Western Gas Partners, LP (WES), Targa Resources Partners LP (NGLS), Boardwalk Pipeline Partners, LP (BWP): Three Under-the-Radar Midstream Companies

Page 1 of 2

U.S. energy production is higher than it has been in decades and, as a result, America’s pipelines and processing centers are booming as well. Giant midstream companies like Kinder Morgan Inc (NYSE:KMI) and TransCanada Corporation (USA) (NYSE:TRP) get a lot of press, but across the country there are many smaller, unheralded midstream outfits that may make great investments as well.

Remember, under-the-radar is not synonymous with underperforming.

WES Chart

WES data by YCharts.

With that in mind, today we look at three unheralded pipeline companies.

1. Western Gas Partners, LP (NYSE:WES)
One of the top-performing midstream stocks of 2013, Western Gas is an Anadarko Petroleum Corporation (NYSE:APC) company, with assets located primarily in the middle of the country. It provides the standard midstream business services: gathering, compression, treatment, processing, and transportation.

Western Gas Partners, LP (NYSE:WES)The partnership recently announced two new projects to drive growth. The first was merely acquiring a 25% stake in two Enterprise Products Partners L.P. (NYSE:EPD) fractionation trains at the Mont Belvieu natural gas liquids hub; they will start service by the end of this year. The second is the construction of a second cryogenic processing train at its Lancaster plant in Colorado. Capacity will be guaranteed by an Anadarko subsidiary, and the unit is scheduled to come online in 2015.

(Click here to add Western Gas Partners to My Watchlist.)

2. Targa Resources Partners LP (NYSE:NGLS)
Targa Resoures has been on a tear over the past week, climbing close to 12% in the last five days alone. Prior to that, it was up more than 30% year to date. So what is this popping stock? If you were to look at its ticker and guess “big-time NGL player,” you’d be correct. Targa has gathering and processing assets as well as logistics and marketing assets. It also maintains one of the largest operations at the U.S.’s main NGL hub at Mont Belvieu, Texas.

Income-oriented investors will note that Targa Resources Partners LP (NYSE:NGLS) increased its distribution 8% over the prior quarter earlier this year, which marked a 32% jump year over year.

(Click here to add Targa Resources Partners to My Watchlist.)

3. Boardwalk Pipeline Partners, LP (NYSE:BWP)
Most of Boardwalk’s assets are concentrated in the Gulf Coast regions of Texas, Louisiana, Alabama, and Florida. The exception to this is its Texas Gas transmission line that extends south from Ohio and Illinois, and its current projects under development in the Marcellus Shale.

Boardwalk Pipeline Partners, LP (NYSE:BWP) has disappointed investors for the last five quarters, holding its distribution steady at $0.5325. Exercising financial discipline is important, however, and now that Boardwalk is starting to get its ducks in a row, the market has rewarded shareholders. It climbed more than 5% over the course of last month, after news that it was finalizing an important joint venture project with Williams to build an NGL pipeline from the Marcellus Shale down to petrochemical customers on the Gulf Coast.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!