Tulsa, OK-based publicly traded energy pipeline partnership, Magellan Midstream Partners LP (MMP) declared that that the open season of Saddlehorn Pipeline has been extended to Dec 15, 2014. Depending on sufficient commitments from shippers and necessary approvals from the regulators, the pipeline will likely be online by the second quarter of 2016.
The pipeline will likely be used by shippers to carry crude oil of different grades from the northeast Colorado-based Niobrara play. The pipeline, originating at Platteville, CO will stretch to the Cushing, OK-storage facilities of the partnership. For transporting crude, Magellan Midstream is expected to construct a 20-inch diameter pipeline spreading over 600 miles and is delivering crude oil at a rate of roughly 400,000 barrels per day.
Moreover, in order to enhance the scope of the pipeline system, Magellan Midstream will incorporate three origin points to the pipeline for receiving oil, depending on adequate support from shippers. The three extra points post expansion would be in Weld County near Pawnee, Riverside and Briggsdale.
The partnership has already received commitments from upstream energy firms Anadarko Petroleum Corporation (APC) and Noble Energy Inc (NBL) for the pipeline project. Additionally, the partnership has signed a letter of intent with Saddle Butte Pipeline II LLC and Anadarko for equity interest in Saddlehorn Pipeline.
Magellan Midstream Partners is a master limited partnership (MLP) that owns and operates a diversified portfolio of energy infrastructure assets. The partnership currently carries a Zacks Rank #2 (Buy), implying that it will outperform the broader U.S. equity market over the next one to three months.
Meanwhile, one can also consider Regency Energy Partners LP (RGP) in the oil and gas production and pipeline MLP space. The stock also carries a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment