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Master Limited Partnerships (MLPs) are among the top energy stocks to invest in because they enjoy particular tax benefits that are not available to other corporations. MLPs
are publicly traded on a securities exchange and, under federal law, can only be formed for certain businesses, mostly for those involved with natural resources.
To qualify for MLP status, a partnership has to generate at least 90% of its income from "qualifying sources" - usually activities related to the production, processing, or transportation of natural gas, coal, and oil.
MLPs' earnings are taxed once when they distribute earnings. Additionally, government regulations have helped MLPs hedge against inflation costs.
Money Morning Global Energy Strategist Dr. Kent Moors considers MLPs a favorite way to invest in the energy sector.
"Midstream MLPs have long been one of my favorite investments," Moors wrote earlier this month. "From their tax advantages to their high-paying yields, it's hard to beat the returns of an MLP – especially in the midstream segment."
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Here is a list of some of the leading midstream master limited partnerships to consider as energy stocks to invest in now...
Consider These Three MLPs For Energy Stocks To Invest In Now
Energy Stocks to Invest in Now: Crestwood Midstream Partners LP (NYSE: CMLP)
Crestwood owns and operates midstream businesses in multiple shale resource regions in the U.S. It's involved in natural gas collection, processing, treatment, compression, storage, and transportation. It also collects, stores, and transports crude oil to terminals.
Recently, CMLP launched an expansion project on Willow Lake in the Permian Delaware Basin. This expansion is expected to yield high returns for investors, landing it on our watch-list of energy stocks to invest in.
CMLP stock closed at $23.75 on April 16. It has a market capitalization of $4.41 billion, and a 52-week range of $20.40-$26.01.
Energy Stocks to Invest in Now: Regency Energy Partners LP (NYSE: RGP)
RGP operates natural gas pipelines, processing facilities, and gathering systems across the United States. Regency's projects are located in some of the leading natural gas producing areas of the country such as the Marcellus shale. The company pays investors 7% distribution.
The stock closed at $26.92 on April 16, 2014. Its market cap is $6.09 billion, and it has a 52-week range of $23.70-$29.52.
Energy Stocks to Invest in Now: NuStar Energy LP (NYSE: NS)
Energy L .P constructs docks and storage tanks in Corpus Christi, Texas. It's also heavily involved in building more facilities to allow the company to take advantage of the current energy boom.
These growth activities are focused in Eagle Ford shale, about 100 miles away from NuStar's Corpus Christi location. Its port there managed to ship out 350,000 barrels of crude oil every day in November 2013. The figure is a significant rise from the 10,000 barrels per day it was shipping at the start of 2012, according to Bloomberg.
NuStar's growth makes it one of the best energy stocks to invest in. This stock has surprised analysts by closing in on its 52-week high. Shares closed at $54.71 on April 16. The company has a market cap of $4.39 billion.
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