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Power Play: Deep value in midstream MLPs

Employees fill a tank cars with oil at the Musket Windsor Crude Terminal in Windsor, Colorado, in April.
Matthew Staver | Bloomberg | Getty Images
Employees fill a tank cars with oil at the Musket Windsor Crude Terminal in Windsor, Colorado, in April.

Stocks are rallying, with the Dow up 7 percent since hitting a low on February 11.

Oppenheimer Funds Chief Investment Officer Krishna Memani tells CNBC's "Power Lunch" on Monday spring is in the air, for both the weather and stocks.

He believes this is the time to find the best value, sectors that have cheapened the most, relative to the direction of their fundamentals.

Read MoreStocks mostly higher with Russell 2K up 1%; energy leads as oil climbs

"While stress in the energy markets has been self-evident for quite some time, the performance of midstream master limited partnerships (MLPs) has been like the proverbial baby being tossed out with the bath water," Memani said.

He sees tremendous value here, especially for long-term investors.

"If you have a long view and believe that the United States needs long-term energy transportation infrastructure, with or without fracking, it's difficult for me to see how current valuations can be justified over the long haul," Memani said.

West Texas Intermediate Crude has surged 38 percent since February 11, while the energy sector is up 13 percent.