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These Pipeline Companies Are Great, but Which Is the Best?

By Taylor Muckerman and Joel South - Apr 7, 2013 at 7:00PM

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Pipelines will be needed for increased oil and natural gas production. Which ones are set up for the future?

When it comes to the midstream segment, it's clear that some companies are in place to succeed. Demand far outstrips supply, so those that are well diversified with future plans are likely to take the lion's share of the growth. For Motley Fool analyst Taylor Muckerman, the one company that stands out is Kinder Morgan Energy Partners (NYSE: KMP). While it's expensive compared with its peers, its portfolio of assets is second to none, especially when supplemented with capital expenditures. 

If that company doesn't fit your investing style, analyst Joel South offers his take on Boardwalk Pipeline Partners (BWP). This natural gas-focused operator offers a tremendous distribution yield above 7% and is diversified into the mid-continent and Utica shale regions. Those interested in high distribution yields would be well served by taking a deeper dive here.

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Stocks Mentioned

Kinder Morgan, Inc. Stock Quote
Kinder Morgan, Inc.
KMI
$19.14 (-0.10%) $0.02
Boardwalk Pipeline Partners Stock Quote
Boardwalk Pipeline Partners
BWP
Peabody Energy Corporation Stock Quote
Peabody Energy Corporation
BTU

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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