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
TheStreet Open House

5 Energy MLPs Poised to Pop

Another revenue stabilizer is that the prices charged by long-haul pipeline operators are regulated by the Federal Energy Regulatory Commission.

That said, some investors are worried that the realization of President Barack Obama's latest tax proposals -- some of which is seen as unfriendly towards energy companies -- will hurt the MLPs' tax advantage.

"Will there be a fundamental reform in the tax code?" asks Cunnane. "If there were, that's where I think MLPs would be exposed to a change. When does it become more likely? Maybe in a scenario where the house, senate and presidency are all held by same party."

"They wouldn't be singled out in the change," he continued.

"I think the odds of MLPs being impacted by tax change are extremely minimal over the next year. But there are rising odds as you pass that period -- especially if we end up in a scenario where one party controls all. In a fundamental reform, I think there would be some concern."

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

In the meantime though, Spears of Swank Capital thinks that Blueknight Energy Partners (BKEP) and EV Energy Partners (EVEP) are among the MLPs with big growth prospects.

Check out TheStreet's quote page for Blueknight Energy for year-to-date share performance, analyst ratings, earnings estimates and much more.

Blueknight Energy, which focuses on crude oil transport and storage and has significant assets in Cushing, Okla. and West Texas, just posted a very strong fourth-quarter profit as well as robust earnings in the previous two quarters; has completed a highly complicated restructuring stemming from difficulties at its former parent SemGroup; and is benefiting from robust domestic crude production and an increased need for crude and crude product storage and terminaling.

"I believe it's on a path towards growth," says Spears.

On EV Energy Partners, Spears says that the company has a "very strong management team" that's been able to deliver on expectations. "Its Utica play is a new play and the prospects look very promising."

The MLP, says Spears, is also in a very good hedged position, limiting its exposure to price risks. The company has hedged out its commodity prices far into the future and 74% of its oil and gas cash flow and production are hedged out this year.

Blueknight has a forward annual dividend yield of 6.5%, while EV Energy's is 4.4%.

Wall Street is very bullish on the EV Energy Partners with all eight analysts covering the stock at either strong buy (6) or buy (2), and the 12-month median price target sitting at $93.50, implying potential upside of more than 30% from current levels.

But Wall Street is more cautious on Blueknight Energy Partners, with one analyst covering Blueknight having a hold recommendation and the other having an underperform view. The 12-month median price target sits at $7 vs. Wednesday's close at $6.41.

Check out TheStreet's quote page for EV Energy for year-to-date share performance, analyst ratings, earnings estimates and much more.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,147.09 +15.12 0.09%
S&P 500 1,998.98 +14.85 0.75%
NASDAQ 4,552.7590 +33.8570 0.75%

Brokerage Partners

Rates from Bankrate.com

  • 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