Sébastien Bischeri
Sunshine Profits
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?
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 articles that already contain the necessary basic information you need to know before starting investing in them.
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Master Limited Partnership (MLP), Investopedia.com.
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The Benefits of Master Limited Partnerships, Investopedia.com.
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:
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):
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Enterprise Products Partners LP (EPD) $26.67B.
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Energy Transfer LP (ET) $38.95B.
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Magellan Midstream Partners LP (MMP) $2.37B.
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MPLX LP (MPLX) $8.51B.
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Plains All American Pipeline LP (PAA) $23.59B.
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All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' employees and associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA 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. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families 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.
Editors’ Picks
EUR/USD flubs key technical levels and backslides once again
EUR/USD turned tail and swooned against the Greenback on Tuesday, shedding four-tenths of one percent after a failed recovery of the 1.0400 handle fizzled out completely. The pair is still trading up from last week’s 26-month low, but not by much.
GBP/USD snaps two-day win streak as risk appetite stumbles
GBP/USD caught a mild bid early on Tuesday before turning south once again and shedding roughly one-third of one percent to end the day on the low side of the 1.2500 handle.
USD/JPY stands firm near multi-month top; FOMC minutes awaited
USD/JPY holds steady above the 158.00 mark on Wednesday and remains close to a near six-month peak touched the previous day amid wavering BoJ rate hike expectations. Furthermore, the Fed's hawkish shift, the recent surge in the US bond yields and a bullish USD support the currency pair, though Trump trade uncertainty cap gains.
Editors’ Picks
AUD/USD ticks lower toward 0.6200 after Australian Nov inflation data
AUD/USD remains pressured toward 0.6200 following the release of Australian consumer inflation figures, which showed a slowing in the trimmed mean annual CPI , boosting the odds for an April RBA rate cut. Meanwhile, US-China trade war fears and a softer risk tone add to the weight on the pair.
USD/JPY stands firm near multi-month top; FOMC minutes awaited
USD/JPY holds steady above the 158.00 mark on Wednesday and remains close to a near six-month peak touched the previous day amid wavering BoJ rate hike expectations. Furthermore, the Fed's hawkish shift, the recent surge in the US bond yields and a bullish USD support the currency pair, though Trump trade uncertainty cap gains.
Gold consolidates amid mixed cues; looks to FOMC minutes for fresh impetus
Gold price stabilizes after the overnight pullback from the $2,665 barrier as concerns about Trump's tariff plans and geopolitical risks continue to support the safe-haven bullion. That said, diminishing odds for further Fed rate cuts, a further rise in the US Treasury bond yields and the underlying USD bullish tone act as a headwind for the XAU/USD.
Crypto market surged to $3.9 trillion record market cap as Solana's revenue plunged in December: Binance
In a report on Monday, Binance Research stated that the crypto market reached a market capitalization milestone of $3.9 trillion in December. The researchers suggest anticipation surrounding Donald Trump's upcoming pro-crypto administration could stretch the bullish momentum in the coming weeks.
Five fundamentals for the week: Nonfarm Payrolls to keep traders on edge in first full week of 2025 Premium
Did the US economy enjoy a strong finish to 2024? That is the question in the first full week of trading in 2025. The all-important NFP stand out, but a look at the Federal Reserve and the Chinese economy is also of interest.
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