As one of the lower-yielding master limited partnerships (MLPs) (on a relative basis), investors may just pass over Oneok Partners (NYSE:OKS) in favor of other partnerships with more impressive yields. That could be a mistake. While Oneok Partners carries a higher premium than most of its comparables, it also has one of the best systems, growth profiles and stories in its group. While paying up for a company like this has its risks, growth seldom comes cheap in this space.
A Premier System
Oneok Partners is an MLP that engages in the business of gathering, transporting, fractionating, and processing of natural gas and natural gas liquids. Oneok Partners' system connects robust supply from the Mid-Continent and Rockies (and soon the Bakken as well) to key markets centers. Not only does Oneok Partners' system handle about one-fifth of the gas that the U.S. imports from Canada, but it also supplies major petrochemical companies like Dow (NYSE:DOW) and Exxon Mobil (NYSE:XOM). (For related reading, see Peak Oil: What To Do When The Wells Run Dry.)
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