Energy Transfer Partners LP (ETP) announced the commencement of an Expansion Open Season to gauge shippers’ interest in the Dakota Access Pipeline and Energy Transfer Crude Oil Pipeline.
The natural gas pipeline operator added that the expansion open season is backed by agreements that facilitate an increase in transport capacity for the Dakota Access Pipeline from 320,000 barrels per day (bpd) to over 450,000 bpd.
The open season allows shippers to transport their produce from key locations in the prolific Bakken/Three Forks region to important refineries and terminal hubs located in the Midwest and Gulf Coast. The Cushing hub, in Oklahoma, has also been added as a delivery point and shippers could secure transportation services for it as well.
Energy Transfer Partners is a major publicly traded master limited partnership (MLP), with a broadly diversified asset base that includes intrastate and interstate pipelines as well as significant midstream and storage properties. With the largest intrastate system in Texas and expanding interstate assets, the partnership is connected to nearly every natural gas shale play in North America, including the Haynesville, Fayetteville and Barnett shales.
However, acquisitions have historically played a major role in Energy Transfer Partners’ growth and are expected to remain significant in the future as well. Hence, the partnership’s prospects are largely tied to completion of these accretive transactions in the future as well.
Energy Transfer Partners currently has a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can consider better-ranked players from the same industry like Sunoco Logistics Partners L.P. (SXL), Delek Logistics Partners, LP (DKL) and Spectra Energy Partners, LP (SEP). All these stocks sport a Zacks Rank #1 (Strong Buy).
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