Midstream energy company, Energy Transfer Partners, L.P. (NYSE:ETP) welcomed the decision of a U.S. District Court judge who ruled that the Dakota Access Pipeline will remain operational during the ongoing hearing process.
The District Court judge, James Boasberg in Washington has ordered more hearings where the authorities will review the environmental impact of the project.
The controversial Dakota Access Pipeline became operational on Jun 1 per an executive order of President Trump. However, it faced the risk of shutdown as a federal court ruled in favor of the Standing Rock Sioux tribe that opposed the pipeline. They were supported by environmentalists and other tribes who were also vocal about their objection to the project.
Both sides of the lawsuit can submit their views regarding the pipeline in July and August. Hence, the pipeline will be operational for at least two more months.
The Standing Rock Sioux tribe is against the pipeline as it would desecrate their sacred burial ground as well as contaminate their water supply. We would like to remind investors that the pipeline was in the headlines a few days back when more than 100 gallons of oil spilled in North Dakota owing to two leakages.
About the Project
The $3.78 billion Dakota Access Pipeline will help the partnership in transporting more than 500,000 barrels of oil per day, providing a safer route than moving oil by rail or truck. The 1,172 mile pipeline will move crude from western North Dakota to the Gulf of Mexico.
About the Partnership
Energy Transfer Partners is one of the largest master limited partnerships, having one of the most diversified portfolios of energy assets in the United States. The asset list includes 71,000 miles of crude oil, natural gas, natural gas liquids and refined products pipelines, crossing 36 states. It also provides fractionation, storage and terminalling facilities. The partnership is headquartered in Dallas, TX.
Price Performance
Energy Transfer Partners, which falls under the Zacks categorized Oil and Gas - Production Pipeline - MLP industry, has seen its units lose 19.9% over the last one month, compared with the broader industry’s decrease of 10.7%.
Zacks Rank and Stocks to Consider
Energy Transfer Partners presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and energy sector include Enbridge Energy, L.P. (NYSE:EEP) , Delek US Holdings, Inc. (NYSE:DK) and Canadian Natural Resources Limited (TO:CNQ) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enbridge’s sales for the second quarter of 2017 are expected to increase 13.2% year over year. The company delivered a positive earnings surprise of 128.6% in the first quarter of 2017.
Delek US Holdings’ sales for 2017 are expected to increase 71.3% year over year. The company came up with a positive average four-quarter earnings surprise of 60.7%.
Canadian Natural Resources’ sales for the second quarter of 2017 are expected to increase 26.9% year over year. The company pulled off a positive earnings surprise of 30.8% in the first quarter of 2017.
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