Kinder Morgan Energy Partners, L.P.
) plans to spend about $107 million to expand the Kinder Morgan
Crude and Condensate (KMCC) pipeline system further into the
Eagle Ford Shale play in Karnes County, Texas.
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The 178-mile (286 km), 300,000 bpd pipeline, which transfers
crude and condensate yield from the Eagle Ford shale play in
Texas to the Houston Ship Channel, commenced operations a year
ago. The KMCC pipeline is expected to be extended by 31 miles (50
km) from Kinder Morgan's station in DeWitt County, Texas, to
ConocoPhillips' central delivery facility near Helena, Texas, in
The expansion is expected to commence operations in Jul 2013, is
supported by a long-term contract with
). Kinder Morgan also intends to construct receipt tanks and a
truck unloading facility close to ConocoPhillips' Helena Central
The project - estimated to be completed in the third quarter of
2014 - is likely to be immediately accretive to cash
distributable to Kinder Morgan unitholders. The extended pipeline
will offer further flexibility to its customers looking to
transporting crude and condensate from Karnes County to
The expansion will also assist the partnership in realizing its
goal of shipping about 300,000 barrels per day of crude and
condensate from the Eagle Ford Shale.
The general partner of the partnership is owned by
Kinder Morgan, Inc.
). Kinder Morgan is the largest midstream and the third largest
energy company in North America. It has a combined enterprise
value of around $115 billion. It owns interest or manages about
80,000 miles of pipelines and 180 terminals.
Kinder Morgan carries a Zacks Rank #2 (Buy). However, Zacks
Ranked #1 (Strong Buy)
) appears more attractive as it is expected to outperform over
the next few months.