Enterprise Products Partners L.P.
) announced the commencement of a supplemental binding open
commitment period on its Aegis pipeline.
ENTERPRISE PROD (EPD): Free Stock Analysis
EPL OIL&GAS INC (EPL): Free Stock Analysis
RANGE RESOURCES (RRC): Free Stock Analysis
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The ongoing supplemental binding open commitment period will aid
in analyzing the additional shipper demand for capacity on the
pipeline as well as its size. The new 270-mile pipeline system,
Aegis, will carry purity ethane from the Enterprise Mont Belvieu,
Texas liquids storage complex to petrochemical refineries in
Texas and Louisiana.
Enterprise has made commitments which are adequate for project
progression. The pipeline is expected to be commissioned in 2014
and the partnership continues to receive attention from
The supplemental binding open commitment period which started on
Apr 15 and conclude on May 9, 2013 will support only those who
have shown appropriate interest in execution of long-term
The final design of the pipeline, which comprises capacity and
delivery points, will be determined on the completion of
negotiation of the binding agreements at the end of the
supplemental binding open commitment period.
We believe EPD remains a core holding in the master limited
partnership portfolio with focus on projects that generate stable
cash flow and contribute to its integrated value chain. While EPD
increased its cash flow distribution by 6.5% in the fourth
quarter, it also deployed cash in various fee-based development
projects that will likely generate operating cash flow to support
its future distribution growth.
Enterprise holds a Zacks Rank #3, which is equivalent to
short-term Hold rating. However, Zacks Ranked #1
Range Resources Corporation
EPL Oil & Gas, Inc
Stone Energy Corp
) are expected to outperform the market over the next few