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Enterprises' (EPD) Rancho II Pipeline Commences Operations

Enterprise Products Partners L.P.EPD declared that its Rancho II pipeline, which extends from Sealy, TX to the partnership's ECHO terminal in southeast Houston, has been brought online.

Rancho II is an 88-mile, 36-inch diameter pipeline that will carry various grades of crude oil, condensate and processed condensate from the Permian Basin and the Eagle Ford Shale.

The Rancho II pipeline is a vital aspect of Enterprise's efforts to grow its crude oil and condensate network in Texas. Together with Enterprise's existing Eagle Ford assets and recently announced Midland-to-Sealy pipeline, Rancho II will boost the partnership's ability to deliver crude oil and condensate from important producing areas with direct access to every refinery in Houston, Texas City, Beaumont and Port Arthur. The Rancho II pipeline will also enhance Enterprise's marine facilities through its ECHO distribution system.

Enterprise is a leading master limited partnership, which provides a wide range of midstream energy services to the producers and consumers of natural gas, natural gas liquids (NGL) and crude oil.

The partnership's assets include 49,000 miles of onshore and offshore pipelines, approximately 225 million barrels of storage capacity for NGLs, refined products and crude oil, and 14 billion cubic feet of natural gas storage capacity. Enterprise divides its operations into five segments: NGL Pipelines & Services, Onshore Natural Gas Pipelines & Services, Petrochemical & Refined Product Services, Offshore Pipelines & Services and Onshore Crude Oil Pipelines & Services.

Enterprise is viewed as a core holding in an MLP portfolio given its string of organic growth projects, potential acquisitions, strong balance sheet and solid liquidity position. The partnership is one of the largest fully integrated midstream service providers with a positive long-term outlook as well as significant geographic and business diversity.

Enterprise carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Alon USA Partners, LP ALDW , Braskem S.A. BAK and ReneSola Ltd SOL . All these stocks sport a Zacks Rank #1 (Strong Buy).

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ENTERPRISE PROD (EPD): Free Stock Analysis Report

RENESOLA LT-ADR (SOL): Free Stock Analysis Report

BRASKEM SA (BAK): Free Stock Analysis Report

ALON USA PTNRS (ALDW): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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