White Cliffs Pipeline, L.L.C. ("WCPL"), 51% owned by
Rose Rock Midstream, L.P.
), announced that it will commence the commissioning of the
expansion of the White Cliffs Pipeline. The expansion project
associated with the looping of the existing operations is expected
to start from Jul 2014 and will be operational by Aug 2014.
The 527-mile, 12-inch diameter common-carrier crude oil and
condensate pipeline, White Cliffs Pipeline, transports production
from the Denver Julesburg (DJ) Basin and the Mid-Continent region
to the Cushing interchange. The pipeline originates in Platteville,
CO and terminates at Rose Rock Midstream's storage facility in
Apart from Rose Rock Midstream, other interest owners include
Plains All American Pipeline, L.P.
Western Gas Partners LP
Noble Energy, Inc.
Upon completion of the expansion project, White Cliffs Pipeline's
transportation capability will increase to around 150,000 barrels
per day (BPD) from the existing level of 76,000 BPD. In addition,
Rose Rock Midstream will continue to operate the White Cliffs
Pipeline. The pipeline expansion will enable White Cliffs Pipeline
to meet the increasing midstream service demand.
In 2013, Rose Rock Midstream acquired additional interest in White
Cliffs Pipeline from
). In first-quarter 2014, the acquisition of White Cliffs Pipeline
provided $13.6 million as cash distributions to Rose Rock
Midstream. We believe that the expansion of the White Cliffs
Pipeline will provide more cash inflow to the partnership in the
future through winning of more contracts from the upstream players.
Rose Rock Midstream maintained a stable cash generation capacity.
In the first three months of 2014, the partnership's operating cash
flow increased to $18.4 million from $9.9 million in the prior-year
comparable period. As of Mar 31, 2014, Rose Rock Midstream had
total liquidity of $301 million, including $298 million available
under revolving credit facilities and cash balance of around $3
million. A favorable liquidity position supports Rose Rock
Midstream's systematic investment in growth projects.
Rose Rock Midstream currently has a Zacks Rank #2 (Buy).
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