One of the biggest issues facing producers in the Bakken is the lack of sufficient pipeline infrastructure to get their energy to end-users. That’s where pipeline firm ONEOK Partners (NYSE:OKS) comes in. The firm is undergoing a massive build-out in the region to increase capacity.
Recently, two of the OKS current projects opened. Its Bakken NGL Pipeline and the Stateline II natural gas processing plant are providing much-needed natural gas infrastructure to the generally oil-focused Bakken. Believe it or not, there is so little in the way of natural gas infrastructure in the region, that producers are actually wasting any natural gas they produce alongside oil in Bakken.
By providing the necessary pipelines and other systems required to gather and process this wasted fuel, ONEOK is setting itself up for future cash flows and its shareholders future dividends. Structured as a master limited partnership (MLP), OKS pays a juicy 5.5% yield.