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What are Charles Mizrahi’s “MLP Checks”? – MLP Companies Revealed!

What are Charles Mizrahi’s “MLP Checks”

August 11, 2023 by Theodor

How would you like to collect 12 big payouts, every year, for the rest of your life?

Former money manager Charles Mizrahi says regular people are already cashing in these massive “MLP Checks” and we could be too.

 

The Teaser

Edward, a CPA received “MLP Checks” like clockwork during the Tech Crash of 2000, the Financial Collapse of 2008, and even the coronavirus pandemic of 2020.

Source: banyanhill.com

At 23, Charles started his money management firm. Fast forward 40 years and he's put all of his hard-won experience into his investment newsletter – Alpha Investor, which we have reviewed here along with many of his recent stock picks.

Edward is one of thousands of ordinary people who invested in units at $25 a piece and have received more than $1 billion in payouts.

Units, consistent payouts, I think I know what's being teased here.

Charles says our pal Edward is invested in 1 of only 30 energy companies that are approved by the U.S. government to mail out 100% of their profits in the form of MLP Checks.

Yup, Charles is talking about Master Limited Partnerships (MLPs).

Reagan’s Call to Arms

MLPs got their start over 40 years ago under President Ronald Reagan.

The Oil Shocks of the 1970s had left America at the mercy of OPEC. Gas stations ran out of gas, oil prices shot through the roof, and inflation gripped the nation.

An aspiring presidential candidate at the time, Reagan knew there were an estimated 50 billion barrels of oil reserves buried deep under U.S. soil and they were the key to making America energy independent.

So once he got into the oval office, he started working on Statute 26-7704.

The statute says that a company does not have to pay any federal taxes if:

  1. It generates 90% of its revenue from the production, processing, storage, and transportation of natural resources in the United States, and…
  2. They pass all their income on to investors.

I like the idea of making passive income from essential natural resource businesses. But, just like with any other business, we have to separate the wheat from the chaff. 

Charles thinks he can help us with this by giving us the inside scoop on three top MLP companies, along with their incredibly lucrative payouts.

 

The Pitch

The names and ticker symbols of these MLP companies are revealed in a special report called MLP Checks: The $17.9 Billion Energy Payout.

Source: banyanhill.com

A subscription to Charles' Alpha Investor community is necessary to get our hands on it. The cost for a one-year membership is $49 for a standard subscription and $79 for a premium one. Both offers come with a one-year money-back guarantee, and two bonus reports in addition to the one teased here.

The only visible difference between the two membership tiers is that premium subscribers get a physical copy of Charles’ book, Wall Street Profits for Main Street Investors sent straight to their mailbox, as well as two additional bonus reports.

 

A New Global Energy Boom

In 2019, Reagan’s dream of American energy independence finally came true.

This is the year when U.S. energy production exceeded U.S. energy consumption for the first time in 62 years.

Investment in American energy and MLPs gave birth to fracking technology, which in turn is directly responsible for this result.

Ever since then, the amount of energy America produced has taken off like a well-oiled machine.

With more than 6,400 new permits for oil and gas drilling approved since 2020 and plans for the country's largest oil terminal in the Gulf of Mexico, it's not likely to slow down anytime soon.

A Bright Spot for Investors

Arguably the best way to profit from this energy resurgence is with energy MLPs.

For example, one company based in Houston has a payout that is 100% larger than the dividend checks we’d get from Exxon, Shell, or Chevron.

It's no wonder U.S. News has called energy MLPs “a bright spot for investors” because the demand for traditional energy isn’t going away. In fact, it's going to grow. It has to.

With all of the new drilling happening and hundreds of thousands of miles of active pipelines, MLPs are the ones who will move all this oil and natural gas from coast to coast, earning fees every step of the way.

Every penny of these profits will be distributed to investors by law.

By investing as little as $13, we can become owners in these companies and start to receive MLP Checks too. Let's find out who they are.

 

Revealing Charles Mizrahi's “MLP Checks” Companies

Quite a bit of clues are provided about each:

First MLP Company

  • Charles' No. 1 recommendation is run by a Texan named Randy.
  • His company operates 50,000 miles of oil and gas pipelines.
  • The Motley Fool called them a “golden opportunity for income-seeking investors.”

The pick here is Enterprise Products Partners (NYSE: EPD).

  • A Randy Fowler is the Co-Chief Executive Officer and Chief Financial Officer of Enterprise Products Partners L.P. 
  • Per their website, the partnership's assets include more than 50,000 miles of pipelines and over 260 million barrels of storage capacity for NGLs, crude oil, refined products, and petrochemicals.
  • This is the Motley Fool article calling EPD “a golden opportunity for income-seeking investors.”

Second MLP Company

  • The second pick is the largest energy company in Dallas. It employs over 10,000 people and transports energy across 38 states.
  • It recently signed a huge deal to lock in 20 years of liquified natural gas sales.

This has to be Energy Transfer LP (NYSE: ET).

  • The 40 billion dollar oil and gas company maintains a workforce of over 10,000 employees and provides energy across 38 states.
  • It signed a 20-year LNG supply deal with Shell last summer.

Third MLP Company

  • The third MLP is based in Houston and has a huge presence in America’s Permian Oil Basin.
  • Its pipelines not only link to most of the major U.S. shale basins, they also link to the Canadian Oil Sands.
  • Kevin Michaels, a director of the company, recently put up $2 million of his own cash to purchase more units.

The last pick is usually the hardest and this time around was no exception. But after some digging, I think Charles is talking about Plains All American Pipeline LP (Nasdaq: PAA) here.

  • Plains is based in Houston and owns an extensive network of pipelines that spans major market hubs in the United States and Canada.
  • I wasn't able to find a Kevin Michaels on the board or an insider buyer by that name for any public company, but there is a Kevin McCarthy on Plains' board and he purchased $1.96 million worth of shares last June.

 

Satisfactory Return and Safety of Principal?

We already know no other stocks can match the investment income MLPs provide, but is our investment safe?

All three of the picks revealed here carry price/earnings ratios of less than 11x and have guaranteed streams of income for years and in some cases like Energy Transfer LP, even decades to come.

While future income depends to a very large extent on oil and natural gas prices and will vary accordingly, sometimes wildly. So long as we don't pay an exorbitant price for future income, our principal will be protected and we'll receive above-average dividend yields.

 

Quick Recap & Conclusion

  • Former money manager Charles Mizrahi is teasing something called “MLP Checks”, which provide us with 12 big payouts, every year, for the rest of our lives.
  • MLP stands for Master Limited Partnership, which is mandated by law to pay out at least 90% of its income to investors. Charles has three top MLP picks we should buy today.
  • All three names and ticker symbols of these MLP companies are revealed in a special report called MLP Checks: The $17.9 Billion Energy Payout. It is ours with a subscription to Charles' Alpha Investor community at a cost of $49 for a standard one-year subscription.
  • But if you want, you can skip this step altogether as we were able to reveal all three of Charles' MLP picks for free. They are Enterprise Products Partners (NYSE: EPD), Energy Transfer LP (NYSE: ET), and Plains All American Pipeline LP (Nasdaq: PAA).
  • The picks provide a nice mix of income (yields of 7% or higher) and value with prices below 11x current income.

Are MLPs some of the best investments in the market today? Let us know what you think in the comments.

Theodor


Theodor is an old school value guy, when he's not looking for great companies and great prices you can find him on the basketball court hooping.

  • Very interesting BUT does anyone have Teeka Tewari’s #1 Ai crypto/coin to stake on automatic payouts $2600/mo
    Big thanks to whoever…

  • Thank you again for the insider information! Struggling American seniors like me
    Who only survive on Social security appreciate so much when we can invest $50-100 in stocks from your advice without charging us. God bless you all. T

  • True, but low percent dividends compared to other dividend stocks, Plus most MLPs don’t release their year-end statement until nearly the deadline -April 15th- on tax filing time which means you have to wait to file your taxes.

  • Look where PAA was 10yrs ago. No dividends can make up for that loss! Incompetence lead to that drop and I got caught in it. I don’t know, haven”t followed and don’t care if the same incompetents are in charge. I wouldn’t touch the stock.
    ed@aloha

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