AMLP - AMLP: U.S. Oil And Gas Is Primed For A Continued Run

2024-05-01 04:05:09 ET

Summary

• Alerian MLP ETF holds master limited partnerships engaged in energy infrastructure, benefiting from rising geopolitical tensions and the need for US oil.
• AMLP holds 15-20 companies, with its largest holdings in Plains All American Pipeline LP, Energy Transfer LP, Western Midstream Partners LP, and MPLX LP.
• The fund pays a heavy dividend and has a strong correlation with US oil prices, making it a favorable investment in the current market.
• This article covers several reasons why the oil and gas industry is primed to continue its run and AMLP investors may benefit from this trend.

Introduction

The Alerian MLP ETF ( AMLP ) is a fund that holds master limited partnerships ("MLPs") engaged in supplying energy infrastructure and earn most of their revenue through midstream activities.

For those new to the energy world, "midstream activities" means transportation, more or less. This is a wide net used to catch the companies responsible for moving oil and gas around the planet while excluding those who primarily engage in extraction and last-mile distributions (e.g. Exxon Mobil ( XOM ), Chevron ( CVX ), etc.)....

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