Enterprise Products Partners LP
Obviously, if you pull natural gas and oil out of the ground, you need to move it to end-users across the country. That could help explain Pickens’ recent interest in pipeline and energy logistics firm Enterprise Products Partners LP (EPD). BP Capital kicked off a new 4,000-share position in EPD.
How Enterprise Products is moving that crude oil could be the real key top profits.
While everyone knows the company is a pipeline king, EPD is seeing huge growth from its crude-by-barge operations. As E&P firms have tapped regions like the Bakken, they have sought to move that energy to refineries on the Gulf Coast. A lack of pipeline infrastructure has led to an explosion in barge traffic along the Mississippi River.
Enterprise’s marine services unit has roughly invested $25 million on its fleet this year and now has 64 tugboats and 136 barges under its umbrella. Roughly 70% of those were used along the Gulf Coast and down the Mississippi River to transport crude oil and refined products like gasoline.
That unexpected growth area could be a big boom for EPD shareholders for years to come.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.