NEW YORK (TheStreet) -- Shares of Royal Dutch Shell Plc (RDS.A) are up 1.74% to $81.85 after it was reported that the independent oil and gas company will sell shares in a U.S. pipeline business in the second half of 2014 to take advantage of investor desire for North America's energy infrastructure, Reuters reports.
Shell Midstream Partners LP's assets are expected to consist of ownership interests in four onshore and offshore pipelines located primarily in Texas and Louisiana, according to a filing.
The Houston-based partnership will trade on the New York Stock Exchange under the ticker SHLX.
Pipeline companies structured as tax-exempt master limited partnerships, or MLPs, have attracted investors by returning almost all their income to shareholders, Reuters noted.
Shell Midstream forecasts $96.5 million of cash available for distribution to investors over the next 12 months.
TheStreet Ratings team rates ROYAL DUTCH SHELL PLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROYAL DUTCH SHELL PLC (RDS.A) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."