With shares of BP (NYSE:BP) trading around $43, is BP an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let�� analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
T = Trends for a Stock’s Movement
BP�is an integrated oil and gas company. The company provides its customers with fuel for transportation, energy for heat and light, lubricants and the petrochemicals products used to make everyday items as diverse as paints, clothes, and packaging. It operates in two business segments: Exploration and Production, and Refining and Marketing. BP provides essential energy products to consumer and companies worldwide. Without the oil and gas products provided, many consumers and businesses would not be able to operate on a daily basis. As businesses and consumers continue to need oil and gas products and services, BP stands to see rising profits.
T = Technicals on the Stock Chart are Mixed
BP stock has seen a downtrend over the last several years that has taken it to multi-year lows. The stock has recently bounced off of these lows and looks like it is putting together an uptrend. Analyzing the price trend and its strength can be done using key simple moving averages. What are the key moving averages? The 50-day (pink), 100-day (blue), and 200-day (yellow) simple moving averages. As seen in the daily price chart below, BP is trading above its untangling key averages which signal neutral price action in the near-term.
Hot Semiconductor Companies To Watch For 2015: YRC Worldwide Inc.(YRCW)
YRC Worldwide Inc., through its subsidiaries, provides various transportation services worldwide. The company?s YRC National Transportation unit offers a range of services for the transportation of industrial, commercial, and retail goods, such as apparel, appliances, automotive parts, chemicals, food, furniture, glass, machinery, metal, metal products, non-bulk petroleum products, rubber, textiles, wood, and other manufactured products. It serves manufacturing, wholesale, retail, and government customers. As of December 31, 2009, it had 11704 owned tractors, 1239 leased tractors, 50083 owned trailers, and 3244 leased trailers. Its YRC Regional Transportation unit?s service portfolio includes regional delivery, which comprises next-day local area delivery and second-day services, consolidation/distribution services, protect-from-freezing and hazardous materials handling, and various specialized offerings; expedited delivery, that comprises day-definite, hour-definite, and time definite capabilities; inter-regional delivery; cross-border delivery; and operation of my.yrcregional.com and NewPenn.com, which are e-commerce Websites offering online resources to manage transportation activity. The company?s YRC Logistics units? service portfolio consists of distribution services that include flow through and pool distribution, dedicated warehousing, and value-added services; global services, which comprise international freight forwarding, customs brokerage, and value-added services; and transportation services, such as truckload brokerage, domestic freight forwarding, and transportation management. Its YRC Truckload unit provides customized truckload services on regional and national level through the use of company and team-based drivers. The company was founded in 1924 and is headquartered in Overland Park, Kansas.
Advisors' Opinion:- [By Lauren Pollock]
Among the companies with shares expected to actively trade in Tuesday’s session are Delta Air Lines Inc.(DAL), NuPathe Inc.(PATH) and YRC Worldwide Inc.(YRCW)
- [By Lisa Levin]
YRC Worldwide (NASDAQ: YRCW) shares climbed 19.05% to $17.82. The volume of YRC Worldwide shares traded was 340% higher than normal. YRC Worldwide reached an agreement to cut debt by $300 million.
- [By Sean Williams]
Costs have been another big concern for YRC Worldwide (NASDAQ: YRCW ) which has been unprofitable on an annual basis since 2006. Rather than go bankrupt, YRC diluted shareholders into oblivion, ultimately saving it from Chapter 11 but destroying nearly all shareholder value. In order to cut down on its own expenses, YRC has considered merging with Arkansas Best.
Top Transportation Companies To Invest In 2014: MPLX LP (MPLX)
MPLX LP, incorporated on March 27, 2012, is a fee-based limited partnership formed by Marathon Petroleum Corporation to own, operate, develop and acquire crude oil, refined product and other hydrocarbon-based product pipelines and other midstream assets. The Company�� assets consist of a 51% indirect interest in a network of common carrier crude oil and product pipeline systems and associated storage assets in the Midwest and Gulf Coast regions of the United States.
The Company generates revenue by charging tariffs for transporting crude oil, refined products and other hydrocarbon-based products through its pipelines and at its barge dock and fees for storing crude oil and products at its storage facilities. The Company is also the operator of additional crude oil and product pipelines owned by Marathon Petroleum Corporation and its subsidiaries (MPC) and third parties, for which it is paid operating fees.
The Company�� assets consist of a 51% partner interest in Pipe Line Holdings, an entity which owns a 100.0% interest in Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line LLC (ORPL), which in turn own: a network of pipeline systems, which includes approximately 962 miles of common carrier crude oil pipelines and approximately 1,819 miles of common carrier product pipelines extending across nine states. This network includes approximately 153 miles of common carrier crude oil and product pipelines, which it operates under long-term leases with third parties; a barge dock located on the Mississippi River near Wood River, Illinois, and crude oil and product tank farms located in Patoka, Wood River and Martinsville, Illinois and Lebanon, Indiana; and a 100.0% interest in a butane cavern located in Neal, West Virginia, which serves MPC�� Catlettsburg, Kentucky refinery.
Crude Oil Pipeline Systems
The Company�� crude oil pipeline systems and related assets are positioned to support crude oil supply options for MPC�� Midwest refineries, whic! h receive imported and domestic crude oil through a range of sources. Imported and domestic crude oil is transported to supply hubs in Wood River and Patoka, Illinois from a range of regions, including Cushing, Oklahoma on the Ozark pipeline system; Western Canada, Wyoming and North Dakota on the Keystone, Platte, Mustang and Enbridge pipeline systems, and the Gulf Coast on the Capline crude oil pipeline system.
The Company�� Patoka to Lima crude system is comprised of approximately 76 miles of 20-inch pipeline extending from Patoka, Illinois to Martinsville, Illinois, and approximately 226 miles of 22-inch pipeline extending from Martinsville to Lima, Ohio. This system also includes associated breakout tankage. Crude oil delivered on this system to MPC�� tank farm in Lima can then be shipped to MPC�� Canton, Ohio refinery through MPC�� Lima to Canton pipeline, to MPC�� Detroit refinery through MPC�� undivided joint interest portion of the Maumee pipeline, and its Samaria to Detroit pipeline, or to other third-party refineries owned by BP, Husky Energy, and PBF Energy in Lima and Toledo, Ohio.
The Company�� Catlettsburg and Robinson crude system is consisted of the pipelines: Patoka to Robinson and Patoka to Catlettsburg. Its Patoka to Robinson pipeline consists of approximately 78 miles of 20-inch pipeline, which delivers crude oil from Patoka, Illinois to MPC�� Robinson, Illinois refinery. Its Patoka to Catlettsburg pipeline consists of approximately 140 miles of 20-inch pipeline extending from Patoka, Illinois to Owensboro, Kentucky, and approximately 266 miles of 24-inch pipeline extending from Owensboro to MPC�� Catlettsburg, Kentucky refinery. Crude oil can enter this pipeline at Patoka, and into the Owensboro to Catlettsburg portion of the pipelines at Lebanon Junction, Kentucky, from the third-party Mid-Valley system.
The Company�� Detroit crude system is consisted of Samaria to Detroit and Romulus to Detroit. Its Samaria to Detroit pi! peline co! nsists of approximately 44 miles of 16-inch pipeline that delivers crude oil from Samaria, Michigan to MPC�� Detroit, Michigan refinery. This pipeline includes a tank farm and crude oil truck offloading facility located at Samaria.
The Company�� Romulus to Detroit pipeline consists of approximately 17 miles of 16-inch pipeline extending from Romulus, Michigan to MPC�� Detroit, Michigan refinery. Its Wood River to Patoka crude system is consisted of two pipelines: Wood River to Patoka and Roxanna to Patoka. Its Wood River to Patoka pipeline consists of approximately 57 miles of 22-inch pipeline, which delivers crude oil received in Wood River, Illinois from the third-party Platte and Ozark pipeline systems to Patoka, Illinois.
The Company�� Roxanna to Patoka pipeline consists of approximately 58 miles of 12-inch pipeline, which transports crude oil received in Roxanna, Illinois from the Ozark pipeline system to its tank farm in Patoka, Illinois.
Product Pipeline Systems
The Company�� product pipeline systems are positioned to transport products from five of MPC�� refineries to MPC�� marketing operations, as well as those of third parties. These pipeline systems also supply feedstocks to MPC�� Midwest refineries. These product pipeline systems are integrated with MPC�� expansive network of refined product marketing terminals, which support MPC�� integrated midstream business.
The Company�� Gulf Coast product pipeline systems include Garyville products system and Texas City products system. The Company�� Garyville products system is consisted of approximately 70 miles of 20-inch pipeline, which delivers refined products from MPC�� Garyville, Louisiana refinery to either the Plantation Pipeline in Baton Rouge, Louisiana or the MPC Zachary breakout tank farm in Zachary, Louisiana, and approximately two miles of 36-inch pipeline that delivers refined products from the MPC tank farm to Colonial Pipeline in Zachary.
The Company�� Texas City products system is comprised of approximately 39 miles of 16-inch pipeline that delivers refined products from refineries owned by MPC, BP and Valero in Texas City, Texas to MPC�� Pasadena breakout tank farm and third-party terminals in Pasadena, Texas. The system also includes approximately three miles of 30- and 36-inch pipeline that delivers refined products from MPC�� Pasadena breakout tank farm to the third-party TEPPCO and Centennial pipeline systems.The Company�� Midwest product pipeline systems include Ohio River Pipe Line (ORPL) products system, Robinson products system and Louisville Airport products system. The Company�� ORPL products system is consisted of Kenova to Columbus, Canton to East Sparta, East Sparta to Heath, East Sparta to Midland, Heath to Dayton, and Heath to Findlay.
The Company�� Kenova to Columbus pipeline consists of approximately 150 miles of 14-inch pipeline that delivers refined products from MPC�� Catlettsburg refinery to MPC�� Columbus, Ohio area terminals. Its Canton to East Sparta pipeline consists of two parallel pipelines, which connect MPC�� Canton, Ohio refinery with its East Sparta, Ohio breakout tankage and station. The first pipeline consists of approximately 8.5 miles of six-inch pipeline that delivers products (distillates) from Canton to East Sparta. The second pipeline consists of approximately 8.5 miles of six-inch bi-directional pipeline, which can deliver products (gasoline) from Canton to East Sparta or light petroleum-based feedstocks from East Sparta to Canton.
The Company�� East Sparta to Heath pipeline consists of approximately 81 miles of eight-inch pipeline that delivers products from its East Sparta, Ohio breakout tankage and station to MPC�� terminal in Heath, Ohio. The Company�� East Sparta to Midland pipeline consists of approximately 62 miles of eight-inch bi-directional pipeline, which can deliver products and light petroleum-based feedstocks betwe! en its br! eak-out tankage and station in East Sparta, Ohio and MPC�� terminal in Midland, Pennsylvania. MPC�� Midland terminal has a marketing load rack and is able to connect to other Pittsburgh, Pennsylvania-area terminals through a pipeline owned by Buckeye Pipe Line Company, L.P. and a river loading/unloading dock for products and petroleum feedstocks. This pipeline can also transport products to MPC�� terminals in Steubenville and Youngstown, Ohio through a connection at West Point, Ohio with a pipeline owned by MPC.
The Company�� Heath to Dayton pipeline consists of approximately 108 miles of six-inch pipeline, which delivers products from MPC�� terminals in Heath, Ohio and Columbus, Ohio to terminals owned by CITGO and Sunoco Logistics Partners, L.P. in Dayton, Ohio. This pipeline is bi-directional between Heath and Columbus for product deliveries. Its Heath to Findlay consists of approximately 100 miles of eight- and 10-inch pipeline, which delivers products from MPC�� terminal in Heath, Ohio to MPC�� pipeline break-out tankage and terminal in Findlay, Ohio. Robinson products system is consisted of Robinson to Lima, Robinson to Louisville, Robinson to Mt. Vernon, Wood River to Clermont, Dieterich to Martinsville and Wabash Pipeline System.
The Company�� Robinson to Lima pipeline consists of approximately 250 miles of 10-inch pipeline, which delivers products from MPC�� Robinson, Illinois refinery to MPC terminals in Indianapolis, Indiana, as well as to MPC terminals in Muncie, Indiana and Lima, Ohio. Its Robinson to Louisville pipeline consists of approximately 129 miles of 16-inch pipeline, which delivers products from MPC�� Robinson, Illinois refinery to two MPC and multiple third-party terminals in Louisville, Kentucky. In addition, these products can supply MPC and Valero terminals in Lexington, Kentucky through the Louisville to Lexington pipeline system owned by MPC and Valero.
The Company�� Robinson to Mt. Vernon pipeline consists of ap! proximate! ly 79 miles of 10-inch pipeline that delivers products from MPC�� Robinson, Illinois refinery to a MPC terminal located on the Ohio River in Mt. Vernon, Indiana. It leases this pipeline from a third party under a long-term lease. The Company�� Wood River to Clermont pipeline consists of approximately 153 miles of 10-inch pipeline extending from MPC�� terminal in Wood River, Illinois to Martinsville, Illinois, and approximately 156 miles of 10-inch pipeline extending from Martinsville, Illinois to Clermont, Indiana. This pipeline also includes approximately 9.5 miles of pipelines utilized for the local movement of products in and around Wood River, Illinois, and Clermont, Indiana.
The Company�� Dieterich to Martinsville pipeline consists of approximately 40 miles of 10-inch pipeline, which delivers products from the termination point of Centennial Pipeline to Martinsville, Illinois. From Martinsville, these products (including refinery feedstocks) can be distributed to MPC�� Robinson, Illinois refinery or to other destinations through our other pipeline systems. Its Wabash Pipeline System consists of three interconnected pipeline pipelines: approximately 130 miles of 12-inch pipeline extending from MPC�� terminal in Wood River, Illinois to Champaign, Illinois (the West leg); approximately 86 miles of 12-inch pipeline extending from MPC�� Robinson, Illinois refinery to Champaign (the East leg), and approximately 140 miles of 12- and 16-inch pipeline extending from the junction with the East and West legs in Champaign to MPC�� terminals in Griffith, Indiana and Hammond, Indiana. This pipeline system delivers products to MPC�� tanks at Martinsville, Champaign, Griffith and Hammond. This pipeline system also delivers products to tanks owned by Meier Oil Company at Ashkum, Illinois. The Wabash Pipeline System connects to other pipeline systems in the Chicago area through a portion of the system located beyond MPC�� Griffith terminal. The Company�� Louisville airport product! s system ! consists of approximately 14 miles of eight- and six-inch pipeline, which delivers jet fuel from MPC�� Louisville, Kentucky refined product terminals to customers at the Louisville International Airport.
Other Major Midstream Assets
The Company�� butane cavern is located in Neal, West Virginia, across the Big Sandy River from MPC�� Catlettsburg, Kentucky refinery. This storage cavern has approximately 1.0 million barrels of storage capacity and is connected to MPC�� Catlettsburg refinery. Rail access to the storage cavern is also available through connections with the refinery.
The Company�� barge dock is located on the Mississippi River in Wood River, Illinois and is used both for crude oil barge loading and products barge unloading. The barge dock is connected to its Wood River tank farm by approximately two miles of 14-inch pipeline, which transfers crude oil from the tank farm to the dock, and two 10-inch pipelines, which are each approximately two miles long and transfer products and feedstocks from the dock to the tank farm. This dock generates revenue through a FERC tariff, which is collected for the transfer and loading/unloading of crude oil and products. It also owns tank farms located in Patoka, Martinsville and Wood River, Illinois and Lebanon, Indiana, which it uses for storing both crude oil and products. These storage assets are integral to the operation of its pipeline systems in those areas.
Advisors' Opinion:- [By Dan Caplinger]
In Marathon's quarterly report, watch for how the refiner's relationship with spun-off midstream pipeline operator MPLX (NYSE: MPLX ) is faring. With Marathon holding a majority stake in MPLX, its pipeline assets will play an increasingly important role in bringing midcontinent energy products to its refineries.
- [By Aimee Duffy]
Master limited partnerships are not like other stocks, and the metrics we use to compare an MLP to its peers differ from the metrics we use to compare regular companies. For example, instead of the traditional P/E ratio, we emphasize MLP-specific metrics like distribution coverage ratio, and today's focus: price to distributable cash flow (P/DCF). I'll use MPLX (NYSE: MPLX ) , Tesoro Logistics (NYSE: TLLP ) , and Holly Energy Partners (NYSE: HEP ) as our three examples.
- [By Robert Rapier]
Refiners that have spun off midstream assets have done very well over the past years.�Valero Energy Partners�(NYSE: VLP) is up nearly 60 percent since its December IPO,�Phillips 66 Partners�(NYSE: PSXP) has more than doubled since its July IPO (and is the biggest gainer among MLPs year-to-date), and�MPLX�(NYSE: MPLX) — formed from�Marathon Petroleum�(NYSE: MPC) — is up 110 percent since its November 2012 IPO.
Top Transportation Companies 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 Robert Rapier]
Rounding out the top five were�Hi-Crush Partners�(NYSE: HCLP), another supplier of fracking sand (+71 percent),�EQT Midstream Partners�(NYSE: EQM), a midstream provider in the Appalachian Basin (+66.5 percent), and�Valero Energy Partners�(NYSE:VLP) (+61.5 percent), which consists of midstream assets dropped down from the refiner�Valero Energy�(NYSE:VLO).
- [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 Lee Jackson]
EQT Midstream Partners L.P. (NYSE: EQM) has everything the Oppenheimer team is looking for: low-risk, fee-based contracts in an attractive region, low financial leverage, high distribution growth and coverage and a supportive parent with assets to sell. Oppenheimer has a $55 price target for the stock. The Thomson/First Call estimate is at $54. Investors are paid a 3.4% distribution which Oppenheimer thinks may grow to 4.3% in 2014. Remember, MLP distributions may include return of principal.
Top Transportation Companies To Invest In 2014: TC PipeLines LP (TCP)
TC PipeLines, LP (the Partnership), incorporated on December 16, 1998, acquires, owns and participates in the management of energy infrastructure businesses in North America. The Company�� pipeline systems transport natural gas in the United States. The Partnership is managed by the Company�� General Partner, which is an indirect, wholly-owned subsidiary of TransCanada. The Company has equity ownership interests in four natural gas interstate pipeline systems. The Company�� pipeline systems include Great Lakes, Northern Border, GTN, Bison, North Baja and Tuscarora. The Company owns 46.45% interest in Great Lakes. Great Lakes connect with the TransCanada Mainline at the Canadian border near Emerson, Manitoba, Canada and St. Clair, Michigan, near Detroit. Great Lakes are a bi-directional pipeline that can receive and deliver natural gas at multiple points along its system. In July 2013, TC PipeLines, LP announced the closing of its acquisition of an additional 45% interest in each of Gas Transmission Northwest LLC (GTN) and Bison Pipeline LLC (Bison) from subsidiaries of TransCanada Corporation.
The Company owns 50% interest in Northern Border. Northern Border Extends between the Canadian borders near Port of Morgan, Montana to a terminus near North Hayden, Indiana, south of Chicago. Northern Border is capable of receiving natural gas from Canada, the Williston Basin and Rockies Basin. The Company owns 25% interest in GTN. GTN extends between an interconnection near Kingsgate, British Columbia, Canada at the Canadian Border to a point near Malin, Oregon at the California border. The Company owns 25% interest Bison. Bison extends from a location near Gillette, Wyoming to Northern Border's pipeline system in North Dakota. The Company owns 100% interest in North Baja. North Baja extends between an interconnection with the El Paso Natural Gas Company pipeline near Ehrenberg, Arizona to an interconnection with a natural gas pipeline near Ogilby, California on the Mexican border. The Compa! ny owns 100% interest in Tuscarora. Tuscarora extends between GTN near Malin, Oregon to its terminus near Reno, Nevada and delivers natural gas in northeastern California and northwestern Nevada.
Advisors' Opinion:- [By Dividends4Life]
TC PipeLines LP (TCP) has interests in over 5,550 interstate natural gas pipelines, including a 46.5% stake in Great Lakes Gas Transmission L.P.
Yield: 6.3% | Years of Dividend Growth: 14
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