Best Transportation Stocks To Invest In Right Now

UPS (NYSE: UPS  ) was an early entrant into the national move to use more natural gas in transportation vehicles, experimenting with the fuel for more than 10 years, and making a big buy of trucks powered by engines from nat-gas engine pioneer Westport Innovations (NASDAQ: WPRT  ) back in 2011. As we see this week, UPS's enthusiasm for the technology hasn't waned.

On Tuesday, UPS announced plans to buy 700 new liquefied natural gas vehicles, and build four refueling stations for them, by the end of next year. With 1,000 nat-gas trucks on the road already (not all in the U.S.), UPS says that once this project is complete, it will own one of the most extensive LNG-powered truck fleets in the United States.

UPS explains its enthusiasm for the fuel, in part, because of the simple fact that LNG is cheap. Natural gas prices are roughly 30% to 40% lower than the cost of imported diesel, and likely to get cheaper as nat-gas production expands. In addition, environmental advocates point out that nat-gas carbon dioxide emissions are about 25% less pollutive than those of diesel.

Best Transportation Stocks To Invest In Right Now: Bollore SA (BOL)

Bollore SA is a France-based holding company which operates in 110 countries. The Company is active in several divisions: Bollore Africa Logistics, including freight forwarding, stevedoring, shipping lines and railways; Bollore Logistics with a presence in five continents; Bollore Energie which supplies domestic fuel and petroleum products; IER which designs, manufacture and markets terminals for controlling and reading tickets; Plastic Films for condensers, capacitors and packaging; Batteries and Supercapacitors, Electric Vehicles; Autolib��which offers a network of electric car rental; Communication and Media, which launched Digital Terrestial Television (DTT); Plantations because the Company owns oil palm and rubber plantations, through the Socfin Group and Financial Assets. As of September 27, 2012, the Company acquired minority stake in Vivendi SA and sold Direct 8 and Direct Star to Canal Plus SA. In January 2014, it acquired the outstanding 51% stake of LCN. Advisors' Opinion:

• [By Sofia Horta e Costa]

  Rio Tinto Group climbed 2.9 percent after saying it will cost $3 billion less than projected to increase iron ore output capacity. Boliden AB (BOL) added 3.1 percent as Morgan Stanley raised its rating on the stock. Thomas Cook Group Plc (TCG) rose 13 percent after the travel operator posted a 49 percent increase in full-year earnings. British tobacco companies slipped following a report that after a U.K. minister announced the review of cigarette packaging.

Best Transportation Stocks To Invest In Right Now: Marlin Midstream Partners LP (FISH)

Marlin Midstream Partners, LP, incorporated on April 19, 2013, develops, owns, operates and acquires midstream energy assets. The Company provides natural gas gathering, transportation, treating and processing services and One million cubic feet (NGL) transportation services, which it refer to as its midstream natural gas business, and crude oil transloading services, which it refer to as its crude oil logistics business. The Company operates in two segments: Midstream Natural Gas and Crude Oil Logistics. Its primary midstream natural gas assets consist of two related natural gas processing facilities located in Panola County, Texas; a natural gas processing facility located in Tyler County, Texas; two natural gas gathering systems connected to its Panola County processing facilities, and two NGL transportation pipelines that connect its Panola County and Tyler County processing facilities to third party NGL pipelines.

Midstream Natural Gas

The Company's primary midstream natural gas assets consist of two related natural gas processing facilities located in Panola County, Texas with an approximate design capacity of 220 One million cubic feet per day (MMcf/d), a natural gas processing facility located in Tyler County, Texas with an approximate design capacity of 80 MMcf/d, two natural gas gathering systems connected to its Panola County processing facilities that include approximately 65 miles of natural gas pipelines with an approximate design capacity of 200 MMcf/d, and two NGL transportation pipelines with an approximate design capacity of 20,000 Stock tank barrel per day (Bbls/d) that connect its Panola County and Tyler County processing facilities to third party NGL pipelines. Its primary midstream natural gas assets are located in long-lived oil and natural gas producing regions in East Texas and gather and process NGL-rich natural gas streams associated with production primarily from the Cotton Valley Sands, Haynesville Shale, Austin Chalk and Eaglebine formations.

Crude Oil Logistics

The Company's crude oil logistics assets consist of two crude oil transloading facilities: its Wildcat facility located in Carbon County, Utah, where it operates one skid transloader and two ladder transloaders, and its Big Horn facility located in Big Horn County, Wyoming, where the Company operates one skid transloader and one ladder transloader. Its transloaders are used to unload crude oil from tanker trucks and load crude oil into railcars and temporary storage tanks. It�� Wildcat and Big Horn facilities provide transloading services for production originating from well-established crude oil producing basins, such as the Uinta and Powder River Basins. Its skid transloaders each have a transloading capacity of 475 Stock tank barrel per hour (Bbls/hr), and its ladder transloaders each have a transloading capacity of 210 Bbls/hr.

Advisors' Opinion:

• [By Robert Rapier]

  Performance so far has been consistent with the advances enjoyed by most of the MLP IPOs over the past year. In fact a few of them made major advances. As discussed in last week�� article No Letup for Last Year�� Top IPO, the best performing MLP of the year so far is Phillips 66 Partners (NYSE: PSXP), which came public last summer and is up 48 percent year-to-date. Of course, there are some exceptions. Marlin Midstream Partners (Nasdaq: FISH) conducted its IPO three days after Phillips 66 Partners last year, and it has traded below its IPO price since. �

• [By Aimee Duffy]

  The surge of master limited partnership initial public offerings continued this week, as Phillips 66 Partners (NYSE: PSXP  ) and Marlin Midstream Partners� (NASDAQ: FISH  ) commenced trading. In this video, Fool.com contributor Aimee Duffy looks at both of these IPOs, breaking down the potential opportunities for investors.

Top 5 Income Stocks For 2015: Nordic American Tanker Ltd (NAT)

Nordic American Tankers Limited is an international tanker company. As of December 31, 2011, the Company owned 20 Suezmax tankers. The Company�� vessels include Nordic Harrier, Nordic Hawk, Nordic Hunter, Nordic Voyager, Nordic Freedom, Nordic Fighter, Nordic Discovery, Nordic Saturn, Nordic Jupiter, Nordic Apollo and Nordic Moon. Its vessels also include Nordic Cosmos, Nordic Sprite, Nordic Grace, Nordic Mistral, Nordic Passat, Nordic Vega, Nordic Breeze, Nordic Aurora and Nordic Zenith. In September 2011, the Company acquired the vessel, Nordic Aurora. It chartered all of its vessels in the spot market pursuant to a cooperative arrangement with Gemini Tankers LLC until November 24, 2011. In November 2011, the Orion Tankers pool was established with Orion Tankers Ltd. as pool manager and its vessels were transferred from the Gemini Tankers LLC arrangement to the Orion Tankers pool. On December 17, 2012, the Company acquired 100% interest in Scandic American Shipping Ltd. Advisors' Opinion:

• [By Robert Rapier]

  Nordic American Tanker (NYSE: NAT) is a Bermuda-based tanker company that acquires and charters double-hull tankers. Its fleet consists of 20 double-hull Suezmax tankers. Besides the factor you mention about more ships coming onto the market, NAT has underperformed — period. Shares have lost two-thirds of their value over the past five years, and the dividend has been cut multiple times.

• [By Jake L'Ecuyer]

  Nordic American Tankers (NASDAQ: NAT) was also up, gaining 10.05 percent to $8.87 after the Dow Jones Global Shipping Index showed strength throughout the session on Wednesday.

• [By Tim Melvin]

  One of the better-financed shipping companies is Bermuda-based Nordic American Tankers (NAT). NAT has a debt-to-equity ratio of just 0.25, unlike many of its highly levered competitors. The company owns 20 double hulled SuezMax size oil tankers and will benefit when global energy demand picks up.

Best Transportation Stocks To Invest In Right Now: QEP Midstream Partners LP (QEPM)

QEP Midstream Partners, LP (QEP), incorporated on April 19, 2013, is a limited partnership formed by QEP Resources, Inc. to owns, operates, acquires and develops midstream energy assets. The Company�� primary assets consist of ownership interests in four gathering systems and two Federal Energy Regulatory Commission (FERC)-regulated pipelines, through which it provides natural gas and crude oil gathering and transportation services. The Company�� assets are located in, or are within close proximity to, the Green River Basin located in Wyoming and Colorado, the Uinta Basin located in eastern Utah, and the portion of the Williston Basin located in North Dakota. As of December 31, 2012, the Company�� gathering systems had 1,475 miles of pipeline and an average gross throughput of 1.8 million british thermal units per hour of natural gas and 18,224 barrels of crude oil.

Green River System

The Company�� Green River System, located in western Wyoming, consists of three complimentary systems owned by Green River Gathering, Rendezvous Gas and Rendezvous Pipeline and gathers natural gas production from the Pinedale, Jonah and Moxa Arch fields. In addition to gathering natural gas, the system also gathers and stabilizes crude oil production from the Pinedale Field, transports the stabilized crude oil to an interstate pipeline interconnect, and gathers and handles produced and flowback water associated with well completion activities in the Pinedale Field. The Green River Gathering assets are comprised of 405 miles of natural gas gathering pipelines, 61 miles of crude oil gathering pipelines, 81 miles of water gathering pipelines and a 60-mile, FERC-regulated crude oil pipeline located in the Green River Basin. The Rendezvous Gas assets consist of three parallel, 103-mile high-pressure natural gas pipelines, with 1,032 million cubic feet per day of throughput capacity and 7,800 basic hydrogen peroxide of gas compression. Rendezvous Pipeline�� sole asset is a 21-mile, FERC-regu! lated natural gas transmission pipeline that provides gas transportation services from QEP�� Blacks Fork processing complex in southwest Wyoming to an interconnect with the Kern River Pipeline.

Vermillion Gathering System

The Vermillion Gathering System consists of gas gathering and compression assets located in southern Wyoming, northwest Colorado and northeast Utah, which, when combined, include 454 miles of low-pressure, gas gathering pipelines and 23,197 basic hydrogen peroxide of gas compression. The Vermillion Gathering System is primarily supported by life-of-reserves and long-term, fee-based gas gathering agreements with minimum volume commitments, which are designed to ensure that it will generate a certain amount of revenue over the life of the gathering agreement by collecting either gathering fees for actual throughput or payments to cover any shortfall. The primary customers on our Vermillion Gathering System include Questar, Samson Resources Corporation (Samson Resources), QEP and Chevron USA, Inc. (Chevron).

Three Rivers Gathering System

Three Rivers Gathering is a joint venture between QEP and Ute Energy Midstream Holdings, LLC (Ute Energy) that was formed to transport natural gas gathered by Uintah Basin Field Services, L.L.C., an indirectly owned subsidiary of QEP (Uintah Basin Field Services), and other third-party volumes to gas processing facilities owned by QEP and third parties. The Three Rivers Gathering System consists of gas gathering assets located in the Uinta Basin in northeast Utah, including approximately 50 miles of gathering pipeline and 4,735 basic hydrogen peroxide of gas compression.

Williston Gathering System

The Williston Gathering System is a crude oil and natural gas gathering system located in the Williston Basin in McLean County, North Dakota. The Williston Gathering System includes 17 miles of gas gathering pipelines, 17 miles of oil gathering pipelines 239 basic hydrogen peroxide o! f gas com! pression, and a crude oil and natural gas handling facility, located primarily on the Fort Berthold Indian Reservation.

The Company competes with Enterprise Products Partners, L.P., Western Gas and The Williams Companies, Inc.

Advisors' Opinion:

• [By Jon C. Ogg]

  QEP Midstream Partners L.P. (NYSE: QEPM) was started as Buy at Janney Capital, and note that four other firms started coverage earlier this week.

  ServiceNow Inc. (NYSE: NOW) was started as Buy with a $55 price target at Canaccord Genuity.

• [By Lauren Pollock]

  QEP Resources Inc.(QEP) plans to separate its midstream business, QEP Field Services Co., into a separate entity, including its interest in QEP Midstream Partners LP(QEPM).

Best Transportation Stocks To Invest In Right Now: Eagle Rock Energy Partners LP (EROC)

Eagle Rock Energy Partners, L.P. (Eagle Rock) is a limited partnership engaged in the business of gathering, compressing, treating, processing and transporting natural gas; fractionating and transporting natural gas liquids (NGLs); crude oil logistics and marketing; natural gas marketing and trading, known as Midstream Business, and developing and producing interests in oil and natural gas properties, known as Upstream Business. On May 3, 2011, the Company acquired CC Energy II, L.L.C and outstanding membership interests of Crow Creek Energy. On May 20, 2011, it sold the Wildhorse Gathering System in its East Texas and Other Midstream Segment.

Midstream Business

The Company�� Midstream Business is located in four natural gas producing regions: the Texas Panhandle; East Texas/Louisiana; South Texas, and the Gulf of Mexico. As of December 31, 2011, these working interest properties included 591 gross operated productive wells and 1,197 gross non-operated wells with net production to the Company of approximately 87.7 million cubic feet of natural gas per day and proved reserves of approximately 234.0 Bcf of natural gas, 11.5 million barrels of crude oil or other liquid hydrocarbons of crude oil, and 11.3 million barrels of crude oil or other liquid hydrocarbons of natural gas liquids, of which 76% are proved developed. As of December 31, 2011, its Midstream Business consisted of Panhandle Segment and East Texas and Other Midstream Segment.

The Company�� Texas Panhandle Segment covers 10 counties in Texas and two counties in Oklahoma. Through the systems within this segment, the Company offers midstream wellhead-to-market services, including gathering, compressing, treating, processing and selling of natural gas, and fractionating and selling of NGLs. As of December 31, 2011, approximately 213 producers and 2,072 wells and central delivery points were connected to the systems in its Texas Panhandle Segment. The Texas Panhandle Segment averaged gathered volumes fo! r 2011 of approximately 155.1 million cubic feet of natural gas per day. As of December 2011, Chesapeake Energy and BP America Production represented 14% and 11%, respectively, of the total volumes of its Texas Panhandle Segment. The Texas Panhandle Segment consists of approximately 3,963 miles of natural gas gathering pipelines, ranging from two inches to 24 inches in diameter; seven natural gas processing plants with an aggregate capacity of 210 million cubic feet of natural gas per day; a propane fractionation facility with capacity of 1.0 million cubic feet of natural gas per day, and two condensate collection and stabilization facilities.

Eagle Rock�� systems in the East Panhandle (northern Wheeler, Hemphill and Roberts Counties, Texas) gather and process natural gas produced in the Morrow and Granite Wash reservoirs of the Anadarko basin. In the Panhandle Segment, natural gas is contracted at the wellhead primarily under percent-of proceeds (which includes percent-of-liquids) fixed recovery, percent-of-index and fee-based arrangements that range from one to five years in term. During the year endede December 31, 2011, it produced over 2,600 equity barrels per day of condensate in the Texas Panhandle Segment. During 2011, it stabilizes approximately 2,000 barrels per day combined at its Superdrip and Cargray Stabilizers.

The Company�� East Texas and Other Midstream Segment operates within the natural gas producing regions, such as East Texas/Louisiana, South Texas and the Gulf of Mexico. Through its Texas/Louisiana region, it offers producers natural gas gathering, treating, processing and transportation and NGL transportation across 21 counties in East Texas and seven parishes in West Louisiana. Its operations in the South Texas region primarily gather natural gas and recover NGLs and condensate from natural gas produced in the Frio, Vicksburg, Miocene, Canyon Sands and Wilcox formations in South Texas. Its operations in the Gulf of Mexico region are non-operated owne! rship int! erests in pipelines and onshore plants which are all located in southern Louisiana. The Gulf of Mexico region also provides producer services by arranging for the processing of producers��natural gas into third-party processing plants, known as Mezzanine Processing Services.

As of December 31, 2011, approximately 705 wells and central delivery points were connected to its systems in the East Texas and Other Midstream Segment. As of December 31, 2011, the East Texas and Other Midstream Segment provides gathering and/or marketing services to approximately 140 producers. During 2011, the East Texas and Other Midstream Segment averaged gathered volumes of approximately 319.9 million cubic feet of natural gas per day. As of December 31, 2011, Stone Energy Corporation and Anadarko Petroleum Company represented 18% and 9%, respectively, of the total volumes of its East Texas and Other Midstream Segment. Residue gas pipelines include Houston Pipeline Company, Natural Gas Pipeline Company, Tennessee Gas Pipeline, Crosstex Energy L.P. and Southern Natural Pipeline.

Upstream Business

The Company�� Upstream Business located in four regions within the United States, such as Southern Alabama, which includes the associated gathering, processing and treating assets; Mid-Continent, which includes areas in Oklahoma, Arkansas, Texas Panhandle and North Texas; Permian, which includes areas in West Texas, and East/South Texas/Mississippi assets. As of December 31, 2011, these working interest properties included 591 gross operated productive wells and 1,197 gross non-operated wells with net production of approximately 87.7 million cubic feet of natural gas per day and proved reserves of approximately 234.0 Bcf of natural gas, 11.5 million barrels of crude oil or other liquid hydrocarbons of crude oil, and 11.3 million barrels of crude oil or other liquid hydrocarbons of natural gas liquids, of which 76% are proved developed.

The Southern Alabama region includes the! Big Esca! mbia Creek, Flomaton and Fanny Church fields located in Escambia County, Alabama. These fields produce from either the Smackover or Norphlet formations at depths ranging from approximately 15,000 to 16,000 feet. The Big Escambia Creek field encompasses approximately 11,568 gross and 7,334 net Eagle Rock operated acres. It operates 18 productive wells with an average ownership of 60% working interest and 51% net revenue interest in the Big Escambia Creek field. The Fanny Church field is located two miles east of Big Escambia Creek. Its ownership includes approximately 1,284 gross and 999 net operated acres that include three productive operated wells with an average ownership of 86% working interest and 66% net revenue interest. The Flomaton field is adjacent to and partially underlies the Big Escambia Creek field. The field encompasses approximately 1,280 gross and 1,256 net Eagle Rock operated acres and produces from the Norphlet formation at depths from approximately 15,000 to 16,000 feet. It operates three productive wells with an approximate average 91% working interest and 78% net revenue interest. The Smackover and Norphlet reservoirs are sour, gas condensate reservoirs which produce gas and fluids containing a high percentage of hydrogen sulfide and carbon dioxide.

The Mid-Continent region consists of operated and non-operated properties across the Golden Trend Field, Cana Shale play, Verden Field, and other western Oklahoma fields located in the Anadarko Basin in Oklahoma, the Mansfield Field and other various fields in the Arkoma Basin in Arkansas and Oklahoma, various fields in the Texas Panhandle, and the Barnett Shale in north Texas. Productive depths range from approximately 2,500 feet in the Arkoma fields of western Arkansas to greater than 18,000 feet in the Springer formation in certain western Oklahoma fields. Its producing field is the Golden Trend field that extends across Grady, McClain and Garvin counties in Oklahoma. It has 14,621 net acres in the Cana Shale play exte! nding acr! oss Canadian, Blaine and Dewey counties, Oklahoma. The Cana Shale produces from horizontal wells drilled to vertical depths of 11,000 - 13,000 feet and extended with horizontal lateral lengths of approximately 5,000 feet. In the total Mid-Continent region, it operate 316 productive wells and own a working interest in an additional 1,054 non-operated productive wells. The average working interest in these productive operated and non-operated wells is 83% and 9%, respectively. The net production averaged approximately 53.2 million cubic feet of natural gas per day during 2011, of which approximately 77% was produced from wells it operated.

The Permian region contains numerous fields, including Block 27, Estes Block 34, H.S.A., Heiner, Monahans N., Payton, Running W., Ward S, and Ward-Estes N. located mainly in Ward, Pecos, and Crane Counties, Texas. These fields are located in the Central Basin Platform which extends from central Lea County in New Mexico to central Pecos County in Texas and encompasses hundreds of individual fields with multiple productive intervals from the Yates-Seven Rivers-Queen through the Ellenburger formations. The Ward County fields contains two major properties, the Louis Richter and the American National Life Ins. Co. leases, and encompasses approximately 10,285 gross and 10,215 net Eagle Rock acres. It operate multiple fields consisting of stacked multi-pay horizons that produce from depths of 2,300 feet (Yates) to 9,100 feet (Pennsylvanian). The Southern Unit is located in the Running W Waddell field and produces predominantly oil at depths from approximately 5,750 to 5,900 feet. It operates approximately 5,875 net acres in this area.

The East/South Texas/Mississippi region includes the Aker, Birch, Edgewood, Eustace, Fruitvale, Ginger and Wesson fields in East Texas, the Jourdanton field in South Texas, and the Chicora W, High Road, and Stafford Springs fields in Mississippi. The East Texas fields produce primarily from the Smackover Trend at depth! s from 12! ,000 to 12,700 feet and encompass approximately 18,991 gross and 15,872 net Eagle Rock acres. It operates 32 productive wells, which produce gas that contains between approximately 30% to 69% of impurities (hydrogen sulfide, nitrogen, and carbon dioxide). The Edgewood field also contains two productive gas wells in the Cotton Valley at depths of 11,500 to 11,600 feet which produce sweet natural gas. The East Texas production, with the exception of a single well, is delivered to the third party owned Eustace Plant for separation of condensate, removal of impurities, and extraction of natural gas liquids and sulfur for a combination of fees and percentage of proceeds.

In South Texas, it operates wells in the Jourdanton field in Atascosa County, Texas. It operates nine productive wells with 100% working interest and 88% net revenue interest. Its production from the field is primarily from the Edwards carbonates (7,300 to 7,400 feet). On December 31, 2011, the Company had under operation 290 gross (261 net) productive oil wells and 301 gross (251 net) productive natural gas wells. On December 31, 2011, Eagle Rock owned non-operated working interests in an additional 148 gross (18 net) productive oil wells and 1049 gross (72 net) productive natural gas wells.

The Company competes with DCP Midstream, LLC and Enbridge Energy Partners, L.P., Crosstex Energy, L.P., Energy Transfer Partners, LP and Enterprise Products Partners, L.P.

Advisors' Opinion:

• [By Robert Rapier]

  Rounding out the bottom five were�OCI Partners�(NYSE: OCIP), a methanol and ammonia producer (-24 percent YTD),�Natural Resource Partners�(NYSE: NRP), another coal producer (-19 percent), and�Eagle Rock Energy Partners�(NASDAQ: EROC), an oil and gas production partnership (-17 percent).

• [By Robert Rapier] Most MLP investors have two main concerns: the preservation of capital and reliable income — in that order. These two objectives are, of course, closely linked. An MLP that treats its investors to negative distribution surprises is likely to be an MLP that does a poor job of preserving capital. For example, Eagle Rock Energy Partners (Nasdaq: EROC) has lost 25 percent of its value since announcing a distribution cut in late October.
  

  But how does an investor judge whether an MLP is at risk of a surprising distribution cut? As we discussed recently in The Unkindest Cut for MLPs, some classes of MLP are more susceptible to cuts than others. For variable distribution MLPs, it’s par for the course. Distributions go up, and they go down — depending on market conditions. MLPs focused on upstream oil and gas operations are also at greater risk of a distribution cut during periods of softening oil and gas prices.

• [By Jason Shubnell]

  Eagle Rock Energy Partners LP (NASDAQ: EROC) was also up, gaining 6.94 percent to $6.33. Analysts at Wells Fargo upgraded the stock from Market Perform to Outperform.

Best Transportation Stocks To Invest In Right Now: Southcross Energy Partners LP (SXE)

Southcross Energy Partners, L.P., incorporated on April 12, 2004, is a limited partnership. The Company owns, operates, develops and acquires midstream energy assets. The Company provides natural gas gathering, processing, treating, compression and transportation services and natural gas liquid (NGL) fractionation services to its producer customers, under fixed-fee and fixed-spread contracts, and it also sources, purchases, transports and sells natural gas and NGLs to its power generation, industrial and utility customers. Its assets are located in South Texas, Mississippi and Alabama. During the year ended December 31, 2011, its South Texas assets, which consist of approximately 1,445 miles of pipeline and two processing plants and accounted for approximately 77% of its revenues. Its Mississippi and Alabama assets, which consist of approximately 626 and 519 miles of pipeline, respectively, provide transportation of natural gas to its power generation, industrial and utility customers, as well as to unaffiliated interstate pipelines. The assets in its South Texas region are located between Houston and Freer. These assets consist of approximately 1,445 miles of pipeline ranging in diameter from 2 inches to 20 inches. In March 2014, the Company acquired natural gas pipelines near Corpus Christi, Texas along with contracts related to those pipelines.

South Texas

The assets in the Company�� South Texas region are located between Houston and Freer, a city, which is located approximately 50 miles west of Corpus Christi. These assets consist of approximately 1,445 miles of pipeline ranging in diameter from 2 inches to 20 inches with an estimated design capacity of 590 million cubic feet per day. Its South Texas region also includes 29 compressors with total compression of approximately 35,000 horsepower, two processing plants with total processing capacity of 185 million cubic feet per day and contracted third-party processing capacity of 83 million cubic feet per day, two treatin! g plants and one fractionator. During 2011, the systems in this region had an average throughput of 379 million cubic feet per day, including the processing plants, which processed an average of 75 million cubic feet per day in that period. It divides its South Texas region into four asset systems Vanderbilt and Gulf Coast gathering systems, which it refers to collectively as the Gulf Coast system; CCNG Transmission, which refer to as the CCNG system; Gregory gathering system, Gregory processing plant and Gregory fractionation plant, and Conroe gathering system and Conroe processing plant.

The pipelines in its South Texas segment are connected to multiple producing fields, including the Eagle Ford shale area. In addition to tie-ins to its two processing plants, its gathering systems are also connected to two processing plants owned by third parties and to a range of intrastate and interstate pipelines.

The Gulf Coast system is located throughout 13 counties in South Texas, including parts of the Eagle Ford shale area, and consists of two pipeline systems. The Gulf Coast system includes approximately 743 miles of pipeline ranging from 2 inches to 20 inches in diameter with an estimated design capacity of 205 million cubic feet per day. The system also includes seven compressors with compression of approximately 7,136 horsepower on a combined basis. During 2011, this system had an average throughput of approximately 114 million cubic feet per day.

The Gulf Coast system acquires natural gas from over 100 producers at prices that are at a fixed discount to the Houston Ship Channel Index price. The gas is delivered to third-party processing plants, including the Formosa processing plant located in Point Comfort, Texas and the Hilcorp processing plant located in Old Ocean, Texas. In the case of the Hilcorp processing plant, its customers pay it gathering fees to transport approximately 25 million cubic feet per day from their wells to this processing plant. Its producer ! customers! on the Gulf Coast system range from small independent exploration and production companies to producers, such as Chesapeake Energy and Devon Energy.

The CCNG system is located in the Eagle Ford shale area and consists of over 417 miles of transmission and gathering pipeline ranging from 2 inches to 20 inches in diameter. The system also includes one compressor with total compression of approximately 1,260 horsepower. During 2011, the system had an average throughput of 190 million cubic feet per day. Natural gas is supplied to this system from approximately 35 field receipt points, treating plants and third party gathering systems and pipelines, including Texas Eastern, Kinder Morgan and Conoco Lobo. Producers who supply or transport natural gas on the CCNG system include Swift Energy, EOG, Exxon, Comstock and Apache. Liquids-rich gas can be transported from the western end of the system to its Woodsboro and Gregory processing plants. Dry gas is brought into the dry gas portions of the system along with residue gas from the outlets of its processing plants. Gas in the system is purchased and sold, under fixed-spread arrangements, as well as transported on behalf of shippers. The CCNG system sells its dry natural gas in the industrial market around the city of Corpus Christi. A portion of the throughput on its CCNG system is processed at its Gregory processing plant or at the Formosa processing plant located in Point Comfort, Texas.

The Gregory gathering system is located near Corpus Christi, Texas and consists of approximately 266 miles of pipeline ranging from 4 inches to 18 inches in diameter. The system also includes one compressor. Its Gregory processing plant is a cryogenic natural gas plant comprised of two units collectively having a total capacity of 135 million cubic feet per day. Its Gregory processing plant processes natural gas from the Gregory gathering system, as well as gas originating in its CCNG System.

Produced NGLs are fractionated in the Compan! y�� fra! ctionator located on the same site as the Company�� Gregory processing plant. Purity ethane is shipped through pipeline to Dow Chemical while remaining NGLs are shipped through truck to local markets, which yield a premium to available pipeline rates. All of its customers on the Gregory gathering system pay a flat fee for natural gas to be gathered in the system and processed at the Gregory processing plant. Its Conroe processing plant is a 50 million cubic feet per day cryogenic natural gas plant. The plant recovers approximately 65% of the ethane contained in the inlet natural gas, depending on loads and temperatures.

Mississippi

The assets in the Company�� Mississippi region are located in the southern half of the state and comprise the intrastate pipeline system in Mississippi. The Mississippi assets consist of approximately 626 miles of pipeline ranging in diameter from 2 inches to 20 inches. The Mississippi system also includes two compressors. During 2011, the system had an average throughput of 86 million cubic feet per day. It generates revenues from its Mississippi assets by charging fixed transportation fees to shippers and by entering into fixed-spread contracts with suppliers and power generation, industrial and utility customers. During 2011, fixed-fee transportation contracts comprised 34.8% of the volumes it transported on its Mississippi system and fixed-spread contracts comprised the remaining 65.2% of its volumes.

Alabama

The assets in the Company�� Alabama region are located in northwest and central Alabama and consist of 519 miles of natural gas gathering pipeline ranging from 2 inches to 16 inches in diameter. The Alabama system also includes 22 compressors with total compression of approximately 24,537 horsepower. The system has an estimated design capacity of 375 million cubic feet per day. The gas supply to the system is coalbed methane gas from the Black Warrior Basin with incremental volumes gathered from conventional ! gas wells! . It gathers, transports, compresses, purchases and sells natural gas in Alabama and offers both intrastate transportation and interstate transportation services. During 2011, 81% of the volumes on its Alabama system were transported pursuant to fixed-fee transportation contracts and 19% of the volumes on the system were purchased from producers and then transported and sold to power generation, industrial and utility customers pursuant to fixed-spread contracts.

The Company competes with Copano Energy, L.L.C., Energy Transfer Partners, L.P., Enterprise Products Partners LP and Kinder Morgan Energy Partners LP.

Advisors' Opinion:

• [By Lisa Levin]

  Southcross Energy Partners LP (NYSE: SXE) shares rose 11.05% to $20.61. The volume of Southcross Energy shares traded was 624% higher than normal. Southcross Energy and TexStar Midstream Services announced a combination agreement.

Best Transportation Stocks To Invest In Right Now: CSX Corporation (CSX)

CSX Corporation, together with its subsidiaries, provides rail-based transportation services. The company offers traditional rail service, and the transport of intermodal containers and trailers. It transports crushed stone, sand and gravel, metal, phosphate, fertilizer, food, consumer, agricultural, automotive, paper, and chemical products; and utility, industrial, and export coal to electricity-generating power plants, steel manufacturers, industrial plants, and deep-water port facilities. The company also provides intermodal transportation services through a network of approximately 50 terminals transporting manufactured consumer goods in containers in the eastern United States, as well as performs drayage services and trucking dispatch operations. In addition, it operates distribution centers and storage locations; connects non-rail served customers to the benefits of rail by transferring products, such as ethanol and minerals, from rail to trucks; engages in the real estate sale, leasing, acquisition, and management and development activities. CSX Corporation operates approximately 21,000 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as operates approximately 4,000 locomotives. It also serves production and distribution facilities through track connections to approximately 240 short-line and regional railroads. CSX Corporation was founded in 1978 and is based in Jacksonville, Florida.

Advisors' Opinion:

• [By Chuck Saletta]

  Similarly, on Friday railroad tycoon CSX (NYSE: CSX  ) is expected to hand the IPIG portfolio $0.15 per share in cash for the 24 shares it owns. That's a decent raise from the $0.14 per share it had paid in previous quarters.

Best Transportation Stocks To Invest In Right Now: MPLX LP (MPLX)

MPLX LP, incorporated on March 27, 2012, is a fee-based limited partnership formed by Marathon Petroleum Corporation to own, operate, develop and acquire crude oil, refined product and other hydrocarbon-based product pipelines and other midstream assets. The Company�� assets consist of a 51% indirect interest in a network of common carrier crude oil and product pipeline systems and associated storage assets in the Midwest and Gulf Coast regions of the United States.

The Company generates revenue by charging tariffs for transporting crude oil, refined products and other hydrocarbon-based products through its pipelines and at its barge dock and fees for storing crude oil and products at its storage facilities. The Company is also the operator of additional crude oil and product pipelines owned by Marathon Petroleum Corporation and its subsidiaries (MPC) and third parties, for which it is paid operating fees.

The Company�� assets consist of a 51% partner interest in Pipe Line Holdings, an entity which owns a 100.0% interest in Marathon Pipe Line LLC (MPL) and Ohio River Pipe Line LLC (ORPL), which in turn own: a network of pipeline systems, which includes approximately 962 miles of common carrier crude oil pipelines and approximately 1,819 miles of common carrier product pipelines extending across nine states. This network includes approximately 153 miles of common carrier crude oil and product pipelines, which it operates under long-term leases with third parties; a barge dock located on the Mississippi River near Wood River, Illinois, and crude oil and product tank farms located in Patoka, Wood River and Martinsville, Illinois and Lebanon, Indiana; and a 100.0% interest in a butane cavern located in Neal, West Virginia, which serves MPC�� Catlettsburg, Kentucky refinery.

Crude Oil Pipeline Systems

The Company�� crude oil pipeline systems and related assets are positioned to support crude oil supply options for MPC�� Midwest refineries, whic! h receive imported and domestic crude oil through a range of sources. Imported and domestic crude oil is transported to supply hubs in Wood River and Patoka, Illinois from a range of regions, including Cushing, Oklahoma on the Ozark pipeline system; Western Canada, Wyoming and North Dakota on the Keystone, Platte, Mustang and Enbridge pipeline systems, and the Gulf Coast on the Capline crude oil pipeline system.

The Company�� Patoka to Lima crude system is comprised of approximately 76 miles of 20-inch pipeline extending from Patoka, Illinois to Martinsville, Illinois, and approximately 226 miles of 22-inch pipeline extending from Martinsville to Lima, Ohio. This system also includes associated breakout tankage. Crude oil delivered on this system to MPC�� tank farm in Lima can then be shipped to MPC�� Canton, Ohio refinery through MPC�� Lima to Canton pipeline, to MPC�� Detroit refinery through MPC�� undivided joint interest portion of the Maumee pipeline, and its Samaria to Detroit pipeline, or to other third-party refineries owned by BP, Husky Energy, and PBF Energy in Lima and Toledo, Ohio.

The Company�� Catlettsburg and Robinson crude system is consisted of the pipelines: Patoka to Robinson and Patoka to Catlettsburg. Its Patoka to Robinson pipeline consists of approximately 78 miles of 20-inch pipeline, which delivers crude oil from Patoka, Illinois to MPC�� Robinson, Illinois refinery. Its Patoka to Catlettsburg pipeline consists of approximately 140 miles of 20-inch pipeline extending from Patoka, Illinois to Owensboro, Kentucky, and approximately 266 miles of 24-inch pipeline extending from Owensboro to MPC�� Catlettsburg, Kentucky refinery. Crude oil can enter this pipeline at Patoka, and into the Owensboro to Catlettsburg portion of the pipelines at Lebanon Junction, Kentucky, from the third-party Mid-Valley system.

The Company�� Detroit crude system is consisted of Samaria to Detroit and Romulus to Detroit. Its Samaria to Detroit pi! peline co! nsists of approximately 44 miles of 16-inch pipeline that delivers crude oil from Samaria, Michigan to MPC�� Detroit, Michigan refinery. This pipeline includes a tank farm and crude oil truck offloading facility located at Samaria.

The Company�� Romulus to Detroit pipeline consists of approximately 17 miles of 16-inch pipeline extending from Romulus, Michigan to MPC�� Detroit, Michigan refinery. Its Wood River to Patoka crude system is consisted of two pipelines: Wood River to Patoka and Roxanna to Patoka. Its Wood River to Patoka pipeline consists of approximately 57 miles of 22-inch pipeline, which delivers crude oil received in Wood River, Illinois from the third-party Platte and Ozark pipeline systems to Patoka, Illinois.

The Company�� Roxanna to Patoka pipeline consists of approximately 58 miles of 12-inch pipeline, which transports crude oil received in Roxanna, Illinois from the Ozark pipeline system to its tank farm in Patoka, Illinois.

Product Pipeline Systems

The Company�� product pipeline systems are positioned to transport products from five of MPC�� refineries to MPC�� marketing operations, as well as those of third parties. These pipeline systems also supply feedstocks to MPC�� Midwest refineries. These product pipeline systems are integrated with MPC�� expansive network of refined product marketing terminals, which support MPC�� integrated midstream business.

The Company�� Gulf Coast product pipeline systems include Garyville products system and Texas City products system. The Company�� Garyville products system is consisted of approximately 70 miles of 20-inch pipeline, which delivers refined products from MPC�� Garyville, Louisiana refinery to either the Plantation Pipeline in Baton Rouge, Louisiana or the MPC Zachary breakout tank farm in Zachary, Louisiana, and approximately two miles of 36-inch pipeline that delivers refined products from the MPC tank farm to Colonial Pipeline in Zachary.

The Company�� Texas City products system is comprised of approximately 39 miles of 16-inch pipeline that delivers refined products from refineries owned by MPC, BP and Valero in Texas City, Texas to MPC�� Pasadena breakout tank farm and third-party terminals in Pasadena, Texas. The system also includes approximately three miles of 30- and 36-inch pipeline that delivers refined products from MPC�� Pasadena breakout tank farm to the third-party TEPPCO and Centennial pipeline systems.

The Company�� Midwest product pipeline systems include Ohio River Pipe Line (ORPL) products system, Robinson products system and Louisville Airport products system. The Company�� ORPL products system is consisted of Kenova to Columbus, Canton to East Sparta, East Sparta to Heath, East Sparta to Midland, Heath to Dayton, and Heath to Findlay.

The Company�� Kenova to Columbus pipeline consists of approximately 150 miles of 14-inch pipeline that delivers refined products from MPC�� Catlettsburg refinery to MPC�� Columbus, Ohio area terminals. Its Canton to East Sparta pipeline consists of two parallel pipelines, which connect MPC�� Canton, Ohio refinery with its East Sparta, Ohio breakout tankage and station. The first pipeline consists of approximately 8.5 miles of six-inch pipeline that delivers products (distillates) from Canton to East Sparta. The second pipeline consists of approximately 8.5 miles of six-inch bi-directional pipeline, which can deliver products (gasoline) from Canton to East Sparta or light petroleum-based feedstocks from East Sparta to Canton.

The Company�� East Sparta to Heath pipeline consists of approximately 81 miles of eight-inch pipeline that delivers products from its East Sparta, Ohio breakout tankage and station to MPC�� terminal in Heath, Ohio. The Company�� East Sparta to Midland pipeline consists of approximately 62 miles of eight-inch bi-directional pipeline, which can deliver products and light petroleum-based feedstocks betwe! en its br! eak-out tankage and station in East Sparta, Ohio and MPC�� terminal in Midland, Pennsylvania. MPC�� Midland terminal has a marketing load rack and is able to connect to other Pittsburgh, Pennsylvania-area terminals through a pipeline owned by Buckeye Pipe Line Company, L.P. and a river loading/unloading dock for products and petroleum feedstocks. This pipeline can also transport products to MPC�� terminals in Steubenville and Youngstown, Ohio through a connection at West Point, Ohio with a pipeline owned by MPC.

The Company�� Heath to Dayton pipeline consists of approximately 108 miles of six-inch pipeline, which delivers products from MPC�� terminals in Heath, Ohio and Columbus, Ohio to terminals owned by CITGO and Sunoco Logistics Partners, L.P. in Dayton, Ohio. This pipeline is bi-directional between Heath and Columbus for product deliveries. Its Heath to Findlay consists of approximately 100 miles of eight- and 10-inch pipeline, which delivers products from MPC�� terminal in Heath, Ohio to MPC�� pipeline break-out tankage and terminal in Findlay, Ohio. Robinson products system is consisted of Robinson to Lima, Robinson to Louisville, Robinson to Mt. Vernon, Wood River to Clermont, Dieterich to Martinsville and Wabash Pipeline System.

The Company�� Robinson to Lima pipeline consists of approximately 250 miles of 10-inch pipeline, which delivers products from MPC�� Robinson, Illinois refinery to MPC terminals in Indianapolis, Indiana, as well as to MPC terminals in Muncie, Indiana and Lima, Ohio. Its Robinson to Louisville pipeline consists of approximately 129 miles of 16-inch pipeline, which delivers products from MPC�� Robinson, Illinois refinery to two MPC and multiple third-party terminals in Louisville, Kentucky. In addition, these products can supply MPC and Valero terminals in Lexington, Kentucky through the Louisville to Lexington pipeline system owned by MPC and Valero.

The Company�� Robinson to Mt. Vernon pipeline consists of ap! proximate! ly 79 miles of 10-inch pipeline that delivers products from MPC�� Robinson, Illinois refinery to a MPC terminal located on the Ohio River in Mt. Vernon, Indiana. It leases this pipeline from a third party under a long-term lease. The Company�� Wood River to Clermont pipeline consists of approximately 153 miles of 10-inch pipeline extending from MPC�� terminal in Wood River, Illinois to Martinsville, Illinois, and approximately 156 miles of 10-inch pipeline extending from Martinsville, Illinois to Clermont, Indiana. This pipeline also includes approximately 9.5 miles of pipelines utilized for the local movement of products in and around Wood River, Illinois, and Clermont, Indiana.

The Company�� Dieterich to Martinsville pipeline consists of approximately 40 miles of 10-inch pipeline, which delivers products from the termination point of Centennial Pipeline to Martinsville, Illinois. From Martinsville, these products (including refinery feedstocks) can be distributed to MPC�� Robinson, Illinois refinery or to other destinations through our other pipeline systems. Its Wabash Pipeline System consists of three interconnected pipeline pipelines: approximately 130 miles of 12-inch pipeline extending from MPC�� terminal in Wood River, Illinois to Champaign, Illinois (the West leg); approximately 86 miles of 12-inch pipeline extending from MPC�� Robinson, Illinois refinery to Champaign (the East leg), and approximately 140 miles of 12- and 16-inch pipeline extending from the junction with the East and West legs in Champaign to MPC�� terminals in Griffith, Indiana and Hammond, Indiana. This pipeline system delivers products to MPC�� tanks at Martinsville, Champaign, Griffith and Hammond. This pipeline system also delivers products to tanks owned by Meier Oil Company at Ashkum, Illinois. The Wabash Pipeline System connects to other pipeline systems in the Chicago area through a portion of the system located beyond MPC�� Griffith terminal. The Company�� Louisville airport product! s system ! consists of approximately 14 miles of eight- and six-inch pipeline, which delivers jet fuel from MPC�� Louisville, Kentucky refined product terminals to customers at the Louisville International Airport.

Other Major Midstream Assets

The Company�� butane cavern is located in Neal, West Virginia, across the Big Sandy River from MPC�� Catlettsburg, Kentucky refinery. This storage cavern has approximately 1.0 million barrels of storage capacity and is connected to MPC�� Catlettsburg refinery. Rail access to the storage cavern is also available through connections with the refinery.

The Company�� barge dock is located on the Mississippi River in Wood River, Illinois and is used both for crude oil barge loading and products barge unloading. The barge dock is connected to its Wood River tank farm by approximately two miles of 14-inch pipeline, which transfers crude oil from the tank farm to the dock, and two 10-inch pipelines, which are each approximately two miles long and transfer products and feedstocks from the dock to the tank farm. This dock generates revenue through a FERC tariff, which is collected for the transfer and loading/unloading of crude oil and products. It also owns tank farms located in Patoka, Martinsville and Wood River, Illinois and Lebanon, Indiana, which it uses for storing both crude oil and products. These storage assets are integral to the operation of its pipeline systems in those areas.

Advisors' Opinion:

• [By Dan Caplinger]

  In Marathon's quarterly report, watch for how the refiner's relationship with spun-off midstream pipeline operator MPLX (NYSE: MPLX  ) is faring. With Marathon holding a majority stake in MPLX, its pipeline assets will play an increasingly important role in bringing midcontinent energy products to its refineries.

• [By Aimee Duffy]

  Phillips 66 (NYSE: PSX  ) and its master limited partnership Phillips 66 Partners (NYSE: PSXP  ) have made the headlines recently, because of how high PSXP climbed during its first day of trading. It isn't the first refiner to find success with an MLP spinoff -- Marathon Petroleum's (NYSE: MPC  ) spinoff�MPLX (NYSE: MPLX  ) is up more than 16% year to date -- and it doesn't look as if it will be the last. In this video, Fool.com contributor Aimee Duffy looks at Valero's (NYSE: VLO  ) recent affirmation of its plan to convert its logistics assets into an MLP.

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