WETHERBY ALSO SEES MAJOR upside in midstream MLPs. The oil crash has demolished MLPs, with the Alerian MLP Index down about 50% from its August 2014 peak. Midstream MLPs, which focus on the processing, storing, and transmission of oil and gas, have been walloped along with the rest.That’s undeserved, says Wetherby, since low oil prices haven’t hurt overall demand for energy. For investors with a time horizon of 3 to 5 years, midstream MLPs should pay off nicely—and in the meantime, they deliver yields of about 13%, she notes.“At some point, people are going to realize [that midstream companies’] revenues are under long-term contract and not related to energy prices,” she says. “They’re going to be happy to be paid 13% while they wait.
