Site icon The Insiders Fund

Today’s 10% Ginnie Maes, right in front of our noses

I wish I had a nickel, no maybe $10,000 for every time I heard someone say,” I wish I had bought those 10% Ginnie Mae bonds back in the day…”  (GNMA Bonds are guaranteed by the full faith and credit of the U.S. Government) Well, that Ginnie Mae may still be here, staring us right in the face in the oil and gas and particularly MLP market.  Many MLPs in the oil and gas infrastructure business are selling with yields from 8.5%-15%  No, it’s not guaranteed but then again interest rates aren’t at near 0% either.  We put together a list of these names where insiders have been buying their own stock like crazy.  It’s the only place in the entire market where you finds any animal spirits.  Almost every other insider is unloading their stock.

We sorted this list  by yield.  I would throw out the first few as a matter of fact as yields of 84% are not sustainable or for that matter maybe it’s already reflected in the distressed price.  Obviously some of these insiders wish they had never bought their own stock but I have to give them credit for at least having their heart in the right place.   You can bet I’ll be drilling down on many of these names to make sure how credit worthy their fee based customers are as oil could stay depressed in price for quite some time.  Eventually though I believe the market will settle out and we will keep using hydrocarbon products with gradual decline due to alternatives maybe even offset by population or emerging markets growth.  At any rate there will be a continued demand to transport this stuff whether it arrives  in by tankers, rails or pipelines.  These companies find it, move it, store it, refine it, sell it and some of them will weather the storm.  In fact I don’t ever recall a major MLP going bust even.

Bear in mind, that this list is just a first screen and no MLPs will be able to cover their distributions if all their customers go bust..  Well even that is subject to debate because in bankruptcy there is such at thing as essential vendors so the creditors can still get something for their money by operating or liquidating the business.  Most pipeline companies should get paid something by the court even if their customers are in Chapter 11.

EVEP EV Energy Partnrs L.P. Com Unt Oil & Gas Operations 3.1 63.90%
EMES Emerge Energy Svcs LP Oil Well Services & Equipment 6.37 41.29%
LGCY Legacy Reserves LP Unts Oil & Gas Operations 2.72 22.81%
AMID American Midstream Partners LP Natural Gas Utilities 9.19 19.27%
GLF Gulfmark Offshore Inc Oil Well Services & Equipment 5.3 18.42%
ETP Energy Transfer Partners LP Natural Gas Utilities 34.99 11.88%
PAA Plains All American Pipeline Oil Well Services & Equipment 22.7 11.77%
NS NuStar Energy LP Oil Well Services & Equipment 36.34 11.54%
OKS Oneok Partners L.P. Natural Gas Utilities 27.98 11.21%
FGP Ferrellgas Partners L.P. Oil & Gas Operations 20 10.14%
KMI Kinder Morgan Inc Natural Gas Utilities 19.4 9.87%
CAPL CrossAmerica Prtnrs LP Oil & Gas Operations 23.87 9.70%
NSH NuStar GP Hldg LLC Oil Well Services & Equipment 22.61 9.39%
PAGP Plains GP Hldg L.P Oil Well Services & Equipment 10.39 8.64%
SUN Sunoco LP Oil & Gas Operations 36.76 8.12%
PTXP PennTex Midstream Prtnrs LP Ut Oil Well Services & Equipment 14.08 7.80%
WNRL Western Refining Logistics LP Oil Well Services & Equipment 21.93 6.85%
EPD Enterprise Products Partners Natural Gas Utilities 24 6.28%
ETE Energy Transfer Equity L.P. Natural Gas Utilities 16.95 6.27%
DKL Delek Logistics Partners LP Oil Well Services & Equipment 37.29 6.11%
TEP Tallgrass Energy Partners LP Natural Gas Utilities 40.34 5.78%
COP ConocoPhillips Oil & Gas Operations 51.74 5.63%
MUR Murphy Oil Corp Oil & Gas Operations 26.31 5.16%
MPLX MPLX LP Oil Well Services & Equipment 32.63 5.16%
HP Helmerich & Payne Oil Well Services & Equipment 55.61 4.99%
CVX Chevron Corporation Oil & Gas – Integrated 89 4.74%
NE Noble Corp plc Oil Well Services & Equipment 12.9 4.65%
SJI South Jersey Industries Inc Natural Gas Utilities 22.44 4.58%
RIG TransOcean Ltd Oil Well Services & Equipment 14.04 4.34%
OXY Occidental Petro Oil & Gas – Integrated 72.47 3.98%
FI Frankie’s Intl NV Oil Well Services & Equipment 16.34 3.67%
BWP Boardwalk Pipeline Partners LP Natural Gas Utilities 12.02 3.23%
DM Dominion Midstream Prtnrs LP Natural Gas Utilities 29.45 2.66%
SLB Schlumberger Ltd Oil Well Services & Equipment 74.83 2.64%
CPGX Columbia Pipeline Grp Oil Well Services & Equipment 19 2.53%
PSX Phillips 66 Oil & Gas Operations 88.89 2.48%
MPC Marathon Petro Corp Oil & Gas Operations 54.44 2.21%
CRR Carbo Ceramics Inc Oil Well Services & Equipment 18.23 2.19%
APA Apache Corp Oil & Gas Operations 45.86 2.11%
HES Hess Corporation Oil & Gas Operations 55.56 1.76%
MRO Marathon Oil Corp Oil & Gas – Integrated 16.65 1.20%
PHX Panhandle Oil & Gas Inc Oil & Gas Operations 17.99 0.89%
SM SM Energy Co Oil & Gas Operations 27.9 0.35%
Exit mobile version