There are some industries in which having a great partner is critical to your success. Case in point is the midstream sector. Master limited partnerships (MLPs) thrive on who their partners are as these firms provide the needed assets for drop-downs and are typically responsible for the majority of their cash flows. Luckily, for our Best Energy Dividend Stocks List, its partner is one of the biggest names in the energy sector.
Our pick is one of the biggest owners of midstream infrastructure in America’s Bakken shale. The Bakken Formation is one of the most prolific shale fields in the country and features some of the best/lowest-cost production numbers. As a result, oil producers have continued to focus their attention here. With its huge network of pipelines, natural gas processing plants and other pieces of critical midstream infrastructure in the region, our pick has been able to profit from all this activity.
Better still is that our pick recently underwent a major restructuring, in which it became a c-corp rather than an MLP. This reduced IDRs, simplified its cost structure and, ultimately, boosted cash flows. It’s no wonder why the stock still yields a hefty 6.8%.
With a strong asset base and plenty of cash flows, our pick makes an ideal play in the energy sector.
You can check out the Best Energy Dividend Stocks List to explore all the stocks.
