September 03, 2012 [Forbes] - Oiltanking Partners hit a 52-week high of $38.75 on August 29, following strong second quarter results that included an 11% earnings surprise.
With an impressive year-to-date return of 31%, distribution coverage of 1.42x and a triple-digit earnings growth expectation for 2012, this Zacks #1 Rank (Strong Buy) provider of oil and refined products storage services is poised for further upside.
Formed in March 2011, Oiltanking Partners is engaged in the terminaling, storage and transportation of crude oil, refined petroleum products and liquefied petroleum gas. Notably, its terminal assets are located along the upper Gulf Coast of the U.S. on the Houston Ship Channel and in Beaumont, Texas.
This Master Limited Partnership’s facilities are directly linked to refineries and storage and production facilities along the upper Gulf Coast area via pipelines to end markets along the Gulf Coast and to the Cushing storage hub in Oklahoma.
The partnership remains positive on its crude storage expansion and pipeline projects. Notably, with its storage capacity fully contracted, Oiltanking’s $200 million crude oil storage and pipeline projects in the Gulf Coast should be solid growth drivers.
