Energy Transfer Partners, L.P. (NYSE:ETP) recently reported that it has started a Binding Expansion Open Season through two of its subsidiaries, Dakota Access, LLC and Energy Transfer Crude Oil Company, LLC, for capacity expansion in its Bakken Pipeline System.
Per the partnership, the expansion will help shippers to ship more crude oil from North Dakota to Nederland, TX, where the storage terminals are located. The open season that started on Mar 1, 2018, will help the partnership to determine the capacity that has to be increased in the pipeline system. Crude production in the North Dakota region is expected to jump high this year, which will be complemented by the expansion capacity project.
The existing, mostly 30-inch Bakken Pipeline System came online on Jun 1, 2017 and covers 1,915 miles. The pipeline's safe and cost-effective transportation characteristics are valued byshippers. The pipeline connects the production sites in the Bakken region with storage and terminalling hub outside Patoka, IL, and the terminals in Nederland, TX. Energy Transfer has MarEn Bakken Company LLC and Phillips 66 (NYSE:PSX) as partners in the Bakken Pipeline System. Energy Transfer, the operator of the pipeline has 38.25% interest in the project, while MarEn and Phillips 66 own 36.75% and 25% interest, respectively.
Energy Transfer, which enjoys a fee-based revenue system, is expected to benefit from the expansion.
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 partnership is present in all the major production basins in the United States. It is headquartered in Dallas, TX.
Price Performance
Energy Transfer has lost 30.3% in the past year compared with 24% decline of its industry.
Zacks Rank and Stocks to Consider
Energy Transfer carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the oil and energy sector are ConocoPhillips (NYSE:COP) and Pioneer Natural Resources Company (NYSE:PXD) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based, ConocoPhillips is an upstream energy player. Its revenues for first-quarter 2018 are anticipated to improve 9.6% from the prior-year quarter. The company witnessed a positive average earnings surprise of 144.5% in the trailing four quarters.
Irving, TX-based, Pioneer Natural Resources is an independent oil and gas exploration and production company. Its revenues for first-quarter 2018 are expected to improve 22.8% from the year-ago quarter. For 2018, the bottom line is anticipated to be up 185.7%.
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Energy Transfer Partners, L.P. (ETP): Free Stock Analysis Report
Phillips 66 (PSX): Free Stock Analysis Report
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