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MPLX Declares Open Season Extension for SLC Pipeline Expansion

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MPLX LP (MPLX - Free Report) declared publicly the extension of its binding open season by two weeks for the expansion of the SLC Core Pipeline System owned by Tesoro Logistics Northwest Pipeline LLC, an affiliate of MPLX. With the open season procedure, the partnership is considering modest revisions to its transportation service accord in light of responses from potential shippers.

Notably, the binding open season, which commenced on Sep 21, is likely to be extended till Nov 6, at 12 p.m. CST. Thus, this extension will provide additional time to shippers to gauge revisions and finalize commitments.

The SLC Pipeline System, a common network that delivers crude oil to Wahsatch Station, UT, from multiple places in Wyoming. At the Wahsatch Station, the network is connected to a third-party pipeline, thereby, providing additional transportation services to refineries in the Salt Lake City area. The pipeline system has a transportation capacity of about 45,000 barrels per day (“bpd”).

Notably, the SLC Core Pipeline System capacity expansion would ensure access to the crude oil market hub of Guernsey. Beside this, it provides shippers additional access to crude oil grades for refiners in the Salt Lake City region of Utah. The expansion would extend the existing pipeline capacity by about 11,000 barrels per day, bringing the total transportation capacity of the SLC Core Pipeline to about 56,000 bpd. The partnership expects the expansion project to commence operating in the first quarter of 2022.

Company Profile & Price Performance

Headquartered in Findlay, OH, MPLX is a leading midstream energy service provider. The partnership’s parent company is Marathon Petroleum Corporation (MPC - Free Report) . MPLX’s shares have outperformed the industry in the past month. The partnership’s stock has gained 3.8% against the 1.8% decline of the composite stocks belonging to the industry.

 

 

Zacks Rank & Stocks to Consider

MPLX currently carries a Zack Rank #3 (Hold). Some better-ranked players in the energy space are Equinor ASA (EQNR - Free Report) and Sunoco LP (SUN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 6 months, the Zacks Consensus Estimate for 2020 earnings for Equinor has been raised by 38.6%.

Sunoco is expected to see earnings growth of 52.3% in 2021.

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