Stock Market News & Stocks to Watch from StraightStocks » petroleum product

KMP Completes Crosstex Buy – Analyst Blog

Zacks Market Commentaries — Tue, 06 Oct 2009 16:00:13 +0000

Late last week, Kinder Morgan Energy Partners LP (KMP) closed the previously announced acquisition of natural gas treating business from Dallas-based Crosstex Energy LP (XTEX) and its general partner Crosstex Energy Inc. (XTXI) for approximately $266 million.

As part of the transaction, Kinder Morgan purchased approximately 290 amine-treating and dew-point control plants from natural gas company Crosstex. These plants are primarily located in Texas and Louisiana , with additional facilities in Mississippi , Oklahoma , Arkansas and Kansas.

Kinder Morgan will use these natural gas treatment plants in servicing its Texas Intrastate customers and to other producers in various supply basins, including the fast growing shale plays. Following the deal, Kinder Morgan has become the largest provider of contracted natural gas treating services in the country.

The Crosstex asset acquisition will allow the partnership to expand its natural gas business through the inclusion of additional fee-based assets that produce stable cash flows. Kinder Morgan expects the transaction to be immediately accretive and to add value to its business.

Houston-based Kinder Morgan Energy Partners L.P. is the largest independent owner and operator of petroleum product pipelines in the U.S. , transporting nearly 2 million barrels per day of gasoline, jet fuel, diesel fuel, and natural gas liquids. The partnership also has capacity to transport 7 billion cubic feet/day (Bcf/d) of natural gas. It owns or operates more than 26,000 miles of pipeline and approximately 170 terminals. The terminals store petroleum products and chemicals, besides handling bulk materials like coal and petroleum coke. Kinder Morgan is also the largest carbon dioxide marketer and transporter in the country.

We currently rate Kinder Morgan units as Neutral.
Read the full analyst report on "KMP"
Read the full analyst report on "XTEX"
Read the full analyst report on "XTXI"
Zacks Investment Research

OREX, HTLJ, HTDS, DrStockPick.com Watch List! for Wednesday September 30, 2009, Orexigen Therapeutics, Inc., Heartland Inc., HTLJ.OB and Hard to Treat Diseases, HTDS.PK

Dr. Stock Pick — Wed, 30 Sep 2009 03:23:16 +0000

Dr Stock Pick HOT News & Alerts! _______________________________________ FREE Daily Stock Alerts From DrStockPick.com _______________________________________ DrStockPick.com Watch List! My Picks for Wednesday September 30, 2009, are: ************************************************************** OREX, Orexigen Therapeutics, Inc. OREX is a biopharmaceutical company focused on the treatment of obesity. OREX’s lead investigational product, Contrave, has completed Phase 3 clinical trials and is on track for a regulatory submission with the [...]

Heartland Inc. (HTLJ.OB) is “One to Watch”

QualityStocks — Fri, 21 Aug 2009 18:43:28 +0000

Trading on the OTCBB, Heartland Inc. is a diversified company with businesses in steel warehousing and fabrication as well as petroleum retail and wholesale operations. They are a holding company with three subsidiaries. Heartland Inc.’s headquarters are in Cumberland Gap, Tennessee, directly on the border of Tennessee, Kentucky, and Virginia. The Company’s Mound Technologies is a [...]

KMP’s Technological Breakthrough – Analyst Blog

Zacks Market Commentaries — Thu, 02 Jul 2009 20:37:25 +0000

Kinder Morgan Energy Partners, L.P. (KMP) -- the largest independent owner and operator of petroleum product pipelines in the U.S. -- completed its first commercial shipment of bio-diesel through its Plantation Pipeline Company. The process, a technological breakthrough in transporting bio-diesel through pipelines, carried the fuel to various marketing terminals across Georgia and Virginia.

Until now, shipment of bio-diesel has been limited to trucks and trains due to several problems in passing bio-diesel through pipelines. Bio-diesel tends to contaminate other fuels, particularly jet fuels, flowing through the same pipeline. Kinder Morgan's breakthrough was to identify a proprietary additive that prevents this contamination. The injection of this additive -- B99 -- has enabled the pipeline transportation.

We believe that the Plantation Pipeline project should go a long way toward meeting demand for bio-diesel across the Southeast. Moreover, the ability to blend and transport bio-diesel through pipelines will benefit KMP's customers over the other option of installing high cost blending facilities at respective marketing terminals.

Being one of the largest publicly traded Master Limited Partnerships (MLPs), KMP generally serves as a benchmark for the entire pipeline MLP group. Our continued favorable view of KMP units reflects the partnership's strong distribution-growth prospects on the back of a long pipeline of organic growth projects and a diversified asset base. We reiterate our Buy recommendation.
Read the full analyst report on "KMP"
Zacks Investment Research

Kinder Morgan Begins Service on REX-East – Analyst Blog

Zacks Market Commentaries — Tue, 30 Jun 2009 15:51:28 +0000

On Monday, June 29, interim service began on REX East, the eastern section of Kinder Morgan Energy Partners' (KMP) 1,679-mile multi-state Rockies Express Pipeline (REX). With a capacity of 1.6 billion cubic feet per day (Bcf/d), natural gas started flowing on the 444-mile segment of the $6.6 billion pipeline that runs from Audrain County, Missouri, to the Lebanon interconnection point in Warren County, Ohio. Earlier, during May last year, the western section of the pipeline (REX West) came online. The 713-mile pipeline runs from the Cheyenne hub in Weld County, Colorado, to a major delivery point in Brown County, Kansas and has a capacity of 1.5 Bcf/d.

The remaining portion of the 639-mile 42-inch diameter Rex East pipeline, which will end in Clarington, Ohio, is expected to be operational by November 1, 2009. When fully completed, the entire 1,679-mile pipeline will be capable of transporting roughly 1.8 Bcf/d of natural gas and is backed by firm commitments from creditworthy shippers for nearly all of the capacity on the pipeline. Kinder Morgan is the operator of the REX project and has a 50% interest, with the other partners being ConocoPhillips (COP) and Sempra Energy (SRE).

REX is a key pipeline asset that will fully integrate the fast growing Rockies natural gas producing region with consuming markets in the Midwestern and Eastern U.S. The lack of adequate take-away capacity in the Rockies has been the bane for natural gas producers in the region due to its negative impact on local natural gas pricing. It is expected that with the completion of this pipeline, the Rockies basis spread (the discount at which Rockies natural gas gets priced relative to other regions in the country) will narrow significantly.

Kinder Morgan is the largest independent owner and operator of petroleum product pipelines in the U.S., transporting nearly 2 million barrels per day of gasoline, jet fuel, diesel fuel, and natural gas liquids. The partnership also has capacity to transport 7 billion cubic feet/day (Bcf/d) of natural gas. It owns or operates more than 26,000 miles of pipeline and approximately 170 terminals.

We currently have a Buy recommendation on the partnership given its focus on stable, fee-based, well-diversified assets, and its strong balance sheet, which allows flexibility when raising capital for acquisitions/expansions. With a number of organic projects expected to come online over the next few years, we see favorable long-term growth profile for Kinder Morgan.

Read the full analyst report on "KMP"
Read the full analyst report on "COP"
Read the full analyst report on "SRE"
Zacks Investment Research

Take Advantage of the Growing Demand for Composite Materials

Christian Hill — Wed, 17 Jun 2009 20:46:53 +0000

pIn the late 1800’s, a man was looking for a material with the ability to withstand intense heat. He took filaments of bamboo and baked them at a very high temperature in a controlled atmosphere. Through this process, called pyrolysis, the bamboo filaments became fire resistant and able to withstand extreme heat. The man’s name was Thomas Edison, and he was searching for the filament needed to create the incandescent lightbulb.Fast forward 120 years or so, and chances are you own something that utilizes nearly the same technology: a tennis racket, a bicycle, or for the younger crowd, a car hood or spoiler. I am talking about carbon fiber./p pToday we use a petroleum product instead of bamboo or cotton, but#8230;/p

Kinder Morgan Upgraded to Buy – Analyst Blog

Zacks Market Commentaries — Mon, 20 Oct 2008 11:40:03 +0000

We have upgraded Kinder Morgan (KMP), the largest independent owner and operator of petroleum product pipelines in the U.S., to Buy from Hold on valuation grounds.

We believe that the recent broad MLP-group sell-off in general and KMP weakness in particular is overdone and provides for excellent buying opportunities. Distributions are safe as evident from KMP's just-announced distribution increase.

For the third quarter of 2008, the partnership announced a 16% increase in distribution to the annualized run rate of $4.08 per unit. We believe that MLP valuations are at extremely attractive levels.

Given its diversified business mix and comfortable distribution coverage ratio, we believe the partnership can easily maintain a distribution growth rate of around 8% annually over the next few years. With over $3 billion of organic projects beginning to come online over the next few years, we see favorable long-term growth profile for KMP.

Read the full analyst report on KMP

"KMP" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research