Friday, February 13, 2015

Top Transportation Stocks To Invest In 2014

With close to $5 billion in damages -- so far -- the USA's damage total from the fierce winter of 2013-14 is about $2 billion above average, according to data from Aon Benfield, a global reinsurance firm based in London.

"This has been a rather costly and eventful year for winter weather events in the United States," said Aon Benfield meteorologist and senior scientist Steve Bowen. "The current tally of economic damages is beginning to approach $5 billion, with assessments from recent storms still ongoing," he said in an e-mail.

These totals cover just the physical damages sustained from the winter storm events, including homes, businesses, infrastructure, and agriculture, etc., he adds. It does not include travel and transportation losses or other business disruption, however, which are likely to run into the "billions of dollars."

10 Best Gas Utility Stocks To Buy For 2015: Frontline Ltd (FRO)

Frontline Ltd., incorporated on June 12, 1992, is a shipping company. The Company is engaged primarily in the ownership and operation of oil tankers and oil/bulk/ore (OBO) carriers. The Company operates tankers of two sizes: very large crude carriers (VLCCs), which are between 200,000 and 320,000 deadweight tons, and Suezmax tankers, which are vessels between 120,000 and 170,000 deadweight tons. As of December 31, 2010, its tanker and OBO fleet consisted of 73 vessels. The fleet consists of 44 VLCCs, which are either owned or chartered in, 21 Suezmax tankers, which are either owned or chartered in and eight Suezmax OBOs, which are chartered in. The Company also had five VLCC newbuildings and two Suezmax newbuildings on order and three VLCCs under its commercial management. In February 2010, it purchased the VLCC Front Vista from Ship Finance International Limited (Ship Finance). In January 2011, it sold the VLCC Front Shanghai.

The Company operates through subsidiaries and partnerships located in the Bahamas, Bermuda, the Cayman Islands, India, the Isle of Man, Liberia, Norway, the United Kingdom and Singapore. The Company is also engaged in the charter, purchase and sale of vessels. In April 2010, the Company delivered the single hull Suezmax Front Voyager. During the year ended December 31, 2010, six newbuildings were completed. Four Suezmax vessels were delivered: the Northia, on January 5, 2010; the Naticina, on March 9, 2010; the Front Odin, on May 5, 2010, and the Front Njord on August 12, 2010. Two VLCCs were delivered: the Front Cecilie on June 10 and the Front Signe on August 9, 2010. As of December 31, 2010, the Company's newbuilding program consisted of two Suezmax tankers and five VLCCs.

Advisors' Opinion:
  • [By Monica Gerson]

    Frontline Ltd. (NYSE: FRO) shares jumped 14.84% to $2.94 in pre-market trading following positive comments from Karen Finerman on CNBC.

    AOL Inc.(NYSE: AOL) shares jumped 6.50% to $47.65 in pre-market trading following Monday Bloomberg report on rumored approach by Verizon Communications Inc. (NYSE: VZ).

Top Transportation Stocks To Invest In 2014: Canadian Pacific Railway Limited(CP)

Canadian Pacific Railway Limited, through its subsidiaries, operates as a transcontinental railway providing freight transportation services, logistics solutions, and supply chain expertise in Canada and the United States. It transports bulk commodities, including grain, coal, sulphur, and fertilizers; merchandise freight; finished vehicles and automotive parts; forest products, which include wood pulp, paper, paperboard, newsprint, lumber, panel, and oriented strand board; and industrial and consumer products comprising chemicals, energy, and plastics, as well as mine, metals, and aggregates. The company provides rail and intermodal transportation services over a network of approximately 14,700 miles serving the principal business centers of Canada, from Montreal to Vancouver, British Columbia; and the Midwest and Northeast regions of the United States. Canadian Pacific Railway Limited was founded in 1881 and is headquartered in Calgary, Canada.

Advisors' Opinion:
  • [By Vanina Egea]

    Canada is being home to one of the hottest transport debates seen in the last decade. Surprisingly enough it is far from legislating over auto pilots, bio fuels or frisking. The focus of Bill C-30, according to the Calgary Herald, is ��ederal legislation aimed at getting more grain moving on the rails.��Canadian Pacific (CP)�� chief operating officer Keith Creel told a House of Commons committee, however, that he had a great concern over the bill�� real effect. Company representatives argue that giving shippers the ability to transfer traffic to alternate railways may indeed slow down the grain supply chain due to increased handlings.

  • [By Caroline Chen]

    CEOs were replaced at Canadian Pacific Railway Ltd. (CP) and Procter & Gamble Co. (PG) after activist investor Bill Ackman pushed for shakeups. Greg Taxin�� Clinton Group Inc. prompted management changes at Nutrisystem Inc. (NTRI) and Wet Seal Inc. (WTSL) in the past year.

  • [By Arjun Sreekumar]

    Not surprisingly, Union Pacific (NYSE: UNP  ) , one of largest rail companies in the U.S., tripled the amount of crude oil it shipped last year, while Berkshire Hathaway's (NYSE: BRK-B  ) Burlington Northern Santa Fe, or BNSF, another rail giant, is currently moving about 650,000 barrels of crude oil per day, up from next to nothing just five years ago. And Canadian Pacific Railway (NYSE: CP  ) expects to ship some 70,000 carloads of crude this year, up from just 500 in 2009.

  • [By Aaron Levitt]

    Another prime choice in the world of railroad stocks could be the chief Canadian rival of CNI:�Canadian Pacific (CP). Like CNI, CP has made crude-by-rail a top contributor to its revenues and profits. Canadian Pacific has expanded into new terminal partnerships and projects, and its crude shipments should reach 70,000 oil-tank cars by the end of the year. Oh, and that number will expand roughly to 140,000 by the end of 2015.

Top Transportation Stocks To Invest In 2014: EQT Midstream Partners LP (EQM)

EQT Midstream Partners, LP owns, operates, acquires and develops midstream assets in the Appalachian Basin. The Company provides substantially all of its natural gas transmission, storage and gathering services under contracts with fixed reservation and/or usage fees. The Company focuses its operations in the Marcellus Shale fairway in southern Pennsylvania and northern West Virginia. It provides midstream services to EQT Corporation in the Appalachian Basin across 22 counties in Pennsylvania and West Virginia through its two primary assets: its transmission and storage system, which serves as a header system transmission pipeline, and its gathering system, which delivers natural gas from wells and other receipt points to transmission pipelines.

Equitrans Transmission and Storage System

As of December 31, 2011, the Company�� transmission and storage system included an approximately 700 mile FERC-regulated interstate pipeline system that connects to five interstate pipelines and multiple distribution companies, and it is supported by 14 associated natural gas storage reservoirs with approximately 400 million cubic feet per day of peak withdrawal capability and 32 billion cubic feet of working gas capacity. As of December 31, 2011, its transmission assets had total throughput capacity of approximately 1.0 trillion British thermal units per day.

Equitrans Gathering System

The Company�� gathering system consists of approximately 2,100 miles of FERC-regulated low-pressure gathering lines that have multiple delivery interconnects with its transmission and storage system and a gathering and interstate pipeline system owned and operated by Dominion Transmission, Inc.

Advisors' Opinion:
  • [By Michael Flannelly]

    Goldman Sachs analysts started coverage on EQT Midstream Partners LP (EQM) early on Monday, giving the oil and natural gas distribution company a bullish rating due to its low-risk cash flows.

    The analysts rate EQM as “Buy” and see shares reaching $59. This price target suggests a 22% upside to the stock’s Friday closing price of $48.28.

    Goldman Sachs analyst Theodore Durbin said, “EQM’s FERCregulated pipeline and storage assets offer stable, low-risk fee-based cash flows supported by firm long-term contracts. A robust production outlook in the Marcellus and meaningful inventory of dropdown assets at the parent enhances distribution growth visibility. EQM has a low cost of capital, no debt outstanding, high liquidity and an aligned sponsor that should bolster the partnership�� multi-year double-digit distribution growth outlook.”

    EQT Midstream Partners shares were inactive during pre-market trading on Monday. The stock is up 54.99% year-to-date.

  • [By Matt DiLallo]

    Unfortunately for XTO Energy, there was one small and, unbeknownst to anyone, unresolved matter. You see, LINN had a contract to sell its gas through a unit of Dominion Resources (NYSE: D  ) , which was gathering the gas in its system. However, LINN's gas wasn't up to the system's standards, so it began to look for another gatherer and it approached Equitrans, which is now part of EQT Midstream Partners (NYSE: EQM  ) but formerly was a unit of EQT Corp. (NYSE: EQT  ) -- they talked, but nothing was signed. However, an EQT employee later that year thought that it had and began crediting gas to the wrong company.

Top Transportation Stocks To Invest In 2014: World Point Terminals LP (WPT)

World Point Terminals, LP, incorporated on April 19, 2013, is a fee-based Delaware limited partnership formed to own, operate, develop and acquire terminals and other assets relating to the storage of light refined products, heavy refined products and crude oil. WPT GP, LLC is the general partner of the Company. It operates in a single reportable segment consists primarily of the fee-based storage and terminaling services it performs under contracts with its customers. The Company�� storage terminals are located in the East Coast, Gulf Coast and Midwest regions of the United States and, as of May 31, 2013, had a combined available storage capacity of 12.4 million barrels. The Company provides terminaling and storage of light refined products, such as gasoline, distillates and jet fuels; heavy refined products, such as residual fuel oils and liquid asphalt, and crude oil. Most of its terminal facilities are located on waterways, and have truck racks. Several of its terminal facilities also have rail or pipeline access. As of May 31, 2013, approximately 93% of its available storage capacity was under contract.

The Company generates revenue from Storage Services Fees, Ancillary Services Fees and Additive Services Fees. Storage Services Fees are its customers pay base storage services fees, which are fixed monthly fees paid at the beginning of each month to reserve storage capacity in its tanks and to compensate it for receiving up to a base product volume on their behalf. The Company charges ancillary services fees to its customers for providing services, such as heating, mixing and blending its customers��products that are stored in its tanks; transferring its customers��products between its tanks; at its Granite City terminal, adding polymer to liquid asphalt, and rail car loading and dock operations. The Company generates revenue from fees for injecting generic gasoline, gasoline, lubricity, red dye and cold flow additives to its customers��products.

Advisors' Opinion:
  • [By Jon C. Ogg]

    World Point Terminals L.P. (NYSE: WPT) was initiated as Outperform with a $23 price target at Credit Suisse.

    See also more analyst upgrades and downgrades for Tuesday.

  • [By Robert Rapier]

    World Point Terminals (NYSE: WPT) owns and operates terminals and other assets for the storage of light refined products, heavy refined products and crude oil. World Point’s storage terminals are located in the East Coast, Gulf Coast and Midwest regions of the US. The partnership debuted on Aug. 9, and units have gained 2 percent since. The partnership agreement provides for a minimum quarterly distribution of $1.20 per unit on an annualized basis. At the recent closing price of $19.64/unit, this equates to a minimum annualized yield of 6.1 percent.

  • [By John Emerson]

    Berman pioneered the idea of the World Poker Tour (WPT) and sold the concept to the Travel Channel. Watching poker on television had always been boring since the viewing audience could not see the down cards which the players held. Berman remedied that problem by allowing a camera to expose the down cards to the TV audience. That idea suddenly transformed Texas Holdem into a fascinating spectator�� sport. By the end of 2003 the stock had reached its book value of 15 dollars a share and I decided to take my profits, perhaps a bit prematurely. The stock quickly climbed to about 30 dollars a share on sheer momentum.

Top Transportation Stocks To Invest In 2014: China Metro-Rural Holdings Limited(CNR)

China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.

Advisors' Opinion:
  • [By Katie Brennan]

    Canadian National Railway Co. (CNR) added 0.9 percent to C$104.93 and Canadian Pacific Railway Ltd. rose 1.7 percent to C$131.73.

    Niko Resources surged 3.4 percent to $8.64 after the company entered an agreement for a $60 million loan that will be funded by a group of institutional investors. Net proceeds from the loan will be used to fund working capital requirements.

Top Transportation Stocks To Invest In 2014: Southcross Energy Partners LP (SXE)

Southcross Energy Partners, L.P., incorporated on April 12, 2004, is a limited partnership. The Company owns, operates, develops and acquires midstream energy assets. The Company provides natural gas gathering, processing, treating, compression and transportation services and natural gas liquid (NGL) fractionation services to its producer customers, under fixed-fee and fixed-spread contracts, and it also sources, purchases, transports and sells natural gas and NGLs to its power generation, industrial and utility customers. Its assets are located in South Texas, Mississippi and Alabama. During the year ended December 31, 2011, its South Texas assets, which consist of approximately 1,445 miles of pipeline and two processing plants and accounted for approximately 77% of its revenues. Its Mississippi and Alabama assets, which consist of approximately 626 and 519 miles of pipeline, respectively, provide transportation of natural gas to its power generation, industrial and utility customers, as well as to unaffiliated interstate pipelines. The assets in its South Texas region are located between Houston and Freer. These assets consist of approximately 1,445 miles of pipeline ranging in diameter from 2 inches to 20 inches. In March 2014, the Company acquired natural gas pipelines near Corpus Christi, Texas along with contracts related to those pipelines.

South Texas

The assets in the Company�� South Texas region are located between Houston and Freer, a city, which is located approximately 50 miles west of Corpus Christi. These assets consist of approximately 1,445 miles of pipeline ranging in diameter from 2 inches to 20 inches with an estimated design capacity of 590 million cubic feet per day. Its South Texas region also includes 29 compressors with total compression of approximately 35,000 horsepower, two processing plants with total processing capacity of 185 million cubic feet per day and contracted third-party processing capacity of 83 million cubic feet per day, two treatin! g plants and one fractionator. During 2011, the systems in this region had an average throughput of 379 million cubic feet per day, including the processing plants, which processed an average of 75 million cubic feet per day in that period. It divides its South Texas region into four asset systems Vanderbilt and Gulf Coast gathering systems, which it refers to collectively as the Gulf Coast system; CCNG Transmission, which refer to as the CCNG system; Gregory gathering system, Gregory processing plant and Gregory fractionation plant, and Conroe gathering system and Conroe processing plant.

The pipelines in its South Texas segment are connected to multiple producing fields, including the Eagle Ford shale area. In addition to tie-ins to its two processing plants, its gathering systems are also connected to two processing plants owned by third parties and to a range of intrastate and interstate pipelines.

The Gulf Coast system is located throughout 13 counties in South Texas, including parts of the Eagle Ford shale area, and consists of two pipeline systems. The Gulf Coast system includes approximately 743 miles of pipeline ranging from 2 inches to 20 inches in diameter with an estimated design capacity of 205 million cubic feet per day. The system also includes seven compressors with compression of approximately 7,136 horsepower on a combined basis. During 2011, this system had an average throughput of approximately 114 million cubic feet per day.

The Gulf Coast system acquires natural gas from over 100 producers at prices that are at a fixed discount to the Houston Ship Channel Index price. The gas is delivered to third-party processing plants, including the Formosa processing plant located in Point Comfort, Texas and the Hilcorp processing plant located in Old Ocean, Texas. In the case of the Hilcorp processing plant, its customers pay it gathering fees to transport approximately 25 million cubic feet per day from their wells to this processing plant. Its producer ! customers! on the Gulf Coast system range from small independent exploration and production companies to producers, such as Chesapeake Energy and Devon Energy.

The CCNG system is located in the Eagle Ford shale area and consists of over 417 miles of transmission and gathering pipeline ranging from 2 inches to 20 inches in diameter. The system also includes one compressor with total compression of approximately 1,260 horsepower. During 2011, the system had an average throughput of 190 million cubic feet per day. Natural gas is supplied to this system from approximately 35 field receipt points, treating plants and third party gathering systems and pipelines, including Texas Eastern, Kinder Morgan and Conoco Lobo. Producers who supply or transport natural gas on the CCNG system include Swift Energy, EOG, Exxon, Comstock and Apache. Liquids-rich gas can be transported from the western end of the system to its Woodsboro and Gregory processing plants. Dry gas is brought into the dry gas portions of the system along with residue gas from the outlets of its processing plants. Gas in the system is purchased and sold, under fixed-spread arrangements, as well as transported on behalf of shippers. The CCNG system sells its dry natural gas in the industrial market around the city of Corpus Christi. A portion of the throughput on its CCNG system is processed at its Gregory processing plant or at the Formosa processing plant located in Point Comfort, Texas.

The Gregory gathering system is located near Corpus Christi, Texas and consists of approximately 266 miles of pipeline ranging from 4 inches to 18 inches in diameter. The system also includes one compressor. Its Gregory processing plant is a cryogenic natural gas plant comprised of two units collectively having a total capacity of 135 million cubic feet per day. Its Gregory processing plant processes natural gas from the Gregory gathering system, as well as gas originating in its CCNG System.

Produced NGLs are fractionated in the Compan! y�� fra! ctionator located on the same site as the Company�� Gregory processing plant. Purity ethane is shipped through pipeline to Dow Chemical while remaining NGLs are shipped through truck to local markets, which yield a premium to available pipeline rates. All of its customers on the Gregory gathering system pay a flat fee for natural gas to be gathered in the system and processed at the Gregory processing plant. Its Conroe processing plant is a 50 million cubic feet per day cryogenic natural gas plant. The plant recovers approximately 65% of the ethane contained in the inlet natural gas, depending on loads and temperatures.

Mississippi

The assets in the Company�� Mississippi region are located in the southern half of the state and comprise the intrastate pipeline system in Mississippi. The Mississippi assets consist of approximately 626 miles of pipeline ranging in diameter from 2 inches to 20 inches. The Mississippi system also includes two compressors. During 2011, the system had an average throughput of 86 million cubic feet per day. It generates revenues from its Mississippi assets by charging fixed transportation fees to shippers and by entering into fixed-spread contracts with suppliers and power generation, industrial and utility customers. During 2011, fixed-fee transportation contracts comprised 34.8% of the volumes it transported on its Mississippi system and fixed-spread contracts comprised the remaining 65.2% of its volumes.

Alabama

The assets in the Company�� Alabama region are located in northwest and central Alabama and consist of 519 miles of natural gas gathering pipeline ranging from 2 inches to 16 inches in diameter. The Alabama system also includes 22 compressors with total compression of approximately 24,537 horsepower. The system has an estimated design capacity of 375 million cubic feet per day. The gas supply to the system is coalbed methane gas from the Black Warrior Basin with incremental volumes gathered from conventional ! gas wells! . It gathers, transports, compresses, purchases and sells natural gas in Alabama and offers both intrastate transportation and interstate transportation services. During 2011, 81% of the volumes on its Alabama system were transported pursuant to fixed-fee transportation contracts and 19% of the volumes on the system were purchased from producers and then transported and sold to power generation, industrial and utility customers pursuant to fixed-spread contracts.

The Company competes with Copano Energy, L.L.C., Energy Transfer Partners, L.P., Enterprise Products Partners LP and Kinder Morgan Energy Partners LP.

Advisors' Opinion:
  • [By Lisa Levin]

    Southcross Energy Partners LP (NYSE: SXE) shares rose 11.05% to $20.61. The volume of Southcross Energy shares traded was 624% higher than normal. Southcross Energy and TexStar Midstream Services announced a combination agreement.

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