Energy Transfer Partners, L.P.
Regency Energy Partners LP
) announced the completion of Lone Star West Texas Gateway NGL
Pipeline prior to its scheduled time. The pipeline was planned to
be finished in the first quarter of 2013. It was a joint venture
between the two partnerships in which Energy Transfer had a stake
The start-up capacity of the 16-inch pipeline is 209,000 barrels
per day, which can be increased. It stretches from Winkler County
in West Texas to Energy Transfer's processing plant in Jackson
County, Texas. The pipeline will transport natural gas liquids
(NGLs) produced in the Permian and Delaware Basins in West Texas
to Mont Belvieu, Texas.
Energy Transfer also declared the start-up of its 130-mile
Justice NGL Pipeline which extends up to the fractionation
facility owned by the Lone Star joint venture in Mont Belvieu.
NGLs will be transported from Jackson County to this new
Energy Transfer Partners is well positioned to compete in the
natural gas midstream and transportation & storage businesses
with its geographically dispersed asset mix. The partnership has
a significant market presence in each of its operating areas
located in major natural gas-producing regions of the U.S.
The acquisition of Philadelphia-based refining and petroleum
product marketing company Sunoco Inc. will help Energy Transfer
to diversify its asset mix by adding crude and refined products'
pipelines to the partnership's existing natural gas and NGL
However, we believe that the near- to medium-term outlook for the
partnership's natural gas gathering and processing business
continues to be weak, which remains a major liability, in our
Energy Transfer currently retains a Zacks #3 Rank (short-term
Hold rating). Longer term, we are maintaining our Neutral
recommendation on the stock.
ENERGY TRAN PTR (ETP): Free Stock Analysis
REGENCY ENERGY (RGP): Free Stock Analysis
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