logo
  Join        Login             Stock Quote

Nustar: Rising Star Among Mlps

 May 02, 2012 11:45 AM
 


by Brian Hicks, editor Wealth Advisory

NuStar Energy (NS), our income stock of the month, is based in Houston, but its business interests range from Texas to the Netherlands and Turkey.

This relative unknown MLP is focused on oil and transportation operations via pipelines. The company buys refined oil products like gasoline and resells them; it also refines crude oil into asphalt and other refined products.

NuStar also has oil storage facilities. As of December 31, 2011, the company had 66 terminals and storage facilities, with 84.6 million barrels of storage capacity.

NuStar owns 5,480 miles of refined product pipelines in Texas, Oklahoma, Colorado, New Mexico, Kansas, Nebraska, Iowa, South Dakota, North Dakota, and Minnesota – and 940 miles of crude oil pipelines... plus it has two asphalt refineries and a fuels refinery.

In total, NuStar has 8,417 miles of pipeline and can store 98 million barrels of oil. NuStar was founded in 1999. But best of all for investors, the company has raised its distributions to shareholders for 11 years running.

In 2011, the distribution was $4.74 a share, up from $4.43 a share in 2010. With that type of growth, NuStar is an excellent choice for the dividend investor. What's more, the stock appears undervalued, as it trades at just 0.6 times revenue.

The company can be expected to grow earnings at roughly 10% a year, so the forward P/E of does not look expensive, either.

For a 12-month price target on NuStar, we will take the conservative route and simply project the current earnings onto next year's projected earnings.

That gives a 12-month price target of $67, which is 17% above the current price. And if you add in the dividend, we're talking about a 24% total gain over the next 12 months. 

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageFord Motor Company (F) Q2 Earnings Preview: Light on the Top Line?

Ford Motor Company (NYSE:F) will release its preliminary second quarter 2014 results at 6:30 a.m. EDT read on...

article imageTripadvisor Inc. (TRIP) Q2 Earnings Preview: On Target Enough?

Tripadvisor Inc. (NASDAQ:TRIP) will release its second quarter financial results after market close on read on...

article imageFacebook Inc. (FB) Q2 Earnings Preview: Scoring Big on the World Cup

Facebook Inc. (NASDAQ:FB) will post its second-quarter 2014 financial results after the market close on read on...

article imageThe Boeing Company (BA) Q2 Earnings Preview: Durable Earnings Beater

The Boeing Company (NYSE:BA) will publish its second-quarter financial results before the open of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.