| Better Buy: Magellan Midstream Partners, L.P. vs. Spectra Energy Partners, LP | |
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There's been a lot of change swirling around midstream energy partnership Spectra Energy Partners, LP (NYSE: SEP) over the last year, and it isn't over yet. Industry peer Magellan Midstream Partners, L.P. (NYSE: MMP), on the other hand, has been chugging along slow and steady, just like it always has. But the truth is that both largely fee-based partnerships are very similar, and are set to get even more alike in 2018 because of the changes at Spectra. Magellan, however, will still have a slight edge over Spectra in my opinion. Here's why. Big changeNot much has actually changed at Spectra Energy Partners itself, which is good news. In fact, the partnership recently reached the milestone of 10 years of consecutive annual distribution increases. However, there was a huge shift at the partnership's general partner, Spectra Energy. At the end of February 2017, Enbridge (NYSE: ENB) acquired Spectra Energy for roughly $28 billion. MMP dividend per share (quarterly). Data by YCharts. The second reason is control. Magellan's management team is focused totally on its own midstream business. Spectra is now controlled by a company that divides its attention between multiple different entities. Spectra will likely benefit from its parent selling it assets, but it doesn't have as clean a business model as Magellan. Spectra could easily find that it isn't getting the attention it needs because other entities, like Enbridge Energy Partners, are taking up more of the general partners' resources. Magellan may offer a lower yield, but that's a cost I'd be willing to pay for the partnership's mix of self-control and higher distribution growth. More From The Motley Fool Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends Magellan Midstream Partners. The Motley Fool has a disclosure policy. |
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Enbridge Energy Partners LP
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CODE : EEP |
ISIN : US29250R1068 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Enbridge Energy is a and oil producing company based in United states of america. Enbridge Energy holds various exploration projects in USA. Its main exploration property is LAKEHEAD in USA. Enbridge Energy is listed in United States of America. Its market capitalisation is US$ 3.4 billions as of today (€ 3.0 billions). Its stock quote reached its lowest recent point on June 22, 2018 at US$ 10.00, and its highest recent level on December 19, 2018 at US$ 10.43. Enbridge Energy has 326 517 110 shares outstanding. |