Enterprise Products Partners L.P. (NYSE:EPD) recently announced the coming online of the Mentone cryogenic natural gas processing plant in the Permian Basin. The facility is located in the Loving County of Texas that marks the seventh natural gas processing unit of the partnership in the Delaware Basin, a part of the famous Permian.
About the New Facility
The plant — supported by a long-term acreage dedication agreement — has a natural gas processing capacity of 300 million cubic feet per day (Cf/d) and natural gas liquids (NGL) extraction capability of more than 40,000 barrels per day (BPD).
Since the start of the unit, Enterprise Products has a total natural gas processing capacity and NGL extraction capability of more than 1.6 billion Bcf/d and 250,000 BPD, respectively, in the Permian basin.
Creating Value
Natural gas comes as a by-product in the prolific Permian Basin. Discouragingly, the surge of the commodity has led to significant flaring problem. Markedly, natural gas and NGL production is expected to surge more than 60% in the coming five years. With the commencement of this facility, producers will be able to increase the commercialization of their products. Also, the facility will provide local producers with an integrated midstream network of the partnership, which will enable their products to reach both the domestic and international markets.
Additionally, Enterprise Products has developed 66-mile large-diameter gathering and residue pipelines, which connect Mentone to the partnership’s natural gas pipeline networks. Investors should know that the partnership is building a 300,000-BPD NGL fractionation capacity in its complex in Mont Belvieu, TX. This will meet the needs of rising production in the region.
Price Performance
Enterprise Products has gained 2.5% in the past year against 1% decline recorded by the industry.
Zacks Rank and Stocks to Consider
Enterprise Products currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the energy sector include PBF Logistics LP (NYSE:PBFX) , Chevron Corporation (NYSE:CVX) and Murphy USA Inc. (NYSE:MUSA) . While PBF Logistics and Chevron carry a Zacks Rank #1 (Strong Buy), Murphy has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
PBF Logistics’ bottom line for 2020 is expected to rise 23.4% year over year.
Chevron’s bottom line for 2020 is expected to rise 5.5% year over year.
Murphy’s bottom line for 2020 is expected to rise 2.6% year over year.
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