The entire universe of master limited partnerships (MLP) engaged in the transportation of liquefied natural gas (LNG), crude oil, refined petroleum products, other chemicals, dry-bulk shipping and other marine transportation services comprises just five names: Capital Products Partners LP (NSDQ: CPLP), Golar LNG Partners LP (NSDQ: GMLP), Navios Maritime Partners LP (NYSE: NMM), Teekay LNG Partners LP (NYSE: TGP) and Teekay Offshore Partners LP (NYSE: TOO).

We’ll start our discussion with the highest-yielding member of the group, an MLP we’ve recommended for ultra-aggressive investors in our Big Yield Hunting advisory.

Capital Products Partners transports oil, refined oil products and chemicals by sea. Its current fleet consists of 18 product tankers (13 of which are Ice Class, which means their hulls are strengthened to enable them to navigate through sea ice), six crude tankers and one Capesize vessel. The company operates its vessels on a mixture of short- and long-term time charters.

The product tanker market softened over the course of the third quarter, with long-term contracts drying up and spot rates declining as a consequence of weakening global economic growth. One- and three-year time charter rates are down by 7 percent and 3 percent since mid-2012, to roughly USD12,500 per day and USD14,000 per day, respectively.

But the case for a gradual recovery for product tankers is supported by a relatively limited number of new ships under construction as well as still-rising demand from Middle Easter and Asian refiners.

Capital Products has a number of ships coming off charter in 2013 and 2014, but its sponsor Capital Maritime & Trading Corp, has already exercised its options to extend charters for two Suezmaxes at above current market rates and continues to support the MLP’s distribution.

Capital Maritime will decide whether to exercise options on two Very Large Crude Carriers, the Alexander the Great this month and the Achilleas in February 2013; these options are priced well above current one-year market rates.

Capital Products has three vessels on bareboat charters to Overseas Shipbuilding Group Inc (OSG) to 2018; OSG filed for Chapter 11 bankruptcy protection last month. The company expects to continue operating through its restructuring, but Capital Products’ charters are at above-market rates and could be “marked to market” as part of the bankruptcy proceedings.

Capital Products posted a distribution coverage ratio of 1.16-to1 during the third quarter. This ratio could come under pressure should the restructuring of OSG’s obligations result in court-enforced reduction in Capital Products’ charter rates. However, Capital Maritime’s support should ensure a coverage ratio of at or above 1-to-1 even in a worst-case.

On Dec. 4, presenting at the Wells Fargo Energy and MLP Conference, CEO Iannis Lazaridis noted that the risk of a reduction to its OSG charters had been built into guidance it issued along with third-quarter earnings.

Mr. Laziridis also reiterated Capital Products’ commitment to its current annualized distribution level of USD0.93 per unit and noted the continuing support of Capital Maritime. Mr. Lazaridis also noted that the operating environment for petroleum product tanker operators is getting better, albeit at a slow pace.

Although the potential for distribution growth is constrained by the OSG situation, even a modest recovery in the product tanker market would more than offset this drag. The Capital Maritime extensions this month and in early 2013 are of greater significance from a distribution-growth perspective.

Management also noted the possibility of the drop-down of a containership already under time charter. Realization would also provide support for the current distribution.

Although it’s organized as a publicly traded MLP, Capital Products has elected to be treated as a C corporation for tax purposes, which means unitholders receive a Form 1099 and not a Form K-1.

Capital Products’ current yield is 13.9 percent, which clearly suggests the market is pricing in a distribution cut. But management continues to express confidence in its ability to maintain the existing payout level, this confidence built on the support of a solid sponsor in Capital Maritime.

This is an MLP for aggressive investors who understand the potential risks: that the OSG bankruptcy could put significant pressure on an already tight distribution coverage ratio and that recover for the product tanker market could be pushed further out based on global economic developments, including the success or failure of US “fiscal cliff” negotiations.

For those who appreciate the very real risks Capital Products Partners is a buy under USD7.50.

Golar LNG Partners owns and operate floating storage and regasification units (FSRU) and liquefied natural gas (LNG) carriers under long-term charters, which it defines as contracts of five years or more.

It was formed by its sponsor Golar LNG Ltd (Norway: GOL, NSDQ: GLNG), with its initial public offering in April 2011.

During the third quarter of 2012 Golar LNG Partners posted distributable cash flow of USD0.54 per share and increased its distribution to USD0.475 per unit from USD0.44. The nine-month distribution coverage ratio was 1.14-to-1.

In July Golar completed its second follow-on offering subsequent to its IPO, raising net proceeds of approximately USD223 million through the sale of 5.5 million units at USD30.95 per.

A second follow-on offering of 4.5 million units at USD30.85 per in November fed into fear-driven selling afflicting the broader market, as Golar’s unit price dove from USD32.10 on Nov. 1 to a 2012 low of USD26.12 on Nov. 15.

Golar closed at USD29.92 on Dec. 4, having recovered some but still priced to yield 6.4 percent.

That’s an attractive number for a company that expanded its FSRU fleet through during the third quarter and is in line for another similar addition during the current period.

Golar also continues to post solid operating results, with average asset utilization running at nearly 100 percent. Management also made significant progress strengthening the company balance sheet, repaying USD222 million in vendor-provided financing with proceeds from a Norwegian krone-denominated bond issue early in October. Management is currently negotiating a new USD175 million credit facility to increase its ability to add assets and grow distributions.

In November the MLP completed the acquisition of the LNG carrier Golar Grand for USD265 million, assuming USD90 million finance lease liability with the balance of the purchase price funded using the proceeds of its recent equity offering.

The Golar Grand is on a three-year charter to Methane Services Ltd, a subsidiary of BG Group Plc (London: BG/, OTC: BRGXF, ADR: BRGYY). Methane Services has an option to extend the charter term for an additional three years. If this option isn’t extended Golar LNG Ltd has agreed to charter the vessel from March 2015 through October 2017.

Golar LNG Partners estimates that the Golar Grand acquisition will generate between USD42 million and USD44 million in annual revenue and USD36 million to USD38 million net cash from operations. Golar LNG Partners is a buy under USD33.

Aggressive Holding Navios Maritime Partners took a steep dive in early November, closing at USD12.11 on Nov. 15 after hitting an end-of-day peak of USD15.78 on Nov. 2. The units have recovered some of that decline but are still priced to yield 13.5 percent.

That’s despite the fact that from an operational perspective Navios has remained somewhat insulated from the prevailing dry bulk market weakness, with 2012 and 2013 charter coverage at 99 percent and 83 percent, respectively.

The MLP posted increased third-quarter revenue on the drop-down of the Buena Ventura, a Capesize vessel, in June and two second-quarter purchases, the Soleil and the Helios, a Panamax and Handymax respectively. The latter transactions marked the first time Navios has ventured away from parent Navios Maritime Holdings Inc (NYSE: NM) for growth.

Management noted during its third-quarter conference call that it will continue to evaluate the market for growth opportunities and is focused on adding four to six additional vessels using internal funds and 50 percent leverage.

For the third quarter Navios posted a 15.6 percent increase in revenue to USD55.5 million, a 33.1 percent increase in net Income to USD22.1 million and a 21.5 percent increase in operating surplus to USD35.6 million.

Distributable cash flow per unit was USD0.45, and the MLP declared a distribution of USD0.4425 per unit.

Navios completed USD44 million in new financing in August to partially fund the acquisitions of the Buena Ventura, Soleil and Helios at Libor plus 350 basis points with a maturity of February 2018. The MLP also refinanced its two existing facilities with a new USD290 million facility that matures in November 2017 with an interest rate of Libor plus 180 to 205 basis points.

Combined with the USD52 million cash on hand as of the end of the third quarter Navios is in good position to add to its fleet and generate new cash flow. Navios Maritime Partners is a buy under USD20.

Teekay LNG Partners, which we profiled in an October 2012 Sector Spotlight on MLPs with LNG exposure, is a longtime member of the MLPP Portfolio Growth Holdings.

Teekay LNG is the third-largest independent owner-operator of LNG carriers in the world.

Its fleet includes 27 LNG carriers as well as five liquefied petroleum gas carriers, 10 Suezmax segment ships and one product tanker.

The company’s LNG fleet is largely contracted under long-term arrangements with little opportunity to capitalize, yet, on rising demand from Asia. Without much exposure to near-term rates, distribution growth has been limited. But the company’s access to cheap capital will fuel fleet growth over the long term.

The MLP generated sequential distributable cash flow (DCF) growth of 1.8 percent to USD57.8 million during the third quarter. This USD57.8 million was up 32 percent from a year ago on the addition of 12 vessels to its fleet since late 2011.

Managed declared a distribution of USD0.675 per unit, which was well covered by DCF per unit of USD0.79, a coverage ratio of 1.17-to-1. Though its approach is more incremental than many MLPs, Teekay LNG is a reliable distribution grower.

In September Teekay LNG issued 4.6 million units, the proceeds from which will be used to expand its existing fleet of 43 vessels via acquisition or newbuilding. Management expects new liquefaction projects slated for 2015 will boost demand for the global LNG shipping fleet.

Teekay LNG Partners, yielding 7.2 percent as of this writing, is a buy under USD41.

Teekay LNG’s affiliate Teekay Offshore Partners owns interests in shuttle tankers, floating production, storage and offloading (FPSO) units, floating storage and off-take (FSO) units and conventional tankers, serving the offshore oil industry.

The MLP has rights to participate in FPSO and shuttle tanker assets through its sponsor Teekay Corp (NYSE: TK) and via Sevan Marine ASA (Norways: SEVAN, OTC: SVMRF). Most of its fleet is engaged under long-term contracts.

Teekay Offshore posted distributable cash flow of USD0.48 unit in the third quarter, beating analysts’ estimates on better-than-expected net revenue. The MLP declared a distribution of USD0.5125 for the third quarter; although this was higher than DCF for the period the nine-month coverage ratio is a sound 1.14-to1.

During the third quarter Teekay Offshore agreed to acquire the FPSO Voyageur Spirit from Teekay Corp for USD540 million, a deal that will be completed this month.

The Voyageur acquisition will be fully financed through a USD211.5 million unit offering completed in September, a USD40 million equity private placement to Teekay Corp upon completion of the transaction and a new debt facility.

According to management the vessel arrived at the Huntington Field in the North Atlantic to begin production in mid-December under its five-year contract (with extension options) with E.ON SE (Germany: EOAN, OTC: ENAKF, ADR: EONGY). Management also noted that the Voyageur is expected to be accretive to distributable cash flow.

CEO Peter Evensen forecast that as a result of the acquisition Teekay Offshore will be in position to boost its quarterly distribution in the first quarter of 2013. This distribution will be paid in May 2013.

Teekay Corp and Teekay Offshore also announced that the shipyard delivery of the FPSO Cidade de Itajai, in which Teekay Corp owns a 50 percent interest through a joint venture, was delayed two months but was undergoing sea trials as of early November.

Management anticipated this vessel would leave the yard shortly to commence work on a nine-year contract with Petroleo Brasileiro SA, better known as Petrobras (Brazil: PETR4, NYSE:  PBR). it remains a 2013 dropdown possibility. Cidade de Itajai is a solid candidate for a 2013 drop-down from Teekay Corp to Teekay Offshore.

Teekay Offshore Partners, currently yielding 7.7 percent, is a buy under USD28.