A number of energy transportation plays showed resistance to
the turbulence rocking this week's market.
On the dividend leaders list,Oneok (
) slipped less than 1% through Wednesday, holding above its
10-week moving average. The 100-year old operation pared down
significantly this year, spinning off its natural gas
distribution subsidiary,One Gas (
), in a February IPO. It did not retain any ownership, but
remains the sole managing partner, making the stock a pure-play
Oneok also owns 41% and is the sole general partner ofOneok
), a master limited partnership sporting a 5.3% dividend. Oneok
Partners operates large-scale gas pipeline operations serving
Rocky Mountain and midcontinent production regions. A central
piece of this portfolio is a network of natural gas liquid lines
connecting producing areas to key markets.
Natural gas liquid, a byproduct of oil and natural gas
production, tends to price higher than dry gas.
The original Oneok raised its quarterly dividend in April by
40% to 56 cents a share. The company is targeting a 53% increase
this year over its 2013 dividend.
Other high-dividend energy transportation issues showing
strength this week includeEnterprise Products Partners (
). The MLP sees more than 40% of its revenue from oil pipelines
and almost another 40% from pipelines moving natural gas liquids.
Its dividend is set at 3.7%.
The group's most resilient stock this week has beenNordic
American Offshore (
It gained 5% through Wednesday and is up 22% since its June 11
IPO. The fleet of offshore supply vessels announced last month it
had ordered two new ships, at $43 million each, for delivery in
The stock boasts a 9.3% dividend, but it is still early to get
a real read on company earnings growth and other