KNOT Offshore Partners LP
Offshore drilling presents a unique problem. How do you get that oil production from the platform back to shore? If your oil platform is close to shore and in shallow water, you can tap into the Gulf of Mexico’s vast undersea pipeline infrastructure. Unfortunately, that isn’t an option when you’re are miles and miles away and in deep water.
That’s where KNOT Offshore Partners LP (KNOP). The company hammers out a good living owning and operating shuttle tankers. These shuttle tankers move crude oil and condensate from offshore oil rigs to onshore terminals and refineries. The boring niche is pretty stable and isn’t tied the rise and fall of the Baltic Dry Index or other volatile shipping metrics.
That stability has helped KNOP deliver some pretty strong cash flows in its short history.
And while it’s a relatively new firm, KNOP’s parent company has a long history of operating vessels of all sizes and has plans to continue dropping down shuttle tankers into the MLP. Overall, that should strengthen KNOP’s already big yield of 6.7% and keep it near the top of energy dividend stocks.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.