EQT Midstream Partners (
), which stores and transports natural gas, is benefiting from
the fracking boom in the Appalachian Basin.
The stock went public in June 2012 after being spun off by EQT
), an explorer and producer of natural gas and oil.
EQT Midstream has more than doubled from its IPO price of 21
and is up about 50% this year, easily beating the S&P
Meanwhile, EQT Midstream has raised its dividend twice since
going public, to 40 cents a share currently from the initial
payout of 35 cents in November 2012. On an annual basis, the
dividend is $1.60 a share for a yield of 3.5%. That's better than
the average S&P 500 yield of 2.54%.
As a master limited partnership, EQT Midstream raises money
from investors to finance its activities. MLPs don't pay taxes
but must make regular cash payments to their investors.
According to an Aug. 6
New America story
, EQT Midstream operates pipelines carrying natural gas out of
the productive Marcellus Shale region in Pennsylvania and West
Profit growth has been robust over the past eight quarters,
ranging from 25% to 136%. Profit for the current quarter is seen
rising 53% from a year ago to 52 cents a share.
Sales growth has accelerated for six straight quarters, going
from a 16% increase in the first quarter of 2012 to subsequent
increases of 18%, 26%, 38%, 43% and 51%.
In July, EQT Midstream acquired Sunrise Pipeline from EQT. EQT
Midstream Senior Vice President Randall Crawford said the deal
will likely be "significantly accretive in years two and
The stock corrected 18% after hitting a high of 51.72 on May
28. But it's retaken its 10-week line as it tries to shape the
right side of a cup-type base.