Global Partners, LP
To put it mildly, Global Partners, LP (GLP) is an energy logistics and marketing powerhouse. Unlike most midstream firms, GLP doesn’t actually own pipelines, but its reach covers the full range of petroleum products — including heating oil, propane, natural gas and oil — through one of the largest terminal and storage networks in the country.
But its Bakken crude-by-rail operations could be the most interesting.
As we’ve noted, refiners on both coasts have been salivating at the bounty of oil produced in the region and have increasingly turned to rail travel as a way to gain access. GLP is one of the largest operators of terminals in the Bakken and has been increasing its capacity for storage and shipment. That included buying a bankrupt ethanol facility in Oregon near Californian refineries. Global is using the facilities massive storage tanks to hold excess Bakken crude.
Global Partners also has rewarded its shareholders with a 10% increase in its distribution so far this year. GLP currently yields 6.5%.