Best Services Companies To Invest In 2015: Boardwalk Pipeline Partners LP (BWP)
Boardwalk Pipeline Partners, LP is a limited partnership company. The Company owns and operates three interstate natural gas pipeline systems including integrated storage facilities. Its business is conducted by its primary subsidiary, Boardwalk Pipelines, LP (Boardwalk Pipelines) and its subsidiaries, Gulf Crossing Pipeline Company LLC (Gulf Crossing), Gulf South Pipeline Company, LP (Gulf South) and Texas Gas Transmission, LLC (Texas Gas) (together, the operating subsidiaries), which consist of integrated natural gas pipeline and storage systems. During the year ended December 31, 2011, it formed Boardwalk Midstream, LP (Midstream), and its operating subsidiary, Boardwalk Field Services, LLC (Field Services), which is engaged in the natural gas gathering and processing business. In December 2011, Boardwalk HP Storage Company, LLC (HP Storage), a joint venture between Boardwalk Pipelines and Boardwalk Pipelines Holding Corp. (BPHC) acquired Petal Gas Storage, L.L.C. (Peta l), Hattiesburg Gas Storage Company (Hattiesburg). In December 2011, it acquired a 20% equity interest in HP Storage.
The Company's pipeline systems originate in the Gulf Coast region, Oklahoma and Arkansas and extend north and east to the midwestern states of Tennessee, Kentucky, Illinois, Indiana and Ohio. It serves a mix of customers, including producers, local distribution companies (LDCs), marketers, electric power generators, direct industrial users and interstate and intrastate pipelines. The Company provides a portion of its pipeline transportation and storage services, through firm contracts, under which the Company's customers pay monthly capacity reservation charges. Other charges are based on actual utilization of the capacity under firm contracts and contracts for interruptible services. During 2011, approximately 82% of its ! revenues were derived from capacity reservation charges under firm contracts; approximately 14% of its revenues were deriv ed from charges-based on actual utilization under firm contr! acts, and approximately 4% of its revenues were derived from interruptible transportation, interruptible storage, parking and lending (PAL) and other services. Its expansion projects include South Texas Eagle Ford Expansionand Marcellus Gathering System and HP Storage.
Pipeline and Storage Systems
The Company's operating subsidiaries own and operate approximately 14,200 miles of pipelines, directly serving customers in twelve states and indirectly serving customers throughout the northeastern and southeastern United States through numerous interconnections with unaffiliated pipelines. In 2011, its pipeline systems transported approximately 2.7 trillion cubic feet of gas. Average daily throughput on its pipeline systems during 2011 was approximately 7.3 billion cubic feet. Its natural gas storage facilities are comprised of eleven underground storage fields located in four states with aggregate working gas capacity of approximately 167.0 billion cu bic feet. the Company operates the assets of HP Storage on behalf of the joint venture.
The principal sources of supply for our pipeline systems are regional supply hubs and market centers located in the Gulf Coast region, including offshore Louisiana, the Perryville, Louisiana area, the Henry Hub in Louisiana and the Carthage, Texas area. Its pipelines in the Carthage, Texas area provide access to natural gas supplies from the Bossier Sands, Barnett Shale, Haynesville Shale and other gas producing regions in eastern Texas and northern Louisiana. The Henry Hub serves as the designated delivery point for natural gas futures contracts traded on the New York Mercantile Exchange. Its pipeline systems also have access to unconventional mid-continent supplies, such as the Woodford Shale in southeastern Oklahoma and the Fayetteville Shale in ! Arkansas.! The Company also accesses the Eagle Ford Shale in southern Texas; wellhead supplies in northern and southern Louisiana and Mississippi; and Canadian natural gas through an unaffil! iated pip! eline interconnect at Whitesville, Kentucky.
The Company's Gulf Crossing pipeline system originates near Sherman, Texas, and proceeds to the Perryville, Louisiana area. The market areas are in the Midwest, Northeast, Southeast and Florida through interconnections with Gulf South, Texas Gas and unaffiliated pipelines.
The Company's Gulf South pipeline system is located along the Gulf Coast in the states of Texas, Louisiana, Mississippi, Alabama and Florida. The on-system markets directly served by the Gulf South system are generally located in eastern Texas, Louisiana, southern Mississippi, southern Alabama, and the Florida Panhandle. These markets include LDCs and municipalities located across the system, including New Orleans, Louisiana; Jackson, Mississippi; Mobile, Alabama; and Pensacola, Florida, and other end-users located across the system, including the Baton Rouge to New Orleans industrial corridor and Lake Charles, Louisiana. Gulf South also has indirect access to off-system markets through numerous interconnections with unaffiliated interstate and intrastate pipelines and storage facilities. These pipeline interconnections provide access to markets throughout the northeastern and southeastern United States.
Gulf South has two natural gas storage facilities. The gas storage facility located in Bistineau, Louisiana, has approximately 78 billion cubic feet of working gas storage capacity from which Gulf South offers firm and interruptible storage service, including no-notice service. Gulf South's Jackson, Mississippi, gas storage facility has approximately five billion cubic feet of working gas storage capacity, which is used for operational purposes and is not offered for sale to the market.
Te! xas Gas
The Company's Texas Gas pipeline system originates in Louisiana, East Texas and Arkansas and runs north and east through Louisiana, Arkansas, Mississippi, Tennessee, K! entucky, ! Indiana, and into Ohio, with smaller diameter lines extending into Illinois. Texas Gas directly serves LDCs, municipalities and power generators in its market area, which encompasses eight states in the South and Midwest and includes the Memphis, Tennessee; Louisville, Kentucky; Cincinnati and Dayton, Ohio, and Evansville and Indianapolis, Indiana metropolitan areas. Texas Gas also has indirect market access to the Northeast through interconnections with unaffiliated pipelines. Texas Gas owns nine natural gas storage fields, of which it owns the majority of the working and base gas. Texas Gas uses this gas to meet the operational requirements of its transportation and storage customers and the requirements of its no-notice service customers.
In 2011, the Company formed its Field Services subsidiary and transferred to it approximately 100 miles of gathering and transmission pipeline. In 2012, the Company transferred to Field Services a n additional 240 miles of pipeline and two compressor stations. Field Services is developing gathering and processing capabilities in south Texas and Pennsylvania.Advisors' Opinion:
- [By Robert Rapier]
There are at least three areas of opportunity for MLP investors resulting from this surge in US gas production. The first, and safest avenue of profit is in partnerships that are building out natural gas infrastructure to connect major gas-producing areas like the Marcellus Shale to major population centers, or to terminals that are being built to export liquefied natural gas (LNG). The list of partnerships involved in transporting natural gas is long, but includes such names as Energy Transfer Equity (NYSE: ETE), Enterprise Products Partners (NYSE: EPD), Kinder Morgan Energy Partners (NYSE: KM! P), and ! Boardwalk Pipeline Partners (NYSE: BWP). These partnerships tend to yield in the 3-6% range, and for the most part have relatively stable distributions (BWP being a notable recent exception with a drastic distribution cut earlier this year.)
- [By Robert Rapier]
The worst performer in the first half was Oxford Resource Partners (NYSE: OXF), a coal producer that suspended its distribution more than a year ago and has seen its unit price continue to decline. It is down 31.5 percent in 2014. Boardwalk Pipeline Partners (NYSE: BWP) saw the second worst decline in the first half of 2014 after announcing a distribution cut of more than 80 percent. BWP saw its unit price plunge by 46 percent in a single trading session. It has since recovered somewhat, but is down 28.8 percent year-to-date.
- [By Sean Williams]
Do investors have a reason to worry?Of the three stocks listed above Loews is likely the shakiest in terms of current fundamentals, but its long-term outlook continues to remain intact. Loews has sizable investment stakes in a handful of other companies, one of which is Boardwalk Pipeline Partners (NYSE: BWP ) . Boardwalk's dividend had been one of the many factors fueling Loews' profitability. But in February, Boardwalk and majority holder Loews chose to slash its dividend by around 80% due to a weaker outlook in the natural gas market. This shaved a sizable chunk off Loews' profit forecast. Thankfully, its hotel operations and insurance business have been performing well, delivering more than enough cash flow to keep investors calm. In the near term it's possible Loews could struggle a bit, but over the long run its diversity should chase away most pessimists.
Why are short-sellers avoiding Google?
- [By Robert Rapier]
Boardwalk Pipeline Partners (NYSE: BWP) is a midstream partnership with a focus on natural gas and natural gas liquids (NGLs), and until recently one of the constituents of the A! lerian Na! tural Gas MLP Index. The partnership operates 14,450 miles of pipelines and underground storage caverns with an aggregate working gas capacity of 207 billion cubic feet (Bcf) and liquids capacity of 18 million barrels.
source from Top Stocks For 2015:http://www.topstocksblog.com/best-services-companies-to-invest-in-2015-3.html