In this piece, we will take a look at the 25 largest MLPs. For more MLPs, head on over to MLP Stocks List: 5 Largest MLPs.
Investing in the stock market is never an easy task. Even the professionals agree that the market has a mind of its own, and no amount of mathematical formulas or algorithms can perfectly predict the directions in which stocks will move. However, this doesn’t mean that the market itself is an impenetrable black box, where only luck and chance matter and all other things are put to rest.
When it comes to generating returns, there are several strategies that you can pursue. The most commonly known play for the stock market is buying shares with the hope that the price will go up. This strategy, often called going ‘long’, sees investments such as Warren Buffett’s Berkshire Hathaway often buy and hold shares for decades, and other retail investors buy them before a crucial event, such as an earnings call, to profit from any price increase and then sell to make a profit. Another investment strategy that often catches the media’s attention is going short. As opposed to a long, a short is when borrowed shares of a firm are sold with the hope that the price drops. If it does, the sold shares are bought back and the difference between the selling and the buying price is pocketed as a profit (see a list of 10 stocks targeted by short sellers recently).
However, these are not the only ways one can earn money from the stock market. For those investors who have large sums of money and also require stability, dividend paying stocks are often the preferred option. Each share of a dividend paying company entitles an investor to a piece of the firm’s profit, and firms that pay dividends are often stable entities that do not reinvest all of their earnings for growth. Within the dividend paying firms and entities, some are required by law to pay dividends in order to benefit from tax advantages.
Two of the most common types of entities legally mandated to pay most of their profits as dividends are real estate investment trusts (REITs) and master limited partnerships (MLPs). In the case of REITs, at least 90% of profits must be paid out as dividends, if the firm is to avail tax advantages and other benefits. For an MLP, most of its income needs to be generated from specific industries for tax benefits.
A key advantage of MLPs when compared to other dividend paying stocks is that investors end up avoiding double taxation. For normal firms, a dividend is the amount left after corporate income taxes have been deducted from a firm’s operating income. However, in the case of an MLP, the investor only pays income taxes on the dividend income since the funds are not taxed at a corporate level. These low taxes also make the partnerships an attractive investment in a low interest rate environment, since they end up having high yields when compared to bonds and other fixed investments. However, a couple of caveats of investing in MLPs include the complex tax filing procedures and a risk of a drop in value should interest rates rise – as has been happening over the past twelve months.
Yet, despite the current high rate environment, yield in MLPs continues to be quite high according to GlobalX ETFs Monthly MLP report for March 2023. This report shares that as of March, the yield on MLPs stood at 7.54% – higher than the yield of fixed rate preferred stocks and investment grade bonds. The yields for these asset classes had stood at 6.88% and 5.51%, respectively. However, the tough macroeconomic environment is also taking its toll on them, with the spread between MLP yields and ten year treasury bonds sitting at 3,89% – quite lower than the long term average of 5.61%. Additionally, the MLP yields are lower than the yields offered by high yield bonds, which stand at 8.68%, and are the same as the yields offered by emerging market bonds, which are also 7.54%.
With these details in mind, let’s take a look at some of the biggest MLPs on the stock market, with the top picks being MPLX LP (NYSE:MPLX), Enterprise Products Partners L.P. (NYSE:EPD), and Energy Transfer LP (NYSE:ET).
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Our Methodology
To compile our list, we first listed down all MLPs that are trading on American stock exchanges. These were then ranked according to their market capitalization and the top 25 biggest MLPs are listed below.
MLP Stocks List: 25 Largest MLPs
25. Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT)
Latest Market Capitalization: $1.31 billion
Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) is a specialty petroleum products firm.
By the end of Q4 2022, five of the 943 hedge funds part of Insider Monkey’s database had owned a stake in Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT). David M. Knott’s Dorset Management is the largest investor through a $73 million investment.
Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) joins Enterprise Products Partners L.P. (NYSE:EPD), MPLX LP (NYSE:MPLX), and Energy Transfer LP (NYSE:ET) in our list of the biggest MLPs.
24. NuStar Energy L.P. (NYSE:NS)
Latest Market Capitalization: $1.77 billion
NuStar Energy L.P. (NYSE:NS) is an oil, gas, renewable fuel, and ammonia transportation company.
Two of the 943 hedge funds surveyed by Insider Monkey had invested in the partnership as of December 2022. NuStar Energy L.P. (NYSE:NS)’s largest investor is Henry Breck’s Heronetta Management with an $875 million stake.
23. USA Compression Partners, LP (NYSE:USAC)
Latest Market Capitalization: $2.1 billion
USA Compression Partners, LP (NYSE:USAC) is an oil and gas firm headquartered in Houston, Texas. The company enables gas extraction firms to compress their products.
As of Q4 2022, two of the 943 hedge funds part of Insider Monkey’s database had held a stake in USA Compression Partners, LP (NYSE:USAC) . The firm’s largest investor is Ken Griffin’s Citadel Investment Group with a $31,287 investment.
22. Cedar Fair, L.P. (NYSE:FUN)
Latest Market Capitalization: $2.13 billion
Cedar Fair, L.P. (NYSE:FUN) is an amusement park and resort operator headquartered in Sandusky, Ohio.
Insider Monkey’s Q4 2022 survey of 943 hedge funds outlined that 11 had held a stake in the partnership. Mark T. Gallogly’s Centerbridge Partners is Cedar Fair, L.P. (NYSE:FUN)’s largest investor since it owns $101 million worth of shares.
21. Delek Logistics Partners, LP (NYSE:DKL)
Latest Market Capitalization: $2.16 billion
Delek Logistics Partners, LP (NYSE:DKL) is an oil and gas refining company based in Brentwood, Tennessee.
Insider Monkey’s fourth quarter of 2022 survey covering 943 hedge funds revealed that one had bought the firm’s shares. This investor is Ken Griffin’s Citadel Investment Group with a $2,534 stake.
20. Holly Energy Partners, L.P. (NYSE:HEP)
Latest Market Capitalization: $2.20 billion
Holly Energy Partners, L.P. (NYSE:HEP) is an oil and gas midstream firm based in Dallas, Texas.
Three of the 943 hedge funds polled by Insider Monkey for their fourth quarter of 2022 investments had bought Holly Energy Partners, L.P. (NYSE:HEP)’s shares. Out of these, Ken Griffin’s Citadel Investment Group is the largest investor with a $1.6 million stake.
19. Rattler Midstream LP (NASDAQ:RTLR)
Latest Market Capitalization: $2.22 billion
Rattler Midstream LP (NASDAQ:RTLR) is a midstream partnership that aims to acquire and invest in oil and gas transportation, storage, and other infrastructure.
18. Alliance Resource Partners, L.P. (NASDAQ:ARLP)
Latest Market Capitalization: $2.63 billion
Alliance Resource Partners, L.P. (NASDAQ:ARLP) is a coal company based in Tulsa, Oklahoma.
By the end of 2022’s December quarter, six of the 943 hedge funds surveyed by Insider Monkey had invested in Alliance Resource Partners, L.P. (NASDAQ:ARLP). Out of these, the biggest stakeholder is Adam Peterson’s Magnolia Capital Fund with a $54 million investment.
17. Crestwood Equity Partners LP (NYSE:CEQP)
Latest Market Capitalization: $2.65 billion
Crestwood Equity Partners LP (NYSE:CEQP) is a midstream oil and gas firm based in Houston, Texas.
For their fourth quarter of 2022 portfolios, two of the 943 hedge funds part of Insider Monkey’s database had bought the partnership’s shares. Crestwood Equity Partners LP (NYSE:CEQP)’s largest investor is Ken Griffin’s Citadel Investment Group with a $134,302 stake.
16. Black Stone Minerals, L.P. (NYSE:BSM)
Latest Market Capitalization: $3.47 billion
Black Stone Minerals, L.P. (NYSE:BSM) owns royalty interests in millions of acres of oil and gas properties.
Nine of the 943 hedge funds polled by Insider Monkey had held a stake in Black Stone Minerals, L.P. (NYSE:BSM) during Q4 2022. Out of these, Thomas Clay’s Epacria Capital Partners is the largest stakeholder since it owns a $12.1 million stake.
15. Sunoco LP (NYSE:SUN)
Latest Market Capitalization: $3.83 billion
Sunoco LP (NYSE:SUN) is a motor fuel distributor and marketer based in Dallas, Texas.
Insider Monkey took a look at 943 hedge fund portfolios for last year’s fourth quarter and found out that two had bought the firm’s shares. Sunoco LP (NYSE:SUN)’s largest investor is Ken Griffin’s Citadel Investment Group with a $172,271 stake.
14. AllianceBernstein Holding L.P. (NYSE:AB)
Latest Market Capitalization: $4.15 billion
AllianceBernstein Holding L.P. (NYSE:AB) is an investment management firm based in New York, New York.
As of December 2022, five of the 943 hedge funds part of Insider Monkey’s database had bought AllianceBernstein Holding L.P. (NYSE:AB)’s shares. The firm’s largest investor is Matthew Hulsizer’s PEAK6 Capital Management with a $4 million stake.
13. EnLink Midstream, LLC (NYSE:ENLC)
Latest Market Capitalization: $5.03 billion
EnLink Midstream, LLC (NYSE:ENLC) is a midstream energy company headquartered in Dallas, Texas.
As of last year’s fourth quarter, 12 of the 943 hedge funds part of Insider Monkey’s database had held a stake in EnLink Midstream, LLC (NYSE:ENLC). Out of these, Sameer Sethna’s Aventail Capital Group is the largest stakeholder since it has a $66 million investment.
12. Viper Energy Partners LP (NASDAQ:VNOM)
Latest Market Capitalization: $5.04 billion
Viper Energy Partners LP (NASDAQ:VNOM) develops oil and gas properties in the U.S.
By the end of Q4 2022, 13 of the 943 hedge funds surveyed by Insider Monkey had bought its units. Viper Energy Partners LP (NASDAQ:VNOM)’s largest investor is Murray Stahl’s Horizon Asset Management with a $68 million stake.
11. Antero Midstream Corporation (NYSE:AM)
Latest Market Capitalization: $5.08 billion
Antero Midstream Corporation (NYSE:AM) is a midstream energy company based in Denver, Colorado.
Insider Monkey’s fourth quarter of 2022 survey of 943 hedge funds outlined that 19 had invested in the partnership. Antero Midstream Corporation (NYSE:AM)’s largest investor is Glenn Greenberg’s Brave Warrior Capital with a $24 million investment.
10. DCP Midstream, LP (NYSE:DCP)
Latest Market Capitalization: $8.72 billion
DCP Midstream, LP (NYSE:DCP) is a midstream oil and gas company based in Denver, Colorado.
Insider Monkey’s December quarter of 2022 study of 943 hedge funds outlined that four had invested in DCP Midstream, LP (NYSE:DCP). Henry Breck’s Heronetta Management is the firm’s largest investor with a $1.3 million stake.
9. Plains All American Pipeline, L.P. (NASDAQ:PAA)
Latest Market Capitalization: $9.17 billion
Plains All American Pipeline, L.P. (NASDAQ:PAA) is an oil pipeline and storage company based in Denver, Colorado.
Eight of the 943 hedge funds part of Insider Monkey’s database own Plains All American Pipeline, L.P. (NASDAQ:PAA)’s units as of December 2022. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the largest investor with a $19 million stake.
8. Western Midstream Partners, LP (NYSE:WES)
Latest Market Capitalization: $10.39 billion
Western Midstream Partners, LP (NYSE:WES) is a Texan company that processes and transports petroleum products.
As of December 2022, six of the 943 hedge funds surveyed by Insider Monkey had invested in the partnership. Western Midstream Partners, LP (NYSE:WES)’s largest stakeholder is Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital with a $19 million stake.
7. Magellan Midstream Partners, L.P. (NYSE:MMP)
Latest Market Capitalization: $11.38
Magellan Midstream Partners, L.P. (NYSE:MMP) also stores, distributes and transports petroleum products.
Ten of the 943 hedge funds surveyed by Insider Monkey had bought the firm’s shares in Q4 2022. Magellan Midstream Partners, L.P. (NYSE:MMP)’s largest investor is Jean-Marie Eveillard’s First Eagle Investment Management with a $54 million stake.
6. Brookfield Infrastructure Partners L.P. (NYSE:BIP)
Latest Market Capitalization: $16.46 billion
Brookfield Infrastructure Partners L.P. (NYSE:BIP) is an energy and telecommunications infrastructure company based in Hamilton, Bermuda.
Insider Monkey profiled 943 hedge funds for their December quarter of 2022 investments and found out that 18 had bought the partnership’s units. Brookfield Infrastructure Partners L.P. (NYSE:BIP)’s largest investor is David Dattels’ NewGen Asset Management with a $12 million stake.
MPLX LP (NYSE:MPLX), Brookfield Infrastructure Partners L.P. (NYSE:BIP), Enterprise Products Partners L.P. (NYSE:EPD), and Energy Transfer LP (NYSE:ET) are some of the biggest MLPs in the world.
Click to continue reading and see MLP Stocks List: 5 Largest MLPs.
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Disclosure: None. MLP Stocks List: 25 Largest MLPs is originally published on Insider Monkey.
