The energy industry breaks down into three broad segments: upstream (drilling for oil), midstream (pipelines that move oil), and downstream (chemicals and refining). Revenue and profits in the upstream are highly dependent on energy prices, which tend to be hard to predict. The top and bottom lines of downstream companies are impacted by both energy prices (which are a key input) and the often volatile prices of the commodities they produce (like gasoline). Midstream businesses more or less move energy between the upstream and the downstream.
Perhaps the most exciting thing about Enterprise Products Partners (EPD 0.30%) is its huge 7.5% distribution yield. After that, the North American energy giant is, well, a little boring. But that's actually why investors looking for passive income will like the master limited partnership (MLP) in both bull and bear markets. Here's a quick look at this high-yield energy giant.
Source: Motley Fool
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