Energy Sector MLPs: Enterprise Products Partners vs. Delek Logistics Partners as Income Investments

Enterprise Products Partners (EPD) and Delek Logistics Partners (DKL) stand out as reliable income generators in the energy sector, both structured as master limited partnerships (MLPs). EPD boasts a 27-year streak of consecutive distribution increases, offering a 7% yield, while DKL has raised distributions for 50 straight quarters, delivering a double-digit yield exceeding 10%.

EPD operates one of the largest midstream platforms in the U.S., with over 50,000 miles of pipelines and integrated assets like storage terminals and processing plants. Its cash flows are anchored by long-term, fee-based contracts and regulated rate structures, ensuring distribution coverage. DKL's high yield reflects its niche focus but carries inherent sector risks.

Both MLPs appeal to income-focused investors comfortable with Schedule K-1 tax filings. The choice hinges on risk tolerance—EPD's scale and diversification provide stability, while DKL's aggressive yield compensates for concentration risk.