MMP Restarts Arkansas Open Season - Analyst Blog


Publicly traded energy pipeline partnership, Magellan Midstream Partners LP ( MMP ), 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. ( HNR ), Helmerich & Payne, Inc. ( HP ) and Seadrill Partners LLC ( SDLP ). All these stocks currently sport a Zacks Rank #1 (Strong Buy) and offer value.

HARVEST NATURAL (HNR): Free Stock Analysis Report

HELMERICH&PAYNE (HP): Free Stock Analysis Report

MAGELLAN MDSTRM (MMP): Free Stock Analysis Report

SEADRILL PTNRS (SDLP): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: HNR , HP , MMP , SDLP

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