Transportation stocks are at the top of the performance leaderboard on a day the overall market is treading water. Wall Street can hide a lot of their intentions, but they cannot keep secret where they are allocation dollars. Investors would be wise to pay attention to which industries the "smart money" is buying.
Identifying the parts of the market that are delivering the best performance is the easy part. Taking advantage of the strength is another matter. Investors can A) invest in a sector ETF/ mutual fund or B) buy the stocks driving sector prices higher.
In choosing an ETF, it's critical to know what percentage of the fund is actually invested in the underlying sector of choice; transportation stocks in this case.� iStock has identified one exchange traded funds with 99.59% of its constituents consisting of transportation stocks.
Hot High Dividend Stocks To Buy Right Now: FedEx Corporation(FDX)
FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. The FedEx Express segment offers various shipping services for the delivery of packages and freight. This segment also provides international trade services specializing in customs brokerage, and ocean and air freight forwarding services; customs clearance services, as well as global trade data, an information tool that allows customers to track and manage imports; and international trade advisory services, including assistance with the customs-trade partnership against terrorism program, as well as publishes customs duty and tax information in various customs areas. In addition, it offers supply chain solutions, including critical inventory logistics, transportation management, fulfillment, and fleet services. The FedEx Ground segment provides business and reside ntial ground package delivery services. It primarily serves customers in the small-package market in North America. The FedEx Freight segment offers less-than-truckload freight services, as well as freight-shipping services. As of May 31, 2010, this segment operated approximately 60,000 vehicles and trailers from a network of 492 service centers. The FedEx Services segment provides sales, marketing, information technology support, and customer service support services; and access to copying and digital printing through retail and Web-based platforms, signs and graphics, professional finishing, computer rentals, and a range of ground shipping and time-definite express shipping services. The company was founded in 1971 and is headquartered in Memphis, Tennessee.
Advisors' Opinion:- [By Ben Levisohn]
Shares of Atlas Air have plunged 15% to $37.13 today at 1:48 p.m., on what has been a lousy day for shippers and those involved with shipping. Trucking company Con-Way (CNW) has fallen 2.5% to $40.38 after it said earnings would be unchanged from a year ago, well short of analyst forecasts. FedEx (FDX) has dropped 0.7% following UPS’s miss.
10 Best Transportation Stocks To Own Right Now: Kirby Corp (KEX)
Kirby Corporation, incorporated on January 31, 1969, is a domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and along all three United States coasts and in Alaska and Hawaii. The Company transports petrochemicals, black oil products, refined petroleum products and agricultural chemicals by tank barge. The Company, through its subsidiaries, conducts operations in two business segments: marine transportation and diesel engine services. Through the diesel engine services segment, the Company provides after-market service for diesel engines and reduction gears used in marine and power generation applications. The Company also distributes and services diesel engines and transmissions, pumps and compression products, and manufactures oilfield service equipment, including hydraulic fracturing equipment, for land-based pressure pumping and oilfield service markets. The Company, through its marine transportation segment, is a provider of marine transportation services, operating tank barges and towing vessels transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and along all three United States coasts and in Alaska and Hawaii. On December 15, 2011, the Company completed the purchase of the coastal tank barge fleet of Seaboats, Inc. and affiliated companies (Seaboats). On July 1, 2011, the Company completed the acquisition of K-Sea Transportation Partners L.P. (K-Sea). On April 15, 2011, the Company purchased United Holdings LLC (United), a distributor and service provider of engine and transmission related products for the oil and gas services, power generation and on-highway transportation industries, and manufacturer of oilfield service equipment. On February 24, 2011, the Company acquired 21 inland and offshore tank barges and 15 inland towboats and offshore tugboats from Enterprise Marine Services LLC (Enterprise). On February 9, 2011, the Company acquired from ! Kinder Morgan Petcoke, L.P. (Kinder Morgan).
The Company transports petrochemicals, black oil products, refined petroleum products, and agricultural chemicals by tank barge. The Company also owns and operates fits offshore dry-bulk barges and tugboats engaged in the coastal transportation of dry-bulk cargoes. It is a provider of transportation services for its customers. The Company, through its diesel engine services segment, sells replacement parts, provides service mechanics to overhaul and repair diesel engines, transmissions, reduction gears, pumps and compression products, maintains facilities to rebuild component parts or diesel engines, transmissions and reduction gears, and manufactures oilfield service equipment, including hydraulic fracturing equipment. The Company services the marine, power generation, oilfield service, and land-based oil and gas operator and producer markets.
Marine Transportation
The marine transportation segment is a provider of transportation services by tank barge for the inland and coastal markets. As of February 22, 2012, the equipment owned or operated by the marine transportation segment consisted of 819 inland tank barges, 236 inland towboats, 59 coastal tank barges, 65 coastal tugboats, fits offshore dry-cargo barges, fits offshore tugboats and one docking tugboat. The 236 inland towboats, 65 coastal tugboats, fits offshore tugboats and one docking tugboat provide the power source and the 819 inland tank barges, 59 coastal tank barges and fits offshore dry-cargo barges provide the freight capacity for the marine transportation segment. The Company�� coastal and offshore tows consist of one tugboat and one tank barge or dry-cargo barge.
During the year ended December 31, 2011, the Company�� inland marine transportation operation moved over 50 million tons of liquid cargo on the United States inland waterway system. Products transported for its customers along the inland waterway system consisted of petrochemi! cals, bla! ck oil products, refined petroleum products and agricultural chemicals. Bulk liquid petrochemicals transported include, such products as benzene, styrene, methanol, acrylonitrile, xylene and caustic soda, all consumed in the production of paper, fibers and plastics. During 2011, the transportation of petrochemical products represented 59% of the segment�� revenues. Customers shipping these products are refining and petrochemical companies. Black oil products transported include products, such as asphalt, residual fuel oil, No. 6 fuel oil, coker feedstock, vacuum gas oil, carbon black feedstock, crude oil and ship bunkers (engine fuel). During 2011, such products represented 20% of the segment�� revenues. During 2011, refined petroleum products transported include the various blends of finished gasoline, gasoline blendstocks, jet fuel, No. 2 oil, naphtha, heating oil and diesel fuel, and represented 16% of the segment�� revenues. The Company also classifies ethanol in the refined petroleum product category. Customers are oil and refining companies, marketers and ethanol producers.
During 2011, agricultural chemicals transported represented 5% of the segment�� revenues. They include anhydrous ammonia and nitrogen-based liquid fertilizer, as well as industrial ammonia. Agricultural chemical customers consist of domestic and foreign producers of such products. As of December 31, 2011, the marine transportation segment operated a fleet of 819 inland tank barges and 236 inland towboats, as well as 59 coastal tank barges and 65 coastal tugboats. The segment also owns and operates fits offshore barge and tug units transporting dry-bulk commodities in coastal trade. As of December 31, 2011, the marine transportation segment operated a fleet of 819 inland tank barges and 236 inland towboats, as well as 59 coastal tank barges and 65 coastal tugboats. The segment also owns and operates fits offshore barge and tug units transporting dry-bulk commodities in coastal trade.
The Canal ! fleet tra! nsports petrochemical feedstocks, processed chemicals, pressurized products, black oil products and refined petroleum products along the Gulf Intracoastal Waterway, the Mississippi River below Baton Rouge, Louisiana, and the Houston Ship Channel. The Linehaul fleet transports petrochemical feedstocks, chemicals, agricultural chemicals and lube oils along the Gulf Intracoastal Waterway, Mississippi River and the Illinois and Ohio Rivers. Loaded tank barges are staged in the Baton Rouge area from Gulf Coast refineries and petrochemical plants, and are transported from Baton Rouge to waterfront terminals and plants on the Mississippi, Illinois and Ohio Rivers, and along the Gulf Intracoastal Waterway. The River fleet transports petrochemical feedstocks, chemicals, refined petroleum products, agricultural chemicals and black oil products along the Mississippi River System above Baton Rouge. Petrochemical feedstocks and processed chemicals are transported to waterfront petrochemical and chemical plants, while black oil products, refined petroleum products and agricultural chemicals are transported to waterfront terminals.
The marine transportation inland operation moves and handles a range of cargoes. As of December 21, 2011, of the 819 inland tank barges operated, 618 were petrochemical and refined products barges, 123 were black oil barges, 63 were pressure barges, 10 were refrigerated anhydrous ammonia barges and five were specialty barges. Marine transportation services for inland movements are conducted under long-term contracts, ranging from one to five years. Kirby Inland Marine, LP (Kirby Inland Marine) operates commercial tank barge fleeting service (temporary barge storage facilities) in ports, including Houston, Corpus Christi and Freeport, Texas, Baton Rouge and New Orleans, Louisiana and other locations on the Mississippi River. Included in the fleeting service is a 51% interest and management control of a shifting operation and fleeting service for dry cargo barges and tank barges ! on the Ho! uston Ship Channel. Kirby Inland Marine provides service for its own barges, as well as outside customers, transferring barges within the areas noted, as well as fleeting barges.
Kirby Logistics Management (KLM) is a division of Kirby Inland Marine providing shore-based tankerman and support services to the Company and third parties. Services provided by KLM include barge tankermen, marine terminal, refinery and chemical plant dock operators, and terminal management services. KLM�� services to the Company and third parties cover the Gulf Coast, mid-Mississippi Valley, and the Ohio River Valley. The Company owns a 66% interest in Osprey Line, L.L.C. (Osprey), which transports project cargoes and cargo containers by barge on the United States inland waterway system. The segment�� coastal operations are conducted through wholly owned subsidiaries, K-Sea Transportation Partners LLC and Kirby Ocean Transport Company (Kirby Ocean Transport). K-Sea provides marine transportation of refined petroleum products and black oil products in each coastal region of the United States. The coastal operations consist of the Atlantic, New York, Pacific and Hawaii Divisions. The Atlantic Division operates along the eastern seaboard of the United States and along the Gulf Coast. The Atlantic Division vessels call on coastal states from Maine to Texas, servicing refineries, storage terminals and power plants. The Atlantic Division also operates equipment on the Great Lakes, in the Caribbean, and in Venezuela and the Eastern Canadian provinces.
The New York Division operates in the New York Harbor, close to container terminals, cruise piers, refineries and petroleum storage facilities. The New York Division also performs coastal voyages between Maine and Norfork, Virginia and manages operations in Philadelphia. The New York Division�� fleet consists of tank barges in the 10,000 to 89,000 barrel capacity range and tugboats in the 1800 to 3400 horsepower range, transporting refined petroleum produ! cts for l! ocal and regional customers, black oil products to power generation customers and the delivery of bunker fuel to ships. The Pacific Division operates along the Pacific coast of the United States, servicing refineries and storage terminals from Southern California to Washington State, throughout Alaska, including Dutch Harbor, Cook Inlet and the Alaska River Systems, and from California to Hawaii. The Pacific Division�� fleet consists of tank barges in the 13,000 to 185,000 barrel capacity range and tugboats in the 1000 to 11800 horsepower range, transporting refined petroleum products.
The Hawaii Division services local petroleum retailers and oil companies distributing refined petroleum products and black oil products between the Hawaiian islands and provides other services to the local maritime community. As of December 31, 2011, the Hawaii Division�� fleet consisted of tank barges in the 52,000 to 86,000 barrel capacity range and tugboats in the 1200 to 7200 horsepower range, transporting refined petroleum products for local and regional customers, black oil products to power generation customers, and the delivery of bunker fuel to ships. The Hawaii Division also provides service docking, standby tug assistance and line handling to vessels using the Single Point Mooring installation at Barbers Point, Oahu, a facility for tankers to load and discharge their cargos through an offshore buoy and submerged pipeline without entering the port. As of December 31, 2011, the coastal fleet consisted of 59 tank barges, 56 of which were double hull and three of which were single hull, with 3.8 million barrels of capacity, transporting refined petroleum products and black oil products. As of December 31, 2011, the Company operated 65 Company-owned coastal tugboats ranging from 1000 to 11800 horsepower. Tugboats in the 1800 to 3400 horsepower classes provide power for barges used in the New York Division. Tugboats in the 1000 to 11800 horsepower classes provide power for barges used in the Atlantic! , Pacific! and Hawaii Divisions. Kirby Ocean Transport owns and operates a fleet of fits offshore dry-bulk barges, fits offshore tugboats and one docking tugboat. Kirby Ocean Transport also has a contract with Holcim (US) Inc. (Holcim) to transport Holcim�� limestone requirements from a facility adjacent to the PEF facility at Crystal River to Holcim�� plant in Theodore, Alabama. Kirby Ocean Transport is also engaged in the transportation of coal, fertilizer and other bulk cargoes on a short-term basis between domestic ports and occasionally the transportation of grain from domestic ports to ports primarily in the Caribbean Basin.
Diesel Engines
The Company, through wholly owned subsidiary Kirby Engines Systems, Inc. (Kirby Engine Systems), is engaged in the overhaul and repair of medium-speed and high-speed diesel engines and reduction gears, and related parts sales used in marine and power generation applications, and distributes and services high-speed diesel engines and transmissions, pumps and compression products, and manufactures oilfield service equipment, including hydraulic fracturing equipment, used in land-based pressure pumping, oilfield service, power generation and transportation applications.
For the marine market, the Company sells Original Equipment Manufacturers (OEM) replacement parts, provides service mechanics to overhaul and repair engines and reduction gears, and maintains facilities to rebuild component parts or entire engines and reduction gears. For the power generation market, the Company provides service and parts capabilities and safety-related products to power generation operators and to the nuclear industry, and manufactures engine generator and pump sets for the power generation operators and municipalities. The Company expanded its diesel engine services operation with the purchase of United, a manufacturer, diesel engine and transmission distributor and service provider for the land-based oil and gas services market, oil and gas operat! ors and p! roducers, compression companies, power generation companies, on-highway transportation companies and agricultural markets. United�� principal businesses are the distribution and service of diesel engines, pumps and transmissions, the manufacture and remanufacture of oilfield service equipment, including hydraulic fracturing equipment, and the manufacture of compression equipment for natural gas transmission and for natural gas fired power generation plants.
The Company is engaged in the overhaul and repair of medium-speed and high-speed diesel engines and reduction gears, line boring, block welding services and related parts sales for customers in the marine industry. The Company services medium-speed and high-speed diesel engines utilized in the inland and offshore barge industries. It also services marine equipment and offshore drilling equipment used in the offshore petroleum exploration and oil service industry, marine equipment used in the offshore commercial fishing industry and vessels owned by the United States government. The Company has marine operations throughout the United States providing in-house and in-field repair capabilities and related parts sales. The medium-speed operations are located in Houma, Louisiana, Chesapeake, Virginia, Paducah, Kentucky, Seattle, Washington and Tampa, Florida. The operations based in Chesapeake, Virginia and Tampa, Florida are authorized distributors for 17 eastern states and the Caribbean for Electro-Motive Diesel, Inc. (EMD). The marine operations based in Houma, Louisiana, Paducah, Kentucky and Seattle, Washington are nonexclusive authorized service centers for EMD providing service and related parts sales. The Houma, Louisiana operation concentrates on the inland and offshore barge and oil services industries. The Tampa, Florida operation concentrates on Gulf of Mexico offshore dry-bulk, tank barge and harbor docking operators. The Paducah, Kentucky operation concentrates on the inland river towboat and barge operators and the Great Lake! s carrier! s. The Seattle, Washington operation concentrates on the offshore commercial fishing industry, tugboat and barge industry, the United States Coast Guard (USCG) and Navy, and other customers in Alaska, Hawaii and the Pacific Rim. The high-speed operations are located in Houma, Baton Rouge, Belle Chasse and New Iberia, Louisiana, Paducah, Kentucky, Mobile, Alabama and Houston, Texas. The Company serves as a factory-authorized marine dealer for Caterpillar diesel engines in Alabama, Kentucky and Louisiana. The Company also operates factory-authorized full service marine dealerships for Cummins, Detroit Diesel and John Deere diesel engines, as well as Allison transmissions and Twin Disk marine gears.
During 2011, the Company was engaged in the overhaul and repair of diesel engines and reduction gears, line boring, block welding service and related parts sales for power generation customers, which represented 9% of the segment�� revenues. The Company is also engaged in the sale and distribution of parts for diesel engines and governors to the nuclear industry. The Company services users of diesel engines, which provides standby, peak and base load power generation, as well as users of industrial reduction gears, such as the cement, paper and mining industries. The Company provides in-house and in-field repair capabilities and safety-related products to power generation operators from its Rocky Mount, North Carolina, Paducah, Kentucky and Seattle, Washington locations. The Rocky Mount operation is also the distributor of EMD products to the nuclear industry, the global distributor for Woodward Governor products to the nuclear industry, the global distributor of Cooper Energy Services, Inc. products to the nuclear industry, and owns the assets and technology necessary to support the Nordberg medium-speed diesel engines used in nuclear applications. In addition, the Rocky Mount operation is a distributor for Honeywell International Incorporated industrial measurement and control products to the ! nuclear i! ndustry, an distributor for Norlake Manufacturing Company transformer products to the nuclear industry and a non-exclusive distributor of analog Weschler Instruments metering products and distributor of digital Weschler metering products to the nuclear industry. The Paducah, Kentucky operation provides in-house and in-field repair services for Falk industrial reduction gears in the Midwest. The Seattle, Washington operation provides in-house and in-field repair services for Alco engines located on the West Coast and the Pacific Rim.
The Company�� power generation customers are domestic utilities and the global nuclear power industry. The Company is engaged in the distribution and service of diesel engines, pumps and transmissions, the manufacture and remanufacture of oilfield service equipment and the manufacture of compression equipment for natural gas transmission and for natural gas fired power generation plants. The Company offers a range of custom fabricated oilfield service equipment, fully tested and field ready. The Company manufactures products or components that are purchased by a company and marketed under the purchasing company�� brand name. The Company distributes, sells parts and services diesel engines and transmissions for on and off-highway use, and provide in-house and in-field service capabilities. The Company is also the exclusive distributor for Daimler for engines and related equipment in Oklahoma, Arkansas and Louisiana. The Company manufactures and re-manufacturers oilfield service equipment, including hydraulic fracturing equipment, pressure pumping units, nitrogen pumping units, cementers, hydration equipment, mud pumps and blenders. The Company also manufactures and packages custom compressor systems, including electric motor driven systems, natural gas driven systems and industrial air systems, and manufactures natural gas General Motors and Isuzu diesel-powered engines for a range of applications from 40 to 500 horsepower. The Company is a dealer of Thermo K! ing refri! gerated systems for trucks, railroad cars and other land transportation markets in south and central Texas. The Company�� land-based customers include oilfield service providers, oil and gas operators and producers, compression companies, domestic utilities, on-highway transportation companies and companies associated with the agricultural markets.
Advisors' Opinion:- [By Aimee Duffy]
The role of the barge can't be underestimated. Barge receipts increased more than two percentage points year over year, and this is a great place for investors to look for opportunity. Companies with maritime resources benefit from this trend, as well as growth in exports. Three such companies that are worth a look are:
Kirby Corporation (NYSE: KEX ) , which operates 30% of the coastal tank barges in the U.S.� Oiltanking Partners (NYSE: OILT ) , which has storage capacity of 12.1 million barrels and six deepwater docks on the Houston Ship Channel Martin Midstream Partners (NASDAQ: MMLP ) , which operates a large fleet of inland barges and controls 31 marine terminals�These companies won't be the only winners, but they are a good place to start your research.
10 Best Transportation Stocks To Own Right Now: CSX Corporation (CSX)
CSX Corporation, together with its subsidiaries, provides rail-based transportation services. The company offers traditional rail service, and the transport of intermodal containers and trailers. It transports crushed stone, sand and gravel, metal, phosphate, fertilizer, food, consumer, agricultural, automotive, paper, and chemical products; and utility, industrial, and export coal to electricity-generating power plants, steel manufacturers, industrial plants, and deep-water port facilities. The company also provides intermodal transportation services through a network of approximately 50 terminals transporting manufactured consumer goods in containers in the eastern United States, as well as performs drayage services and trucking dispatch operations. In addition, it operates distribution centers and storage locations; connects non-rail served customers to the benefits of rail by transferring products, such as ethanol and minerals, from rail to trucks; engages in the real estate sale, leasing, acquisition, and management and development activities. CSX Corporation operates approximately 21,000 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as operates approximately 4,000 locomotives. It also serves production and distribution facilities through track connections to approximately 240 short-line and regional railroads. CSX Corporation was founded in 1978 and is based in Jacksonville, Florida.
Advisors' Opinion:- [By Ben Levisohn]
Coal stocks Alpha Natural Resources (ANR), Arch Coal (ACI) and�Peabody Energy�(BTU) are soaring today following China’s strong GDP reading and CSX Corp’s (CSX) solid earnings. FBR’s Mitesh Thakkar isn’t feeling too optimistic heading into earnings, however:
- [By Laura Brodbeck]
Tuesday
Earnings Expected From: Yahoo! Inc. (NASDAQ: YHOO), CSX Corporation (NYSE: CSX), Intel Corporation (NASDAQ: INTC), Johnson & Johnson (NYSE: JNJ), Coca-Cola Company (NYSE: KO) Economic Releases Expected: US trade balance, German ZEW economic sentiment, British CPI, French CPI, Japanese industrial productionWednesday
- [By Dan Caplinger]
On Tuesday, CSX (NYSE: CSX ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.
10 Best Transportation Stocks To Own Right Now: 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.
10 Best Transportation Stocks To Own Right Now: Kinder Morgan Inc (KMI)
Kinder Morgan, Inc. (KMI), incorporated on August 23, 2006, owns and manages a diversified portfolio of energy transportation and storage assets. The Company operates in five business segments: Products Pipelines-KPM, Natural Gas Pipelines-KMP, CO2-KMP, Terminals-KMP and Kinder Morgan Canada-KMP. The Company through Kinder Morgan Energy Partners, L.P. (KMP) operates or owns an interest in approximately 37,000 miles of pipelines and approximately 180 terminals. These pipelines transport natural gas, refined petroleum products, crude oil, carbon dioxide and other products, and its terminals store petroleum products and chemicals, and handle such products as ethanol, coal, petroleum coke and steel. The Company is a provider of carbon dioxide (CO2), for enhanced oil recovery projects in North America. On December 15, 2011, KMP acquired a refined petroleum products terminal located on a 14-acre site in Lorton, Virginia from Motiva Enterprises, LLC. On May 25, 2012, KMI acquired El Paso Corporation. In August 2012, Kinder Morgan Energy Partners, L.P. acquired Tennessee Gas Pipeline (TGP) and a 50% interest in El Paso Natural Gas (EPNG) pipeline from KMI.
NGPL PipeCo LLC consists of its 20% interest in NGPL PipeCo LLC, the owner of Natural Gas Pipeline Company of America LLC and certain affiliates (collectively NGPL), an interstate natural gas pipeline and storage system, which it operates. On November 30, 2011, KMP acquired certain natural gas treating assets from SouthTex Treaters, Inc. On July 1, 2011, KMP acquired from Petrohawk Energy Corporation both the remaining 50% ownership interest in KinderHawk Field Services LLC that KMP did not already own and a 25% equity ownership interest in EagleHawk Field Services LLC. As of December 31, 2011, its interests in KMP and its affiliates consisted of the general partner interest, which the Company holds through its ownership of the general partner of KMP and which entitles the Company to receive incentive distributions; 21.7 million of the 238.0 mi! llion outstanding KMP units, representing an approximately 6.4% limited partner interest, and14.1 million of KMP�� 98.5 million outstanding i-units, representing an approximately 4.2% limited partner interest, through its ownership of 14.1 million Kinder Morgan Management, LLC (KMR) . The Company�� subsidiaries include Kinder Morgan Kansas, Inc. (KMK) and Kinder Morgan Energy Partners, L.P. (KMP).
Products Pipelines-KMP
The segment consists of KMP�� refined petroleum products and natural gas liquids pipelines and their associated terminals, Southeast terminals, and its transmix processing facilities. Products Pipelines-KMP, which consists of approximately 8,400 miles of refined petroleum products pipelines that deliver gasoline, diesel fuel, jet fuel and natural gas liquids to various markets; plus approximately 60 associated product terminals and petroleum pipeline transmix processing facilities serving customers across the United States.
KMP�� West Coast Products Pipelines include the SFPP, L.P. operations (often referred to in this report as the Pacific operations), the Calnev pipeline operations, and the West Coast Terminals operations. The assets include interstate common carrier pipelines regulated by the FERC, intrastate pipelines in the state of California regulated by the California Public Utilities Commission, and certain non rate-regulated operations and terminal facilities. The Pacific operations serve six western states with approximately 2,500 miles of refined petroleum products pipelines and related terminal facilities that provide refined products to population centers in the United States, including California; Las Vegas and Reno, Nevada, and the Phoenix-Tucson, Arizona corridor. During the fiscal year ended February 22, 2012 (fiscal 2011), the Pacific operations��mainline pipeline system transported approximately 1,071,400 barrels per day of refined products, with the product mix being approximately 59% gasoline, 24% diesel fuel, and 17! % jet fue! l.
The Calnev pipeline system consists of two parallel 248-mile, 14-inch and eight-inch diameter pipelines that run from KMP�� facilities at Colton, California to Las Vegas, Nevada. The pipeline serves the Mojave Desert through deliveries to a terminal at Barstow, California and two railroad yards. It also serves Nellis Air Force Base, located in Las Vegas, and also includes approximately 55 miles of pipeline serving Edwards Air Force Base in California. During fiscal 2011, the Calnev pipeline system transported approximately 118,800 barrels per day of refined products, with the product mix being approximately 41% gasoline, 33% diesel fuel, and 26% jet fuel.
KMP owns approximately 51% of Plantation Pipe Line Company, the sole owner of the approximately 3,100-mile refined petroleum products Plantation pipeline system serving the southeastern United States. KMP operates the system pursuant to agreements with Plantation and its wholly-owned subsidiary, Plantation Services LLC. The Plantation pipeline system originates in Louisiana and terminates in the Washington, District of Columbia area. It connects to approximately 130 shipper delivery terminals throughout eight states and serves as a common carrier of refined petroleum products to various metropolitan areas, including Birmingham, Alabama; Atlanta, Georgia; Charlotte, North Carolina, and the Washington, District of Columbia area. An affiliate of ExxonMobil Corporation owns the remaining approximately 49% ownership interest, and ExxonMobil has historically been one of the shippers on the Plantation system both in terms of volumes and revenues. In fiscal 2011, Plantation delivered approximately 518,000 barrels per day of refined petroleum products, with the product mix being approximately 67% gasoline, 20% diesel fuel, and 13% jet fuel.
KMP owns 50% of Cypress Interstate Pipeline LLC, the sole owner of the Cypress pipeline system. KMP operates the system pursuant to a long-term agreement. The Cypress pipeline is a! n interst! ate common carrier natural gas liquids pipeline originating at storage facilities in Mont Belvieu, Texas and extending 104 miles east to a connection with Westlake Chemical Corporation, a petrochemical producer in the Lake Charles, Louisiana area. Mont Belvieu, located approximately 20 miles east of Houston, is a hub for natural gas liquids gathering, transportation, fractionation and storage in the United States. The Cypress pipeline system has a capacity of approximately 55,000 barrels per day for natural gas liquids. In fiscal 2011, the system transported approximately 45,000 barrels per day.
KMP�� Southeast terminal operations consist of 27 liquid petroleum products terminals located along the Plantation/Colonial pipeline corridor in the Southeastern United States. The marketing activities of the Southeast terminal operations are focused on the Southeastern United States from Mississippi through Virginia, including Tennessee. The primary function involves the receipt of petroleum products from common carrier pipelines, short-term storage in terminal tankage, and subsequent loading onto tank trucks. Combined, the Southeast terminals have a total storage capacity of approximately 9.1 million barrels. In fiscal 2011, these terminals transferred approximately 353,000 barrels of refined products per day and together handled 9.2 million barrels of ethanol.
KMP�� Transmix operations include the processing of petroleum pipeline transmix, a blend of dissimilar refined petroleum products that have become co-mingled in the pipeline transportation process. During pipeline transportation, different products are transported through the pipelines abutting each other, and generate a volume of different mixed products called transmix. KMP processes and separates pipeline transmix into pipeline-quality gasoline and light distillate products at six separate processing facilities located in Colton, California; Richmond, Virginia; Dorsey Junction, Maryland; Indianola, Pennsylvania; Wood Riv! er, Illin! ois; and Greensboro, North Carolina. Combined, KMP�� transmix facilities processed approximately 10.6 million barrels of transmix in 2011.
Natural Gas Pipelines-KMP
Natural Gas Pipelines-KMP, which consists of approximately 16,200 miles of natural gas transmission pipelines and gathering lines, plus natural gas storage, treating and processing facilities, through which natural gas is gathered, transported, stored, treated, processed and sold. The Natural Gas Pipelines-KMP business segment contains both interstate and intrastate pipelines. Its primary businesses consist of natural gas sales, transportation, storage, gathering, processing and treating. Within this segment, KMP owns approximately 16,200 miles of natural gas pipelines and associated storage and supply lines that are strategically located at the center of the North American pipeline grid. KMP�� transportation network provides access to the gas supply areas in the western United States, Texas and the Midwest, as well as consumer markets.
KMP�� subsidiary, Kinder Morgan Treating, L.P., owns and operates (or leases to producers for operation) treating plants that remove impurities (such as carbon dioxide and hydrogen sulfide) and hydrocarbon liquids from natural gas before it is delivered into gathering systems and transmission pipelines to ensure that it meets pipeline quality specifications. Additionally, its subsidiary KM Treating Production LLC designs, constructs, and sells custom and stock natural gas treating plants. Combined, KMP�� rental fleet of treating assets include approximately 213 natural gas amine-treating plants, approximately 56 hydrocarbon dew point control plants, and more than 140 mechanical refrigeration units that are used to remove impurities and hydrocarbon liquids from natural gas streams prior to entering transmission pipelines.
KinderHawk Field Services LLC gathers and treats natural gas in the Haynesville shale gas formation located in northwest Louisiana.! Its asse! ts consist of more than 450 miles of natural gas gathering pipeline in service, with average throughput of approximately 1.1 billion cubic feet per day of natural gas. Additionally, the system�� natural gas amine treating plants have a capacity of approximately 2,600 gallons per minute. During 2011, KinderHawk executed firm gathering and treating agreements with a third-party producer for the long-term of five sections. KinderHawk also holds additional third-party gas gathering and treating commitments. In total, these contracts provide for the dedication of 36 sections, from four shippers, for 3 to 10 years. EagleHawk Field Services LLC provides natural gas gathering and treating services in the Eagle Ford shale formation in South Texas.
KMP owns a 40% interest in Endeavor Gathering LLC, which provides natural gas gathering service to GMX Resources��exploration and production activities in its Cotton Valley Sands and Haynesville/Bossier Shale horizontal well developments located in East Texas. GMX Resources, Inc. operates and owns the remaining 60% ownership interest in Endeavor Gathering LLC. Endeavor�� gathering system consists of over 100 miles of gathering lines and 25,000 horsepower of compressors that collect and compress natural gas from GMX Resources��operated natural gas production from wells located in its core area. The natural gas gathering system has takeaway capacity of approximately 115 million cubic feet per day. KMP owns a 50% equity interest in Eagle Ford Gathering LLC, which provides natural gas gathering, transportation and processing services to natural gas producers in the Eagle Ford shale gas formation in south Texas.
KMP�� Natural Gas Pipelines��upstream operations consist of its Casper and Douglas, Wyoming natural gas processing operations and its 49% ownership interest in the Red Cedar Gas Gathering Company. KMP owns and operates its Casper and Douglas, Wyoming natural gas processing plants, and combined, these plants have the capacity ! to proces! s up to 185 million cubic feet per day of natural gas depending on raw gas quality. Casper and Douglas are the natural gas processing plants, which provide straddle processing of natural gas flowing into KMP�� Kinder Morgan Interstate Gas Transmission LLC pipeline system. KMP also owns the operations of a carbon dioxide/sulfur treating facility located in the West Frenchie Draw field of the Wind River Basin of Wyoming, and includes this facility as part of its Casper and Douglas operations. The West Frenchie Draw treating facility has a capacity of 50 million cubic feet per day of natural gas.
KMP owns a 49% interest in the Red Cedar Gathering Company (Red Cedar). Red Cedar owns and operates natural gas gathering, compression and treating facilities in the Ignacio Blanco Field in La Plata County, Colorado. The remaining 51% interest in Red Cedar is owned by the Southern Ute Indian Tribe. Red Cedar�� natural gas gathering system consists of approximately 750 miles of gathering pipeline connecting more than 900 producing wells, 104,600 horsepower of compression at 22 field compressor stations and three carbon dioxide treating plants. The capacity and throughput of the Red Cedar gathering system is approximately 600 million cubic feet per day of natural gas.
KMP�� subsidiary, TransColorado Gas Transmission Company LLC (TransColorado), owns a 300-mile interstate natural gas pipeline that extends from approximately 20 miles southwest of Meeker, Colorado to the Blanco Hub near Bloomfield, New Mexico. KMP operates and owns 50% of the 1,679-mile Rockies Express natural gas pipeline system, a natural gas pipelines constructed in North America. The Rockies Express system consists of three pipeline segments: a 327-mile pipeline that extends from the Meeker Hub in northwest Colorado, across southern Wyoming to the Cheyenne Hub in Weld County, Colorado, a 713-mile pipeline from the Cheyenne Hub to an interconnect in Audrain County, Missouri and a 639-mile pipeline from Audrain Count! y, Missou! ri to Clarington, Ohio. KMP�� ownership is through its 50% equity interest in Rockies Express Pipeline LLC, the sole owner of the Rockies Express pipeline system. Sempra Pipelines & Storage, a unit of Sempra Energy, and ConocoPhillips each own 25% of Rockies Express Pipeline LLC.
The Rockies Express pipeline system is powered by 18 compressor stations totaling approximately 427,000 horsepower. The system is capable of transporting two billion cubic feet per day of natural gas from Meeker, Colorado to the Cheyenne Market Hub in northeastern Colorado and 1.8 billion cubic feet per day from the Cheyenne Hub to the Clarington Hub in Monroe County in eastern Ohio. Capacity on the Rockies Express system is contracted under 10 year firm service agreements with producers from the Rocky Mountain supply basin. These agreements provide the pipeline with fixed monthly reservation revenues for the primary term of such contracts through 2019, with the exception of one agreement representing approximately 10% of the pipeline capacity that grants a shipper the one-time option to terminate effective late 2014. With its connections to numerous other pipeline systems along its route, the Rockies Express system has access to almost all of the gas supply basins in Wyoming, Colorado and eastern Utah. Rockies Express is capable of delivering gas to multiple markets along its pipeline system, primarily through interconnects with other interstate pipeline companies and direct connects to local distribution companies.
KMP�� Central interstate natural gas pipeline group, which operates primarily in the Mid-Continent region of the United States, consists of four natural gas pipeline systems: Trailblazer Pipeline, Kinder Morgan Louisiana Pipeline, KMP�� 50% ownership interest in the Midcontinent Express Pipeline and KMP�� 50% ownership interest in the Fayetteville Express Pipeline. KMP�� subsidiary, Trailblazer Pipeline Company LLC (Trailblazer), owns the 436-mile Trailblazer natural gas pipelin! e system.! The Trailblazer pipeline system originates at an interconnection with Wyoming Interstate Company Ltd.�� pipeline system near Rockport, Colorado and runs through southeastern Wyoming to a terminus near Beatrice, Nebraska where it interconnects with NGPL�� and Northern Natural Gas Company�� pipeline systems. NGPL manages, maintains and operates the Trailblazer system for KMP, for which it is reimbursed at cost. Trailblazer offers its customers firm and interruptible transportation, and in 2011, it transported an average of approximately 717 million cubic feet per day of natural gas.
KMP�� subsidiary, Kinder Morgan Louisiana Pipeline LLC owns the Kinder Morgan Louisiana natural gas pipeline system. KMP owns a 50% interest in Midcontinent Express Pipeline LLC, the sole owner of the approximate 500-mile Midcontinent Express natural gas pipeline system. KMP also operates the Midcontinent Express pipeline system. Regency Midcontinent Express LLC owns the remaining 50% ownership interest. The Midcontinent Express pipeline system originates near Bennington, Oklahoma and extends eastward through Texas, Louisiana, and Mississippi, and terminates at an interconnection with the Transco Pipeline near Butler, Alabama. It interconnects with numerous pipeline systems and provides an important infrastructure link in the pipeline system moving natural gas supply from newly developed areas in Oklahoma and Texas into the United States��eastern markets. The pipeline system is comprised of approximately 30-miles of 30-inch diameter pipe, 275-miles of 42-inch diameter pipe and 197-miles of 36-inch diameter pipe. Midcontinent Express also has four compressor stations and one booster station totaling approximately 144,500 horsepower. It has two rate zones: Zone 1 (which has a capacity of 1.8 billion cubic feet per day) beginning at Bennington and extending to an interconnect with Columbia Gulf Transmission near Delhi, in Madison Parish Louisiana and Zone 2 (which has a capacity of 1.2 billion cubic feet ! per day) ! beginning at Delhi and terminating at an interconnection with Transco Pipeline near the town of Butler in Choctaw County, Alabama. Capacity on the Midcontinent Express system is 99% contracted under long-term firm service agreements that expire between 2012 and 2021. The ity of volume is contracted to producers moving supply from the Barnett shale and Oklahoma supply basins.
CO2-KMP
The CO2-KMP business segment consists of Kinder Morgan CO2 Company, L.P. and its consolidated affiliates, (collectively referred to KMCO2). The CO2-KMP business segment produces, transports, and markets carbon dioxide for use in enhanced oil recovery projects as a flooding medium for recovering crude oil from mature oil fields. CO2-KMP, which produces, markets and transports, through approximately 2,000 miles of pipelines, carbon dioxide to oil fields that use carbon dioxide to increase production of oil; owns interests in and/or operates eight oil fields in West Texas; and owns and operates a 450-mile crude oil pipeline system in West Texas
KMCO2 holds ownership interests in oil-producing fields located in the Permian Basin of West Texas, including an approximate 97% working interest in the SACROC unit; an approximate 50% working interest in the Yates unit; an approximate 21% net profits interest in the H.T. Boyd unit; an approximate 65% working interest in the Claytonville unit; an approximate 99% working interest in the Katz Strawn unit, and lesser interests in the Sharon Ridge unit, the Reinecke unit and the MidCross unit.
KMCO2 operates and owns an approximate 65% gross working interest in the Claytonville oil field unit and operates and owns an approximate 99% working interest in the Katz Strawn unit, both located in the Permian Basin area of West Texas. The Claytonville unit is located approximately 30 miles east of the SACROC unit, in Fisher County, Texas. The unit produced approximately 200 gross barrels of oil per day during 2011 (100 net barrels to KMCO2! per day)! . During 2011, the Katz Strawn unit produced approximately 500 barrels of oil per day (400 net barrels to KMCO2 per day). In 2011, the average purchased carbon dioxide injection rate at the Katz Strawn unit was 46 million cubic feet per day.
KMCO2 operates and owns an approximate 22% working interest plus an additional 28% net profits interest in the Snyder gasoline plant. KMCO2 also operates and owns a 51% ownership interest in the Diamond M gas plant and a 100% ownership interest in the North Snyder plant, all of which are located in the Permian Basin of West Texas. The Snyder gasoline plant processes natural gas produced from the SACROC unit and neighboring carbon dioxide projects, specifically the Sharon Ridge and Cogdell units, all of which are located in the Permian Basin area of West Texas. The Diamond M and the North Snyder plants contract with the Snyder plant to process natural gas. Production of natural gas liquids at the Snyder gasoline plant during 2011 averaged approximately 16,600 gross barrels per day (8,300 net barrels to KMCO2 per day excluding the value associated to KMCO2�� 28% net profits interest).
KMCO2 owns approximately 45% of, and operates, the McElmo Dome unit in Colorado, which contains more than 6.6 trillion cubic feet of recoverable carbon dioxide. It also owns approximately 87% of, and operates, the Doe Canyon Deep unit in Colorado, which contains more than 870 billion cubic feet of carbon dioxide. For both units combined, compression capacity exceeds 1.4 billion cubic feet per day of carbon dioxide and during 2011, the two units produced approximately 1.25 billion cubic feet per day of carbon dioxide. KMCO2 also owns approximately 11% of the Bravo Dome unit in New Mexico. The Bravo Dome unit contains more than 800 billion cubic feet of recoverable carbon dioxide and produced approximately 300 million cubic feet of carbon dioxide per day in 2011. As a result of KMP�� 50% ownership interest in Cortez Pipeline Company, it owns a 50% equity inter! est in an! d operates the approximate 500-mile Cortez pipeline. The pipeline carries carbon dioxide from the McElmo Dome and Doe Canyon source fields near Cortez, Colorado to the Denver City, Texas hub. The Cortez pipeline transports over 1.2 billion cubic feet of carbon dioxide per day. The tariffs charged by the Cortez pipeline are not regulated, but are based on a consent decree.
KMCO2 also owns a 13% undivided interest in the 218-mile, Bravo pipeline, which delivers carbon dioxide from the Bravo Dome source field in northeast New Mexico to the Denver City hub and has a capacity of more than 350 million cubic feet per day. Tariffs on the Bravo pipeline are not regulated. Occidental Petroleum (81%) and XTO Energy (6%) hold the remaining ownership interests in the Bravo pipeline. In addition, KMCO2 owns approximately 98% of the Canyon Reef Carriers pipeline and approximately 69% of the Pecos pipeline. The Canyon Reef Carriers pipeline extends 139 miles from McCamey, Texas, to the SACROC unit in the Permian Basin. The pipeline has a capacity of approximately 270 million cubic feet per day and makes deliveries to the SACROC, Sharon Ridge, Cogdell and Reinecke units. The Pecos pipeline is a 25-mile pipeline that runs from McCamey to Iraan, Texas. It has a capacity of approximately 120 million cubic feet per day and makes deliveries to the Yates unit. The tariffs charged on the Canyon Reef Carriers and Pecos pipelines are not regulated.
Terminals-KMP
The Terminals-KMP business segment includes the operations of KMP�� petroleum, chemical and other liquids terminal facilities (other than those included in the Products Pipelines-KMP business segment) and all of its coal, petroleum coke, fertilizer, steel, ores and other dry-bulk material services facilities, including all transload, engineering, conveying and other in-plant services. Combined, the segment is composed of approximately 115 owned or operated liquids and bulk terminal facilities and approximately 35 rail transloadin! g and mat! erials handling facilities. The terminals are located throughout the United States and in portions of Canada.
KMP�� liquids terminals operations primarily store refined petroleum products, petrochemicals, ethanol, industrial chemicals and vegetable oil products in aboveground storage tanks and transfer products to and from pipelines, vessels, tank trucks, tank barges, and tank railcars. Combined, KMP�� approximately 25 liquids terminals facilities possess liquids storage capacity of approximately 60.2 million barrels, and in 2011, these terminals handled approximately 616 million barrels of liquids products, including petroleum products, ethanol and chemicals. KMP�� bulk terminal operations primarily involve dry-bulk material handling services. KMP also provides conveyor manufacturing and installation, engineering and design services, and in-plant services covering material handling, conveying, maintenance and repair, truck-railcar-marine transloading, railcar switching and miscellaneous marine services. KMP owns or operates approximately 90 dry-bulk terminals in the United States and Canada, and combined, its dry-bulk and material transloading facilities handled approximately 100.6 million tons of coal, petroleum coke, fertilizers, steel, ores and other dry-bulk materials in 2011.
Kinder Morgan Canada-KMP
The Kinder Morgan Canada-KMP business segment includes the Trans Mountain pipeline system, KMP�� ownership of a one-third interest in the Express pipeline system, and the 25-mile Jet Fuel pipeline system. The Trans Mountain pipeline system originates at Edmonton, Alberta and transports crude oil and refined petroleum products to destinations in the interior and on the west coast of British Columbia. Trans Mountain�� pipeline is 715 miles in length. KMP also owns a connecting pipeline that delivers crude oil to refineries in the state of Washington. The capacity of the line at Edmonton ranges from 300,000 barrels per day when heavy crude represents 20% ! of the to! tal throughput (which is a historically normal heavy crude percentage), to 400,000 barrels per day with no heavy crude. Trans Mountain is the sole pipeline carrying crude oil and refined petroleum products from Alberta to the west coast.
In 2011, Trans Mountain delivered an average of 274,000 barrels per day. The crude oil and refined petroleum products transported through Trans Mountain�� pipeline system originates in Alberta and British Columbia. The refined and partially refined petroleum products transported to Kamloops, British Columbia and Vancouver originates from oil refineries located in Edmonton. Petroleum products delivered through Trans Mountain�� pipeline system are used in markets in British Columbia, Washington State and elsewhere offshore. Trans Mountain also operates a 5.3 mile spur line from its Sumas Pump Station to the United States.-Canada international border where it connects with KMP�� approximate 63-mile, 16-inch to 20-inch diameter Puget Sound pipeline system. The Puget Sound pipeline system in the state of Washington has a sustainable throughput capacity of approximately 135,000 barrels per day when heavy crude represents approximately 25% of throughput, and it connects to four refineries located in northwestern Washington State. The volumes of crude oil shipped to the state of Washington fluctuate in response to the price levels of Canadian crude oil in relation to crude oil produced in Alaska and other offshore sources.
NGPL PipeCo LLC
The Company owns a 20% interest in NGPL PipeCo LLC and account for its interest as an equity method investment. The Company continues to operate NGPL PipeCo LLC�� assets pursuant to an operations and reimbursement agreement effective through February 15, 2023. NGPL PipeCo LLC owns a interstate gas pipeline and storage system consisting primarily of two interconnected natural gas transmission pipelines terminating in the Chicago, Illinois metropolitan area. NGPL�� Amarillo Line originates in th! e West Te! xas and New Mexico producing areas and is comprised of approximately 4,400 miles of mainline and various small-diameter pipelines. Its other pipeline, the Gulf Coast Line, originates in the Gulf Coast areas of Texas and Louisiana and consists of approximately 4,100 miles of mainline and various small-diameter pipelines. These two main pipelines are connected at points in Texas and Oklahoma by NGPL�� approximately 800-mile Amarillo/Gulf Coast pipeline.
NGPL is a natural gas storage operator with approximately 600 billion cubic feet of total natural gas storage capacity, approximately 278 billion cubic feet of working gas capacity and over 4.3 billion cubic feet per day of peak deliverability from its storage facilities, which are located in supply areas and near the markets it serves. NGPL owns and operates 13 underground storage reservoirs in eight field locations in four states. These storage assets complement its pipeline facilities and allow it to optimize pipeline deliveries and meet peak delivery requirements in its principal markets.
Advisors' Opinion:- [By Robert Rapier]
It may seem a bit ironic, but on the day that the National Climate Assessment report was released, the Standard & Poor�� Energy Index reached a new record high. This index of 44 companies includes major energy names like ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), ConocoPhillips (NYSE: COP), Halliburton (NYSE: HAL), Kinder Morgan (NYSE: KMI), Peabody (NYSE: BTU) and Valero (NYSE: VLO). All of the companies in the index produce or enable the production of fossil fuels, which end up as carbon dioxide in the atmosphere.
10 Best Transportation Stocks To Own Right Now: SEACOR Holdings Inc (CKH)
SEACOR Holdings Inc, incorporated on November 7, 1989, is a global provider of equipment and services primarily supporting the offshore oil and gas and marine transportation industries. The Company offers customers a diversified suite of services, including offshore marine, aviation, inland river, marine transportation, crisis and emergency management preparedness and response solutions, commodity trading and logistics and offshore and harbor towing. On March 19, 2012, J.F. Lehman & Company acquired National Response Corporation and its affiliated businesses NRC Environmental Services, SEACOR Response, and SEACOR Environmental Products (collectively NRC) from the Company. In January 2013, the Company sold its energy trading division, SEACOR Energy Inc. to Par Petroleum Corporation. On January 31, 2013, it completed the spin off its Era Group Inc unit (Era).
Offshore Marine Services
The Company�� Marine operates a diversified fleet of vessels, servicing the offshore oil and gas exploration, development, and production industry worldwide.The Company�� marine provides its customers with the assembly of offshore vessel services in the global offshore oil and gas industry, including transport of personnel, platform supply, offshore accommodation, intervention, maintenance and repair support, standby safety services, anchor handling and mooring services, wind farm support, lift boat services, offshore construction support, well enhancement support, and lightering services.
Aviation Services
The Company�� aviation services subsidiary, Era Group (Era), is the helicopter operators globally. ra supports the oil and gas industry in the United States Gulf of Mexico, Alaska, and internationally. Era provides air medical services, firefighting support, flightseeing tours in Alaska, and Search and Rescue and Emergency Medical Services. Era's affiliate, Era Training Center, offers flight training services. Era also markets and distributes specialty helicopter! equipment and accessories.
Inland River Services
The Company�� Inland River Services group owns and operates modern river transportation equipment; owns covered and open hopper barges, 10,000 and 30,000 barrel tank barges, deck barges, inland river towboats and smaller harbor boats; and provides ancillary services along the United States Inland River Waterways and the Parana-Paraguay and the Magdalena River Systems in South America. SCF Marine operates a fleet of hopper barges along the United States Inland River Waterways and South America, transporting agricultural, industrial, and project cargoes. The liquid division, Supercritical Fluid (SCF) Liquids, is a integrated towboat and tank barge company, specializing in the transportation of chemical, clean, and dirty products. Gateway Terminals is among the newest ethanol and petroleum storage terminals on the Mississippi River, with a capacity of 400,000 barrels and the ability to receive and transfer products by barge, unit train, and truck.
Marine Transportation Services
The Company�� ocean shipping and harbor towing subsidiary, SEACOR Ocean Transport, is an owner and operator of equipment engaged in oil transportation, bunkering, harbor towing, Liquefied Natural Gas (LNG) terminal support, short sea shipping and logistics, and third-party ship management services. Through all aspects of its operations, SEACOR Ocean Transport focuses to provide its customers with marine transportation solutions.
Commodity Trading and Logistics
The Company�� Commodity Trading and Logistics group specializes in the purchase, storage, transportation, and sale of agricultural and energy commodities, which include renewable fuels, blendstocks, sugar, rice, and salt. The Agricultural group is primarily focused on the global sourcing and logistics of sugar, rice, salt, and other dry bulk products. The Energy group is primarily focused on the domestic trading and transportation of physical e! thanol an! d clean blendstocks.
Harbor and Offshore Towing Services
The Company�� ocean shipping and harbor towing subsidiary, SEACOR Ocean Transport, is an operator of equipment engaged in oil transportation, bunkering, harbor towing, LNG terminal support, short sea shipping and logistics, and third-party ship management services. The harbor towing services group, Seabulk Towing, is a tugboat operator with operations along the Gulf Coast and Southeastern seaboard port system from Cape Canaveral, Florida, to Port Arthur, Texas. Seabulk Island Transport owns and operates four ocean tugs and five ocean liquid tank barges.
Advisors' Opinion:- [By Seth Jayson]
Margins matter. The more Seacor Holdings (NYSE: CKH ) keeps of each buck it earns in revenue, the more money it has to invest in growth, fund new strategic plans, or (gasp!) distribute to shareholders. Healthy margins often separate pretenders from the best stocks in the market. That's why we check up on margins at least once a quarter in this series. I'm looking for the absolute numbers, so I can compare them to current and potential competitors, and any trend that may tell me how strong Seacor Holdings's competitive position could be.
- [By Traders Reserve]
For investors who want a piece of this developing trend, Transocean and Seadrill are two of the bigger players in this arena. Other offshore drillers/rig operators are Noble (NE) and Ensco (ESV). Companies that provide services to offshore drillers and benefit from increases in exploration and drilling activity are Gulfmark Offshore (GLF), Hornbeck (HOS), Seacor (CKH) and Tidewater (TDW).
10 Best Transportation Stocks To Own Right Now: CAI International Inc (CAP)
CAI International, Inc., incorporated on January 30, 2007, is a equipment leasing and management company, operating primarily in the international intermodal marine cargo container leasing business. The Company also owns a fleet of railcars, which it leases in North America. The Company operates in two segments: equipment leasing and equipment management. The equipment leasing segment specializes primarily in the ownership and leasing of intermodal containers, while the equipment management segment manages equipment for third-party investors. The Company leases its equipment principally to international container shipping lines located throughout the world. The Company sells equipment primarily to third-party investor groups and provides management services to those investors in return for a management fee.
The equipment leasing segment derives its revenue primarily from the ownership and leasing of containers to container shipping lines and freight forwarders. The equipment management segment derives its revenue from management fees earned from portfolios of equipment and associated leases which are managed on behalf of third-party investors. As of March 31, 2013, our fleet consisted of 1,091,117 twenty-foot equivalent units (TEUs) of containers and 1,453 railcars.
Advisors' Opinion:- [By Sarah Jones]
SAP AG (SAP) climbed 1.2 percent to 57.36 euros and Cap Gemini SA (CAP) gained 1.8 percent to 39.95 euros as peer Infosys Ltd. surged the most in six months in Mumbai trading after first-quarter profit rose and the company�� sales forecast in dollar terms beat analyst estimates.
- [By CRWE]
CAI International, Inc. (NYSE:CAP), a leading lessor of intermodal container, reported that its Senior Vice President and Chief Financial Officer, Timothy Page, is scheduled to present at the Dahlman Rose Global Transportation Conference in New York on Thursday, September 6, 2012 at 12:20 p.m. ET.
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