NuStar Energy LPNS , San Antonio-based publicly traded partnership, declared that its subsidiary NuStar Logistics LP has commenced the second binding open season for South Texas crude oil pipeline system. The open season started on Apr 2 and will likely continue til Apr 23.
The South Texas pipeline's first expansion work is almost over. Post completion, Highway 99 in McMullen County, TX - in the Eagle Ford region − will be a new crude shipping origin for the pipeline. Following the extension, the pipeline's capacity is expected to increase by 10,000 barrels per day.
NuStar Energy added that under the second binding open season for the South Texas expansion development, new shippers can enter into a Throughput and Deficiency agreement. Per the deal, shippers will get firm committed transportation rights on the South Texas pipeline from all the four origin points that include Highway 99.
Moreover, the existing shippers of the pipeline's first expansion project can make minor changes to their Throughput and Deficiency agreement for including Highway 99 as a new origin point.
Last week, NuStar Energy announced that it will release its first-quarter 2015 results on Apr 22, before the opening bell. The Zacks Consensus Estimate for the partnership's first quarter is 59 cents per unit.
San Antonio, TX-based NuStar Energy is a master limited partnership (MLP) that engages in the transportation and storage of crude oil as well as refined products in the U.S., the Netherlands Antilles, Canada, Mexico, and the U.K.
The partnership currently carries a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, some better-ranked players in the oil/gas production pipeline MLP space are Energy Transfer Equity LP ETE , Sunoco Logistics Partners LP SXL and Crestwood Midstream Partners LP CMLP . All the stocks hold a Zacks Rank #2 (Buy).