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Four Energy Plays to Energize Your Portfolio

Pipeline players Magellan Midstream Partners and Enterprise Products were hit hard by slumping energy investment in 2015, but both are primed to bounce back in the coming year.

Pipeline players Magellan Midstream Partners (MMP) and Enterprise Products (EPD) were hit hard by slumping energy investment in 2015, but both are primed to bounce back in the coming year, said David Bahnsen, chief investment officer of the Bahnsen Group at HighTower. 'Magellan has a very high distribution coverage and a very safe balance sheet,' said Bahnsen. 'We like Magellan defensively.' Shares of Tulsa, Oklahoma-based Magellan are down 19% in the past year and now yield 4.9 percent. Bahnsen said he likes Enterprise defensively because of its 7 percent yield, but 'opportunistically' as well because in his view it has the best natural gas assets in the business. Shares of Houston-based Enterprise, have dropped 32 percent in the past 12 months. Staying in the energy sector, Bahnsen said he remains bullish on both oil services giant Schlumberger (SLB), which has jumped 9.4 percent in the past week after a rough 2015 performance, as well as Chevron (CVX), down 21 percent in the past 12 months.

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