Morgan Keegan Raises Estimates On GEL

Morgan Keegan has raised its estimates on Genesis Energy L.P. (NYSE: GEL) to reflect the company's acquisition of three storage tanks that it will convert to handle oil.

In the report, Morgan Keegan writes, ‘We are raising our 2012 estimates on expectations GEL will be able to take advantage of the $16/bbl price differentials between Louisiana and Texas oil/refinery markets. We are raising 2012E EBITDA by $11mm to $199mm and DCF/unit by $0.15 to $2.42/unit. Our estimates move further above consensus.”

The report maintains an Outperform rating and a price target of $32 on the stock.

GEL closed yesterday at $27.66.