If you haven’t heard of master limited partnerships (MLP), keep reading. These income vehicles have returned close to 90 percent the past five years vs. around 5 percent for the S&P 500. While MLP price gains have recently stalled due to economic and tax fears, the income payouts on many MLPs are safe and rising.

MLPs pay out virtually all their earnings to shareholders, and many are in the commodity sector. While there is risk to commodity companies, there are safer ways to play.

Case in point is Houston-based Genesis Energy LP (NYSE: GEL). The MLP was recently yielding 5.4 percent, and its 47-cent quarterly payout is rising. About 90 percent of this company’s revenue comes from the fees it charges to transport and/or refine oil and gas. So unless there is a dramatic drop in oil prices, Genesis’ business continues to grow as it expands to handle larger volumes.

US oil output is expected to surpass that of Saudi Arabia within the next five years, rising to 11 million barrels per day by 2020, according to the International Energy Agency. And our country’s growing need for energy infrastructure—storage, transportation, and refining facilities—bodes well for Genesis.

This MLP owns 1,500 miles of pipeline (onshore and offshore), 8 refineries, 600 trucks and trailers, 50 barges, and terminals that can store up to 1.5 million barrels of oil. What’s more, Genesis’ operations are centered in the Gulf Coast, which accounts for 23 percent of US oil production and 40 percent of refining capacity. Revenue is fairly evenly distributed among pipelines (35 percent), refineries (29 percent) and supply and logistics (36 percent).

Starting to GEL

As America continues to extract oil and gas from its shale deposits, Genesis stands to secure billions of dollars in contracts, as it provides an increasing array of means to bring oil, natural gas and natural gas liquids to market. Revenue was up more than 22 percent for the first nine months of 2012 and net income surged 43 percent. The company expects continued growth into 2013, through higher volumes and acquisitions.

Early in 2012, Genesis acquired assets from Marathon Oil (NYSE: MRO) that increased its volume by 20 percent. And the purchase of oil barges in 2011 and 2012 expanded Genesis’ transportation fleet by 30 percent. Genesis has also announced plans with Enterprise Products Partners (NYSE: EPD) to build a new oil pipeline near the Gulf of Mexico that should be running by 2014.

Genesis’ long-term contracts for refinery services have an average remaining life of four years, and its CO2 transportation agreements don’t expire until 2028.

Genesis’ biggest attraction is its very solid and growing distribution. The MLP’s payout has risen 29 quarters in a row, by at least 8.7 percent on average, with 24 of these increases 10 percent or higher. The five-year distribution growth rate: 75 percent. Grant Sims, Genesis’ CEO since 2006, is a veteran Texas oil executive with a PhD in economics. He thinks Genesis can continue to increase its distribution at a double-digit rate in the coming quarters, without an accompanying increase in the company’s exposure to volatile commodity prices.

At a recent price of $35, Genesis’ units are up almost 40 percent in the past year. But with the yield recently higher than 5 percent, Genesis can still energize long-term portfolios aiming for both income and capital gains.