Maybe I can get some help on this:
The emergence of gas & oil MLPS is exciting as could be for several close friends and me. My hunch is that it's in response to governmental tax legislation with o & g corporations opting out of traditional tax-based vulnerability. Given that the government is unlikely to further stifle corporate business at this time, it appears to me that high yields typical of refiners are the place to be for someone desirous of fairly reliable quarterly income. Not to imply the amount of income is fixed in stone, for it's not. But I've got so many units of NTI that even a 60 cent distribution will give me $6,600. Annualized we're talking about a 9% return, the yield higher still, plus I'm expecting units will be at or above $30 by November. This points to hellacious profit potential, imo.
Big question: Do you think the shift to limited partnerships has come about as a means to develop a broader unit-holder base, thus placing units into stronger hands while guaranteeing more favorable tax options?
Also--I've just begun positions in CVRR and ALDW. Each IPO'd over very recent months. And each is showing signs of majorly enjoyable quarterly distributions. In fact, I'm seeing strong parallels to NTI with respect to convenience stores, asphalt, the refining side and pipeline interests. My sense is that each of these companies will grow quickly in terms of market cap and greatly outperform many other sectors for the next two or three years. And I love that we're talking about home-grown all-American interests not dependent upon flagging or failing European uncertainties.
Your comments and opinions on the above will be greatly appreciated.
Jugs
