What to Buy: Crestwood Midstream Partners LP (NYSE: CMLP)

Why to Buy Now: Houston, Texas-based Crestwood Midstream Partners LP (NYSE: CMLP) owns and operates natural gas gathering and processing assets in several of the largest US shale plays, including the Marcellus, Bakken, Niobrara and Barnett formations.

It also owns and operates natural gas storage and transportation facilities in the Northeast, crude oil storage and terminalling assets in the Bakken, and a salt-mining business.

The master limited partnership (MLP) underwent a game-changing transformation last October as the result of a complicated merger with Inergy Midstream LP, which greatly expanded the resulting entity’s geographic footprint, customer diversity, and range of services.

The new MLP boasts a more stable business, with roughly 96 percent of gross profits derived from fee-based contracts. It also has strong prospects for organic growth, as well as growth via dropdown acquisitions.

Equally important, Crestwood’s units currently yield 7 percent, with the payout recently rising to $0.41 per quarter. And management is targeting distribution growth in a range of 6 percent to 10 percent annually. Buy Crestwood Midstream Partners LP below 25.