Calumet Specialty Products Partners L.P.
) - a producer of specialty hydrocarbons in North America -
raised its fourth quarter 2012 cash distribution to 65 cents per
unit ($2.60 per unit annualized), representing an increase of
approximately 4.8% sequentially and 22.6% year over year.
Calumet Specialty Products' announced distribution boost is in
sync with its goal of delivering disciplined growth to
unitholders. The partnership boasts a consistent and improving
financial policy with high distribution coverage. Calumet
Specialty Products' new distribution is payable on February 14 to
unitholders of record as on February 4, 2013.
Indianapolis-based Calumet Specialty Products Partners is a
publicly traded master limited partnership that is engaged in the
production of customized lubricating oils, solvents, waxes and
asphalt from crude oil and other feedstock. The partnership also
makes fuel products like gasoline, diesel and jet fuel.
Calumet Specialty Products has a proven record of growth through
acquisitions. The partnership has been aggressive in purchasing
assets that help support its cash flow stability and complements
its business. The latest in this series is the buyout of San
Antonio, Texas, refinery assets from another partnership
NuStar Energy L.P.
) for about $115 million.
However, analysts are predicting an earnings fall for Calumet
Specialty Products during the current year. The 2013 Zacks
Consensus Estimate of $2.92 represents a decline of 16.5% over
Calumet Specialty Products - which acquired the 45,000
barrels-per-day (Bbl/d) Superior (Wisconsin) refinery from El
Murphy Oil Corp.
) in 2011 - currently retains a 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.
But there are certain other energy stocks like
Global Partners L.P.
Sunoco Logistics Partners L.P.
) that offer tremendous value and are worth buying now. Both
these partnerships sport a Zacks Rank #1 (Strong Buy).
CALUMET SPECLTY (CLMT): Free Stock Analysis
GLOBAL PARTNERS (GLP): Free Stock Analysis
MURPHY OIL (MUR): Free Stock Analysis Report
NUSTAR ENERGY (NS): Free Stock Analysis
SUNOCO LOGISTIC (SXL): Free Stock Analysis
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