Union Pacific Corporation (UNP) is a railroad company that’s been a solid wealth creator in what’s been a resurgence of old economy stocks over the last several years.
Wall Street earnings estimates have been going down for Union Pacific for this year and next. But the company is still expected to post double-digit earnings growth in 2013 on an estimated five-percent gain in total revenues.
The company provided the marketplace with its own third-quarter guidance. Earnings per share are expected to be between $2.45 and $2.48, compared to $2.19 in the third quarter of 2012. Operating revenues are expected to grow 4.0%–4.5%.
The worry for Union Pacific and other railroad companies is coal. Low natural gas prices are eating away at the demand for coal, which is one of the principal commodities that railroads haul. Warmer weather is also an issue, and the company cited flooding in Colorado as also having an impact on coal shipments.
Union Pacific is typically conservative with its forecasting. But it’s possible that the recent winning streak for many railroad stocks could be coming to an end. Shipments of oil are way up, but not enough to offset declines in coal.
The Association of American Railroads said that 11 of the 20 commodity categories it tracks saw a year-over-year increase in carload in the month of September. The biggest carload gains were in crushed stone, sand, and gravel, followed by automobiles and parts, then petroleum and petroleum products.
September declines were in coal, down 2.7% to 12,894 carloads, and grain, down 11.3% to 8,627 carloads … Read More
When we first took a look at Chart Industries, Inc. (GTLS) in April, the stock was trading around $80.00 a share. The natural gas build-out is a very worthy investment theme going forward and equity market portfolios should have some exposure.
The oil and natural gas industry is a bright spot in today’s economy, and there is genuine economic growth being generated from this sector. With North America gushing with natural gas, the infrastructure necessary to process, transport, and store it is vast and represents a good investment opportunity.
Chart Industries is a company that manufactures specialized storage solutions for liquefied natural gas (LNG), petrochemical and natural gas processing, medical use gases, and related storage equipment. It’s a solid company with a good track record of managing its business.
Now that there is a push to move the glut of natural gas, there is growing demand for LNG processing plants. Chart Industries was recently awarded a contract to build a C100N liquefaction plant for Stabilis FHR Oilfield LNG LLC. The customer plans to use the processing plant to produce 100,000 gallons of LNG per day in the Eagle Ford Shale region in Texas.
Chart Industries said that Stabilis will likely order four additional LNG liquefaction plants, which can produce either 100,000 gallons or 250,000 gallons per day. Chart Industries has already reserved manufacturing time slots for these additional processing plants.
Back in July, the company won an additional order from Kunlun Energy Investment, which is a wholly owned subsidiary of PetroChina Company Limited’s (PTR) Kunlun Energy Limited for self-contained LNG station modules. The latest order was over $50.0 million, … Read More
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