Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



The Highest-Rated Pipeline Stocks

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the 10 stocks below are the highest rated in the pipeline industry.

CAPS contains more than just the crowd's opinions. The votes of CAPS' best-performing members, known as All-Stars, count more in shaping each company's rating than do the picks of their poorer-performing peers. That way, the highest rated companies are not just the most popular companies in the industry -- in this case Kinder Morgan Energy Partners (NYSE: KMP  ) -- but are truly the best of the best. You can then intelligently use members' collective wisdom to make better decisions and find hidden gems you may never have otherwise heard of.

The pipeline industry has been going through a wave of consolidation as low rates and new opportunities in the natural gas market spur companies to pursue economies of scale. The latest acquisition was also the largest acquisition ever in the industry, with Kinder Morgan buying El Paso. Analysts are continuing to speculate on which company will be the next pipeline to get acquired.

The highest-rated pipeline stock is...
Looking at the aggregate data, we see that our community rates Tesoro Logistics (NYSE: TLLP  ) above the rest -- and for good reason. As CAPS player TMFDeej wrote in April:

I'm normally not one to like IPOs, but when the IPO is in a spin-off I pay attention. For the first time in a long while I tried to get in on an IPO a couple of weeks ago, CVR's spin-off of its nitrogen fertilizer operations (UAN). ... What's not to like about a spun-off, nitrogen fertilizer producer that plans to pay a massive dividend in an era of high food prices?

Here's another interesting one, Tesoro is spinning off Tesoro Logistics in an IPO this week under the symbol TLLP. The new company plans to "own, operate, develop and buy various assets involved in distribution, transportation and storage of crude oil and refined products." In short it's a pipeline operator, a sector which I like. Scheduled to begin with a quarterly pay-out of $0.3375/share, TLLP will have an initial yield of just under 6.5% at its IPO price of $21.

Here are the rest of the 10 highest-rated companies in the industry along with their CAPS rating:



CAPS Rating (out of 5)

Market Cap (in millions)

1 Tesoro Logistics ***** $808
2 Enbridge Energy Partners (NYSE: EEP  ) ***** $8,173
3 Crestwood Midstream Partners ***** $1,140
4 Chesapeake Midstream Partners ***** $3,642
5 Western Gas Partners (NYSE: WES  ) ***** $3,230
6 Kinder Morgan Energy ***** $6,482
7 DCP Midstream Partners ***** $1,928
8 Buckeye Partners (NYSE: BPL  ) ***** $6,189
9 Enterprise Products Partners (NYSE: EPD  ) ***** $37,952
10 Energy Transfer Partners (NYSE: ETP  ) ***** $9,575

Source: Motley Fool CAPS, as of Nov. 7.

Use the table as a first step to help generate ideas for further research. Having a watchlist of promising companies is a great place to start. We can help you keep tabs on these beloved companies with My Watchlist, our free, personalized stock tracking service. Click here to start now.

Fool contributor Dan Dzombak can be found on his Twitter account: @dandzombak. Click here to see his holdings and a short bio.

Motley Fool newsletter services have recommended buying shares of Enterprise Products Partners. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1589193, ~/Articles/ArticleHandler.aspx, 10/23/2016 10:11:01 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:03 PM
BPL $70.64 Down -0.12 -0.17%
Buckeye Partners CAPS Rating: *****
EEP $25.37 Down -0.33 -1.28%
Enbridge Energy Pa… CAPS Rating: ****
EPD $26.75 Down -0.32 -1.18%
Enterprise Product… CAPS Rating: *****
ETP $37.01 Up +0.56 +1.54%
Energy Transfer Pa… CAPS Rating: ***
KMP.DL $0.00 Down +0.00 +0.00%
Kinder Morgan Ener… CAPS Rating: *****
TLLP $46.56 Up +0.15 +0.32%
Tesoro Logistics CAPS Rating: ***
WES $59.68 Up +1.03 +1.76%
Western Gas Partne… CAPS Rating: *****