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Insiders Are Buying Western Refining Logistics
Posted by: maarnio (IP Logged)
Date: October 20, 2013 01:15PM

One pipeline company has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

- The stock is purchased by three or more insiders within one month.
- The stock is sold by no insiders in the month of intensive purchasing.
- At least two purchasers increase their holdings by more than 10%.

Western Refining Logistics, LP (WNRL) engages in the ownership, acquisition, development and operation of terminals, storage tanks, pipelines and other logistics assets in the Southwestern United States.



Insider Buying During the Last 30 Days

Here is a table of Western Refining Logistics' insider-trading activity during the last 30 days by insider.

NameTitleTrade DateShares PurchasedPublic OfferingCurrent OwnershipIncrease In Shares
Mark SmithEVPOct 1625,000Yes25,000 sharesfrom 0 to 25,000
Gary DalkeCFOOct 167,500Yes7,500 sharesfrom 0 to 7,500
Jeff StevensCEOOct 16502,500Yes502,500 sharesfrom 0 to 502,500
Paul FosterDirectorOct 16250,000Yes250,000 sharesfrom 0 to 250,000
Matthew YoderSVPOct 164,000Yes4,000 sharesfrom 0 to 4,000
Jeffrey BeyersdorferSVPOct 161,500Yes1,500from 0 to 1,500
Michael LinnDirectorOct 1612,500Yes12,500from 0 to 12,500
Scott WeaverDirectorOct 1625,000Yes25,000from 0 to 25,000

There have been 828,000 shares purchased by insiders during the last 30 days. The shares were purchased pursuant to the initial public offering.

Financials

Western Refining Logistics reported the pro forma first six months financial results with the following highlights:

Revenue$51.0 million
Net income$14.3 million
Cash$75.0 million
Tangible book value$4.70 per share

Outlook

Western Refining Logistics intends to expand its business primarily by increasing utilization of its existing systems, acquiring additional logistics assets from Western Refining (WNR) and third parties and executing organic growth projects. The Permian Basin in general, and the Delaware Basin in particular, are experiencing significant crude oil production growth as a result of improved drilling and completion techniques.

Competition

Western Refining Logistics' competitors include Delek Logistics Partners (DKL), Enbridge Energy Partners (EEP) and Phillips 66 Partners (PSXP).

Here is a table of these competitors' insider-trading activities this year.

CompanyInsider buying / sharesInsider selling / shares
DKL00
EEP2,7500
PSXP222,5000

Only Western Refining Logistics has seen intensive insider buying during the past 30 days.

Conclusion

There have been eight different insiders buying Western Refining Logistics and there have not been any insiders selling Western Refining Logistics during the last 30 days. All eight of these insiders increased their holdings by more than 10%.

Western Refining Logistics intends to pay quarterly distributions of $0.2875 per share, which gives the stock a dividend yield of 4.8%.

The stock started trading on October 10 after the initial public offering. The insiders paid $22 for their shares and the stock is currently trading at $24.01. I believe the stock could be a good pick at $22 based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.


Stocks Discussed: WNRL, DKL, EEP, PSXP, WNR,
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