Geopolitics Alpha

Everyone Loves This 6.5% Pipeline Yield. Here's the Risk I Think They're Ignoring.

Published . Updated .

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Everyone Loves This 6.5% Pipeline Yield. Here's the Risk I Think They're Ignoring.

Energy Transfer says it has turned over a new leaf, but you can get nearly as much yield from a peer with an impeccable track record.

Directly affected

  • ET Energy Transfer-1.9% 30d

    Named in this report.

Indirectly affected

  • AMLP Alerian MLP ETF-1.7% 30d

    Alerian MLP ETF: it holds pipeline operators. Linked by “pipeline” (pipelines) in this story.

  • KMI Kinder Morgan

    Kinder Morgan (natural gas transmission): pipeline operators earn fees on the oil and gas they move. Linked by “pipeline” (pipelines) in this story.

  • WMB The Williams Companies

    The Williams Companies (natural gas transmission): pipeline operators earn fees on the oil and gas they move. Linked by “pipeline” (pipelines) in this story.

  • PAA Plains All American Pipeline, L.P+5.7% 30d

    Plains All American Pipeline, L.P (pipe lines (no natural gas)): pipeline operators earn fees on the oil and gas they move. Linked by “pipeline” (pipelines) in this story.

  • LNG Cheniere Energy+4.1% 30d

    Cheniere Energy (natural gas distribution): pipeline operators earn fees on the oil and gas they move. Linked by “pipeline” (pipelines) in this story.

Price reaction, T-5 to T+3

TickerT-5T-3T-1T0T+1T+2T+3
ET+7.30%+3.23%baseafter closeafter closeafter closeafter close
AMLPPrices arriving within minutes———after closeafter closeafter closeafter close
KMI+9.25%+5.24%baseafter closeafter closeafter closeafter close
WMB+11.09%+5.91%baseafter closeafter closeafter closeafter close
PAA+7.27%+5.46%baseafter closeafter closeafter closeafter close
LNG+12.08%+5.02%baseafter closeafter closeafter closeafter close

Closing-price change versus T-1, the last close before the story. T0 to T+3 fill in after each market close. Prices: Alpaca IEX.

Everyone Loves This 6.5% Pipeline Yield. Here's the Risk I Think They're Ignoring. The Motley Fool

Source: The Motley Fool

Energy

CompanyWhenMoveStatus
ETthree days earlier+3.23%final price
ETfive days earlier+7.30%final price
KMIthree days earlier+5.24%final price
KMIfive days earlier+9.25%final price
LNGthree days earlier+5.02%final price
LNGfive days earlier+12.08%final price
PAAthree days earlier+5.46%final price
PAAfive days earlier+7.27%final price
WMBthree days earlier+5.91%final price
WMBfive days earlier+11.09%final price

Energy

Public disclosure filings, not a recommendation. The filing link is the source document. News use of these reports still sits under 5 U.S.C. § 13107(c).

How solid the energy case looks

12 out of 100

“Everyone Loves This 6.5% Pipeline Yield. Here's the Risk I Think They're Ignoring.” scores 12 out of 100. The score uses 1 sources.