Plains All American Pipeline L.P.
) announced to build a crude oil pipeline extension, stretching
from Reydon, Roger Mills County, Okla. to the partnership's
existing Orion station in Major County, Okla. The new Western
Oklahoma Pipeline will span 95 miles (152.9 kilometers) and is
expected to be online by the end of first-quarter 2014.
DELEK LOGISTICS (DKL): Free Stock Analysis
KINDER MORG MGT (KMR): Free Stock Analysis
PLAINS ALL AMER (PAA): Free Stock Analysis
SUMMIT MIDSTRM (SMLP): Free Stock Analysis
To read this article on Zacks.com click here.
Western Oklahoma Pipeline is the extension of Plains All American
Pipeline's existing Oklahoma crude oil pipeline system. The
pipeline will be able to carry roughly 75,000 barrels per day.
The partnership increases crude oil transportation capacity to
cope up with higher production from the Granite Wash, Hogshooter
and Cleveland Sands in western Okla. and the Texas panhandle. As
a result of this extension, crude oil will flow on Plains All
American Pipeline's existing pipeline system to the partnership's
terminal in Cushing, Okla.
Pipeline operators normally invest substantial amounts to set up
new pipelines after getting long-term service commitment from
petroleum companies. Plains All American Pipeline's new pipeline
is supported by long-term producer assurances.
During the first three months of 2013, Plains All American
Pipeline had cash flow from operating activities totaling $979
million. Favorable financial position enables the partnership to
invest additional $300 million in 2013 for several projects,
which will drive the capital expenditure to $1.4 billion.
It is evident from Plains All American Pipeline's recent
strategies that the partnership continues to strengthen its
footprint in Texas and Oklahoma. In Apr 2013, the partnership
announced that it will build a new 310 miles (498.9 kilometers)
crude oil pipeline, stretching from McCamey to Gardendale, Texas.
We believe that the installation of a number of new crude oil
pipelines will allow Plains All American Pipeline to strengthen
its presence in the region and serve customers in a better way.
Houston, Texas-based Plains All American Pipeline L.P. is a
publicly traded master limited partnership engaged in the
transportation, storage, terminalling and marketing of crude oil,
refined products and liquefied petroleum gas and other natural
gas related petroleum products.
Plains All American Pipeline currently has a Zacks Rank #3
(Hold). Other stocks from the industry that are presently
performing better are Zacks Ranked #1 (Strong Buy)
Delek Logistics Partners LP
), and Zacks Ranked #2 (Buy)
Summit Midstream Partners, LP
Kinder Morgan Management LLC