Seeking Alpha

Kinder Morgan opens BOSTCO oil terminal on Houston Ship Channel

  • Kinder Morgan Partners (KMP) says commercial operations are underway at phase one of its 185-acre Battleground Oil Specialty Terminal project on the Houston Ship Channel.
  • Twenty of the 51 storage tanks built during phase one construction are being placed into service this month, and the remaining tanks will come online during the next six months; a two-berth ship dock and 12 barge berths also are scheduled to be in service this month.
  • The project is a JV of operator KMP and TransMontaigne Partners (TLP), the near-$500M terminal is fully subscribed for a total capacity of 7.1M barrels - including the project's phase two expansion - and can handle ultra low sulfur diesel, residual fuels and other black oil terminal services.
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Comments (8)
  • durango58
    , contributor
    Comments (275) | Send Message
     
    Rich Kinder keeps doing everything right. So glad I'm invested in his companies.
    7 Oct 2013, 05:11 PM Reply Like
  • sarichter
    , contributor
    Comments (437) | Send Message
     
    here here... definitely my largest holding....
    8 Oct 2013, 12:22 AM Reply Like
  • jerrywengler
    , contributor
    Comments (567) | Send Message
     
    Ditto, durango58.
    7 Oct 2013, 05:31 PM Reply Like
  • toomuchgas
    , contributor
    Comments (679) | Send Message
     
    Are they underspending on maintenance yet to make the tanks leak?
    7 Oct 2013, 07:23 PM Reply Like
  • hallereugene@gmail.com
    , contributor
    Comments (339) | Send Message
     
    Can anyone explain why the stocks just keep trending down after the report by Hedgeye and why Charles Schwab has KMI listed as a "D" even before report?
    8 Oct 2013, 05:51 AM Reply Like
  • sarichter
    , contributor
    Comments (437) | Send Message
     
    because the rest of the market it taking a dive dragging KMI down with it...
    8 Oct 2013, 08:41 AM Reply Like
  • sportscliche
    , contributor
    Comments (241) | Send Message
     
    Remember that the majority of market action (I've heard that it may exceed 80% of the daily volume) is due to robotic trading, i.e. computer programs that have never read an analyst report. Real (long-term) investors are well-served by not trying to analyze short-term price action.

     

    I think TLP (current yield: 6.3%) is the intriguing opportunity here, more so than the Kinder companies. Because they are comparatively small, the BOSTCO project will have a bigger impact on their bottom line. Add to that what looks like a trend for consolidation in the MLP space: eg. Kinder's acquisition of El-Paso and Copano. On top of that, it is no secret that TransMontaigne's general partner Morgan-Stanley is shopping the partnership, which looks like a natural fit into the Kinder empire.
    8 Oct 2013, 12:06 PM Reply Like
  • tarheelboy
    , contributor
    Comments (211) | Send Message
     
    Ditto again, Durango!
    8 Oct 2013, 07:25 AM Reply Like
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