Enterprise Products Partners L.P. EPD intends to add a capacity of 300 million cubic feet per day (MMcf/d) at the cryogenic natural gas processing facility near Orla, Texas in Reeves County.
A third processing train at Orla, scheduled to be commissioned in the second quarter of 2019, is expected to boost inlet volume capacity to 900 MMcf/d. It would also facilitate Enterprise expand natural gas liquids (NGL) extraction capabilities by an additional 40,000 barrels per day (bpd) to 120,000 bpd. The third processing train will complement trains 1 and 2, which are estimated to be operational in the second and third quarters of 2018, respectively.
Enterprise’s fully integrated pipeline system will receive mixed NGLs from Orla. The receiving pipeline will include the new Shin Oak Pipeline. The pipeline is under construction and is expected to commence operations in second-quarter 2019. A new 68-mile, 36-inch diameter pipeline which is expected to start operations in second-quarter 2018 will be used to transfer the remaining natural gas from Orla to the Waha area. Subsequently, it will connect to Enterprise’s Texas Intrastate pipeline system at the Waha hub.
On completion of the Orla expansion projects, Enterprise’s total natural gas processing capacity will exceed 1.2 billion cubic feet per day, and its NGLs extraction capability will be more than 200,000 bpd in the Permian Basin.
The facility, which is currently under construction, is expected to benefit from the continuous growth of NGL-rich natural gas production in the Delaware Basin and is backed by long-term contracts with producers.
It is estimated that the supplies of natural gas and NGLs in the Permian Basin would nearly double in the next five years. The facility, being located in close proximity to the region, is expected to leverage on growth opportunities. Orla is well connected to the partnership’s integrated natural gas and NGL infrastructure network. It is a vital constituent in providing customers access to the booming petrochemical industry along the Gulf Coast as well as the export demand for U.S. production.
Price Performance
Enterprise’s shares have gained 1.3% against the industry’s decline of 8.6% in the last six months.
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Zacks Rank & Key Picks
Enterprise carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include Cabot Oil & Gas Corporation COG, Pioneer Natural Resources Company PXD and Northern Oil and Gas Inc NOG. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Houston, TX, Cabot Oil & Gas, an independent oil and gas exploration company with producing properties mainly in the continental U.S., delivered an average negative earnings surprise of 0.11% over the trailing four quarters.
Headquartered in Irving, TX, Pioneer Natural Resources Company is an independent oil and gas exploration and production company. The company delivered an average positive earnings surprise of 67.62% in the last four quarters.
Northern Oil and Gas, based in Minnetonka, MN, is an independent energy company. The company delivered an average positive earnings surprise of 175.00% during the same time frame.
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