Top 5 Transportation Companies To Invest In Right Now

Shares of Crosstex Energy Inc. (NASDAQ: XTXI) are up more than 60% in the early afternoon on Monday and common units of Crosstex Energy LP (NASDAQ: XTEX) are up more than 35% following the announcement this morning that the two companies are teaming up with Devon Energy Inc. (NYSE: DVN) to form a new midstream master limited partnership and a publicly traded general partner firm. This is welcome news for shareholders in all three companies because the potential payout is likely to be well above what they��e used to.

The deal is essentially an acquisition by Devon although it is structured differently. The new companies have not been named yet but are expected to have an adjusted EBITDA of around $700 million in 2014.

The new companies will claim assets including 7,300 miles of gathering and transportation pipelines, 13 natural gas processing plants 6 liquids fractionators, barges, rail terminals, storage facilities, brine disposal wells, and a crude oil trucking fleet. These assets are scattered among many of the country�� high-production oil and gas regions, including the Barnett Shale, the Permian Basin, the Eagle Ford Shale, the Utica Shale, and the Marcellus Shale, among others.

Hot Clean Energy Stocks To Own For 2015: Union Pacific Corporation(UNP)

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. It has approximately 31,953 route miles linking Pacific Coast and Gulf Coast ports with the Midwest and eastern United States gateways, and provides several corridors to Mexican gateways. The company offers freight transportation services for agricultural products, including whole grains and related commodities, food, beverage products, corn for ethanol products and its by-products, animal feeds, fruits and vegetables, frozen meat, and poultry products; and automotive products, such as imported and finished vehicles, and automotive parts and materials. It also provides transportation services for chemicals, such as industrial chemicals, plastics, and liquid petroleum products; energy products comprising coal and coke; industrial products, including lumber products, paper and consumer goods, furniture and appliances, and nonferrous and i ndustrial minerals, as well as steel and construction products, such as rock, cement, and roofing materials; and intermodal containers. Union Pacific Corporation was founded in 1862 and is based in Omaha, Nebraska.

Advisors' Opinion:

• [By Dan Caplinger]

  Shares of railroad giant Norfolk Southern (NYSE: NSC  ) have performed extremely well lately, climbing toward all-time record highs as investors get more confident about the railroad industry's future. In particular, even though Norfolk Southern has more exposure to some of the toughest segments in the railroad sector than peers like Union Pacific (NYSE: UNP  ) , its most recent earnings report showed just how well the company is adapting to changing conditions.

Top 5 Transportation Companies To Invest In Right Now: 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 Chuck Saletta]

  Similarly, United Parcel Service (NYSE: UPS  ) took a significant charge associated with its pension shortly after making the cut as an iPIG pick. That charge knocked the company's debt-to-equity ratio above the iPIG portfolio's buy criteria and sent the business' dividend payout ratio above 100% of earnings. That was a painful charge for the company, but one that could have absolutely sunk a less well prepared business. So rather than dump the company, the iPIG portfolio is watching to see how well it recovers.

• [By WALLSTCHEATSHEET]

  United Parcel Service is a package delivery company that offers its services to consumers and companies around the world. The company�on Friday warned it would miss its fourth-quarter earnings targets. The stock has been surging higher over the last several years, but is now pulling back. Over the last four quarters, earnings have been mixed while revenues have been increasing which has produced conflicting feelings among investors about recent earnings announcements. Relative to its peers and sector, United Parcel Service has been an average year-to-date performer. WAIT AND SEE what United Parcel Services does this quarter.

• [By idahansen]

  The article, "More Employers Overhaul Health Benefits" detailed the travails that companies are having with the onslaught of Obamacare. As the excellent Wall Street Journal article by Anna Wilde Mathews reported, major companies such as Sears Holding (NASDAQ: SHLD), Darden Restaurants (NYSE: DRI), and others are revising the way employees receive health insurance and other benefits. Some, such as United Parcel Services (NYSE: UPS), are dropping coverage for spouses.

• [By Ben Levisohn]

  The express-delivery company has gained 28% during the past three months, trumping the 18% return from�United Parcel Service�(UPS), the 4.6% gain in J.B. Hunt Transport Services (JBHT) and the 0.2% rise in Expeditors International of Washington�(EXPD).

Top 5 Transportation Companies To Invest In Right Now: Phillips 66 Partners LP (PSXP)

Phillips 66 Partners LP, incorporated on February 20, 2013, owns, operates, develops and acquires primarily fee-based crude oil, refined petroleum product and natural gas liquids (NGL) pipelines and terminals and other transportation and midstream assets. The Company�� initial assets consist of the three systems, which include Clifton Ridge crude system, Sweeny to Pasadena products system and Hartford Connector products system. A refined petroleum product pipeline, terminal and storage system extending from Phillips 66�� Sweeny refinery in Old Ocean, Texas, to its refined petroleum product terminal in Pasadena, Texas, and ultimately connecting to the Explorer and Colonial refined petroleum product pipeline systems and other third-party pipeline and terminal systems.

A crude oil pipeline, terminal and storage system located in Sulphur, Louisiana, that is the primary source for delivery of crude oil to Phillips 66�� Lake Charles refinery. A refined petroleum product pipeline, terminal and storage system located in Hartford, Illinois, that distributes diesel and gasoline produced at the Wood River refinery (a refinery owned by a joint venture between Phillips 66 and Cenovus Energy Inc.) to third-party pipeline and terminal systems, including the Explorer refined petroleum product pipeline system.

Advisors' Opinion:

• [By Aimee Duffy]

  More to come
  In addition to earnings season, two new midstream MLPs joined the fray this week, as Phillips 66 Partners (NYSE: PSXP  ) and Marlin Midstream Partners�both held initial public offerings. Phillips 66 Partners had the market really moving on Tuesday, climbing more than 29% on its first day of trading. Marlin Midstream was more or less a dud, falling 2.5% when it made its debut on Friday.

• [By Eric Volkman]

  A new oil partnership with a storied name has made a splash on its market debut. Phillips 66 Partners (NYSE: PSXP  ) began trading on the New York Stock Exchange this morning and at the moment is trading at $29.87, nearly 30% above its IPO price of $23 per share.

• [By Robert Rapier]

  Performance so far has been consistent with the advances enjoyed by most of the MLP IPOs over the past year. In fact a few of them made major advances. As discussed in last week�� article No Letup for Last Year�� Top IPO, the best performing MLP of the year so far is Phillips 66 Partners (NYSE: PSXP), which came public last summer and is up 48 percent year-to-date. Of course, there are some exceptions. Marlin Midstream Partners (Nasdaq: FISH) conducted its IPO three days after Phillips 66 Partners last year, and it has traded below its IPO price since. �

Top 5 Transportation Companies To Invest In Right Now: World Point Terminals LP (WPT)

World Point Terminals, LP, incorporated on April 19, 2013, is a fee-based Delaware limited partnership formed to own, operate, develop and acquire terminals and other assets relating to the storage of light refined products, heavy refined products and crude oil. WPT GP, LLC is the general partner of the Company. It operates in a single reportable segment consists primarily of the fee-based storage and terminaling services it performs under contracts with its customers. The Company�� storage terminals are located in the East Coast, Gulf Coast and Midwest regions of the United States and, as of May 31, 2013, had a combined available storage capacity of 12.4 million barrels. The Company provides terminaling and storage of light refined products, such as gasoline, distillates and jet fuels; heavy refined products, such as residual fuel oils and liquid asphalt, and crude oil. Most of its terminal facilities are located on waterways, and have truck racks. Several of its terminal facilities also have rail or pipeline access. As of May 31, 2013, approximately 93% of its available storage capacity was under contract.

The Company generates revenue from Storage Services Fees, Ancillary Services Fees and Additive Services Fees. Storage Services Fees are its customers pay base storage services fees, which are fixed monthly fees paid at the beginning of each month to reserve storage capacity in its tanks and to compensate it for receiving up to a base product volume on their behalf. The Company charges ancillary services fees to its customers for providing services, such as heating, mixing and blending its customers��products that are stored in its tanks; transferring its customers��products between its tanks; at its Granite City terminal, adding polymer to liquid asphalt, and rail car loading and dock operations. The Company generates revenue from fees for injecting generic gasoline, gasoline, lubricity, red dye and cold flow additives to its customers��products.

Advisors' Opinion:

• [By Jon C. Ogg]

  World Point Terminals L.P. (NYSE: WPT) was initiated as Outperform with a $23 price target at Credit Suisse.

  See also more analyst upgrades and downgrades for Tuesday.