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Dallas-based Energy Transfer Partners stands to gain as the demand for natural gas rises, buoying stock for the fuel transportation firm.

And with a favorable tax structure as a master limited partnership and a high dividend yield around 8.8 percent, according to one local firm, the stock could pay big for investors.

Although the price of natural gas has plummeted in recent months as the economy has slowed, investment professionals said Energy Transfer Partners has created a favorable niche for itself as a transporter of natural gas, not an owner.

"They've made major investments that are just beginning to pay off," said Bruce DeShazo, an investment adviser and assistant vice president of American Heritage Bank.

The company has 17,500 miles of pipeline and is one of the three biggest natural gas marketers in the nation.

Energy Transfer Partners has one of its four corporate offices in Tulsa.

As DeShazo said, the company recently started pumping product through the 500-mile Mid-Continent Express pipeline connecting natural gas fields in Texas and Oklahoma.

The company also could gain from a cold winter with more natural gas flowing through its pipelines, DeShazo said.

James Redman, the principal and founder of Gibraltar Capital Management Inc. in Tulsa, said the company's partnership status allows it to pay dividends to investors before taxes. However, that's also tricky for investors because it likewise requires a different tax structure for stock owners.

"Any company with a yield that good is a nice investment," Redman said.Dallas-based Energy Transfer Partners stands to gain as the demand for natural gas rises, buoying stock for the fuel transportation firm.

And with a favorable tax structure as a master limited partnership and a high dividend yield around 8.8 percent, according to one local firm, the stock could pay big for investors.

Although the price of natural gas has plummeted in recent months as the economy has slowed, investment professionals said Energy Transfer Partners has created a favorable niche for itself as a transporter of natural gas, not an owner.

"They've made major investments that are just beginning to pay off," said Bruce DeShazo, an investment adviser and vice president of American Heritage Bank. The company has 17,500 miles of pipeline and is one of the three biggest natural gas marketers nationally.

Energy Transfer Partners has one of its four corporate offices in Tulsa.

As DeShazo said, the company recently started pumping product through the 500-mile Mid-Continent Express pipeline connecting natural gas fields in Texas and Oklahoma.

The company also could gain from a cold winter with more natural gas flowing through its pipelines, DeShazo said.

James Redman, the principal and founder of Gibraltar Capital Management Inc. in Tulsa, said the company's partnership status allows it to pay dividends to investors before taxes. However, that's also tricky for investors because it likewise requires a different tax structure for stock owners.

"Any company with a yield that good is a nice investment," Redman said.

Kyle Arnold 581-8380

Originally published by KYLE ARNOLD World Staff Writer.

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