Saturday, August 9, 2014

Best Transportation Companies To Invest In 2014

One company makes wireless chips for Apple's (Nasdaq: AAPL) iPhone. Another company helps finance silver mining projects in exchange for a future piece of the action. A third owns and operates utility, transportation and energy businesses around the world.

The common denominators?

Each has rewarded investors with market-trouncing gains in recent years. And each is an alumnus of StreetAuthority's annual "Top 10 Stocks" list.

Wireless semiconductor maker Skyworks Solutions (Nasdaq: SWKS) posted a gain of 101.8% in calendar-year 2010 after a listing in the "Top 10 Stocks" report. Ditto for Silver Wheaton (NYSE: SLW), which soared a whopping 159.9%. Last year, Brookfield Infrastructure Partners (NYSE: BIP) more than doubled the gain in the S&P 500 index after rising 33.2%.

The good news: There's more where those came from. StreetAuthority's just-released "Top 10 Stocks for 2014" report includes the 10 stocks that we believe have the best potential to beat the broader market in the coming year.

Best Energy Companies To Invest In Right Now: China Metro-Rural Holdings Limited(CNR)

China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.

Advisors' Opinion:
  • [By Katie Brennan]

    Canadian National Railway Co. (CNR) added 0.9 percent to C$104.93 and Canadian Pacific Railway Ltd. rose 1.7 percent to C$131.73.

    Niko Resources surged 3.4 percent to $8.64 after the company entered an agreement for a $60 million loan that will be funded by a group of institutional investors. Net proceeds from the loan will be used to fund working capital requirements.

Best Transportation Companies To Invest In 2014: Saia Inc.(SAIA)

Saia, Inc., an asset-based trucking company, provides transportation and supply chain solutions primarily to the retail, chemical, and manufacturing industries in the United States. The company, through it subsidiary, Saia Motor Freight Line, LLC, offers regional and interregional less than truckload (LTL) services, selected national LTL, and time-definite services. It was formerly known as SCS Transportation, Inc. Saia, Inc. was founded in 2000 and is headquartered in Johns Creek, Georgia.

Advisors' Opinion:
  • [By John Udovich]

    Despite what can best be described as a�soft economy, small cap trucking stocks YRC Worldwide, Inc (NASDAQ: YRCW), Arkansas Best Corporation (NASDAQ: ABFS), Frozen Food Express Industries, Inc (NASDAQ: FFEX), Saia Inc (NASDAQ: SAIA) and USA Truck, Inc (NASDAQ: USAK) have been trucking some pretty impressive returns since the start of the year. In fact, these small cap trucking stocks are up anywhere from 72% to 150% or so since the start of the year despite the slow economy. Certainly trucking stocks provide a good indicator of how the economy is doing, but might investors be�jumping the gun by pushing up these trucking stocks?

Best Transportation Companies To Invest In 2014: Eagle Rock Energy Partners LP (EROC)

Eagle Rock Energy Partners, L.P. (Eagle Rock) is a limited partnership engaged in the business of gathering, compressing, treating, processing and transporting natural gas; fractionating and transporting natural gas liquids (NGLs); crude oil logistics and marketing; natural gas marketing and trading, known as Midstream Business, and developing and producing interests in oil and natural gas properties, known as Upstream Business. On May 3, 2011, the Company acquired CC Energy II, L.L.C and outstanding membership interests of Crow Creek Energy. On May 20, 2011, it sold the Wildhorse Gathering System in its East Texas and Other Midstream Segment.

Midstream Business

The Company�� Midstream Business is located in four natural gas producing regions: the Texas Panhandle; East Texas/Louisiana; South Texas, and the Gulf of Mexico. As of December 31, 2011, these working interest properties included 591 gross operated productive wells and 1,197 gross non-operated wells with net production to the Company of approximately 87.7 million cubic feet of natural gas per day and proved reserves of approximately 234.0 Bcf of natural gas, 11.5 million barrels of crude oil or other liquid hydrocarbons of crude oil, and 11.3 million barrels of crude oil or other liquid hydrocarbons of natural gas liquids, of which 76% are proved developed. As of December 31, 2011, its Midstream Business consisted of Panhandle Segment and East Texas and Other Midstream Segment.

The Company�� Texas Panhandle Segment covers 10 counties in Texas and two counties in Oklahoma. Through the systems within this segment, the Company offers midstream wellhead-to-market services, including gathering, compressing, treating, processing and selling of natural gas, and fractionating and selling of NGLs. As of December 31, 2011, approximately 213 producers and 2,072 wells and central delivery points were connected to the systems in its Texas Panhandle Segment. The Texas Panhandle Segment averaged gathered volumes fo! r 2011 of approximately 155.1 million cubic feet of natural gas per day. As of December 2011, Chesapeake Energy and BP America Production represented 14% and 11%, respectively, of the total volumes of its Texas Panhandle Segment. The Texas Panhandle Segment consists of approximately 3,963 miles of natural gas gathering pipelines, ranging from two inches to 24 inches in diameter; seven natural gas processing plants with an aggregate capacity of 210 million cubic feet of natural gas per day; a propane fractionation facility with capacity of 1.0 million cubic feet of natural gas per day, and two condensate collection and stabilization facilities.

Eagle Rock�� systems in the East Panhandle (northern Wheeler, Hemphill and Roberts Counties, Texas) gather and process natural gas produced in the Morrow and Granite Wash reservoirs of the Anadarko basin. In the Panhandle Segment, natural gas is contracted at the wellhead primarily under percent-of proceeds (which includes percent-of-liquids) fixed recovery, percent-of-index and fee-based arrangements that range from one to five years in term. During the year endede December 31, 2011, it produced over 2,600 equity barrels per day of condensate in the Texas Panhandle Segment. During 2011, it stabilizes approximately 2,000 barrels per day combined at its Superdrip and Cargray Stabilizers.

The Company�� East Texas and Other Midstream Segment operates within the natural gas producing regions, such as East Texas/Louisiana, South Texas and the Gulf of Mexico. Through its Texas/Louisiana region, it offers producers natural gas gathering, treating, processing and transportation and NGL transportation across 21 counties in East Texas and seven parishes in West Louisiana. Its operations in the South Texas region primarily gather natural gas and recover NGLs and condensate from natural gas produced in the Frio, Vicksburg, Miocene, Canyon Sands and Wilcox formations in South Texas. Its operations in the Gulf of Mexico region are non-operated owne! rship int! erests in pipelines and onshore plants which are all located in southern Louisiana. The Gulf of Mexico region also provides producer services by arranging for the processing of producers��natural gas into third-party processing plants, known as Mezzanine Processing Services.

As of December 31, 2011, approximately 705 wells and central delivery points were connected to its systems in the East Texas and Other Midstream Segment. As of December 31, 2011, the East Texas and Other Midstream Segment provides gathering and/or marketing services to approximately 140 producers. During 2011, the East Texas and Other Midstream Segment averaged gathered volumes of approximately 319.9 million cubic feet of natural gas per day. As of December 31, 2011, Stone Energy Corporation and Anadarko Petroleum Company represented 18% and 9%, respectively, of the total volumes of its East Texas and Other Midstream Segment. Residue gas pipelines include Houston Pipeline Company, Natural Gas Pipeline Company, Tennessee Gas Pipeline, Crosstex Energy L.P. and Southern Natural Pipeline.

Upstream Business

The Company�� Upstream Business located in four regions within the United States, such as Southern Alabama, which includes the associated gathering, processing and treating assets; Mid-Continent, which includes areas in Oklahoma, Arkansas, Texas Panhandle and North Texas; Permian, which includes areas in West Texas, and East/South Texas/Mississippi assets. As of December 31, 2011, these working interest properties included 591 gross operated productive wells and 1,197 gross non-operated wells with net production of approximately 87.7 million cubic feet of natural gas per day and proved reserves of approximately 234.0 Bcf of natural gas, 11.5 million barrels of crude oil or other liquid hydrocarbons of crude oil, and 11.3 million barrels of crude oil or other liquid hydrocarbons of natural gas liquids, of which 76% are proved developed.

The Southern Alabama region includes the! Big Esca! mbia Creek, Flomaton and Fanny Church fields located in Escambia County, Alabama. These fields produce from either the Smackover or Norphlet formations at depths ranging from approximately 15,000 to 16,000 feet. The Big Escambia Creek field encompasses approximately 11,568 gross and 7,334 net Eagle Rock operated acres. It operates 18 productive wells with an average ownership of 60% working interest and 51% net revenue interest in the Big Escambia Creek field. The Fanny Church field is located two miles east of Big Escambia Creek. Its ownership includes approximately 1,284 gross and 999 net operated acres that include three productive operated wells with an average ownership of 86% working interest and 66% net revenue interest. The Flomaton field is adjacent to and partially underlies the Big Escambia Creek field. The field encompasses approximately 1,280 gross and 1,256 net Eagle Rock operated acres and produces from the Norphlet formation at depths from approximately 15,000 to 16,000 feet. It operates three productive wells with an approximate average 91% working interest and 78% net revenue interest. The Smackover and Norphlet reservoirs are sour, gas condensate reservoirs which produce gas and fluids containing a high percentage of hydrogen sulfide and carbon dioxide.

The Mid-Continent region consists of operated and non-operated properties across the Golden Trend Field, Cana Shale play, Verden Field, and other western Oklahoma fields located in the Anadarko Basin in Oklahoma, the Mansfield Field and other various fields in the Arkoma Basin in Arkansas and Oklahoma, various fields in the Texas Panhandle, and the Barnett Shale in north Texas. Productive depths range from approximately 2,500 feet in the Arkoma fields of western Arkansas to greater than 18,000 feet in the Springer formation in certain western Oklahoma fields. Its producing field is the Golden Trend field that extends across Grady, McClain and Garvin counties in Oklahoma. It has 14,621 net acres in the Cana Shale play exte! nding acr! oss Canadian, Blaine and Dewey counties, Oklahoma. The Cana Shale produces from horizontal wells drilled to vertical depths of 11,000 - 13,000 feet and extended with horizontal lateral lengths of approximately 5,000 feet. In the total Mid-Continent region, it operate 316 productive wells and own a working interest in an additional 1,054 non-operated productive wells. The average working interest in these productive operated and non-operated wells is 83% and 9%, respectively. The net production averaged approximately 53.2 million cubic feet of natural gas per day during 2011, of which approximately 77% was produced from wells it operated.

The Permian region contains numerous fields, including Block 27, Estes Block 34, H.S.A., Heiner, Monahans N., Payton, Running W., Ward S, and Ward-Estes N. located mainly in Ward, Pecos, and Crane Counties, Texas. These fields are located in the Central Basin Platform which extends from central Lea County in New Mexico to central Pecos County in Texas and encompasses hundreds of individual fields with multiple productive intervals from the Yates-Seven Rivers-Queen through the Ellenburger formations. The Ward County fields contains two major properties, the Louis Richter and the American National Life Ins. Co. leases, and encompasses approximately 10,285 gross and 10,215 net Eagle Rock acres. It operate multiple fields consisting of stacked multi-pay horizons that produce from depths of 2,300 feet (Yates) to 9,100 feet (Pennsylvanian). The Southern Unit is located in the Running W Waddell field and produces predominantly oil at depths from approximately 5,750 to 5,900 feet. It operates approximately 5,875 net acres in this area.

The East/South Texas/Mississippi region includes the Aker, Birch, Edgewood, Eustace, Fruitvale, Ginger and Wesson fields in East Texas, the Jourdanton field in South Texas, and the Chicora W, High Road, and Stafford Springs fields in Mississippi. The East Texas fields produce primarily from the Smackover Trend at depth! s from 12! ,000 to 12,700 feet and encompass approximately 18,991 gross and 15,872 net Eagle Rock acres. It operates 32 productive wells, which produce gas that contains between approximately 30% to 69% of impurities (hydrogen sulfide, nitrogen, and carbon dioxide). The Edgewood field also contains two productive gas wells in the Cotton Valley at depths of 11,500 to 11,600 feet which produce sweet natural gas. The East Texas production, with the exception of a single well, is delivered to the third party owned Eustace Plant for separation of condensate, removal of impurities, and extraction of natural gas liquids and sulfur for a combination of fees and percentage of proceeds.

In South Texas, it operates wells in the Jourdanton field in Atascosa County, Texas. It operates nine productive wells with 100% working interest and 88% net revenue interest. Its production from the field is primarily from the Edwards carbonates (7,300 to 7,400 feet). On December 31, 2011, the Company had under operation 290 gross (261 net) productive oil wells and 301 gross (251 net) productive natural gas wells. On December 31, 2011, Eagle Rock owned non-operated working interests in an additional 148 gross (18 net) productive oil wells and 1049 gross (72 net) productive natural gas wells.

The Company competes with DCP Midstream, LLC and Enbridge Energy Partners, L.P., Crosstex Energy, L.P., Energy Transfer Partners, LP and Enterprise Products Partners, L.P.

Advisors' Opinion:
  • [By Monica Gerson]

    Eagle Rock Energy Partners LP (NASDAQ: EROC) dipped 17.55% to $6.06 in the pre-market session after the company lowered its quarterly distribution to $0.15 from $0.22 per unit.

  • [By Aaron Levitt]

    But CLR isn�� the only one drilling the SCOOP and smaller maybe better in the untapped shale play. Two ideal picks could be Eagle Rock Energy Partners (EROC) and Cimarex Energy (XEC).

Best Transportation Companies To Invest In 2014: Rhino Resource Partners LP(RNO)

Rhino Resource Partners LP produces, processes, and sells coal of various steam and metallurgical grades in the United States. The company holds interests in various surface and underground coal mines located in Central Appalachia, Northern Appalachia, the Illinois Basin, and the Western Bituminous region. As of December 31, 2010, it operated 10 mines, including 5 underground and 5 surface mines located in Kentucky, Ohio, and West Virginia. The company markets its steam coal primarily to electric utility companies as fuel for their steam-powered generators; and metallurgical coal for steel and coke producers. It also engages in mining limestone from reserves located at its Sands Hill mining complex and sells it as aggregate to various construction companies and road builders. The company was founded in 2003 and is based in Lexington, Kentucky.

Advisors' Opinion:
  • [By Robert Rapier]

    The National Association of Publicly Traded Partnerships (NAPTP) lists five MLPs in the category ��atural Resources – Coal,��although two of the five are Alliance Holdings (NYSE: AHGP) and its operating affiliate, Alliance Resource Partners (NYSE: ARLP). The other three are Natural Resource Partners (NYSE: NRP), Rhino Resource Partners (NYSE: RNO), and Oxford Resource Partners (NYSE: OXF).

Best Transportation Companies To Invest In 2014: Norfolk Souther Corporation(NSC)

Norfolk Southern Corporation, through its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods primarily in the United States. The company transports coal products, such as coal, coke, and iron ore; automotive products, including finished vehicles and auto parts; chemicals products consisting of sulfur and related chemicals, petroleum products, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, and municipal wastes; metals and construction products comprising steel, aluminum products, machinery, scrap metals, cement, aggregates, bricks, and minerals; and paper, clay, and forest products, including lumber and wood products, pulp board and paper products, wood fibers, wood pulp, scrap paper, and clay. It also transports agriculture, consumer, and government products, such as soybeans, wheat, corn, fertilizer, animal and poultry feed, food oils, flour, beverages, canned goods, swee teners, consumer products, ethanol, and items for the military. In addition, it engages in the intermodal operations that include moving of shipments in trailers, the United States and international containers, and roadrailer equipment. Further, the company transports overseas freight through various Atlantic and Gulf Coast ports, as well as provides a range of logistics services; and operates passenger and commuter trains. Additionally, it involves in the acquisition, leasing, and management of coal, oil, gas, and minerals; the development of commercial real estate; telecommunications; and the leasing or sale of rail property and equipment. As of December 31, 2010, the company operated approximately 20,000 route miles in 22 states and the District of Columbia. The company was founded in 1883 and is based in Norfolk, Virginia.

Advisors' Opinion:
  • [By Vanina Egea]

    The transportation industry is one of the most exposed to oil prices increments. Fixed way transport however, is also especially affected by weather. There is no clearer example than Canadian railroad companies today. There is a record wheat harvest to be carried, but the impossibility to pick up the rails and relocate them away from bad weather, continue to slow grain arrivals. Most importantly, some oil is being transported through rails increasing demand for cars. The situation prompted the intervention of government authorities and drafting of a bill to regulate rail transportation. Responses to the initiative have not been uniform, and while railroad operators bashed the project, terminal lifters have supported it. Last, some traffic will be deviated south, through the US in order to meet stipulated transported quotas. Did gurus anticipate the move? Can it explain the reason for heavy investing on Norfolk Southern (NSC)?

Best Transportation Companies To Invest In 2014: Union Pacific Corporation(UNP)

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. It has approximately 31,953 route miles linking Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways, and provides several corridors to Mexican gateways. The company offers freight transportation services for agricultural products, including whole grains and related commodities, food, beverage products, corn for ethanol products and its by-products, animal feeds, fruits and vegetables, frozen meat, and poultry products; and automotive products, such as imported and finished vehicles, and automotive parts and materials. It also provides transportation services for chemicals, such as industrial chemicals, plastics, and liquid petroleum products; energy products comprising coal and coke; industrial products, including lumber products, paper and consumer goods, furniture and appliances, and nonferrous and i ndustrial minerals, as well as steel and construction products, such as rock, cement, and roofing materials; and intermodal containers. Union Pacific Corporation was founded in 1862 and is based in Omaha, Nebraska.

Advisors' Opinion:
  • [By Dan Caplinger]

    But one area where Norfolk Southern has potential to expand is in transporting oil from energy-rich shale plays to refineries on the East Coast. Rival Union Pacific (NYSE: UNP  ) has used that strategy to perfection, reporting better-than-expected earnings this morning despite a decline in its coal volumes. Union Pacific even expects a better overall year in 2013, especially as natural gas prices have risen sharply over the past year. Another major prospect Norfolk Southern has is in helping coal companies boost exports to foreign markets, where the supply-and-demand fundamentals are more favorable.

  • [By Sean Williams]

    Keep in mind that some companies�deserve�their current valuations. Take railroad operator Union Pacific (NYSE: UNP  ) for example. Union Pacific grew profit by 11% in its most recent quarter as it was able to offset demand weakness in coal with higher prices. With many railroad operators predicting a pickup in shipments in the second half of the year, Union Pacific certainly looks to be in great shape moving forward.

  • [By Faisal Humayun]

    Union Pacific Railroad is the principal operating company of Union Pacific Corporation (UNP). One of America's most recognized companies, Union Pacific Railroad connects 23 states in the western two-thirds of the country by rail, providing a critical link in the global supply chain. This article discusses the reasons to be bullish on Union Pacific after strong results in July 24, 2014.

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