Top 5 Transportation Companies To Invest In 2016

Top 5 Transportation Companies To Invest In 2016: Oiltanking Partners LP (OILT)

Oiltanking Partners, L.P. (OTLT) is engaged in the terminaling, storage and transportation of crude oil, refined petroleum products and liquefied petroleum gas. Through its wholly owned subsidiaries, Oiltanking Houston, L.P. (OTH) and Oiltanking Beaumont Partners, L.P. (OTB), the Company owns and operates storage and terminaling assets located along the Gulf Coast of the United States on the Houston, Texas Ship Channel and in Beaumont, Texas. Its Houston and Beaumont terminals provides deep-water access and interconnectivity to refineries, chemical and petrochemical companies, carrier and pipelines and production facilities and have international distribution capabilities. Its facilities are directly connected to 18 refineries, storage facilities and production facilities along the Gulf Coast area through pipelines and common carrier pipelines, to end markets along the Gulf Coast and to the Cushing, Oklahoma storage interchange.

Houston Terminal

T he Company operates third-party crude oil and refined petroleum products terminals on the Houston Ship Channel. Its facility has an aggregate active storage capacity of approximately 11.7 million barrels and provides integrated terminaling services to a variety of customers, including integrated oil companies, marketers, distributors and chemical companies. The principal products handled at its Houston terminal complex are crude oil, the inputs for chemical production (such as naphtha and condensate), which are referred to as chemical feedstocks, liquefied petroleum gas and clean petroleum products, such as gasoline and distillates, with crude oil accounting for approximately 64% of its active storage capacity.

The Company's storage and distribution network is integrated with the Houston petrochemical and refining complex. The facili! ty handles products through a number of transportation modes, primarily through pipelines interconnected to local refineries and production facilities, including Houston Refining's refine! ry in Pasadena, Texas, PRSI's refinery in Pasadena, Texas, ExxonMobil's refinery in Baytown, Texas, which is a refinery in the United States. Its Houston terminal also handles products through third-party crude oil, refined petroleum products and liquified petroleum gas tankers and barges arriving at its deep-water docks. Its waterfront capabilities consists of six deep-water ship docks, allowing for the dockage of vessels with up to 130,000 deadweight tons (dwt), of cargo and vessel capacity, and two barge docks, allowing for barges with up to 20,000 dwt of cargo and barge capacity. Its deep-water ship docks can accommodate vessels with up to a 45 foot draft, including Suezmax tankers, which can navigate the Houston Ship Channel. During the year ended December 31, 2011 (during 2011), the Company generated 22% of its Houston terminal revenues from throughput fees charged to non-storage customers.

The Company's real property at its Houston terminal consists of approximately 327 acres, including 63 acres of nearby parcels that could be connected to its Houston terminal through existing owned rights-of-way. The Company owns approximately 24 acres at the Crossroads Interchange approximately six miles from its Houston terminal.

Beaumont Terminal

The Company's Beaumont terminal serves as a regional strategic and trading hub for vacuum gas oil and clean petroleum products for refineries located in the upper Gulf Coast region. Its facility has an aggregate active storage capacity of approximately 5.6 million barrels and provides integrated terminaling services to a variety of customers, including integrated oil companies, distributors, marketers and chemical and petrochemical companies. The principal products handled at its Beaumont terminal complex are refined petroleum p! roducts, ! which accounted for approximately 99% of its active storage capacity as of December 31, 2011.

The Company's sto rage and distribution network is integrated with the Beaumon! t/Port Ar! thur petrochemical and refining complex, and provides its customers with the additional services of mixing, blending, heating and marine vapor recovery. Its Beaumont facility handles products through a number of transportation modes, primarily through third-party pipelines interconnected to local refineries and production facilities, through its own pipeline system to Huntsman's chemical production facility in Port Neches, and through third-party crude and refined products tankers and barges arriving at its deep-water docks. Its waterfront capabilities consist of two deep-water ship docks, allowing for the dockage of vessels with up to 130,000 dwt of cargo and vessel capacity and drafts of up to 40 feet, and two barge docks, allowing for barges with up to 20,000 dwt of cargo and barge capacity and drafts of up to 12 feet.

Operations

The Company provides integrated terminaling, storage, pipeline and related services for third-party companies engage d in the production, distribution and marketing of crude oil, refined petroleum products and liquefied petroleum gas. The Company generates its revenues through the provision of fee-based services to its customers. During 2011, it generated approximately 75% of its revenues from fixed monthly fees for storage services, which its customers pay to reserve storage space in its tanks and to compensate the Company for receiving an agreed upon average periodic amount of product volume, or throughput, on their behalf.

Advisors' Opinion:

• [By Richard Stavros]

  The good news is that midstream MLPs are already part of the crude-by-rail story and will likely be part of the growing gas-by-rail story. Indeed, there are numerous names in the MLP space with at least some exposure to the crude-by-rail trend, including�! �Enterpri! se Products Partners LP (NYSE: EPD), Kinder Morgan Energy Partners LP (NYSE: KMP), Genesis Energy LP (NYSE: GEL), and Oiltanking Partners LP (NYSE: OILT), among others. Barclays estimates that MLPs have already invested $2 billion in railroad terminals, including acquisitions.

• [By Jake L'Ecuyer]

  Equities Trading DOWN
  Shares of Oiltanking Partners LP (NYSE: OILT) were down 7.23 percent to $59.79 after the company priced an offering of 2.6 million common units.

source from Top Stocks For 2015:http://www.topstocksblog.com/top-5-transportation-companies-to-invest-in-2016.html