This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 High Yielders Investing in Growth: MLPs

Stocks in this article: NS APL CQP

Atlas Pipeline Partners (APL) yield: 6%

Atlas operates five gas-processing plants and 8,600 miles of pipeline in the Mid-Continent region (Oklahoma, Kansas and Texas). The company also holds a 20% stake in a West Texas liquid natural gas (LNG) pipeline majority-owned by Chevron (CVX).

Atlas facilities are currently operating at maximum throughput, which is the reason the company is spending more than $600 million to double production capacity. Atlas is expanding its western Oklahoma gas-gathering system, upgrading a west Texas processing facility (the second expansion of this facility in 18 months) and greatly increasing transportation capacity of its Velma system that serves Woodford Shale gas fields.

The great thing is that Atlas is funding these upgrades without resorting to dilutive equity offerings. The company paid down nearly $700 million of debt in 2011 using proceeds from an asset sale and has ample borrowing capacity, with debt now totaling just one-third of equity.

The balance sheet is also incredibly solid. During the first nine months of 2011, Atlas generated EBITDA of $131.8 million. The expansion projects, once completed, are expected to add another $150 million to annual EBITDA. In the same period, Atlas boosted distributable cash flow by 45%, to $93.9 million, compared with a year earlier, and hiked distributions 15% in the third quarter. This marked two consecutive quarters of double-digit distribution growth and more than 50% year-to-date growth in distribution.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs