NuStar Energy: Yielding 7.5% With Eagle Ford Driven Upside Potential
- NuStar is an MLP that garners ~95% of operating income from crude and refined product pipelines and storage terminals.
- Although NuStar took massive impairment losses in 2012 and 2013, the company appears to have cleaned house; the dark clouds are clearing.
- Significant growth opportunities exist due to NuStar's midstream exposure to "Shale USA", specifically in the Eagle Ford.
- Yield is sustainable and several near-term catalysts point to growth in both distributions and share price appreciation.