Atlas Pipeline Partners, L.P. (NYSE:APL) has a reasonable debt equity ratio of 0.88.
Boardwalk Pipeline Partners, LP (NYSE:BWP) is another midstream player with strong fundamentals. The company owns and operates three interstate natural gas pipeline systems. Boardwalk Pipeline Partners, LP (NYSE:BWP)’s price target was recently increased to $31 by Deutsche Bank following strong set of numbers in the first quarter of 2013, which saw revenues jumping nearly 5% to $328.5 million while profits increased 9.5 % to $101.4 million. This translates into a net profit margin of 30.9 % which is pretty solid and shows an improvement over the margin of 29.6 % in the first quarter of 2012. The stock is currently available at slightly below the $31 mark, at a price equity ratio of 24.3, and it offers an excellent dividend yield of 6.9%. It may not be a good time to buy this stock after the recent run-up, but a technical correction can make it attractive.
The Foolish bottom line
These stocks represent companies with healthy profits and growing revenues. More importantly, they offer good dividend yields that are likely to be maintained as profits grow.
The article Bargain Stocks Amid Declining Gas Prices originally appeared on Fool.com is written by Jacob Wolinsky.
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