A Rock-Solid Rail
One of the secular trends I cover often here is the impressive ramp-up in energy production in the U.S. Driven by improving shale technology, domestic oil production is on track to grow to some 8 million barrels a day by the end of the year -- up from around 5 million barrels a day in 2008. This development carries many positive catalysts for high-yielding energy-infrastructure plays. For instance, the volume of oil transported by rail has risen more than 40% in 2012, which drove my recent recommendation of American Railcar Industries (ARII).
Another beneficiary of this increase is GATX (GMT), which is the second-largest lessor of railcars in the world. 50% of the company's volume is in tank cars, such as those used to move oil from the shale regions to refiners, and it has just under one-quarter of the tank-car leasing market. The company also has very deep relationships with its customers: The average tenure of its top 10 customers is more than 50 years....284 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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