The refinery extracts products like ultra-low sulfur diesel, jet fuel, specialty solvents, reformates, naphtha, and vacuum gas oil. Under this deal Calumet Specialty Products Partners, L.P (NASDAQ:CLMT) has also received rights of NuStar’s terminal located in Elmendorf and a 12-mile long pipeline connecting to the terminal. It’s expected that after the acquisition the company plans to increase capacity by 10%, to 159,500 bpd.
With the expansion plans, the company expects to increase its total earning to $210.2 million in 2013 from $205.7 million in 2012. After initiating the operations of Dakota Prairie Refining, the expected total earnings are $302.6 million in 2015.
Monetizing the growth
EV Energy Partners, L.P. (NASDAQ:EVEP) is planning to spend $340 million to increase the production of oil and gas by the end of 2013. $100 million will be spent on increasing drilling activity and $240 million is an upfront investment of its partnership in UEO midstream interests. From the $100 million, 66% of the investment will be made on the Barnett drilling region, where 70 wells will be drilled. The total production from these investment avenues is estimated to be approximately 162 million cubic feet per day in the year 2013, which is comprised of 68% natural gas. With the rise in the drilling activity, it is estimated that revenue of the company will increase from $400 million in 2012 to $570 million by the end of 2015.
EV Energy Partners, L.P. (NASDAQ:EVEP) has planned to market its acreage in the Utica shale. EV Energy Partners, L.P. (NASDAQ:EVEP) has 100,000 acres, which it wants to market in counties like Carroll, Harrison, Guernsey, and Noble. The company expects to generate almost $420 million, or $4000 per acre, by marketing this acreage. Currently the market is discounting the price by almost $2000 per acre. The company estimates that from the third quarter of 2013 to the fourth quarter of 2014 it will generate $779 million by selling its acreage.
Bottom line
Kinder Morgan Energy Partners LP (NYSE:KMP)’s acquisition of Copano, will generate higher revenue. New projects like the Trans Mountain and the Freedom pipelines, will help meet an increasing demand for fuel. Calumet has entered into a joint venture with MDU Resources and it has acquired a refinery to improve production capacity. EV Energy Partners, L.P. (NASDAQ:EVEP) plans to generate extra revenue by marketing its acreage. It also plans to drill its way to more production. All three of these energy players appear to be solid bets going forward.
Madhu Dube has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
The article 3 Energy Companies Offer Promising Returns originally appeared on Fool.com.
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