KMP Galena Park facility will be operational in Nov.2014
Someone opined the splitter facility built by KMP for $360MM would be a drag on earnings. Given the Commerce Dept. ruling that minimally distilled crude can be exported without a license, the opposite is the likely outcome. The Galena facility will have 2MM bbls of storage and it sits on the Houston Ship Canal. Logic says it will be a huge cash machine with exports flowing nonstop to Europe. Mr Putin has given the US oil industry a very serious reason to be happy. WTI transported to Europe will fetch a huge profit for KMP. Remember those tankers now owned and more being built? KMP is sitting in a great position. By 2016, this stock could be knocking on the $100 per share door. 2015 earnings should be outstanding and DCF should rocket up. Buy now while you can.
ONE,WTI can't be exported.TWO,their Jones act tankers can't leave the U.S. THREE Splitter output is dedicated to BP under long term fixed fee Contract.(which is a good thing)......Agree with your conclusion,but not for any of the Catalysts you mentioned.