed.

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Thank you.

Sebastien Bischeri
Oil & Gas Trading Strategist

* * * * *

The information above represents analyses and opinions of Sebastien Bischeri, & Sunshine Profits’ associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Sebastien Bischeri and his associates cannot guarantee the reported data’s accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Bischeri is not a Registered Securities Advisor. By reading Sebastien Bischeri’s reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Sebastien Bischeri, Sunshine Profits’ employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

 

About the Author

Sebastien Bischeri is a former Reserve Officer in the French Armed Forces (Navy), and began his career in computer science and engineering, prior to move into banking, finance, and trading. He has worked as a contractor with top banks, firms, government departments, MNCs, SMEs and start-ups over the past decade, where he’s gained extensive knowledge of commodities, economic intelligence, energy, financial markets, investments, risks, and strategy (both as a Trader and Analyst).

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