Elliott Gue
Research analyst, dividend investing, oil & gas, master limited partnerships

Arc Logistics Partners: Near-Term Upside Catalysts, Longer-Term Questions

Arc Logistics Partners LP (NYSE: ARCX) went public on Nov. 5, raising about $114 million before fees.

The fledgling master limited partnership (MLP) owns 11 refined-product terminals that can store about 2.5 million barrels of petroleum products and three terminals in Alabama that can accommodate another 2.4 million barrels of crude oil and heavy refined products. These Gulf Coast assets include two rail transloading facilities that can handle about 23,000 barrels per day.

The weighted average term on the contracts covering this capacity hovers around three years, while the MLP's top 15 customers have an average of more than five years remaining on their agreements.

About 89 percent of Arc Logistics Partners' revenue comes from storage and throughput service

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