Energy pipelines and terminals operator, Sunoco Logistics Partners LP (SXL) declared that it has completed the open season for its Delaware Basin Extension development successfully. The open season started on Oct 15, 2014. The partnership added that this is its 14th consecutive successful open season over the last four years.
The open season was meant for shippers willing to transport crude to Midland, TX from the developing Delaware Basin region – comprising large oil fields − in New Mexico and West Texas.
The extension project – which is expected to start operation by the first half of 2016 − will consist of a new pipeline stretching roughly 125 miles. The pipeline is projected to initially transport crude at a rate of 100,000 barrels per day.
Philadelphia-based Sunoco Logistics, a master limited partnership, acquires, owns, and operates a geographically diverse portfolio of refined product and crude oil pipelines and terminal facilities. Its facilities are located in 17 states in the Northeast, the Midwest, the Southeast and the Southwest of the country.
With the low-risk and stable cash flow-generating energy infrastructure assets, Sunoco Logistics offers investors an opportunity to capture income growth through steadily rising cash distributions and capital appreciation.
However, unfavorable regulatory changes by the Federal Energy Regulatory Commission (FERC) would impact the partnership’s results. This will also contribute to Sunoco Logistics’ increasing borrowing costs and depress the market value of its limited partner units.
Sunoco Logistics currently carries a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, better-ranked players in the energy sector include Cheniere Energy Partners LP (CQP), Spectra Energy Partners LP (SEP) and Golar LNG Partners LP (GMLP). All these stocks sport a Zacks Rank #1 (Strong Buy).
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
Be the first to comment