This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Oiltanking Partners Announces LPG Dock Expansion In Connection With New Enterprise Products Partners Agreement

Stocks in this article: OILT

HOUSTON, March 6, 2013 /PRNewswire/ -- Oiltanking Partners, L.P. (NYSE: OILT) (the "Partnership") today announced an expansion of the Partnership's relationship with Enterprise Products Partners, L.P. ("Enterprise") and plans to significantly increase its ability to import/export liquefied petroleum gas ("LPG") at its terminal on the Houston Ship Channel.  In connection with the agreement with Enterprise, which runs through 2026, the Partnership will construct a new vessel dock and add infrastructure to existing docks with the capability of handling significantly more LPG vessels at multiple docks.  The $44 million expansion is expected to be completed by the end of the fourth quarter of 2014.

"Oiltanking has enjoyed a successful relationship with Enterprise at our Houston terminal for over 20 years," said Anne-Marie Ainsworth, President and Chief Executive Officer of the Partnership's general partner.  "Since the inception of the relationship, both parties have kept pace with import/export demand by continuing to add the necessary infrastructure to become the preferred LPG import/export facility throughout the Gulf Coast.

"In conjunction with Enterprise's most recent expansion at our facility, the loading capacity for low-ethane propane will increase from the current rate of almost 4 million barrels per month to approximately 7.5 million barrels per month.  This dock expansion project will provide incremental loading capacity and position us well to capitalize on the robust international demand for LPGs," added Ainsworth.

Under the amended agreement, Oiltanking has agreed to provide vessel-based LPG import and export services on the Houston Ship Channel exclusively to Enterprise, and Enterprise has agreed to exclusively use Oiltanking's facility for its vessel-based imports and exports of LPGs on the Houston Ship Channel.

The dock expansion project and amended agreement is expected to be accretive to distributable cash flow once operational and is expected to generate returns of approximately 5-6 times EBITDA, or earnings before interest, taxes and depreciation, with upside potential. The Partnership anticipates funding the project primarily with debt.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs