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As a stay-at-home mom and income-driven investor, there are several criteria I like to establish prior to narrowing down my search for what I consider to be a sustainable dividend play. In this article I wanted to examine two energy firms that are currently in an uptrend, yield at least 4.00%, possess a forward P/E ratio at-or-under 30, have a market cap under $10.0 billion, and have increased their dividend at least once in the last twelve months.

#1 Access Midstream Partners, LP (NYSE:ACMP) - On Friday shares of ACMP, which currently possess a market cap of $8.32 billion, a P/E ratio of 40.70, a forward P/E ratio of 28.28, and a forward yield of 4.15% ($1.94), settled at $46.80. Based on Friday's closing price, shares of ACMP are trading 1.10% above their 20-day simple moving average, 0.09% above their 50-day simple moving average, and 14.66% above their 200-day simple moving average. These numbers indicate a short-term, mid-term, and long-term uptrend for the stock, which generally translates into a buying mode for traders.


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Fixed-Fee Business Model Should Drive Cash Flows Higher

ACMP's long-term agreements with major energy companies offer investors lesser risk since the company uses a fixed-fee business model rather than an ever-fluctuating price-driven model. For example, Core Equity Research recently noted that, "Access Midstream has a number of long-term agreements with major energy companies such as Chesapeake (NYSE:CHK) and Total SA (NYSE:TOT), in which current acreage dedication is fixed. The company has had to connect the drilling pads and wells of these firms to its gathering systems, and then transport the natural gas it to connection points, called gates, with a gas pipeline plant". One of the best things about ACMP's fixed-fee business model is the fact that it offers a sustainable ability to generate long-term cash flows.

Recent Dividend Behavior

Since November 5, 2012, the company has increased its quarterly distribution four times over the last 12 months. From an income perspective, the company's forward yield of 4.15% ($1.94) coupled with its 12-month dividend behavior certainly make this particular MLP a very viable income option for long-term investors in search of a higher-yielding play in the energy sector.

#2 Genesis Energy, LP (NYSE:GEL) - On Friday shares of GEL, which currently possess a market cap of $4.12 billion, a P/E ratio of 37.75, a forward P/E ratio of 25.45, and a forward yield of 4.06% ($2.04), settled at $50.21. Based on Friday's closing price, shares of GEL are trading 2.07% above their 20-day simple moving average, 0.66% above their 50-day simple moving average, and 9.88% above their 200-day simple moving average. These numbers indicate a short-term, mid-term, and long-term uptrend for the stock, which generally translates into a buying mode for traders.


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New Rail Facility in the Works

On Monday August 26th it was announced that Genesis Energy was planning to construct a crude oil facility at an estimated cost of $75 million and include nearly 400,000 barrels of crude storage and pipeline infrastructure. The new rail facility will be located in Louisiana and service refineries that are located in the Baton Rouge and St. James regions of the state.

According to the company's press release, "The Raceland Rail Facility will initially be connected to existing midstream infrastructure that will provide direct pipeline access to both St. James and Baton Rouge area refineries. In addition, Genesis is in discussions to build pipeline infrastructure for the rail barrels to move south, ultimately providing access to existing infrastructure at Clovelly, LA and connectivity, via existing pipelines, to the vast majority of refineries in Southeastern Louisiana. The strategic location of the facility will have joint access to the Burlington Northern Santa Fe Railway and Union Pacific Railroad facilitating direct hauls via both Class 1 railroads from multiple origination points. The facility is expected to be operational in 2Q 2014".

I strongly believe the facilities exposure to the Burlington Northern Santa Fe Railway and the Union Pacific Railroad will play a key factor in the company's long-term, and as a result of this particular connectivity earnings and transport volumes could demonstrate stronger and stronger growth over at least the first 12-24 months following its completion.

Recent Dividend Behavior

Since January 30, 2012, the company has increased its quarterly distribution seven times over the last seven payable quarters (including the company's most recent payout which took place on July 30). From an income perspective, the company's forward yield of 4.06% ($2.04) coupled with its 24-month dividend behavior certainly make this particular MLP a very viable income option for long-term investors in search of a higher-yielding play in the energy sector.

Source: 2 Energy Stocks Yielding At Least 4% And Why I'm Staying Bullish On Both