The parent-child relationship is one that many can relate to. Most try their hardest to pass on the knowledge they've gained throughout their lifetimes to their offspring so that the next generation can be better off than their own. It's very similar within the energy industry. Unfortunately, not all parent companies are succeeding in their roles.
For a great example of one parent company investors can feel confident in, Motley Fool analyst Taylor Muckerman points to Spectra Energy (SE). Recent asset drop-downs to Spectra Energy Partners (SEP) have freed Spectra Energy up to focus on fewer lines of business and have provided Spectra Energy Partners with a greater ability to grow its distributions. What's more, increased distributions from SEP almost certainly mean higher dividends for Spectra shareholders, since Spectra will own 82% of SEP's limited partnership shares once the drop-downs are complete.
Curious to know which company Taylor believes still has some work to do before it's prepared to bestow life lessons upon other companies? Tune in to the following video with Taylor and fellow analyst Joel South.
