New Master Limited Partnership Valero Energy Partners Jumps Higher

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December 16, 2013  11 pm

New master limited partnership Valero Energy Partners LP (ticker:VLP) which was formed by big refiner Valero Energy (ticker:VLO) came public last week at $23/share and closed today at $28.75.  It is amazing that the MLP which has a proposed minimum distribution of 21.25 cents/quarter (3% at todays close) can fly so far so fast.

Valero Energy Partners LP gets 100% of their revenue from sponsor Valero Energy–and we would expect that it will stay that way for some time to come. The crude oil pipelines and storage that make up the new MLP support Valero Energy refineries–so the likelihood of revenue from other sources is remote.


While we can’t cover details of this offering at this time, we believe it is best to read the prospectus carefully if you believe you might have an interest in this issue.  We believe you can do much better with a more seasoned midstream MLP.

You can peruse the prospectus below.

Tim McPartland

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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