Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Amidst Rate And Commodity Worries, Oneok Partners Looks Interesting

Master limited partnerships (MLPs) aren't like most stocks. You don't generally buy these stock (technically, units) for multi-bagger appreciation potential, but rather for meaningful distributions (dividends) that also typically come with significant tax advantages. While I don't suggest that ONEOK Partners, L.P. (NYSE:OKS) is one of those aforementioned multi-baggers, I do believe the shares are at least 20% undervalued today. What's more, the company's sizable natural gas and natural gas liquids capacity is tough to match, and multiple ongoing growth projects should lead to greater distributions down the road.

Commodity Prices And Interest Rates Creating Opportunity

To start, it's not as though ONEOK Partners' decline over the past year is inexplicable. MLPs can be quite sensitive to both...

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