By Sarfaraz A. Khan
The head of energy and infrastructure at Goldman Sachs has recently identified Lehigh Gas Partners (LGP), EQT Midstream Partners (EQM) and Oiltanking Partners (OILT) as three small master limited partnerships, or MLPs, with strong future growth prospects.
Over the last 52 weeks, the Alerian MLP ETF (AMLP) has risen by just 1.8% while Leigh Gas Partners, EQT Midstream and Oiltanking Partners have climbed 19%, 87% and 56% respectively.
Despite the rally, the three could continue growing on the back of significant top and bottom line growth.
Leigh Gas Partners
Allentown, Penn.-based Leigh Gas Partners has a market cap of less than $500 million and was listed in October, 2012. The company is a distributor of branded petroleum products and operates through a network of 800 gas stations in 14 states.
Since the business started operations in 1992, it has generated revenues from the wholesale distribution of fuels as well as through real estate leases. Following its initial public offering, the company also started retail operations. By the end of 2013, Leigh Gas had become one of the ten biggest independent distributors in the U.S., in terms of volume, for the oil giants Exxon Mobil (XOM), BP (BP) and Motiva.