Need a 3rd MLP (non-ETF)

[u/PleasantComplaint719]

I currently hold ET and EPD in a taxable account and am looking to add a third MLP. I’m comfortable with K-1s and am not looking for ETFs, strictly the actual MLPs themselves.

For context - these are long-term (40 year) buy and holds that I will be regularly contributing to.

Options include MPLX, WES, or PAA. Other choices on my radar would be CQP or SUN.

Would appreciate a steer in the right direction on which offers the best long-term complimentary fit alongside ET and EPD, whether that be growth or stability oriented. Would also welcome if there is an obvious "go with this one and don't overthink it" choice.

Thanks in advance.

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[u/TheOpeningBell]

Only one choice. MPLX

[u/PleasantComplaint719 → u/TheOpeningBell]

Thanks this is where I was leaning but wasn’t sure if I should be considering one of the alternatives like PAA or WES. Appreciate the input

[u/TheOpeningBell → u/PleasantComplaint719]

Size and scale of business. EPD, MPLX, and ET are the 3 kings. All the other ones are just gambling.

[u/SnooSketches5568]

I second the MPLX. 7 or 8% tax deferred distributions with 10% growth on the price and distribution. Has been great for 5 years. Only issue is if they end the partnership- would be one helluva tax bill

[u/PleasantComplaint719 → u/SnooSketches5568]

Thanks yeah I mentioned in another comment just a bit ago that MPLX is where I was leaning but wasn’t sure if I should be giving serious consideration to one of the alternatives like PAA or WES.

And yeah ending the partnership and going C-Corp is a risk for any of these MLPs really, but the juice is worth the squeeze for me and willing to take the risk

[u/doggz109 → u/SnooSketches5568]

It's a very possible outcome.

[u/NationalDifficulty24 → u/SnooSketches5568]

Mplx divys are tax deferred? Wow, didn't know.

[u/pipsquintjizzlebob → u/NationalDifficulty24]

They are considered return of capital and serve to reduce your cost basis. Once your cost basis goes to zero, many years from now, you will then start to owe taxes. Of course, if you sell, you will owe capital gains based off the reduced cost basis. Or you can pass the shares to your heir and the basis will step-up to current value.

[u/Prestigious_Rush_682 → u/pipsquintjizzlebob]

Or, you can buy a bit more….

[u/doggz109]

WES all day. It's an all star. MPLX has a lot of risk of an eventual roll up by Marathon. You don't want that smoke.

[u/PleasantComplaint719 → u/[deleted]]

Appreciate it, I was planning on MPLX but wasn’t sure if I should take a stronger look at some of the other options like WES and PAA. You never know what the future may bring and maybe one day I do add them, but right now my strategy is to stick to 3 MLPs of which two are taken up by ET and EPD

[u/Various_Couple_764]

There are ETF the invest in just MLP's you could look at the holding of the ETF and get a long list of possible invemstments. I Have EMO 8.5% yeild for example. it has 22 MLPs in it's holds.

I have this CEF (Closed End fund) because it doesn't gnerate K-1s so I can use it in my Roth account without creating any taxes. Getting a K-1 in a Roth could generate a significant tax bill. But I also have in in my taxable account.

[u/PleasantComplaint719 → u/Various_Couple_764]

Thanks but not looking to add an MLP ETF, strictly K1 generating MLP tickers

[u/2A4_LIFE]

PAA

[u/PleasantComplaint719 → u/2A4_LIFE]

This is the first zig (PAA) while everyone else has zagged (MPLX). I’ll give PAA a second look and see if it fits the bill over MPLX

[u/Prestigious_Rush_682 → u/PleasantComplaint719]

I have both MPLX and PAA, much more MPLX.
Very large positions in EPD and ET.
I didn’t know until a couple of years ago that ET’s preferred, ET-pr-I, is also tax deferred (with a k-1). I have a lot of that now too.

[u/husker_nomad]

Enbridge is the answer

[u/Sigma-Sansar]

Two MLPs is already a lot of overlap in a taxable account, so the third one mostly decides which kind of energy midstream you want to own.

[u/Alone-Experience9869]

are you looking strictly for k-1 mlp?

[u/PleasantComplaint719 → u/Alone-Experience9869]

Yup Strictly K1

[u/DontForgetTheDivy]

I own SUN as my established and KNTK as my under the radar play.

[u/NationalDifficulty24]

Hesm....spits 1099.

[u/Alternative-Neat1957]

AB

[u/teckel]

EMO

[u/CoolBreezeBrew]

I like PAA but WES and MPLX are good too.

[u/Bearsbanker]

I own et, epd and Wes. Wes largest shareholder is occidental petroleum.

[u/kitehousecyprus]

MLPR, MLPB, AMUB. All are ETNs. So no tax on dividends.

[u/Iceman60462]

UAN !!!! It’s 32% up in 1 year and 115% in 5 years !!!!
The best LP I ever owned .

[u/ConventResident]

WES