Enterprise (EPD) Begins Operations at Its Sixth Midland Basin Plant
Enterprise Product Partners L.P. (EPD) announced that its Poseidon cryogenic natural gas processing facility in Glasscock County, TX, has begun operations. The new facility, which is the company's sixth plant in the Midland Basin, can extract more than 40,000 barrels per day (bpd) of natural gas liquids (NGLs). It has a nameplate capacity of 300 million cubic feet per day (MMcf/d).
Poseidon's expansion has granted Enterprise the potential to process 1.3 billion cubic feet of natural gas per day (Bcf/d) and extract more than 185,000 bpd of NGLs in the Midland Basin.
According to A.J. "Jim" Teague, co-chief executive officer of EPD's general partner, the new processing plant, which was completed on time and budget, represents a strategic addition to the company’s Permian Basin assets. He added that a number of large expansion projects (worth $3.8 billion), including the Poseidon gas plant, are anticipated to start operating and generate new sources of cash flow by the end of 2023.
The Leonidas cryogenic natural gas processing plant in the Midland Basin, backed by long-term acreage dedication agreements, is currently being built in Midland County, TX. It is expected to begin operations in the first quarter of 2024. Enterprise is currently expanding its Mentone cryogenic natural gas processing facility (in Loving County, TX) in the Delaware Basin.
These projects will enable the company to extract an additional 80,000 bpd of NGLs and enhance Mentone's nameplate natural gas processing capacity by 600 MMcf/d. On completion, these will also enable Enterprise to process 3.8 Bcf/d of natural gas and extract more than 520,000 bpd of NGLs across the Permian Basin.
Zacks Rank & Key Picks
Currently, Enterprise carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Evolution Petroleum Corporation EPM, NGL Energy Partners LP NGL and Murphy USA MUSA. While Evolution Petroleum sports a Zacks Rank #1 (Strong Buy), both NGL Energy Partners and Murphy USA carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Evolution Petroleum is an independent energy company. It was formed to acquire and develop oil and gas fields and apply both conventional and specialized technology to accelerate production, particularly in low-permeability reservoirs. EPM has witnessed an upward earnings estimate revision for 2023 and 2024 in the past 60 days.
NGL Energy Partners, headquartered in Tulsa, OK, is a limited partnership operating a vertically-integrated propane business with three operating segments — retail propane, wholesale supply and marketing, and midstream. NGL has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed an upward earnings estimate revision for 2024.
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