Tesoro Logistics LP
), an affiliate of independent refiner
), intends to mend and replace the affected part of its North
Dakota-based crude oil pipeline, which has spewed in excess of
20,000 barrels of oil in a wheat field. Transportation Pipeline
and Hazardous Materials Safety Administration (PHMSA), the U.S
department of transportation agency, has already approved Tesoro
Logistics' plan. The cause of the incident is, however, not fully
Tesoro Logistics stopped operating the damaged portion of the
pipeline system temporarily and the crude oil release was kept
under control. The Tesoro Logistics estimated the remediation
cost to be roughly $4.0 million. The partnership has made no
comments regarding the date of restart of the pipeline.
Tesoro Logistics reveals that the oil spillage -- the worst in
the history of the state -- did not affect the ground water,
environment and wild lives. The pipeline, which spread over
roughly 354 miles, was transporting crude oil to northwest North
Dakota from Bakken shale play.
Investors reacted negatively to the oil spillage news, announced
during the mid trading hour on Oct 10, 2013. Yesterday, Tesoro
Logistics settled at $54.86 per unit, down 2.6% from last
Wednesday, the day before the pipeline leakage was detected.
Tesoro Logistics is scheduled to report its third-quarter 2013
results on Nov 8, after the closing bell. The Zacks Consensus
Estimate stands at 46 cents per unit.
San Antonio, Texas-based Tesoro Logistics is involved in the
acquisition and development of logistics properties of crude oil
and refined products. The partnership also operates those assets.
Tesoro Logistics currently holds a Zacks Rank #5 (Strong Sell),
implying that it is expected to significantly underperform the
broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better performing oil and gas
production pipeline master limited partnerships like
Pioneer Southwest Energy Partners LP
Energy Transfer Partners LP
) that offer value. Pioneer Southwest Energy sports a Zacks Rank
#1 (Strong Buy) while Energy Transfer Partners retains a Zacks
Rank #2 (Buy).
ENERGY TRAN PTR (ETP): Free Stock Analysis
PIONEER SW EGY (PSE): Free Stock Analysis
TESORO LOGISTIC (TLLP): Free Stock Analysis
TESORO CORP (TSO): Free Stock Analysis Report
To read this article on Zacks.com click here.