In May 2013, Emerge Energy Services (NYSE:EMES) had an initial public offering of $127mm. The company supplies sand to oil and gas drillers for blasting through rocks in the hydraulic fracturing ("fracking") process. Emerge qualifies as an MLP, which means that as long as it distributes 90% or more of its profits to shareholders, it does not have to pay federal taxes. Management has stated its intentions to distribute 100% of cash every quarter to shareholders. During 2012, Emerge paid only $160k in taxes, none of which went to the federal government. This tax advantaged structure makes MLPs particularly interesting investments. With a current yield of 11.5%, Emerge is an attractive business with strong long-term growth...
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