A 12% Yield, Strong Coverage, Analyst Upgrade This Week, 22% Below Book Value

Distribution yield of 12.50%, with 1.2x coverage over the past four quarters. Stifel just upgraded it from hold to buy, with a much higher price target that jumped by 38%. It's selling at a 22% discount to book value. Management greatly expanded the company's crude oil throughput, starting in Q3 '15. The company has grown and diversified from having a much more balanced customer base, vs. 2008 when 99% of its base were marketers.

We've been hanging in there with our holding of Arc Logistics Partners LP (ARCX), a midstream firm, we've covered in several past articles. Although ARCX has beaten its benchmark, the Alerian MLP ETF (AMLP), that's not much consolation, as it has consistently trailed the market. ARCX offers storage alternatives to handle a wide array of products, including gasoline, distillates, aviation gas, asphalt, fuel oil, crude oil, ethanol, bio-diesel, methanol and crude tall oil, with many of its facilities managing multiple products and offering additional capacity to support changing customer priorities.

Source: Seeking Alpha

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