Is MPLX a Better Buy Than Enbridge?
Companies that are particularly heavy users of oil-derived fuels, such as transportation businesses and airlines, have had a rough time lately due to the steep climb in crude oil prices since mid-February. Midstream energy operators -- which own oil and natural gas pipelines and other related infrastructure -- are somewhat insulated against changes in commodity prices.
That's because they charge preset fees for the use of their pipelines to transport crude oil, natural gas, and other refined products -- and those fees are based on volumes, not values. They serve the energy industry itself, so they aren't as affected by the boom-and-bust cycles in energy prices.
Source Fool.com
