MMP Starts Open Season for Pipeline - Analyst Blog


Tulsa, Okla.-based publicly traded energy pipeline partnership Magellan Midstream Partners LP ( MMP ) has declared the start of open season for its Arkansas pipeline project. The open season is for shippers transporting refined petroleum products from Magellan Midstream's Fort Smith, Ark.-based terminal to Little Rock, Arkansas market. The open season will continue till Oct 16, 2013.

The pipeline project will have a capacity to carry roughly 75,000 barrels per day of refined petroleum products like gasoline, jet fuel and diesel fuel. Moreover, the pipeline system will spread over 160 miles.

Magellan Midstream expects the pipeline system to be online by the third quarter of 2015, subject to the response for the ongoing open season and necessary approvals from the regulators.

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. Magellan Midstream conducts its operations in three segments: Refined Products, Crude Oil and Marine Storage.

Magellan Midstream owns an attractive portfolio of energy infrastructure assets that 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.

Magellan Midstream currently holds a Zacks Rank #1 (Strong Buy), implying that it is expected to significantly outperform the broader U.S. equity market over the next one to three months.

Apart from Magellan Midstream, one can look at oil and gas production pipeline MLPs like Pioneer Southwest Energy Partners LP ( PSE ), Delek Logistics Partners LP ( DKL ) and ONEOK Partners LP ( OKS ) that offer value. Pioneer Southwest Energy retains a Zacks Rank #1 (Strong Buy) while Delek Logistics and ONEOK sport a Zacks Rank #2 (Buy).

DELEK LOGISTICS (DKL): Free Stock Analysis Report

MAGELLAN MDSTRM (MMP): Free Stock Analysis Report

ONEOK PARTNERS (OKS): Free Stock Analysis Report

PIONEER SW EGY (PSE): 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: DKL , MLP , MMP , OKS , PSE

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