Oneok, Nordic American Resilient In Rough Market


A number of energy transportation plays showed resistance to the turbulence rocking this week's market.

On the dividend leaders list,Oneok ( OKE ) 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 ( OGS ), in a February IPO. It did not retain any ownership, but remains the sole managing partner, making the stock a pure-play management operation.

Oneok also owns 41% and is the sole general partner ofOneok Partners ( OKS ), 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 ( EPD ). 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 ( NAO ).

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 2015.

The stock boasts a 9.3% dividend, but it is still early to get a real read on company earnings growth and other fundamentals.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Investing Ideas

Referenced Stocks: OKE , OGS , OKS , EPD , NAO

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