Tulsa, Okla.-based publicly traded energy pipeline partnership
Magellan Midstream Partners LP
) 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.
DELEK LOGISTICS (DKL): Free Stock Analysis
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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
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
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
Delek Logistics Partners LP
ONEOK Partners LP
) that offer value. Pioneer Southwest Energy retains a Zacks Rank
#1 (Strong Buy) while Delek Logistics and ONEOK sport a Zacks
Rank #2 (Buy).