Tallgrass to Gauge Shipping Interest for Seahorse Pipeline
Tallgrass Energy, LP TGE recently announced that the midstream energy infrastructure firm is holding an open season to obtain binding shipping commitments for its Seahorse Pipeline. The crude pipeline will ship products from the oil hub in Cushing, OK to the Louisiana Gulf Coast.
The 700-mile pipeline is likely to have a 30-inch diameter and carry up to 800,000 barrels of crude oil per day (BPD). The Seahorse Pipeline is expected to come online in the third quarter of 2021. The services to be provided by the pipeline coupled with those offered by the partnership’s Pony Express Pipeline will impart refineries a better access to production from five prolific basins in the United States.
The initial capacity of the pipeline is expected to be 400,000 BPD, which will later be expanded to full capacity. As most of the shale operators are facing bottleneck situations in the country, the pipeline will provide them a means to take their products to international markets. The open season for Seahorse Pipeline is expected to end on Oct 1.
Additionally, Tallgrass is planning to provide better connectivity in the producing areas in Powder River, Denver-Julesburg Basin and Bakken Shale. The partnership expressed intention of completing its pump optimization processes to enhance Pony Express’ capacity to 400,000 BPD by the end of 2018, for supporting shippers’ interest.
Leawood, KS-based Tallgrass has gained 4% in the past year against the 36.9% fall of its industry.
Zacks Rank and Stocks to Consider
Currently, Tallgrass has a Zacks Rank #3 (Hold). Investors interested in the Energy sector can opt for some better-ranked stocks like McDermott International, Inc. MDR, Canadian Natural Resources Limited CNQ and ConocoPhillips COP. While McDermott sports a Zacks Rank #1 (Strong Buy), Canadian Natural and ConocoPhillips both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Houston, TX-based McDermott is an equipment provider for energy companies. The company’s top line for 2018 is likely to improve 145% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 101.7%.
Calgary, Canada-based Canadian Natural Resources is an upstream energy company. The company’s top line for 2018 is anticipated to improve 41.3% year over year, while its bottom line is expected to increase more than 200%.
Houston, TX-based ConocoPhillips is an integrated energy company. The company’s top line for 2018 is likely to improve 14.1% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 27.6%.
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