Enterprise Products Partners L.P. (NYSE:EPD) has joined forces with an affiliate of Occidental Petroleum Corporation (NYSE:OXY) and the duo have brought online a new cryogenic natural gas processing plant in Reeves County, TX.
Delaware Basin Gas Processing LLC (“DBGP”), a company in which Enterprise Products Partners and Occidental each hold a 50% interest, owns the plants. The new facility will be operated by Enterprise Products Partners.
The DBGP plant can extract over 22,000 barrels per day of natural gas liquids. The plant, which has a capacity of 150 million cubic feet per day, is supported by long-term contracts and is designed to accommodate the growing production of natural gas liquids (NGL)-rich natural gas from the Delaware Basin.
Enterprise Products Partners has completed the construction of an 82 mile, 12 inch diameter NGL pipeline along with the DBGP plant. The new pipeline links the plant to the partnership’s Chaparral Pipeline. With this, customers will gain access to the partnership’s fractionation and storage complex in Mont Belvieu, TX.
Also, the Texas Intrastate pipeline system of Enterprise Products Partners will offer natural gas transportation services at the tailgate of the DBGP plant with access to multiple markets.
Enterprise Products Partners is a core holding in a master limited partnership (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 and significant geographic and business diversity.
Enterprise Products Partners, an MLP, is engaged in providing a wide range of midstream energy services to producers and consumers of natural gas, NGL and crude oil.
Enterprise Products Partners currently carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Enbridge, Inc. (NYSE:ENB) and Total SA (TO:TOT) . Each of these stocks sports a Zacks Rank #1 (Strong Buy).
ENTERPRISE PROD (EPD): Free Stock Analysis Report
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ENBRIDGE INC (ENB): Free Stock Analysis Report
OCCIDENTAL PET (OXY): Free Stock Analysis Report
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