EPD Starts Mid-America Pipeline

Zacks

Enterprise Products Partners L.P. (EPD) announced the commencement of transportation services to shippers which supported its Mid-America Pipeline Rocky Mountain expansion project through long-term agreements. The transportation services were initiated on Jan 2, 2014.

The Mid-America Pipeline Rocky Mountain project is intended to deliver natural gas and natural gas liquids (NGL) production from major basins in Utah, Colorado and Wyoming. The expansion is also likely to benefit from numerous new natural gas processing plants that have been build on the Uinta and Greater Green River basins.

The Mid-America Pipeline Rocky Mountain expansion project was aimed at looping the existing system with about 265-miles of 16 inch diameter pipeline.

Enterprise provides a wide range of midstream energy services to the producers and consumers of natural gas, NGL, and crude oil. The partnership 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.

The partnership's assets include around 51,000 miles of onshore and offshore pipelines, approximately 200 million barrels of storage capacity for NGLs, refined products and crude oil, and 14 billion cubic feet of natural gas storage capacity. Enterprise divides its operations into five segments – Natural Gas Liquids Pipelines & Services, Onshore Natural Gas Pipelines & Services, Petrochemical & Refined Product Services, Offshore Pipelines & Services, and Onshore Crude Oil Pipelines & Services.

Enterprise carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and gas sector include Harvest Natural Resources Inc. (HNR), Transocean Ltd. (RIG) and Tesco Corp. (TESO). All these stocks hold a Zacks Rank #1 (Strong Buy).

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