Publicly traded energy pipeline partnership,
Magellan Midstream Partners LP
) announced the success of its Arkansas-Little Rock pipeline open
season. The partnership stated that it has received ample
commitments to advance to the next phase of the project.
The pipeline, with an expected capacity of 75,000 barrels per
day, will transport refined petroleum products from the Fort
Smith, AR-based terminal of Magellan Midstream to the state's
Little Rock market.
The partnership intends to use a portion of a third-party
pipeline for part of the route and is currently negotiating an
agreement for the same. A new pipeline would be constructed to
connect this existing third-party pipeline portion to the Fort
Smith terminal and the Little Rock market.
The proposed Arkansas-Little Rock pipeline is expected to be
functional in the latter part of 2015, subject to regulatory
approvals and conclusion of the third-party pipeline agreement.
Tulsa, OK-based Magellan Midstream is a master limited
partnership (MLP) that owns and operates a diversified portfolio
of energy infrastructure assets. The partnership primarily
transports, stores, and distributes refined petroleum products
and, to a lesser extent, ammonia. Lucrative acquisitions and
organic growth projects have made major contributions toward
Magellan Midstream's development.
Moreover, the partnership owns an attractive portfolio of energy
infrastructure assets that generate stable and recurring fee and
tariff based revenues. Other positive attributes include its
investment grade rating and strong track record for distribution
Magellan Midstream currently holds a Zacks Rank #2 (Buy), which
implies that it is expected to outperform the broader U.S. equity
market over the next one to three months.
One can also consider other players in the industry such as
Enterprise Products Partners L.P.
Kinder Morgan Management LLC
Spectra Energy Partners, LP
). All these stocks currently carry a Zacks Rank #2.
ENTERPRISE PROD (EPD): Free Stock Analysis
KINDER MORG MGT (KMR): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
SPECTRA EGY PTR (SEP): Free Stock Analysis
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