A Slick Energy Investment

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Where Can You Turn $300 Into $1.3 Million Right Now?

Our own small-company specialist, Robert Morris, has found a way to 'sniff out' tiny penny stocks on the verge of a major breakout.  And the timing for this has never been better.

You see, the system takes advantage of an obscure SEC regulation that sends penny stock prices through the roof.

We've seen some stocks gain 852%... 5,450%... even 17,496% in no time flat.

Click here for the details...
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If you want exposure to a high growth space, big profits, growing margins, and fat dividends… the way to do that today is with MLPs…

MLP is the acronym for Master Limited Partnerships.  MLPs are simply a special type of business set up by the US tax code.  When we talk about MLPs, you should know they are sold in units, not shares.  But here’s why you want to buy into an MLP...

To qualify for MLP status, they must payout 90 percent of their income from what the Internal Revenue Service deems "qualifying" sources.

For most MLPs, this means the production, processing, or transportation of oil, natural gas, and coal.  And the majority of them are involved in either extraction and/or transportation of energy.  MLPs are mainly companies using natural resources such as petroleum, coal, and natural gas.

And the payout is distributed to unitholders in the form of dividends.  And with payouts of 90%, the dividends get pretty fat…

As you’ve probably figured out by now, my energy play just happens to be an MLP.  But it’s not just any ol’ MLP.  This one’s seeing impressive growth, which is rare among the MLP group…

You see, because dividend payouts are so high, it can hurt a company’s ability to grow.  As a result, they more often considered “value” stocks than growth stocks.

But in the case of this MLP, they’re growing revenue by leaps and bounds.  I’ll tell you how in a moment.  So what MLP do I like so much?

Plains All American Pipeline (PAA)…


PAA provides transportation, storage, terminalling, and marketing of crude oil, refined products and liquefied petroleum gas, as well as other natural gas related petroleum products.  They currently have a market cap of $8.9 billion.

There’s no question PAA is growing.  The company’s last three years of revenue have grown from $18.5 billion in 2009, all the way up to the $30.2 billion in 2011.  That’s nearly 65% in just three years!

And here’s how they’re doing it…

Normally MLPs rely primarily on acquisitions to grow.  They’ll buy assets such as pipelines, storage systems, transport systems, and other large capital expenses.  Just like other MLPs, PAA is buying up these key assets.

One of the most notable purchases is from Nexen Holdings, a Bakken region player.  These acquisitions will allow PAA to tap into one of the United States largest and newest energy producing regions.  If you’re in energy, Bakken is where you want to be… bottom line.

However, PAA has plenty of organic growth opportunity shaping up.  The company is expanding a number of pipeline, terminal, and dock systems.

Some of these projects include the Pier 400 project, the Pine Prairie gas storage facility, and the Patoka Phase III terminal and dock project.  There are plenty of other areas being developed by PAA.  One of which is the Eagle Ford Shale site in South Texas…

The Eagle Ford site is a $330 million investment into a 130 mile crude oil and condensate pipeline, a marine terminal facility, and a 1.5 million barrel storage facility.  The site is due to come online in late 2012.

It’s pretty clear PAA is set up for strong growth.  But what makes this investment even more compelling is their role as a dividend payer.

PAA’s “value” comes from its high dividend.  The company generates a 90% payout of $3.93 per unit annual dividend.  At these price levels, the yield is 6.5%!

There’s no question most MLPs provide excellent value investments.  But we’ve found one which provides both value and growth.  And that makes PAA stand out among the crowd.

Consider adding Plains All American Pipeline to your portfolio…

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