Calumet Specialty Products Partners LP (NASDAQ:CLMT) — This leading producer of crude oil-based specialty lubricating oils, solvents and waxes beat Q4 earnings estimates, reporting $0.73 per share versus an expected $0.69.
S&P’s earnings estimate for 2013 is $3.26, and it said, “Recent refinery acquisitions should help the partnership access discounted crudes coming from the Mid-Continent and Canada.”
Calumet increased its quarterly distribution to $0.65, and annual distributions are estimated to increase to $2.66 per unit in 2013, which at the current price is a yield of 7.36%.
Technically, CLMT broke from a cup-and-handle formation on Feb. 8, followed by a confirming breakaway gap. It is currently consolidating at about $36 with a price objective in the low $40s. With the projected distribution rate of over 7%, CLMT could provide a total annual return in excess of 20%.
