Midstream player Enterprise Products Partners L.P. EPD has received its first contract to transport oil overseas from the U.S. Gulf Coast. The announcement came less than a week after President Barack Obama signed a bill lifting the country's four decade old ban on crude exports.
Enterprise Products Partners has decided to provide pipeline and marine terminal services to ship its first export of U.S. crude oil. The 600,000 barrel cargo of domestic light crude oil will be loaded at the Enterprise Hydrocarbon Terminal (“EHT”) on the Houston Ship Channel during the first week of Jan 2016.
The integrated system of the partnership has facilitated Enterprise Products Partners to respond promptly to customer demand for U.S. crude oil in the international markets.
The lifting of the ban by the U.S. will not only pave the way for economic growth and employment generation but also boost the country’s national and energy security. Consequently, domestic producers will gain access to new markets, which in turn, will increase supply diversification for global markets.
Enterprise Products Partners is a leading master limited partnership (MLP) that is engaged in providing a wide range of midstream energy services to the producers and consumers of natural gas, natural gas liquids and crude oil.
Enterprise Products Partners is viewed as a core holding in an MLP portfolio, given its string of organic growth projects, potential acquisitions, strong balance sheet and solid liquidity position. The partnership is one of the largest fully integrated midstream service providers with a positive long-term outlook, given its significant geographic and business diversity.
Enterprise Products Partners carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Energy Transfer Equity, L.P. ETE, ReneSola Ltd. SOL and Boardwalk Pipeline Partners, LP BWP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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