Tulsa, OK-based publicly traded energy pipeline partnership, Magellan Midstream Partners LP (MMP) declared that it has decided to extend the open season of the Saddlehorn Pipeline yet again from Dec 15, 2014 to Jan 30, 2015. Depending on sufficient commitments from shippers and necessary approvals from the regulators, the pipeline will likely be online by the second quarter of 2016.
The pipeline is expected to be used by shippers to carry crude oil of different grades from the northeast Colorado-based Niobrara play. The pipeline, originating at Platteville, CO will stretch to the Cushing, OK-storage facilities of the partnership. For transporting crude, Magellan Midstream is expected to construct a 20-inch diameter pipeline spreading over 600 miles and deliver crude oil at a rate of roughly 400,000 barrels per day.
Moreover, in order to enhance the scope of the pipeline system, Magellan Midstream will incorporate three origin points for receiving oil, depending on adequate support from shippers. The three extra points post expansion would be in Weld County near Pawnee, Riverside and Briggsdale.
The partnership declared last month that it has got commitments from upstream energy firms Anadarko Petroleum Corporation (APC) and Noble Energy Inc (NBL) for the pipeline project. Additionally, the partnership signed letter of intents with Saddle Butte Pipeline II LLC and Anadarko for equity interest in Saddlehorn Pipeline.
Magellan Midstream Partners is a master limited partnership that owns and operates a diversified portfolio of energy infrastructure assets. The partnership currently carries a Zacks Rank #2 (Buy), implying that it will outperform the broader U.S. equity market over the next one to three months.
Meanwhile, one can also consider energy sector stocks like Sandridge Mississippian Trust II (SDR). The player sports a Zacks Rank #1 (Strong Buy).
MAGELLAN MDSTRM (MMP): Free Stock Analysis Report
NOBLE ENERGY (NBL): Free Stock Analysis Report
ANADARKO PETROL (APC): Free Stock Analysis Report
SANDRDG MS T II (SDR): Get Free Report
To read this article on Zacks.com click here.
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.