Global Partners to Buy Ethanol Plant - Analyst Blog
January 29 2013 - 12:12PM
Zacks
Petroleum products distributor Global Partners
L.P. (GLP) has agreed to acquire 100% stake in a crude oil
and ethanol facility near Portland, Oregon from a subsidiary of
construction company JH Kelly Holdings LLC. The transaction, valued
at $95 million, is expected to close by Mar 31, 2013.
As per the deal, Global Partners would get a rail loading/unloading
facility, up to 200,000 barrels of storage capacity, a marine
terminal with deepwater berths, a 1,200-foot long dock, apart from
West Coast’s biggest ethanol plant located along the Columbia River
in Clatskanie, Oregon.
The transaction will allow Global Partners to expand its
distribution network by transporting low cost crude and ethanol to
operators on the West Coast.
Waltham, Massachusetts-based Global Partners L.P. is a publicly
traded master limited partnership that distributes refined
petroleum products to customers in the northeastern U.S. It
possesses one of the largest networks of refined petroleum
terminals in the region. Additionally, Global Partners supplies
fuel to approximately 800 retail gas stations in nine northeastern
states.
Global Partners – which entered into a five-year oil transportation
and logistics agreement with refiner Phillips 66
(PSX) earlier this month – currently retains a Zacks Rank #1
(Strong Buy), implying that it is expected to significantly
outperform the broader U.S. equity market over the next one to
three months.
Not often does one find a stock with big earnings growth and a high
yield. But in the case of Global Partners, an estimated long-term
earnings growth projection of 47% coalesces with a 7%
distribution.
Presently trading near its 52-week high, units of this #1 Ranked
partnership have climbed more than 25% during the past month. With
accretive acquisitions, incremental growth projects and a PEG ratio
of less than 1.0, Global Partners looks like a solid aggressive
play with a potential for further upside.
In addition to Global Partners, there are certain other downstream
energy operators like Northern Tier Energy L.P.
(NTI) and CVR Energy Inc. (CVI) that offer value
and are worth buying now. Both these firms sport a Zacks Rank #1
(Strong Buy).
CVR ENERGY INC (CVI): Free Stock Analysis Report
GLOBAL PARTNERS (GLP): Free Stock Analysis Report
NORTHERN TIER (NTI): Free Stock Analysis Report
PHILLIPS 66 (PSX): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Northern Tech (AMEX:NTI)
Historical Stock Chart
From Jul 2024 to Aug 2024
Northern Tech (AMEX:NTI)
Historical Stock Chart
From Aug 2023 to Aug 2024