Inergy Midstream LP
), a publicly traded energy pipeline partnership, has entered
into a joint venture with Enserco Midstream LLC.
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Per the deal, Inergy Midstream, along with Enserco Midstream,
will operate and own Wyoming-based crude oil rail terminal
(Douglas Facility). The owner of the facility was Powder River
Basin Industrial Complex, LLC (PRBIC), which is now equally owned
by Inergy Crude Logistics LLC and Enserco Powder River Basin LLC,
affiliates of Inergy Midstream and Enserco Midstream,
Though the Douglas facility is operational since Aug 2013, the
unit's train service will start by the first quarter in 2014.
Both Inergy Midstream and Enserco Midstream believe to increase
throughput capacity to roughly 20,000 barrels per day (bbl/d),
after the unit's train service starts. As the Douglas facility is
located at the top of the Niobrara Powder River Basin shale play,
the capacity is expected to expand up to 60,000 bbl/d after a
surge in the output from the shale plays.
Following the joint venture, Inergy Midstream and Enserco
Midstream expect to provide premium takeaway solutions to Powder
River Basin play based producers.
Last month, Inergy Midstream announced its third-quarter fiscal
2013 result. The partnership posted loss per unit of 4 cents
against the Zacks Consensus Estimate of earnings of 11 cents per
unit. The lower-than-expected result was primarily due to
significant hike of operating and administrative expenses.
Kansas City, Mo.-based Inergy Midstream is a master limited
partnership (MLP), which is involved in the development and
operations of fee-based gas and liquid businesses related to
storage and transportation.
The partnership currently retains a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next 1 to 3 months.
Meanwhile one can look at oil and gas production pipeline MLPs
Sunoco Logistics Partners LP
Delek Logistics Partners LP
Pioneer Southwest Energy Partners LP
) that offer value. All the stocks have a Zacks Rank #2 (Buy).