That obviously results in institutional advantages from the outset. Another major asset is the clean balance sheet, with no debt.
Its profit margin is the best in the sector, too.
While the profit margin will be competed away in future operations to become more in line with the others, it is still positioned well to survive the current turmoil in the sector.
As for the yield, Shell Midstream Partners does not offer any guidance.
But Royal Dutch Shell has always sported a generous dividend yield, now around 4.4%.
Based on the profit margin and the lack of debt, it should be very healthy for Shell Midstream Partners, too, increasing its appeal in the battered MLP energy sector.
This article is brought to you courtesy of Jonathan Yates from Wyatt Research.