Better Buy: Magellan Midstream Partners, L.P. vs. Enterprise Products Partners LP

Midstream oil and natural gas partnerships Magellan Midstream Partners, L.P. (NYSE: MMP) and Enterprise Products Partners LP (NYSE: EPD) have a lot in common. However, they differ in a few important ways that income investors in particular will find very interesting. Which one you prefer will likely boil down to whether you are looking for income for today or income for tomorrow.

Magellan and Enterprise both own the pipes and facilities that help get oil and natural gas from where they are found to where they get processed and, finally, to end customers. Generally speaking, they get paid for the use of their assets, just like tolls on a highway. For these partnerships the price of energy is less important than demand for oil and natural gas, which tends to remain robust even when prices are weak.

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Source: Fool.com