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Magellan (MMP), Enterprise Sign New Futures Contract With ICE

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Magellan Midstream Partners, L.P. MMP together with Enterprise Products Partners L.P. EPD recently made an announcement about a new crude oil physical delivery futures contract with Intercontinental Exchange, Inc. ICE in the Houston area.

The Midland West Texas Intermediate (WTI) American Gulf Coast contract came into being in response to market demand for a Houston-based index with better size, flow certainty and pricing transparency.

The quality standards for the new futures contract will adhere to the WTI crude oil from the Permian Basin with delivery options at the Magellan East Houston (MEH) or Enterprise Crude Houston (ECHO) ports. Once the new contract obtains regulatory clearance and is completed, Magellan Midstream and Enterprise will stop providing delivery services under the current futures contracts deliverable at each port.

Magellan Midstream is thrilled to partner with Enterprise and ICE to bring this cutting-edge joint futures contract to market. According to COO Aaron Milford, the new contract enhances the transparency, flexibility and marketability of Midland WTI crude oil for Gulf Coast and export clients while preserving industry-recognized consistency and accuracy. The new Midland WTI American Gulf Coast contract is also believed to help the industry save money by providing industry-leading quality that purchasers became habitual to in the Houston market.

About Magellan Midstream

Tulsa, OK-based Magellan Midstream is a master limited partnership (MLP) that owns and operates a diversified portfolio of energy infrastructure assets. The firm primarily transports, stores and distributes refined petroleum products and to a lesser extent, ammonia.

Zacks Rank & Key Pick

Magellan Midstream currently carries a Zacks Rank #3 (Hold). A better-ranked player in the energy space is Oasis Petroleum Inc. OAS, presently flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report
Enterprise Products Partners L.P. (EPD) : Free Stock Analysis Report
Magellan Midstream Partners, L.P. (MMP) : Free Stock Analysis Report
Oasis Petroleum Inc. (OAS) : Free Stock Analysis Report
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