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4 Energy Logistics Players to Move Into

Getting that oil and gas where it's needed is a profitable business

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NuStar Energy (NYSE: NS)NuStar Energy (NYSE:NS) is a San Antonio, Texas-based group involved in the storage of petroleum products, the transportation of petroleum products and anhydrous ammonia, and petroleum refining and marketing. So it’s not really a pure logistics play. But it still qualifies given its 66 terminal and storage facilities providing 84.6 million barrels of storage capacity; 5,480 miles of refined product pipelines with 21 associated terminals; two tank farms, and additional warehouse capacity.

The master limited partnership (MLP) started in 2001 as Shamrock Logistics and was part of the former Ultramar Diamond Shamrock, with a solid $92 million in revenues for that first year. A parntership with Valero (NYSE:VLO) ended in 2006, and the company has boomed ever since.

Revenues are now at just over $6.5 billion per year, and while EPS dipped in 2011, they’ve stayed on track with just over $220 million in earnings per year over the last four years. Dividends that started out in 2001 are now at $1.10 per quarter with a dividend yield of 8.26%. Keep a close eye on this because distributions may be under some pressure for the remainder of the year. Even though 2Q 2012 revenues hit targets, earnings were off and are expected to get squeezed a bit through 2012.

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