Energy Transfer Partners to Conduct a Binding Open Season
Energy Transfer Partners, L.P. ETP announced that Permian Express Terminal LLC and Permian Express Partners LLC will conduct a binding open season for Permian Express 3. The project is meant to deliver crude oil produced from the Permian Basin to multiple markets.
Open season is a regular activity of pipeline operators to gauge demand for new pipelines.
Duration and Terms of the Open Season
The open season will start on May 16, 2017, and will continue for 30 days. Once the project commences in the fourth quarter of 2017, it is expected to transport up to 100,000 barrels a day. In the future open seasons, Permian Express Terminal LLC and Permian Express Partners LLC expect additional committed service opportunities to rise as much as 300,000 barrels per day.
According to the terms of the open season, shippers will receive incentive rates, making long-term volume commitments.
Open Seasons from Peers
Earlier in Apr 2017, Plains All American Pipeline, L.P PAA commenced an open season for its planned new crude oil pipeline, extending from Permian Basin to Cushing, OK. (Read more: Plains All American Commences Open Season for New Pipeline)
In Mar 2017, Kinder Morgan, Inc. KMI started the non-binding open season for its Gulf Coast Express Pipeline project. (Read more: Kinder Morgan Starts Gulf Coast Pipeline Open Season)
Price Movement
In the last three months, Energy Transfer Partners units incurred a loss of 9.9% compared with the Zacks categorized Oil/ Gas Production Pipeline MLP industry’s loss of 5.8%.
Zacks Rank and Stock to Consider
Energy Transfer Partners has a Zacks Rank #4 (Sell). A better-ranked stock in the same space is Delek Logistics Partners, L.P. DKL, carrying a Zacks Rank 2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Delek Logistics Partners, LP’s 2017 Zacks Consensus Estimate moved up by nearly 12.7% to 62 cents per unit in the last 60 days.
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Plains All American Pipeline, L.P. (PAA): Free Stock Analysis Report
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