Tulsa, OK-based publicly traded energy pipeline partnership,
Magellan Midstream Partners LP
) declared that that the open season of BridgeTex Pipeline has been
extended to Aug 14, 2014. The pipeline is jointly owned by Magellan
Midstream and Occidental Petroleum Corp. (
) − an oil and gas exploration and production company. The
extension will mainly accommodate additional commitments from
shippers to use the pipeline for transporting crude oil.
The BridgeTex Pipeline is nearing completion and is in the final
stage of construction. When fully operational, the pipeline is
anticipated to have a transport capacity of 300,000 barrels of
crude per day. The pipeline will deliver crude oil to the Houston
Gulf Coast area from Colorado City, TX. Delivery of crude is
expected to begin by mid third quarter.
The pipeline system will offer shippers the option to access
refining capacity and large transportation hubs in the Houston Gulf
Coast area. The pipeline would also connect to several third-party
terminals and distribution systems, providing shippers a wider area
Magellan Midstream owns an attractive portfolio of energy
infrastructure assets that generate stable and recurring fee and
tariff-based revenues. The partnership's expansion plans, a sound
liquidity position and strong track record for distribution growth
are other positives.
Los Angeles, CA-based Occidental Petroleum is an integrated oil and
gas company, with significant exploration and production exposure.
The company's steady progress in growth projects, along with
simultaneous strategic asset divestment, should help in improving
its future performance.
Both Magellan Midstream and Occidental Petroleum currently carry a
Zacks Rank #3 (Hold), implying that the stocks are expected to
perform in line with the broader U.S. equity market over the next
one to three months.
Meanwhile, one can look at better-ranked players in the energy
sector like Patterson-UTI Energy Inc. (
) and Pioneer Energy Services Corp. (
). Both players sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
PATTERSON-UTI (PTEN): Free Stock Analysis
OCCIDENTAL PET (OXY): Free Stock Analysis
MAGELLAN MDSTRM (MMP): Free Stock Analysis
PIONEER EGY SVC (PES): Free Stock Analysis
To read this article on Zacks.com click here.