MPLX LP MPLX recently announced a binding open season for the SLC Core Pipeline System. MPLX’s subsidiary, Tesoro Logistics Northwest Pipeline LLC owns the SLC Core Pipeline System.
The open season will gauge shippers’ interest to transport crude volumes under binding transportation services agreements for a long period of time. The in-service date of the new takeaway capacity in MPLX's SLC Core Pipeline System is expected in first-quarter 2022. Notably, the open season commenced on Sep 21, 2020.
The SLC Core Pipeline System is located in Wyoming. It will ship crude oil to Wahsatch Station, UT from Fort Laramie Station, WY. From the end point of the pipeline system, clients can avail a third-party system to ship their products to Salt Lake City refineries. Also, the pipeline expansion is expected to provide the clients with an access to the Guernsey crude oil market hub. The expansion is expected to boost the pipeline’s transportation capacity to 56,000 barrels of oil per day (bpd) from 45,000 bpd.
MPLX is least exposed to commodity price fluctuations, since the partnership generates stable fee-based revenues from diverse midstream energy assets via long-term contracts. It provides a wide range of midstream energy services, including fuel distribution solutions. The large-cap partnership was created in 2012 to own, operate and develop midstream energy infrastructure and logistics assets, mostly for its parent company Marathon Petroleum Corporation MPC.
In addition to oil and natural gas gathering systems, MPLX's assets comprise transportation pipelines for crude, natural gas, as well as refined petroleum products. The partnership is currently developing several projects, among which the Wink-to-Webster and Whistler pipelines are major ones.
MPLX’s units have jumped 53.7% in the past six months compared with 40.7% rise of the industry it belongs to.
Zacks Rank and Stocks to Consider
Currently, MPLX carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Holly Energy Partners, L.P. HEP and Pioneer Natural Resources Company PXD. While Holly Energy sports a Zacks Rank #1 (Strong Buy), Pioneer Natural has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Holly Energy’s bottom line for 2021 is expected to rise 4.8% year over year.
Pioneer Natural’s bottom line for 2021 is expected to surge 180.8% year over year.
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Pioneer Natural Resources Company (PXD): Free Stock Analysis Report
MPLX LP (MPLX): Free Stock Analysis Report
Holly Energy Partners, L.P. (HEP): Free Stock Analysis Report
Marathon Petroleum Corporation (MPC): Free Stock Analysis Report
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