Hot MLP Play: Plains All American

This column was written by Douglas Skrypek, managing director and chief investment officer of Parthian Capital. He is a specialist in investing in master limited partnerships, primarily midstream energy.

I am a fan of master limited partnerships, as I have written in the past. In this volatile market, and deteriorating economy, MLPs provide investors with a steady income, an opportunity for capital gain and a tax incentive.

One MLP worth serious consideration is Plains All American Pipeline (PAA Quote), which handles the transportation, storage, terminalling and marketing of crude oil, refined products and liquefied petroleum gas, or LPG. The company moves more than 3 million barrels per day of these products.

Plains All American also owns a 50% interest in Vulcan Gas Storage LLC, which develops and operates natural gas storage facilities. PAA owns strategically located assets, which play a vital role in the logistical chain of both U.S. and Canadian energy supplies. ...