Seeking Alpha: From A Lower Starting Point, Magellan Midstream Looks More Interesting

About a year ago I thought that Magellan Midstream Partners, LP (NYSE:MMP) was priced a little too richly for my tastes. The units have since fallen about 10%, which is actually pretty good considering the weak overall performance of MLPs and the steeper declines of comparables like Plains All American Pipeline, LP (NYSE:PAA), Sunoco Logistics Partners, LP (NYSE:SXL), and Enterprise Products Partners, LP (NYSE:EPD).

Although MLPs have sold off as investors have backed away from almost everything related to energy, Magellan has continued to pursue growth projects predicated upon ongoing growth in U.S. crude production, transportation, and storage. I don't quite believe that Magellan is a screaming bargain today, but I believe the company is likely to deliver strong distribution growth over the next couple of years and good mid-single digit distributable cash flow growth over the next decade. Magellan's yield is lower than normal for an MLP, but the company's liquidity position looks pretty solid, the distribution coverage is good, and the cost of capital is low - all of which argues for a quality premium.

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From A Lower Starting Point, Magellan Midstream Looks More Interesting

Investopedia: Energy Transfer Equity Mastering The MLP Space

Investors certainly have plenty of choices when it comes to energy master limited partnerships (MLPs). One of the more interesting options these days may well be Energy Transfer Equity (NYSE:ETE). Not only is the company on track to complete its acquisition of Southern Union, but the company also holds the general partner interest and incentive distribution rights for two other MLPs - Energy Transfer Partners (NYSE:ETP) and Regency Energy Partners (NYSE:RGP). With those incentive rights and the potential for cash flow growth at both partnerships, ETE unit holders could look forward to some fairly significant distribution growth in the coming years.

Read the full piece here:
http://stocks.investopedia.com/stock-analysis/2012/Energy-Transfer-Equity-Mastering-The-MLP-Space-ETP-ETE-RGP-EPD0322.aspx

Investopedia: Can A Change In Priorities Drive Better Distributions From ETP?

A well-run energy MLP can be a beautiful thing for an investor whose inclinations run towards income. With the largest gas pipeline network in Texas and a growing focus on natural gas liquids (NGL), quality of assets is not an issue with Energy Transfer Partners (NYSE:ETP). The issue for shareholders, though, is whether this is the best play on these assets and whether the aggressive asset growth plans will translate into better distribution growth in the near future.

Q4 Results Not All That Great  
Although Energy Transfer Partners did report 17% year-on-year growth in EBITDA for the fourth quarter that was nevertheless about 4% below consensus expectations. That's admittedly not a big miss, but small percentages matter more with energy MLPs and investors' moods were not improved by the below-expectation distributions that the company announced. (For related reading, see EBITDA: Challenging The Calculation.)

Read more here:
http://stocks.investopedia.com/stock-analysis/2012/Can-A-Change-In-Priorities-Drive-Better-Distributions-From-ETP--ETP-ETE-APU-TGRP-EPD0321.aspx