E Daily Stock Pick: DCP Midstream

This week, I'm seeking a second robust dividend energy sector representative for my new Ivy portfolio. 

That energy sector includes six industries all related to bringing oil and gas to market. They are: drilling, exploration, and production (E&P), equipment and services, integrated, midstream, refining & marketing. (Those six oily and gassy enterprises.)

Today I'm reviewing a mid-cap oil & gas midstream company, named DCP Midstream LP Its trading ticker symbol is DCP.

DCP Midstream LP is a midstream master limited partnership. It is engaged in gathering, compressing, treating, processing, transporting, storing and selling natural gas, Natural Gas Liquids, and condensate.

The company operates in two segments, Gathering and Processing, and Logistics and Marketing. 

The Gathering and Processing segment is involved in gathering, compressing, treating, and processing natural gas; producing and fractionating natural gas liquids (NGLs); and recovering condensate. 

The Logistics and Marketing segment engages in transporting, trading, marketing, and storing natural gas and NGLs; fractionating NGLs; and wholesale propane logistics. 

As of February 13, 2018, it owned and operated approximately 60 plants and 63,000 miles of natural gas and NGLs pipelines with operations in 17 states. 

The company serves petrochemical and refining companies, and retail propane distributors. DCP Midstream GP, LP serves as the general partner of the company. 

The company was formerly known as DCP Midstream Partners, LP and changed its name to DCP Midstream, LP in January 2017. 

DCP Midstream, LP was founded in 2005 and is headquartered in Denver, Colorado.

I use three key data points to gauge the value of any dividend equity or fund like DCP Midstream, L.P.: 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

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This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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James Hanshaw 11 months ago Contributor's comment

Good article, thank you. I had not heard of DCP before and will now take a closer look