Ancient Fabricated Master Limited Relationships (MLPs)

Yesterday the stock market suffered its worst day in over a year. As of May 21, 2010, the Euro has dropped by 15% and the U.S. stock market has declined over 10%. Workers in Greece are striking, causing violence. On an even more positive note, my lovely daughter Perry graduated from college.

On the way into my office in Wayne PA, I drove by the Williams natural gas pipeline facility in Malvern. It is a massive pumping station that sends natural gas returning across their state and into areas where it connects with other pipelines doing the exact same thing.  Master Limiter I drive by this complex nearly every day. Williams, a variable billion dollar master limited partnership (MLP), is just a rock solid pipeline operator (according to Wells Fargo) with an extended history of paying its owners steady and growing returns. An owner is someone who owns the Williams MLP which trades on the New York Stock Exchange.

I acquired out of my car and paid attention to the steady hum of the compressor engines which propel natural gas through hundreds of miles of pipelines. As an owner of Williams (and other pipelines), that humming sound ensures that my company is moving natural gas in the united states and paying me the toll.

I listened carefully to the hum of the engines and looked over the massive pumping station with sunlight reflecting off the communications tower. The difficulties with Greece and the Euro didn’t seem to improve anything here. I don’t think the difficulties with Europe, the Euro and the stock market affect the operations of any solid U.S. pipelines.

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