Interested in playing some pipeline stocks? There can be great money in pipelines, that is, if you know which stocks to play. In this case, it is Energy Transfer Partners. Let’s get the scoop from Isac Simon.

Value for money
It makes little sense for an oil storage and transportation company to own a lot of pipelines and storage terminals, but not be able to utilize them to full capacity. In short, you have to understand how valuable these assets are to the company. Today, we’ll take a look at Energy Transfer Partners (NYSE: ETP  ) and see how efficiently the company is using its resources.

To help evaluate this, we can look at some important metrics:

• Return on assets, or net income divided by total assets indicates how efficiently the company generates profits for every dollar of assets it owns. A higher value indicates that the assets are more valuable. The metric is pretty useful when used as a comparative measure — against peers and the industry in general. Typically, ROA for Energy Transfer Partners’ peer group in the oil storage and transportation industry is about 4.8%.
• Fixed-asset turnover ratio, or revenues divided by total fixed assets indicates how efficiently the company’s refineries are generating revenues. The higher the turnover rate, the better. For these companies, a value above 1.6 times looks pretty good.
• Total Enterprise Value/TTM EBITDA shows how expensive the company looks when compared against its trailing-12-month earnings before interest, tax, depreciation, and amortization.

There has been a lot of talk about ETP resently. It seems that is all good talk. Continue your research because this stock may be the best way to play the pipeline.

Quotes taken from report by Isac Simon, Read the entire article here.

Williams Partners expects significant growth in gathering volumes and NGL production from these assets. There is an estimated 300 trillion cubic feet (Tcfe) of natural gas in place within a 35-mile radius of the system, and a significant amount remains undedicated. The partnership expects the Caiman system to gather more than 2 billion cubic feet per day (Bcf/d) and produce approximately 300,000 barrels per day (bbl/d) of NGLs and condensate by 2020. It expects the acquisition to be accretive to projected distributable cash flow attributable to partnership operations per LP unit by 2013, with substantial projected growth thereafter.

Williams Companies (NYSE: WMB), which owns 72% of Williams Partners, will buy 16.3 million Williams Partners’ common units for about $1 billion and will waive its 2% general partner incentive distributions for 2012 and 2013 to help finance the deal.

Williams Cos. also announced that it would raise its annual dividend by 55% to $1.20 this year. The company also expects to raise its dividend by 20% in each of the next two fiscal years.

Williams Partners’ common units are down about -2% today, at $59.86 in a 52-week range of $45.39-$65.39. Williams Cos. shares are up more than 3% at $31.40 in a 52-week range of $21.90-$33.47.

Paul Ausick

The new gathering system will serve the Keathley Canyon area and serve producers Anadarko Petroleum Co. (NYSE: APC), Apache Corp. (NYSE: APA), Exxon Mobil Corp. (NYSE: XOM), Eni SpA (NYSE: E), Petroleo Brasileiro (NYSE: PBR), and Plains Exploration & Production Co. (NYSE: PXP). Keathley Canyon was the site of the first major oil discovery in the US Gulf once drilling was reopened following the Macondo well explosion in April 2010 that killed 11 workers on a rig operated by BP plc (NYSE: BP). Exxon, which made the discovery, has estimated the resource at 700 million barrels.

The joint venture, called the Southeast Keathley Canyon Pipeline Co. LLC (SEKCO), plans to build an 18-inch pipeline to transport 115,000 barrels/day of crude to a floating production platform and connect to Enterprise’s Poseidon pipeline system to move the oil onshore. The southeast portion of Keathley Canyon is estimated to hold about 300 million barrels of reserves.

In related transactions, Genesis is acquiring a 28% stake in the Poseidon pipeline system from Marathon Oil Corp. (NYSE: MRO), as well as a 29% stake in the Odyssey pipeline system which is majority owned and operated by Royal Dutch Shell plc (NYSE: RDS-A) and a 23% stake in the Eugene Island pipeline system owned by a group including Exxon, Shell, Chevron Corp. (NYSE: CVX), and ConocoPhillips (NYSE: COP). Genesis is paying about $206 million for these three acquisitions, which includes about $26 million for the value of the crude already in the pipelines. The company used its revolving credit facility to finance the purchases.

The SEKCO pipeline system is expected to be in service by mid-2014.

Paul Ausick

Big deals can bring big profits and stock action for all the companies involved. However, these big deals effect the market at a larger level as well. Often other stocks are positively effected too. Todd Johnson shares some stocks he feels could see movement as a result of this big deal between El Paso and Kinder Morgan. 

Plains All American Pipeline, L.P. (PAA)

Plains All American Pipeline is delivering a very strong 2011 performance. On October 11th, management declared a 4.7% increase in its quarterly dividend. What is truly remarkable is the ability to continually increase its dividend. The company has increased quarterly dividends for 9-consecutive quarters, and increased dividends for 28 of the past 30-quarters.

Boardwalk Pipeline Partners, LP (BWP)

Boardwalk Partners has evolved into a shareholder friendly, shareholder wealth creating machine. Stanley Horton has been pro-active to increase Boardwalk Partner’s returns.

ONEOK Partners, L.P. (OKS)

The company connects NGL-supplies in the Mid-Continent and Rocky Mountain regions with key market centers. This provides the MLP with a low-risk and stable cash flow. ONEOK Partners provides contracted natural gas supplies, transportation services, and storage services.

When big deals similar to this happen in the future, be sure to remember that other stocks can see positive changes as well. Its a good thing to keep in mind when looking for new investments or switching your portfolio around. Either way, keep these few stocks on your radar, they may see some big jumps.

Quotes taken from report by Todd Johnson, Read the entire article here.

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