Natural gas pipeline operator
Energy Transfer Partners LP
), together with its owner
Energy Transfer Equity LP
), recently declared the start of a binding open season for their
Eastern Gulf crude access project. The open season started from
Jun 5 and will continue till Jul 19, 2013.
The open season is for shippers transporting crude from Patoka to
the Eastern Gulf Coast refinery market. The pipeline will have
transporting capacity of up to 420,000 barrels per day of crude
oil from the Patoka Hub to refinery markets along the Mississippi
River and the Louisiana Gulf Coast.
As part of the project, Energy Transfer also plans to deploy 575
miles of underutilized pipeline to mitigate construction and
environmental impacts of the project. This pipeline will be
environmentally friendly and cost effective for crude oil
transportation to the Eastern Gulf Coast.
Energy Transfer Partners owns and operates a diversified
portfolio of energy assets. It is engaged primarily in the
gathering, processing, storage and transportation of natural gas.
Last month, Energy Transfer Partners announced impressive first
quarter 2013 results, aided by strong transportation margins.
Energy Transfer Partners reported a profit of 63 cents per
limited partner unit, breezing past the Zacks Consensus Estimate
of 45 cents.
However, gathering and processing master limited partnerships
(MLP) such as Energy Transfer Partners are more sensitive to
commodity prices compared to other MLP subgroups. As a result,
collapsing energy prices have adversely affected their cash flow
This accounts for the partnership's current Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
Meanwhile, pipeline operators like
Enbridge Energy Management LLC
Kinder Morgan Management LLC
) offer more value and are worth buying now. Both these firms
sport a Zacks Rank #2 (Buy).
ENBRIDGE ENERGY (EEQ): Free Stock Analysis
ENERGY TRAN EQT (ETE): Free Stock Analysis
ENERGY TRAN PTR (ETP): Free Stock Analysis
KINDER MORG MGT (KMR): Free Stock Analysis
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