Evaluating their growth profiles Enterprise Products Partners (EPD 0.74%) and MPLX (MPLX 1.51%) are two of the biggest master limited partnerships (MLPs). They operate large, integrated energy midstream assets that generate lots of stable cash flow, meaning they pay lucrative and steadily growing distributions. The MLPs have two of the best records of distribution growth in the sector. However, most investors will probably only want one in their portfolio, especially considering the tax complications of rec ...

Core Viewpoint - Global Partners (GLP) is positioned as an attractive investment opportunity amid rising crude oil prices due to geopolitical tensions and supply disruptions [1][2]. Group 1: Market Context - Escalating tensions in the Middle East, particularly between Israel and Iran, have raised concerns about oil supply disruptions, as Iran is a significant oil producer [2]. - Wildfires in Canada have led to a reduction of approximately 350,000 barrels of oil production per day [2]. - OPEC has been unable to reach an agreement to increase global oil output, contributing to the current market dynamics [2]. - WTI crude prices have increased by 15% over the last month, surpassing $70 per barrel, despite a slight dip of over 1% on Monday [2]. Group 2: Company Performance - Global Partners operates a vast network of liquid energy terminals from Maine to Florida, facilitating the storage and distribution of various petroleum products [4]. - The company has achieved a total return of +23% in 2025, outperforming the broader market and its peers in the oil refining and marketing sector [5]. - GLP's total sales are projected to increase by 37% in fiscal 2025, reaching $23.55 billion, up from $17.16 billion the previous year [10]. - Annual earnings per share (EPS) are expected to rise by 18% this year and an additional 6% in FY26, reaching $3.03 per share [11]. Group 3: Dividend and Distribution - Global Partners, as a Master Limited Partnership (MLP), benefits from a tax structure that allows it to pass income directly to shareholders, making it appealing to income investors [8]. - The company currently has a payout ratio of 94%, with an annual distribution yield of 5.8% [9]. - GLP has increased its dividend 17 times in the last five years, resulting in an annual growth rate of nearly 11% during this period [9][10]. Group 4: Investment Outlook - The stock is currently rated as a Zacks Rank 1 (Strong Buy), indicating strong investor interest [12]. - The reasonable forward earnings multiple of 19.5X suggests potential for further price appreciation as crude prices rise [12].