Enterprise Products Partners L.P.’s (EPD) Seaway Twin pipeline will presently run at a lower capacity due to the low oil prices.
Currently, it is running at a capacity of 200,000–250,000 barrels per day (bpd) compared with its full capacity of 450,000 bpd.
The line is linked to Enbridge Inc.’s (ENB) Illinois-to-Oklahoma Flanagan South. It forms a part of a network that is ramping up and transferring crude from Canada to U.S. Gulf Coast refiners.
Enterprise’s access to the Texas gulf coast enables it to turn its focus at crude projects that are connected to St. James Louisiana, a major logistics hub.
Enterprise Products provides a wide range of midstream energy services to the producers and consumers of natural gas, natural gas liquids (“NGL”) and crude oil. The partnership's assets include 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 Products Partners is a core holding in an MLP portfolio, with a 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.
Currently, Enterprise carries a Zacks Rank #5 (Strong Sell). Better-ranked stocks from the same industry include Seadrill Partners LP (SDLP), Spectra Energy Partners, LP (SEP) and GeoPark Limited (GPRK). Each of these stocks sport a Zacks Rank #1 (Strong Buy).
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