Publicly traded energy pipeline partnership,
Magellan Midstream Partners LP
), restarted the open season for its Arkansas pipeline project.
The open season is now valid till Jan 16, 2014.
This open season, to find out shippers' interest in the pipeline,
was originally started on Sep 16, 2013 and continued till Oct 16,
2013. It initially received an extension till Nov 4, 2013 which
got further extended till Dec 13, 2013.
The open season is for shippers willing to transport refined
petroleum products from the Fort Smith, Ark.-based terminal of
Magellan Midstream to the state's Little Rock market.
The 160-mile pipeline will have a capacity to carry roughly
75,000 barrels per day of refined petroleum products like
gasoline, jet fuel and diesel fuel. The partnership expects the
pipeline to come online by third-quarter 2015, depending on the
open season response and necessary approvals from regulators.
Tulsa, Oklahoma-based Magellan Midstream is a master limited
partnership that owns an attractive portfolio of energy
infrastructure assets. The properties generate stable and
recurring fee and tariff-based revenues. This includes the
longest U.S. refined petroleum products pipeline system, access
to more than 40% of refining capacity in the continental U.S.
along with imports, and 85 petroleum terminals with more than 80
million barrels of storage. The partnership primarily transports,
stores, and distributes refined petroleum products and, to a
lesser extent, ammonia.
Magellan currently holds a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity
market over the next one to three months.
Better-ranked energy players include
Harvest Natural Resources Inc.
Helmerich & Payne, Inc.
Seadrill Partners LLC
). All these stocks currently sport a Zacks Rank #1 (Strong Buy)
and offer value.
HARVEST NATURAL (HNR): Free Stock Analysis
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MAGELLAN MDSTRM (MMP): Free Stock Analysis
SEADRILL PTNRS (SDLP): Free Stock Analysis
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