Back to top

Analyst Blog

San Antonio-based publicly traded partnership, NuStar Energy L.P. (NS - Analyst Report) announced that it has entered into long-term lease contracts for three of its Asphalt terminals – the ones that the company retained after divesting its asphalt joint venture in Feb 2014.

NuStar Energy entered into a long-term contract with a subsidiary of the integrated oil major Royal Dutch Shell plc (RDS.A - Analyst Report) to lease storage at its Houston, TX terminal, effective from May 1. The terminal has storage space of 85,000 barrels and comprises the Houston Ship Channel barge dock, two-bay truck loading and offloading racks and a Polymer-Modified Asphalt (PMA) mill.

Moreover, NuStar Energy has entered into a 5-year contract with an affiliate of the oil refining and marketing company, HollyFrontier Corporation (HFC - Snapshot Report) to lease storage space at its Rosario, NM and Catoosa, OK asphalt terminals.

The Catoosa contract came into effect on Apr 1, facilitating HollyFrontier to supply PMA and Performance Graded (PG) asphalts to the mid-continent. The terminal has storage space of 340,000 barrels, in addition to a barge dock, four-bay truck loading and offloading racks, rail facilities, a lab and a PMA mill.

The Rosario contract will be effective from Jul 1. The terminal offers 160,000 barrels of storage space, a two-bay truck loading rack, rail facilities, warehouse storage and a PMA mill.

NuStar Energy engages in the transportation and storage of crude oil as well as refined products in the U.S., the Netherlands Antilles, Canada, Mexico, and the U.K. The company currently has a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can consider a better-ranked player from the industry such as Magellan Midstream Partners L.P. (MMP - Analyst Report). The partnership currently sports a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%