MLPX's Binding Open Season For Pipeline Expansion Successful

Energy pipeline partnership MPLX LP (NYSE:MPLX) , a subsidiary of Marathon Petroleum Corporation (NYSE:MPC) , recently finished a binding open season for the Wood River-to-Patoka pipeline expansion. Per MPLX, the open season was successfully conducted by its unit, Marathon Pipe Line LLC. The open season lasted for the whole of August 2017.

Project Details

The partnership plans to increase transportation capacity to Midwest markets via the oil storage hub of Patoka, IL, by 130,000 barrels per day. The pipeline presently has a transportation capacity of 215,000 barrels per day, which the company plans to increase by boosting horsepower and adding drag-reducing agents. The expansion project has seen strong interest from potential shippers. The shippers will receive priority transportation service on the pipeline.

Expansion Rationale

MPLX expects the expansion project to increase its revenue opportunities and augment its distributable cash flow in the long term. The project is expected to be completed by the second quarter of 2018.

About MPLX

MPLX is a fee-based limited partnership formed to own, operate, develop and acquire crude oil, refined product and other hydrocarbon-based product pipelines and other midstream assets. The partnership's assets consist of a network of common carrier crude oil and product pipeline systems and associated storage assets in the Midwest and Gulf Coast regions of the United States. MPLX LP is based in Findlay, OH.

Price Performance

MPLX has gained 1.6% year to date compared with 3.4% growth of its industry.

Zacks Rank and Stocks to Consider

MPLX has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the oil and energy sector are Lonestar Resources US Inc. (NASDAQ:LONE) and Subsea 7 SA (OTC:SUBCY) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Lonestar Resources’ sales for 2017 are expected to surge 60.2% year over year. The company delivered a positive earnings surprise of 62.5% in the second quarter of 2017.

Subsea’s sales for 2017 are expected to increase 11.6% year over year. The company delivered an average positive earnings surprise of 83.8% in the last four quarters.

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