Thursday, June 12, 2014

Top 10 Transportation Companies To Buy For 2015

Somewhere in the US, there is a refinery executive staring into a drink and longing for the days of 2012. Back then, domestic crude prices were trading at a deep discount to the international benchmarks thanks to big bottlenecks in infrastructure, and retail prices remained relatively high. These factors led to almost comical refining margins. Unfortunately, it was only a matter of time till enough infrastructure was in place to bring down the gap between these two prices.�

For that wistful executive out there, I have good news for you. There may be another bottleneck building in US crude supply, but it's not an infrastructure one. Let's take a look at what is happening in the US oil markets that may bring back memories of 2012.

Unclogging the Pipes

Pipelines in red represent oil and other liquids pipelines (Source: US Department of Transportation Pipeline and Hazardous Materials Safety Administration)

Top 10 Transportation Companies To Buy For 2015: Enterprise Products Partners LP (EPD)

Enterprise Products Partners L.P. (Enterprise), incorporated on April 9, 1998, owns and operates natural gas liquids (NGLs) related businesses of Enterprise Products Company (EPCO). The Company is a North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and certain petrochemicals. Its midstream energy asset network links producers of natural gas, NGLs and crude oil from supply basins in the United States, Canada and the Gulf of Mexico with domestic consumers and international markets. Its midstream energy operations include natural gas gathering, treating, processing, transportation and storage; NGL transportation, fractionation, storage, and import and export terminals; crude oil gathering and transportation, storage and terminals; offshore production platforms; petrochemical and refined products transportation and services; and a marine transportation business that operates on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico. Its assets include approximately 50,000 miles of onshore and offshore pipelines; 200 million barrels of storage capacity for NGLs, petrochemicals, refined products and crude oil; and 14 billion cubic feet of natural gas storage capacity. In addition, its asset portfolio includes 24 natural gas processing plants, 21 NGL and propylene fractionators, six offshore hub platforms located in the Gulf of Mexico, a butane isomerization complex, NGL import and export terminals, and octane isobutylene production facilities. The Company operates in five business segments: NGL Pipelines & Services; Onshore Natural Gas Pipelines & Services; Onshore Crude Oil Pipelines & Services; Offshore Pipelines & Services, and Petrochemical & Refined Products Services.

NGL Pipelines & Services

The Company�� NGL Pipelines & Services business segment includes its natural gas processing plants and related NGL marketing activities; approximately 16,700 miles of NGL pipel! ines; NGL and related product storage facilities; and 14 NGL fractionators. This segment also includes its import and export terminal operations. At the core of its natural gas processing business are 24 processing plants located across Colorado, Louisiana, Mississippi, New Mexico, Texas and Wyoming. Natural gas produced at the wellhead (especially in association with crude oil) contains varying amounts of NGLs. Once the mixed component NGLs are extracted by a natural gas processing plant, they are transported to a centralized fractionation facility for separation into purity NGL products. Once processed, this natural gas is available for sale through its natural gas marketing activities. Its NGL marketing activities generate revenues from the sale and delivery of NGLs it takes title to through its natural gas processing activities and open market and contract purchases from third parties. Its NGL marketing activities utilize a fleet of approximately 670 railcars, the majority of which are leased from third parties.

The Company�� NGL pipelines transport mixed NGLs and other hydrocarbons from natural gas processing facilities, refineries and import terminals to fractionation plants and storage facilities; distribute and collect NGL products to and from fractionation plants, storage and terminal facilities, petrochemical plants, export facilities and refineries, and deliver propane to customers along the Dixie Pipeline and certain sections of the Mid-America Pipeline System. Revenues from its NGL pipeline transportation agreements are based upon a fixed fee per gallon of liquids transported multiplied by the volume delivered. Certain of its NGL pipelines offer firm capacity reservation services. It collects storage revenues under its NGL and related product storage contracts based on the number of days a customer has volumes in storage multiplied by a storage fee. In addition, it charges customers throughput fees based on volumes delivered into and subsequently withdrawn from storage. Its ! principal! NGL pipelines include Mid-America Pipeline System, South Texas NGL Pipeline System, Seminole Pipeline, Dixie Pipeline, Chaparral NGL System, Louisiana Pipeline System, Skelly-Belvieu Pipeline, Promix NGL Gathering System, Houston Ship Channel pipeline, Rio Grande Pipeline, Panola Pipeline and Lou-Tex NGL Pipeline. It operates its NGL pipelines with the exception of the Tri-States pipeline.

The Company�� NGL operations include import and export facilities located on the Houston Ship Channel in southeast Texas. It owns an import and export facility located on land it leases from Oiltanking Houston LP. Its import facility can offload NGLs from tanker vessels at rates up to 14,000 barrels per hour depending on the product. During the year ended December 31, 2012, its average combined NGL import and export volumes were 132 thousand barrels per day. In addition to its Houston Ship Channel import/export terminal, it owns a barge dock also located on the Houston Ship Channel, which can load or offload two barges of NGLs or other products simultaneously at rates up to 5,000 barrels per hour.

The Company owns or have interests in 14 NGL fractionators located in Texas and Louisiana. NGL fractionators separate mixed NGL streams into purity NGL products. The primary sources of mixed NGLs fractionated in the United States are domestic natural gas processing plants, crude oil refineries and imports of butane and propane mixtures. Mixed NGLs sourced from domestic natural gas processing plants and crude oil refineries are transported by NGL pipelines and by railcar and truck to NGL fractionation facilities.

The Company�� NGL fractionation facilities process mixed NGL streams for third party customers and support its NGL marketing activities. It earns revenues from NGL fractionation under fee-based arrangements, including a level of demand-based fees. At its Norco facility in Louisiana, it performs fractionation services for certain customers under percent-of-liquids co! ntracts. ! Its fee-based fractionation customers retain title to the NGLs, which it processes for them. Its NGL fractionators include Mont Belvieu fractionator, Shoup and Armstrong fractionator, Hobbs NGL fractionator, Norco NGL fractionator, Promix NGL fractionators and BRF fractionators.

Onshore Natural Gas Pipelines & Services

The Company�� Onshore Natural Gas Pipelines & Services business segment includes approximately 19,900 miles of onshore natural gas pipeline systems, which provide for the gathering and transportation of natural gas in Colorado, Louisiana, New Mexico, Texas and Wyoming. It leases salt dome natural gas storage facilities located in Texas and Louisiana and own a salt dome storage cavern in Texas, which are integral to its pipeline operations. This segment also includes its related natural gas marketing activities.

The Company�� onshore natural gas pipeline systems and storage facilities provide for the gathering and transportation of natural gas from producing regions, such as the San Juan, Barnett Shale, Permian, Piceance, Greater Green River, Haynesville Shale and Eagle Ford Shale supply basins in the western United States. In addition, these systems receive natural gas production from the Gulf of Mexico through coastal pipeline interconnects with offshore pipelines. Its onshore natural gas pipelines receive natural gas from producers, other pipelines or shippers at the wellhead or through system interconnects and redeliver the natural gas to processing facilities, local gas distribution companies, industrial or municipal customers, storage facilities or to other onshore pipelines.

Its onshore natural gas pipelines generates revenues from transportation agreements under which shippers are billed a fee per unit of volume transported multiplied by the volume gathered or delivered. Its onshore natural gas pipelines offer firm capacity reservation services whereby the shipper pays a contractually stated fee based on the level of through! put capac! ity reserved in its pipelines whether or not the shipper actually utilizes such capacity. Under its natural gas storage contracts, there are typically two components of revenues monthly demand payments, which are associated with a customer�� storage capacity reservation and paid regardless of actual usage, and storage fees per unit of volume stored at its facilities. The Company�� natural gas marketing activities generate revenues from the sale and delivery of natural gas obtained from third party well-head purchases, regional natural gas processing plants and the open market.

Onshore Crude Oil Pipelines & Services

The Company�� Onshore Crude Oil Pipelines & Services business segment includes approximately 5,100 miles of onshore crude oil pipelines, crude oil storage terminals located in Oklahoma and Texas, and its crude oil marketing activities. Its onshore crude oil pipeline systems gather and transport crude oil in New Mexico, Oklahoma and Texas to refineries, centralized storage terminals and connecting pipelines. Revenue from crude oil transportation is based upon a fixed fee per barrel transported multiplied by the volume delivered.

The Company owns crude oil terminal facilities in Cushing, Oklahoma and Midland, Texas, which are used to store crude oil volumes for it and its customers. Under its crude oil terminaling agreements, it charges customers for crude oil storage based on the number of days a customer has volumes in storage multiplied by a contractual storage fee. With respect to storage capacity reservation agreements, it collects a fee for reserving storage capacity for customers at its terminals. In addition, it charges its customers throughput (or pumpover) fees based on volumes withdrawn from its terminals. It provides fee-based trade documentation services whereby it documents the transfer of title for crude oil volumes transacted between buyers and sellers at its terminals. The Company�� crude oil marketing activities generate revenues! from the! sale and delivery of crude oil obtained from producers or on the open market.

Offshore Pipelines & Services

The Company�� Offshore Pipelines & Services business segment serves active drilling and development regions, including deepwater production fields, in the northern Gulf of Mexico offshore Texas, Louisiana, Mississippi and Alabama. This segment includes approximately 2,300 miles of offshore natural gas and crude oil pipelines and six offshore hub platforms. Its offshore Gulf of Mexico pipelines provide for the gathering and transportation of natural gas or crude oil. Revenue from its offshore pipelines is derived from fee-based agreements whereby the customer is charged a fee per unit of volume gathered or transported multiplied by the volume delivered. Poseidon Oil Pipeline Company, L.L.C. (Poseidon), in which it has a 36% equity method investment, purchases crude oil from producers and shippers at a receipt point (at a fixed or index-based price less a location differential) and then sells quantities of crude oil at onshore Louisiana locations (at the same fixed or index-based price, as applicable).

The Company�� offshore platforms are components of its pipeline operations. Platforms are used to interconnect the offshore pipeline network; provide means to perform pipeline maintenance; locate compression, separation and production handling equipment and similar assets, and conduct drilling operations during the initial development phase of an oil and natural gas property. Revenues from offshore platform services consist of demand fees and commodity charges. Revenue from commodity charges is based on a fixed-fee per unit of volume delivered to the platform multiplied by the total volume of each product delivered.

Petrochemical & Refined Products Services

The Company�� Petrochemical & Refined Products Services business segment consists of propylene fractionation plants, pipelines and related marketing activities; a butane isom! erization! facility and related pipeline system; octane enhancement and isobutylene production facilities; refined products pipelines, including its Products Pipeline System, and related marketing activities, and marine transportation and other services.

The Company�� propylene fractionation and related activities consist of seven propylene fractionation plants (six located in Mont Belvieu, Texas and a seventh in Baton Rouge, Louisiana), propylene pipeline systems aggregating approximately 680 miles in length and related petrochemical marketing activities. This business includes an export facility and associated above-ground polymer grade propylene storage spheres located in Seabrook, Texas. Results of operations for its polymer grade propylene plants are dependent upon toll processing arrangements and petrochemical marketing activities. The toll processing arrangements include a base-processing fee per gallon (or other unit of measurement). Its petrochemical marketing activities include the purchase and fractionation of refinery grade propylene obtained in the open market and generate revenues from the sale and delivery of products obtained through propylene fractionation. The revenues from its propylene pipelines are based upon a transportation fee per unit of volume multiplied by the volume delivered to the customer. As part of its petrochemical marketing activities, it has refinery grade propylene purchase and polymer grade propylene sales agreements. Its butane isomerization business includes three butamer reactor units and eight associated deisobutanizer units located in Mont Belvieu, Texas, which comprise the commercial isomerization facility in the United States.

The Company�� commercial isomerization units convert normal butane into mixed butane, which is fractionated into isobutane, isobutane and residual normal butane. The uses of isobutane are for the production of propylene oxide, isooctane, isobutylene and alkylate for motor gasoline. These processing arrangements inclu! de a base! -processing fee per gallon (or other unit of measurement). Its isomerization business also generates revenues from the sale of natural gasoline created as a by-product of the isomerization process. The Company owns and operates an octane enhancement production facility located in Mont Belvieu, Texas, which produces isooctane, isobutylene and methyl tertiary butyl ether (MTBE). The products produced by this facility are used in reformulated motor gasoline blends. The isobutane feedstocks consumed in the production of these products are supplied by its isomerization units. The Company owns a facility located on the Houston Ship Channel, which produces high purity isobutylene (HPIB). The feedstock for this plant is produced by its octane enhancement facility located at its Mont Belvieu complex. HPIB is used in the production of alkylated phenols used as antioxidants, lube oil additives, butyl rubber and resins.

Refined products pipelines and related activities consist of its Products Pipeline System, equity method investment in Centennial Pipeline LLC (Centennial) and refined products marketing activities. The Products Pipeline System transports refined products, and petrochemicals, such as ethylene and propylene and NGLs, such as propane and normal butane. These refined products are produced by refineries and include gasoline, diesel fuel, aviation fuel, kerosene, distillates and heating oil. Refined products also include blend stocks, such as raffinate and naphtha. Blend stocks are used to produce gasoline or as a feedstock for certain petrochemicals. The Centennial Pipeline intersects its Products Pipeline System near Creal Springs, Illinois, and loops the Products Pipeline System between Beaumont, Texas and south Illinois. In addition, it has refined products terminals located at Aberdeen, Mississippi and Boligee, Alabama adjacent to the Tombigbee River and on the Houston Ship Channel in Pasadena, Texas. Its related marketing activities generate revenues from the sale and delivery of refin! ed produc! ts obtained from third parties on the open market.

The Company�� marine transportation business consists of tow boats and tank barges, which are used to transport refined products, crude oil, asphalt, condensate, heavy fuel oil, liquefied petroleum gas and other petroleum products along inland and intracoastal the United States waterways. Its marine transportation assets service refinery and storage terminal customers along the Mississippi River, the intracoastal waterway between Texas and Florida and the Tennessee-Tombigbee Waterway system. It owns a shipyard and repair facility located in Houma, Louisiana and marine fleeting facilities in Bourg, Louisiana and Channelview, Texas. Other services consist of the distribution of lubrication oils and specialty chemicals and the bulk transportation of fuels by truck, in Oklahoma, Texas, New Mexico, Kansas and the Rocky Mountain region of the United States.

Advisors' Opinion:
  • [By Tyler Crowe]

    What is of probably greater concern is any proposed additional pipeline or expansion project that are in the works. Enbridge is in the process of expanding its mainline capacity through three separate projects: Alberta Clipper, Flanagan South, and Seaway.�

    Enbridge Pipeline Projects Capacity Origin to Destination Alberta Clipper 400,000 bpd expansion of existing infrastructure Hardisty, Alberta to Superior, Wis. Flanagan South 600,000 bpd Flanagan, Ill. to Cushing, Okla. Seaway (joint venture with Enterprise Products Partners (NYSE: EPD  ) � 850,000� Cushing, Okla. to Houston

    Since this project is broken up into three separate pieces, the only one that is at risk is the Alberta Clipper project because it crosses the U.S.-Canada border and is therefore subject to approval from the U.S. State Department. Flanagan South is about to start construction, and the Seaway pipeline has already started limited flows to the Gulf Coast. With large amounts of crude coming into Cushing, it's hard to believe that Enbridge and Enterprise Products Partners will struggle to contract out the entire seaway pipeline regardless if the Alberta Clipper project gets approved or not.�

  • [By Matt DiLallo]

    All that oil and associated gas needs to get out of the Gulf and into market centers. That's where midstream operator Enterprise Products Partners (NYSE: EPD  ) steps in and takes over. The company's assets -- as you can see in the map below -- are perfectly placed to benefit from this future growth.

  • [By Dividends4Life]

    Enterprise Products Partners LP (EPD) is an integrated provider of natural gas and natural gas liquids services, including processing, fractionation, storage, transportation and terminalling.
    Yield: 4.6% | Years of Dividend Growth: 16

  • [By Matt DiLallo]

    While it might not seem like much of an increase, this is an important first step. Slow and steady distribution increases have a very�noticeable�impact on the value of the underlying units. Just take a look at this chart of two midstream giants:�Enterprise Products Partners (NYSE: EPD  ) and Energy Transfer Partners (NYSE: ETP  ) :

Top 10 Transportation Companies To Buy For 2015: Ryanair (RYAAY)

Ryanair Holdings plc (Ryanair Holdings), incorporated in 1996, is a holding company for Ryanair Limited (Ryanair). Ryanair operates a low-cost, scheduled-passenger airline serving short-haul, point-to-point routes between Ireland, the United Kingdom, Continental Europe, and Morocco. As of June 30, 2012, the Company offered approximately over 1,500 scheduled short-haul flights per day serving approximately 160 airports largely throughout Europe with an operating fleet of 294 aircraft flying approximately 1,500 routes. Ryanair sells seats on a one-way basis. The Company also holds a 29.8% interest in Aer Lingus Group plc. As of June 30, 2012, Ryanair�� operating fleet was composed of 294 Boeing 737-800 aircraft, each having 189 seats. Ryanair�� fleet totaled 294 Boeing 737-800s at March 31, 2012. As of June 30, 2012, Ryanair owned and operated four Boeing 737-800 full flight simulators for pilot training. Ryanair provides ancillary services and engages in other activities connected with its core air passenger service, including non-flight scheduled services, Internet-related services, and the in-flight sale of beverages, food, and merchandise. As part of its non-flight scheduled and Internet-related services Ryanair incentivizes ground service providers at airports it serves to levy correct excess baggage charges for any baggage, which exceeds Ryanair�� published baggage allowances. Excess baggage charges are recorded as non-flight scheduled revenue. Ryanair distributes accommodation services and travel insurance through its Website. For hotel services, Ryanair has a contract with Hotelscombined PTY Ltd. (Hotelscombined), which operates a price comparison Website, pursuant to which Hotelscombined handles all aspects of such services marketed through Ryanair�� Website and pays a fee to Ryanair. Ryanair also has contracts with other accommodation providers that enable Ryanair to offer hostel, bed-and-breakfast, guesthouse, villa and apartment accommodation to its customers. In addition Ryanair has a contract with Hertz, pursuant to which Hertz handles all car rental services marketed through Ryanair�� Website or telephone reservation system. Ryanair also sells bus and rail tickets onboard its aircraft and through its Website. Ryanair also sells attractions and activities on its Website. Ryanair sells gift vouchers on its Website, which are also redeemable online. The Company has an contract with Webloyalty International Ltd, which offers Ryanair�� customers who have a United Kingdom, German or French billing address a retail discount and cash-back program. Ryanair has agreements, pursuant to which the Company promotes Ryanair-branded credit cards issued by MBNA, GE Money, Access Prepaid and Banco Santander on its Internet site. The MBNA agreement relates to Irish residents only, the GE Money agreement relates to Swedish and Polish residents only and the Banco Santander agreement relates to United Kingdom residents only. During the fiscal year ended March 31, 2012, Ryanair rolled out handheld Electronic Point of Sale (EPOS) devices across its route network. These EPOS devices replaced manual and paper based systems on board the aircraft. The EPOS device enables cabin crew to sell and record their on-board sales transactions. The EPOS device also issues bus and rail tickets and tickets for tourist attractions. The Company also offers reserved seating in twenty-one extra legroom seats on each aircraft for a fee on certain routes. Ryanair provides its own aircraft and passenger handling and ticketing services at Dublin Airport. Third parties provide these services to Ryanair at other airports it serves. Servisair plc provides Ryanair�� ticketing, passenger and aircraft handling, and ground handling services at airports in Ireland and the United Kingdom(excluding London (Stansted) Airport where these services are provided by Swissport Ltd.), while similar services in continental Europe are provided by the local airport authorities, either directly or through sub-contractors. Advisors' Opinion:
  • [By Jake L'Ecuyer]

    Equities Trading UP
    Ryanair Holdings plc (NASDAQ: RYAAY) shares shot up 7.51 percent to $54.81 after the company reported full-year results. Ryanair's net profit for the year ended March 31 slipped to 522.8 million euros ($716 million), versus a year-ago profit of EUR569.3 million.

Hot Dow Dividend Companies To Own For 2015: Kirby Corp (KEX)

Kirby Corporation, incorporated on January 31, 1969, is a domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and along all three United States coasts and in Alaska and Hawaii. The Company transports petrochemicals, black oil products, refined petroleum products and agricultural chemicals by tank barge. The Company, through its subsidiaries, conducts operations in two business segments: marine transportation and diesel engine services. Through the diesel engine services segment, the Company provides after-market service for diesel engines and reduction gears used in marine and power generation applications. The Company also distributes and services diesel engines and transmissions, pumps and compression products, and manufactures oilfield service equipment, including hydraulic fracturing equipment, for land-based pressure pumping and oilfield service markets. The Company, through its marine transportation segment, is a provider of marine transportation services, operating tank barges and towing vessels transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and along all three United States coasts and in Alaska and Hawaii. On December 15, 2011, the Company completed the purchase of the coastal tank barge fleet of Seaboats, Inc. and affiliated companies (Seaboats). On July 1, 2011, the Company completed the acquisition of K-Sea Transportation Partners L.P. (K-Sea). On April 15, 2011, the Company purchased United Holdings LLC (United), a distributor and service provider of engine and transmission related products for the oil and gas services, power generation and on-highway transportation industries, and manufacturer of oilfield service equipment. On February 24, 2011, the Company acquired 21 inland and offshore tank barges and 15 inland towboats and offshore tugboats from Enterprise Marine Services LLC (Enterprise). On February 9, 2011, the Company acquired from ! Kinder Morgan Petcoke, L.P. (Kinder Morgan).

The Company transports petrochemicals, black oil products, refined petroleum products, and agricultural chemicals by tank barge. The Company also owns and operates fits offshore dry-bulk barges and tugboats engaged in the coastal transportation of dry-bulk cargoes. It is a provider of transportation services for its customers. The Company, through its diesel engine services segment, sells replacement parts, provides service mechanics to overhaul and repair diesel engines, transmissions, reduction gears, pumps and compression products, maintains facilities to rebuild component parts or diesel engines, transmissions and reduction gears, and manufactures oilfield service equipment, including hydraulic fracturing equipment. The Company services the marine, power generation, oilfield service, and land-based oil and gas operator and producer markets.

Marine Transportation

The marine transportation segment is a provider of transportation services by tank barge for the inland and coastal markets. As of February 22, 2012, the equipment owned or operated by the marine transportation segment consisted of 819 inland tank barges, 236 inland towboats, 59 coastal tank barges, 65 coastal tugboats, fits offshore dry-cargo barges, fits offshore tugboats and one docking tugboat. The 236 inland towboats, 65 coastal tugboats, fits offshore tugboats and one docking tugboat provide the power source and the 819 inland tank barges, 59 coastal tank barges and fits offshore dry-cargo barges provide the freight capacity for the marine transportation segment. The Company�� coastal and offshore tows consist of one tugboat and one tank barge or dry-cargo barge.

During the year ended December 31, 2011, the Company�� inland marine transportation operation moved over 50 million tons of liquid cargo on the United States inland waterway system. Products transported for its customers along the inland waterway system consisted of petrochemi! cals, bla! ck oil products, refined petroleum products and agricultural chemicals. Bulk liquid petrochemicals transported include, such products as benzene, styrene, methanol, acrylonitrile, xylene and caustic soda, all consumed in the production of paper, fibers and plastics. During 2011, the transportation of petrochemical products represented 59% of the segment�� revenues. Customers shipping these products are refining and petrochemical companies. Black oil products transported include products, such as asphalt, residual fuel oil, No. 6 fuel oil, coker feedstock, vacuum gas oil, carbon black feedstock, crude oil and ship bunkers (engine fuel). During 2011, such products represented 20% of the segment�� revenues. During 2011, refined petroleum products transported include the various blends of finished gasoline, gasoline blendstocks, jet fuel, No. 2 oil, naphtha, heating oil and diesel fuel, and represented 16% of the segment�� revenues. The Company also classifies ethanol in the refined petroleum product category. Customers are oil and refining companies, marketers and ethanol producers.

During 2011, agricultural chemicals transported represented 5% of the segment�� revenues. They include anhydrous ammonia and nitrogen-based liquid fertilizer, as well as industrial ammonia. Agricultural chemical customers consist of domestic and foreign producers of such products. As of December 31, 2011, the marine transportation segment operated a fleet of 819 inland tank barges and 236 inland towboats, as well as 59 coastal tank barges and 65 coastal tugboats. The segment also owns and operates fits offshore barge and tug units transporting dry-bulk commodities in coastal trade. As of December 31, 2011, the marine transportation segment operated a fleet of 819 inland tank barges and 236 inland towboats, as well as 59 coastal tank barges and 65 coastal tugboats. The segment also owns and operates fits offshore barge and tug units transporting dry-bulk commodities in coastal trade.

The Canal ! fleet tra! nsports petrochemical feedstocks, processed chemicals, pressurized products, black oil products and refined petroleum products along the Gulf Intracoastal Waterway, the Mississippi River below Baton Rouge, Louisiana, and the Houston Ship Channel. The Linehaul fleet transports petrochemical feedstocks, chemicals, agricultural chemicals and lube oils along the Gulf Intracoastal Waterway, Mississippi River and the Illinois and Ohio Rivers. Loaded tank barges are staged in the Baton Rouge area from Gulf Coast refineries and petrochemical plants, and are transported from Baton Rouge to waterfront terminals and plants on the Mississippi, Illinois and Ohio Rivers, and along the Gulf Intracoastal Waterway. The River fleet transports petrochemical feedstocks, chemicals, refined petroleum products, agricultural chemicals and black oil products along the Mississippi River System above Baton Rouge. Petrochemical feedstocks and processed chemicals are transported to waterfront petrochemical and chemical plants, while black oil products, refined petroleum products and agricultural chemicals are transported to waterfront terminals.

The marine transportation inland operation moves and handles a range of cargoes. As of December 21, 2011, of the 819 inland tank barges operated, 618 were petrochemical and refined products barges, 123 were black oil barges, 63 were pressure barges, 10 were refrigerated anhydrous ammonia barges and five were specialty barges. Marine transportation services for inland movements are conducted under long-term contracts, ranging from one to five years. Kirby Inland Marine, LP (Kirby Inland Marine) operates commercial tank barge fleeting service (temporary barge storage facilities) in ports, including Houston, Corpus Christi and Freeport, Texas, Baton Rouge and New Orleans, Louisiana and other locations on the Mississippi River. Included in the fleeting service is a 51% interest and management control of a shifting operation and fleeting service for dry cargo barges and tank barges ! on the Ho! uston Ship Channel. Kirby Inland Marine provides service for its own barges, as well as outside customers, transferring barges within the areas noted, as well as fleeting barges.

Kirby Logistics Management (KLM) is a division of Kirby Inland Marine providing shore-based tankerman and support services to the Company and third parties. Services provided by KLM include barge tankermen, marine terminal, refinery and chemical plant dock operators, and terminal management services. KLM�� services to the Company and third parties cover the Gulf Coast, mid-Mississippi Valley, and the Ohio River Valley. The Company owns a 66% interest in Osprey Line, L.L.C. (Osprey), which transports project cargoes and cargo containers by barge on the United States inland waterway system. The segment�� coastal operations are conducted through wholly owned subsidiaries, K-Sea Transportation Partners LLC and Kirby Ocean Transport Company (Kirby Ocean Transport). K-Sea provides marine transportation of refined petroleum products and black oil products in each coastal region of the United States. The coastal operations consist of the Atlantic, New York, Pacific and Hawaii Divisions. The Atlantic Division operates along the eastern seaboard of the United States and along the Gulf Coast. The Atlantic Division vessels call on coastal states from Maine to Texas, servicing refineries, storage terminals and power plants. The Atlantic Division also operates equipment on the Great Lakes, in the Caribbean, and in Venezuela and the Eastern Canadian provinces.

The New York Division operates in the New York Harbor, close to container terminals, cruise piers, refineries and petroleum storage facilities. The New York Division also performs coastal voyages between Maine and Norfork, Virginia and manages operations in Philadelphia. The New York Division�� fleet consists of tank barges in the 10,000 to 89,000 barrel capacity range and tugboats in the 1800 to 3400 horsepower range, transporting refined petroleum produ! cts for l! ocal and regional customers, black oil products to power generation customers and the delivery of bunker fuel to ships. The Pacific Division operates along the Pacific coast of the United States, servicing refineries and storage terminals from Southern California to Washington State, throughout Alaska, including Dutch Harbor, Cook Inlet and the Alaska River Systems, and from California to Hawaii. The Pacific Division�� fleet consists of tank barges in the 13,000 to 185,000 barrel capacity range and tugboats in the 1000 to 11800 horsepower range, transporting refined petroleum products.

The Hawaii Division services local petroleum retailers and oil companies distributing refined petroleum products and black oil products between the Hawaiian islands and provides other services to the local maritime community. As of December 31, 2011, the Hawaii Division�� fleet consisted of tank barges in the 52,000 to 86,000 barrel capacity range and tugboats in the 1200 to 7200 horsepower range, transporting refined petroleum products for local and regional customers, black oil products to power generation customers, and the delivery of bunker fuel to ships. The Hawaii Division also provides service docking, standby tug assistance and line handling to vessels using the Single Point Mooring installation at Barbers Point, Oahu, a facility for tankers to load and discharge their cargos through an offshore buoy and submerged pipeline without entering the port. As of December 31, 2011, the coastal fleet consisted of 59 tank barges, 56 of which were double hull and three of which were single hull, with 3.8 million barrels of capacity, transporting refined petroleum products and black oil products. As of December 31, 2011, the Company operated 65 Company-owned coastal tugboats ranging from 1000 to 11800 horsepower. Tugboats in the 1800 to 3400 horsepower classes provide power for barges used in the New York Division. Tugboats in the 1000 to 11800 horsepower classes provide power for barges used in the Atlantic! , Pacific! and Hawaii Divisions. Kirby Ocean Transport owns and operates a fleet of fits offshore dry-bulk barges, fits offshore tugboats and one docking tugboat. Kirby Ocean Transport also has a contract with Holcim (US) Inc. (Holcim) to transport Holcim�� limestone requirements from a facility adjacent to the PEF facility at Crystal River to Holcim�� plant in Theodore, Alabama. Kirby Ocean Transport is also engaged in the transportation of coal, fertilizer and other bulk cargoes on a short-term basis between domestic ports and occasionally the transportation of grain from domestic ports to ports primarily in the Caribbean Basin.

Diesel Engines

The Company, through wholly owned subsidiary Kirby Engines Systems, Inc. (Kirby Engine Systems), is engaged in the overhaul and repair of medium-speed and high-speed diesel engines and reduction gears, and related parts sales used in marine and power generation applications, and distributes and services high-speed diesel engines and transmissions, pumps and compression products, and manufactures oilfield service equipment, including hydraulic fracturing equipment, used in land-based pressure pumping, oilfield service, power generation and transportation applications.

For the marine market, the Company sells Original Equipment Manufacturers (OEM) replacement parts, provides service mechanics to overhaul and repair engines and reduction gears, and maintains facilities to rebuild component parts or entire engines and reduction gears. For the power generation market, the Company provides service and parts capabilities and safety-related products to power generation operators and to the nuclear industry, and manufactures engine generator and pump sets for the power generation operators and municipalities. The Company expanded its diesel engine services operation with the purchase of United, a manufacturer, diesel engine and transmission distributor and service provider for the land-based oil and gas services market, oil and gas operat! ors and p! roducers, compression companies, power generation companies, on-highway transportation companies and agricultural markets. United�� principal businesses are the distribution and service of diesel engines, pumps and transmissions, the manufacture and remanufacture of oilfield service equipment, including hydraulic fracturing equipment, and the manufacture of compression equipment for natural gas transmission and for natural gas fired power generation plants.

The Company is engaged in the overhaul and repair of medium-speed and high-speed diesel engines and reduction gears, line boring, block welding services and related parts sales for customers in the marine industry. The Company services medium-speed and high-speed diesel engines utilized in the inland and offshore barge industries. It also services marine equipment and offshore drilling equipment used in the offshore petroleum exploration and oil service industry, marine equipment used in the offshore commercial fishing industry and vessels owned by the United States government. The Company has marine operations throughout the United States providing in-house and in-field repair capabilities and related parts sales. The medium-speed operations are located in Houma, Louisiana, Chesapeake, Virginia, Paducah, Kentucky, Seattle, Washington and Tampa, Florida. The operations based in Chesapeake, Virginia and Tampa, Florida are authorized distributors for 17 eastern states and the Caribbean for Electro-Motive Diesel, Inc. (EMD). The marine operations based in Houma, Louisiana, Paducah, Kentucky and Seattle, Washington are nonexclusive authorized service centers for EMD providing service and related parts sales. The Houma, Louisiana operation concentrates on the inland and offshore barge and oil services industries. The Tampa, Florida operation concentrates on Gulf of Mexico offshore dry-bulk, tank barge and harbor docking operators. The Paducah, Kentucky operation concentrates on the inland river towboat and barge operators and the Great Lake! s carrier! s. The Seattle, Washington operation concentrates on the offshore commercial fishing industry, tugboat and barge industry, the United States Coast Guard (USCG) and Navy, and other customers in Alaska, Hawaii and the Pacific Rim. The high-speed operations are located in Houma, Baton Rouge, Belle Chasse and New Iberia, Louisiana, Paducah, Kentucky, Mobile, Alabama and Houston, Texas. The Company serves as a factory-authorized marine dealer for Caterpillar diesel engines in Alabama, Kentucky and Louisiana. The Company also operates factory-authorized full service marine dealerships for Cummins, Detroit Diesel and John Deere diesel engines, as well as Allison transmissions and Twin Disk marine gears.

During 2011, the Company was engaged in the overhaul and repair of diesel engines and reduction gears, line boring, block welding service and related parts sales for power generation customers, which represented 9% of the segment�� revenues. The Company is also engaged in the sale and distribution of parts for diesel engines and governors to the nuclear industry. The Company services users of diesel engines, which provides standby, peak and base load power generation, as well as users of industrial reduction gears, such as the cement, paper and mining industries. The Company provides in-house and in-field repair capabilities and safety-related products to power generation operators from its Rocky Mount, North Carolina, Paducah, Kentucky and Seattle, Washington locations. The Rocky Mount operation is also the distributor of EMD products to the nuclear industry, the global distributor for Woodward Governor products to the nuclear industry, the global distributor of Cooper Energy Services, Inc. products to the nuclear industry, and owns the assets and technology necessary to support the Nordberg medium-speed diesel engines used in nuclear applications. In addition, the Rocky Mount operation is a distributor for Honeywell International Incorporated industrial measurement and control products to the ! nuclear i! ndustry, an distributor for Norlake Manufacturing Company transformer products to the nuclear industry and a non-exclusive distributor of analog Weschler Instruments metering products and distributor of digital Weschler metering products to the nuclear industry. The Paducah, Kentucky operation provides in-house and in-field repair services for Falk industrial reduction gears in the Midwest. The Seattle, Washington operation provides in-house and in-field repair services for Alco engines located on the West Coast and the Pacific Rim.

The Company�� power generation customers are domestic utilities and the global nuclear power industry. The Company is engaged in the distribution and service of diesel engines, pumps and transmissions, the manufacture and remanufacture of oilfield service equipment and the manufacture of compression equipment for natural gas transmission and for natural gas fired power generation plants. The Company offers a range of custom fabricated oilfield service equipment, fully tested and field ready. The Company manufactures products or components that are purchased by a company and marketed under the purchasing company�� brand name. The Company distributes, sells parts and services diesel engines and transmissions for on and off-highway use, and provide in-house and in-field service capabilities. The Company is also the exclusive distributor for Daimler for engines and related equipment in Oklahoma, Arkansas and Louisiana. The Company manufactures and re-manufacturers oilfield service equipment, including hydraulic fracturing equipment, pressure pumping units, nitrogen pumping units, cementers, hydration equipment, mud pumps and blenders. The Company also manufactures and packages custom compressor systems, including electric motor driven systems, natural gas driven systems and industrial air systems, and manufactures natural gas General Motors and Isuzu diesel-powered engines for a range of applications from 40 to 500 horsepower. The Company is a dealer of Thermo K! ing refri! gerated systems for trucks, railroad cars and other land transportation markets in south and central Texas. The Company�� land-based customers include oilfield service providers, oil and gas operators and producers, compression companies, domestic utilities, on-highway transportation companies and companies associated with the agricultural markets.

Advisors' Opinion:
  • [By Aimee Duffy]

    The role of the barge can't be underestimated. Barge receipts increased more than two percentage points year over year, and this is a great place for investors to look for opportunity. Companies with maritime resources benefit from this trend, as well as growth in exports. Three such companies that are worth a look are:

    Kirby Corporation (NYSE: KEX  ) , which operates 30% of the coastal tank barges in the U.S.� Oiltanking Partners (NYSE: OILT  ) , which has storage capacity of 12.1 million barrels and six deepwater docks on the Houston Ship Channel Martin Midstream Partners (NASDAQ: MMLP  ) , which operates a large fleet of inland barges and controls 31 marine terminals�

    These companies won't be the only winners, but they are a good place to start your research.

Top 10 Transportation Companies To Buy For 2015: CryoPort Inc (CYRX)

Cryoport, Inc. (CryoPort), incorporated on May 25, 1990, provides frozen shipping logistics solutions to the biotechnology and life science industries. The Company�� solutions are disruptive to old technologies and provide reliable, economic alternatives to existing products and services utilized for frozen shipping in biotechnology and life sciences including stem cells, cell lines, vaccines, diagnostic materials, semen and embryos for in-vitro fertilization, cord blood, bio-pharmaceuticals, infectious substances and other items that require continuous exposure to frozen or cryogenic temperatures.

The Company offer its solutions to companies in the biotechnology and life sciences industries and specific verticals including manufacturers of stem cells and cell lines, diagnostic laboratories, bio-pharmaceuticals, contract research organizations, in-vitro fertilization, cord blood, vaccines, tissue, animal husbandry, and other producers of commodities requiring reliable frozen solutions for logistics problems.

The CryoPort Express System

Cryoport Express Solutions include a cloud-based logistics management software branded as the Cryoportal. The Cryoportal supports the management of the entire shipment process through a single interface which includes initial order input, document preparation, customs clearance, courier management, shipment tracking, issue resolution, and delivery. Cryoport�� total turnkey logistics solutions offer reliability, cost effectiveness, and convenience, while the use of recyclable and reusable components provides green, environmentally friendly solutions. The Cryoportal provides an array of information dashboards and validation documentation for every shipment.

Cryoport Express Solutions include recording and retaining a fully documented chain-of-custody and, at the client�� option, chain-of-condition for every shipment, helping ensure that safety, efficacy, and stability of shipped commodities are maintained. This re! corded and archived information allows its customers to meet the exacting requirements necessary for scientific work and for regulatory purposes. Cryoport Express Solutions can be used by customers, as a turnkey solution, through direct access to the cloud-based Cryoportal, or by contacting Cryoport Client Care for order entry tasks. Cryoport provides 24/7/365 logistics services through its Client Care team and also provides complete training and process management services to support each client�� specific requirements.

The CryoPort Express System

The CryoPort Express System consists of the CryoPort Express Portal, which programmatically manages order entry and all aspects of shipping operations, CryoPort Express Shippers, the CryoPort Express Smart Pak data logger, and CryoPort Express Analytics, which monitors shipment performance metrics and evaluates temperature-monitoring data collected by the data logger during shipment. In addition, the Company provides a containment bag, which is used in connection with the shipment of infectious or dangerous goods using the CryoPort Express Shipper and other accessories used in the shipment of biological and pharmaceutical specimens.

CryoPort Express Portal

The CryoPort Express Portal is used by CryoPort, the Company�� customers and its business partners to automate the entry of orders, prepare customs documentation and to facilitate status and location monitoring of shipped orders while in transit it is used by CryoPort to manage shipping operations. It is also used to support the high level of customer service. The CryoPort Express Portal also serves as the communications nerve center for the management, collection and analysis of Smart Pak data collected from Smart Pak data loggers in the field.

The CryoPort Express Shippers

The Company�� CryoPort Express Shippers are cryogenic dry vapor shippers capable of maintaining cryogenic temperatures of minus 150掳 Celsius or below f! or a peri! od of 10 or more days. A dry cryogenic shipper is a device that uses liquid nitrogen contained inside a vacuum insulated bottle, which serves as a refrigerant to provide stable storage temperatures below minus 150掳 Celsius. It has developed a retention system to ensure that liquid nitrogen stays inside the vacuum container, which allows the shipper to be designated as a dry shipper meeting International Air Transport Association (IATA) requirements. The Company is offering two sizes of dry vapor shippers, the CryoPort Express Standard Shipper with a storage capacity of up to 75 0.2 milliliter vials and the CryoPort Express High Volume Shipper, which was introduced, in January of 2012 with a capacity of up to 500 0.2 milliliter vials.

The CryoPort Express Standard Shipper

The Standard CryoPort Express Shippers are lightweight, re-usable dry vapor liquid nitrogen storage containers. A Standard CryoPort Express Shipper is composed of an aluminum metallic dewar flask, with a well for holding the biological material in the inner chamber.

The CryoPort Express High Volume Shippers

The Cryoport Express High Volume Shipper also uses a dry vapor liquid nitrogen (LN2) technology to maintain below -150掳 C temperatures with a dynamic shipping endurance of 10 days. The CryoPort Express High Volume dry shipper uses a dry vapor liquid nitrogen (LN2) technology to maintain below -150掳 Celsius temperatures. The High Volume dry shipper has a storage capacity of up to 500 0.2 milliliter vials.

The CryoPort Express Smart Pak

Phase II of the Company�� Smart Pak System, which is a self-contained automated data logger capable of recording the internal and external temperatures of samples shipped in its CryoPort Express Shipper is used in every shipment. Phase III of its Smart Pak System consists of developing and rolling out a chip with wireless connectivity to enable its customers to monitor a shipper�� location, specimen temperature and over! all state! of health via its Web portal. The Company is developing the requirements for Phase III.

Cryoport Express Analytics

The Cryoportal is an important information technology element of its business strategy and has been designed to support planned future features to allow for an expansion of its solutions offering. Analytics is a term used by IT professionals to refer to performance benchmarks or Key Performance Indicators (KPI��) that management utilizes to measure performance against desired standards. Examples for analytics tracked through the Cryoportal include time-based metrics for order processing time and on-time deliveries by its shipping partners, as well as profiling shipping lanes to determine average transit times and predicting potential shipping exceptions based on historical metrics.

Biological Material Holders

The Company has developed a containment bag, which is used in connection with the shipment of infectious or dangerous goods using the CryoPort Express Shipper. Up to five vials, watertight primary receptacles are placed onto aluminum holders and up to fifteen holders (75 vials) are placed into an absorbent pouch, which is designed to absorb the entire contents of all the vials in the event of leakage. This pouch containing up to 75 vials is then placed in a watertight secondary packaging Tyvek bag capable of withstanding cryogenic temperatures, and then sealed. This bag is then placed into the well of the cryogenic shipper.

The Company competes with MVE/Chart Industries, Taylor Wharton and Air Liquide, Marathon Products Inc., Kodiak Thermal Technologies, Inc, BioStorage Technologies and BioMatrica, Inc.

Advisors' Opinion:
  • [By CRWE]

    Today, CYRX has shed (-10.00%) down -0.050 at $.450 with�179,695 shares in play thus far (ref. google finance Delayed: 12:35PM EDT October 4, 2013).

    Cryoport, Inc. and OCASA, Inc. have previously entered into a master services agreement to provide global cold chain logistics solutions for life science and biotech commodities requiring cryogenic temperatures. OCASA will have access to Cryoport�� full range of cryogenic business solution capabilities including its proprietary Cryoport Express庐 Shippers and cloud-based logistics management software platform, the CryoportalTM. Cryoport will leverage OCASA�� global logistics network to provide more complete global services to its customers. In conjunction with Cryoport and OCASA providing each other with logistics solutions, the Companies will engage in co-marketing, joint sales activities, and a wide range of customer-driven support requirements to provide comprehensive and seamless solutions to the life sciences and biotech industries

Top 10 Transportation Companies To Buy For 2015: CSX Corporation (CSX)

CSX Corporation, together with its subsidiaries, provides rail-based transportation services. The company offers traditional rail service, and the transport of intermodal containers and trailers. It transports crushed stone, sand and gravel, metal, phosphate, fertilizer, food, consumer, agricultural, automotive, paper, and chemical products; and utility, industrial, and export coal to electricity-generating power plants, steel manufacturers, industrial plants, and deep-water port facilities. The company also provides intermodal transportation services through a network of approximately 50 terminals transporting manufactured consumer goods in containers in the eastern United States, as well as performs drayage services and trucking dispatch operations. In addition, it operates distribution centers and storage locations; connects non-rail served customers to the benefits of rail by transferring products, such as ethanol and minerals, from rail to trucks; engages in the real estate sale, leasing, acquisition, and management and development activities. CSX Corporation operates approximately 21,000 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as operates approximately 4,000 locomotives. It also serves production and distribution facilities through track connections to approximately 240 short-line and regional railroads. CSX Corporation was founded in 1978 and is based in Jacksonville, Florida.

Advisors' Opinion:
  • [By Teresa Rivas]

    Shares of CSX (CSX) were slipping Thursday afternoon, after an analyst downgrade citing lack of catalysts for the railroad giant.

    Barclays��Brandon Oglenski and Keith Mori cut their rating on the stock from Overweight to Equal Weight and lowered their target price by $2 to $30. They write that while CSX is still the cheapest in the sector, they see marginal upside for the stock given a limited growth outlook in 2015. They also note that a difficult start to 2014 implies further headwinds, as CSX�� cost and margin performance has lagged peers in recent periods, and ��fficiency gains could be masked in the near-term as the network regains fluidity.��/p>

    Their downgrade also relates to dynamics in the coal industry:

    CSX shareholders have sustained a volatile ride in the past two years, dominated by the loss of nearly $800mm in coal revenue. Dynamics have improved in the near term for domestic coal consumption, but pending environmental regulations and soft export markets make for a difficult long-term outlook. Based on our analysis of future headwinds, we estimate coal revenues could decline a further $380 to $500mm in the coming years. We are encouraged at CSX�� pace of expansion beyond coal markets, which has totaled nearly $1bn in additional revenue or 12% of growth in two years. However, growth has been insufficient to create favorable earnings outcomes given coal�� relatively high profitability. Beyond the near term, coal headwinds signal another slow growth year in 2015, driving our downgrade to Equal Weight.

    EPA regulations and soft exports drive negative long-term view on coal ��We estimate a further 16% reduction in domestic coal for CSX through 2018, based on analysis with our Power and Utilities team surrounding pending (Mercury and Air Toxics) MATs rules. Further, U.S. export tonnage is expected to decline 30% through 2015, creating an aggregate coal headwind of $380mm to $500mm. With coal representing an outsized pr

  • [By Eric Volkman]

    CSX (NYSE: CSX  ) is keeping its speed level as it rumbles down the rails, at least as far as its dividend is concerned. The company has declared a fresh distribution of $0.15 per share of its common stock, to be dispensed on Sept. 13 to shareholders of record as of Aug. 30. That amount matches the company's previous payout, which was distributed last month. Before that, CSX paid $0.14 per share.

  • [By Rick Aristotle Munarriz]

    Bloomberg via Getty Images You can never know in advance all the news that will move the market in a given week, but some things you can see coming. From a parade of bankers' earnings to a pizza giant rolling out a new crust, here are some of the things that will help shape the week ahead on Wall Street. Monday -- X Marks the Spot: Data storage is a big part of businesses in the modern age; companies have massive amounts of information to manage and keep secure. Xyratex (XRTX) may not be a household name, but it is well-known to corporate IT departments seeking enterprise data storage solutions. Xyratex reports on Monday afternoon. It's seen better days, and analysts predict it will report a sharp drop in revenue. However, Xyratex has been able to beat Wall Street's profit targets with ease over the past four quarters. Tuesday -- Big Banking's Big Close Up: It's going to be a roll call of the "too big to fail" banking behemoths as they step up for their quarterly results. Wells Fargo (WFC) and JPMorgan Chase (JPM) kick things off on Tuesday. That will be followed by Bank of America (BAC) on Wednesday. Citigroup (C) and Goldman Sachs (GS) step up on Thursday. These are interesting times for the financial services providers. Interest rates are starting to move higher, and that may get in the way of demand for mortgages, but it will also help improve the chances that customers open and fund savings and checking accounts. Wednesday -- Tracking Trains: Railroads may seem like yesterday's mode of transportation, but rail remains a viable way to get goods moving across the country. CSX (CSX) reports on Wednesday. The provider of rail, intermodal, and rail-to-truck transload services and solutions has been shipping goods for 185 years. It offers coverage through every major metropolitan market in the eastern United States. Analysts see revenue inching up by 3 percent, with CSX's profit of $0.42 a share besting the $0.40 a share it posted a year earlier. CSX will

  • [By Selena Maranjian]

    The biggest new holdings are Coinstar�and Vishay Intertechnology. Other new holdings of interest include the railroad company CSX (NYSE: CSX  ) , which operates more than 21,000 miles of track and is yielding 2.3%. It has been hurt by softness in demand for coal (in part due to low natural gas prices), but coal is likely to remain in demand internationally, and coal exports have been increasing. CSX is geographically well positioned to benefit from such exports, with its access to Eastern and Gulf Coast ports. Its first quarter reflected growth in revenue and earnings.

Top 10 Transportation Companies To Buy For 2015: 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 Dan Caplinger]

    Union Pacific started out the quarter on the right foot, announcing 11% earnings growth in mid-April that beat expectations. The company overcame a slight decline in shipping volume by raising its overall prices, and even though coal shipments remained weak, investors can expect those figures to rise later in the year. As coal companies have shifted their attention toward export markets in light of low U.S. natural-gas prices and reduced domestic demand, railroad rivals CSX (NYSE: CSX  ) and Norfolk Southern (NYSE: NSC  ) have sought to defend their powerful geographical advantage by catering to Appalachian coal companies seeking access to export terminals. Union Pacific historically hasn't been as dependent on coal for its overall revenue, but tapping the coal export market also makes sense for it as it seeks a broadly diversified portfolio of revenue sources.

  • [By Chris Hill]

    Coach� (NYSE: COH  ) fell today after disappointing second-quarter results, stating that foot traffic at North American stores was "substantially lower."�Norfolk Southern (NYSE: NSC  ) rose today after reporting strong Q4 earnings, with increases for the railroad company in most of its shipping categories.�AMD (NYSE: AMD  ) was the most traded stock on the New York Stock Exchange today, with shares trading down after the chipmaker lowered guidance for the first quarter. And The Wall Street Journal is reporting that�Amazon.com (NASDAQ: AMZN  ) is in discussions with media companies to distribute their channels online. In this segment, Matt and Mike discuss four stocks making moves on the market today.

Top 10 Transportation Companies To Buy For 2015: 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.

Top 10 Transportation Companies To Buy For 2015: DryShips Inc (DRYS)

DryShips Inc. (DryShips), incorporated in September 2004, is a holding company engaged in the ocean transportation services of drybulk cargoes and crude oil worldwide through the ownership and operation of drybulk carrier vessels and oil tankers and offshore drilling services through the ownership and operation of ultra-deepwater drilling units. As of December 31, 2011, DryShips owned and operated two fifth generation ultra-deepwater, semi-submersible offshore drilling rigs, the Leiv Eiriksson and the Eirik Raude, and four sixth generation, advanced capability ultra-deepwater drillships, the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Company owned and operated four Aframax tankers, Saga, Daytona, Belmar, and Calida, and one Suezmax tanker, Vilamoura. On August 24, 2011, DryShips acquired all of their shares of OceanFreight Inc. On October 5, 2011, DryShips completed the partial spin off of Ocean Rig UDW Inc. (Ocean Rig UDW). On November 3, 2011, the merger of Pelican Stockholdings Inc. (Pelican Stockholdings), its wholly owned subsidiary, and OceanFreight, was completed. In January 2013, it sold two of its tankers under construction at Samsung Heavy Industries, Esperona and Blanca.

As of December 31, 2011, DryShips operated its tankers under pooling arrangements that are managed by Heidmar Inc. As of March 6, 2012, the Company owned, through its subsidiaries, a fleet of 36 drybulk carriers, consisting of nine Capesize, 25 Panamax and two Supramax vessels, which have a combined deadweight tonnage of approximately 3.53 million deadweight tonnage and an average age of approximately eight years; six drilling units, comprised of two modern, fifth generation, advanced capability ultra-deepwater semisubmersible offshore drilling rigs and four sixth generation, advanced capability ultra-deepwater drillships, and five tankers, comprised of four Aframax and one Suezmax tankers.

The Company�� drybulk flee! t principally carries a variety of drybulk commodities, including major bulk items, such as coal, iron ore, and grains, and minor bulk items, such as bauxite, phosphate, fertilizers and steel products. During the year ended December 31, 2011, DryShips sold the drybulk vessel Primera; contracted for and completed the sale of the drybulk vessels La Jolla, Conquistador, Brisbane, Samsara and Toro; took delivery of its four sixth-generation, ultra-deepwater advanced capability sister drillships constructed by Samsung Heavy Industries Co. Ltd. (Samsung), the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos; took delivery of three newbuilding Aframax tankers, Saga, Daytona and Belmar, and one newbuilding Suezmax tanker, Vilamoura, and acquired four Capesize vessels, MV Robusto, MV Cohiba, MV Montecristo and MV Partagas, two Panamax vessels, the MV Topeka and the MV Helena. DryShips contracted for and completed the sale of the drybulk vessels Avoca and Padre, which were delivered to their new owners, on February 14, 2012 and February 24, 2012, respectively.

Drybulk Operations

The Company manages the deployment of its drybulk fleet between long-term and short-term time charters. A time charter is a contract to charter a vessel for a fixed period of time at a specified or floating daily or index-based daily rate and can last from a few days to several years. A spot charter refers to a voyage charter or a trip charter or a short-term time charter. Under a bareboat charter, the vessel is chartered for a stipulated period of time, which gives the charterer possession and control of the vessel, including the right to appoint the master and the crew.

Offshore Drilling Operations

In January 2012, following the completion of the contract with Tullow Oil plc (Tullow Oil) contract, discussed below, the Eirik Raude commenced a contract with Anadarko Cote d��voire Company (Anadarko) for the drilling of two wells offshore West ! Africa. I! ts offshore drilling operations consist of the Ocean Rig Corcovado, the Ocean Rig Olympia, the Ocean Rig Poseidon and the Ocean Rig Mykonos. As of December 31, 2011, the Ocean Rig Corcovado was employed under a three-year contract, plus a mobilization period, with Petroleo Brasileiro S.A. (Petrobras Brazil) for drilling operations offshore Brazil. The Ocean Rig Olympia is operating under contracts to drill a total of five wells for exploration drilling offshore Ghana and the Ivory Coast. The Ocean Rig Poseidon commenced a contract with Petrobras Tanzania, a company related to Petrobras Oil & Gas B.V. (Petrobras Oil & Gas).

The Ocean Rig Mykonos commenced a three-year contract, plus a mobilization period, with Petrobras Brazil, on September 30, 2011, for drilling operations offshore Brazil. DryShips�� wholly owned subsidiary, Ocean Rig AS, provides supervisory management services, including onshore management, to its operating drilling rigs and drillships. DryShips also has contracts to provide offshore drilling services and drilling units.

Tanker Operations

The Company employs its Aframax tankers Saga, Daytona, Belmar and Calida, in the Sigma tanker pool, which consists of 46 Aframax tankers, with fourteen different pool partners. It employs its Suezmax tanker, Vilamoura, in the Blue Fin tanker pool, which consists of 18 Suezmax tankers with eight different pool partners.

Advisors' Opinion:
  • [By Nickey Friedman]

    DryShips (NASDAQ: DRYS  ) is easily the most famous dry shipping compnay, and perhaps one of the least risky ways to invest in shipping. Over 75% of its sales as of last quarter actually come from its drilling business. Analysts already expect the company's 2014 to be well into the black, so any extra rate increases should make a material percentage increase in its bottom line. DryShips currently trades at less than half book value. Before the collapse in 2008, it traded as high as over $100 per share.

  • [By James E. Brumley]

    October wasn't an easy month to own FreeSeas Inc. (NASDAQ:FREE), NewLead Holdings Ltd (NASDAQ:NEWL), DryShips Inc. (NASDAQ:DRYS), or any maritime shipper for that matter. They were all down rather sharply after heroic runups in September. DRYS fell 22% last month. NEWL slumped 41% in October. FREE gave up 44% of its value last month. What happened? After all, these same stocks were among some of the hottest names in September. In simplest terms, what happened here is what happens all too often... the market "got it right" in terms of the premise, but overdid it. Now that the dust is settling though, the undertow is kicking in again, but this time at a more reasonable/sustainable pace.

  • [By Bryan Murphy]

    Two months ago, maritime shipping stocks FreeSeas Inc. (NASDAQ:FREE), NewLead Holdings Ltd (NASDAQ:NEWL), and DryShips Inc. (NASDAQ:DRYS) were all the rage; traders couldn't get enough of them. The spark for the new strength from DRYS, NEWL, and FREE was a strong - and somewhat surprising - bounce in Baltic Dry Index, which roughly measures the daily charter rate for maritime shipping vessels. It had risen from a low of 698 at the beginning of the year to above 1000 by July to a peak of 2113 in late September. Since these shipping companies had seen a tripling (in less than a year, mind you) of the prices they could charge customers, the rebounding interest in these stocks was certainly understandable. FreeSeas shares more than doubled in value during that time. DryShips nearly did the same. While NewLead Holdings Ltd didn't actually dole out any significant gain, it did draw a lot of new interest during that hot period as a potential "the next one to take off" idea.

  • [By Blake Bos]

    In this video, Blake Bos examines some of the fundamentals of DryShips� (NASDAQ: DRYS  ) . The past quarter results were negative all around, but the simple metrics of revenues and costs bode ill for the company. For example, the revenue received per vessel per day is around $11,300, a 40% decline from 2011 rates. The daily ship expense rate is $5,000, and the daily debt expense per vessel is about $8,100. So, it costs DryShips about $13,100/day to operate its ships, while it receives only $11,300/day in revenue. Aggravating all this is $4.4 billion in debt, which is partially offset by DryShips' equity stake in Ocean Rig (NASDAQ: ORIG  ) .�All around, if you want to invest in a shipping company, an outfit with newer vessels like Diana Shipping Inc.�looks like a better bet than DryShips.�

Top 10 Transportation Companies To Buy For 2015: United Parcel Service Inc.(UPS)

United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. Domestic Package segment engages in the time-definite delivery of letters, documents, and packages in the United States. The International Package segment offers air and ground delivery of small packages and letters to approximately 220 countries and territories, including shipments outside the United States, as well as shipments with either origin or distribution outside the United States; export services; and domestic services move shipments within a country?s borders. The Supply Chain & Freight segment provides forwarding and logistics services, such as supply chain design and management, freight distribution, customs brokerage, mail, and consulting services in approximately 195 countries and territorie s; and less-than-truckload and truckload services to customers in North America. In addition, the company offers various technology solutions for automated shipping, visibility, and billing; information technology systems and distribution facilities to various industries comprising healthcare, technology, and consumer/retail; and a portfolio of financial services that provides customers with short-term working capital, government guaranteed lending, global trade financing, credit cards, and export financing. It operates a fleet of approximately 99,800 package cars, vans, tractors, and motorcycles; an air fleet of 527 aircraft; and 33,800 containers used to transport cargo in its aircraft. The company was founded in 1907 and is headquartered in Atlanta, Georgia.

Advisors' Opinion:
  • [By Jason Moser]

    Getting stuff from point A to point B has been going on for a long time; there's nothing really new to the concept here. Global shipping goliath United Parcel Service (NYSE: UPS  ) has been doing a bang-up job of it for years -- since 1907, in fact, when the company was founded. Today, it's the world's largest package delivery company and in 2012 it was responsible for delivering 4.1 billion packages (16.3 million pieces per day) and brought in more than $54 billion in sales.

Top 10 Transportation Companies To Buy For 2015: Snam SpA (SRG)

Snam SpA is an Italy-based company engaged in the management of natural gas services. The Company is diversified into four operating segments. The Transportation segment covers transportation-related gas services, including capacity management and transportation of the gas at the entry points of the gas network to the redelivery points. It owns transportation infrastructures of gas pipelines. The Regasification segment is focused on extraction activities of natural gas, its liquefaction for transport by ship and subsequent regasification. The Storage segment covers deposits, gas treatment plants, compression plants and the operational dispatching system. The Distribution segment engages gas distribution through local transportation networks from delivery points at the metering and reduction stations to the gas distribution network redelivery points at the end customers. Additionally, Snam SpA as the parent company, focuses on planning, management, coordination and control of the group. Advisors' Opinion:
  • [By Victor Selva]

    The Specialty Restaurant Group (SRG), which includes Bahama Breeze and The Capital Grille, has grown over the last couple of quarters. Eddie V's Restaurants and Yard House might be meaningful long-term drivers, as we think most of the growth in the next years will come from the acquisition of those restaurants.

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