Back to top

Analyst Blog

Double Eagle Pipeline LLC, a joint venture (JV) between Magellan Midstream Partners LP (MMP - Analyst Report) and Kinder Morgan Energy Partners (KMP - Analyst Report) has inked a deal with Anadarko Petroleum Corp. (APC - Analyst Report), a major independent oil and natural gas exploration and production (E&P) company in the world. While Magellan Midstream is a publicly traded energy pipeline partnership, Kinder Morgan Energy is the largest independent owner and operator of petroleum product pipelines in the US.

Per the long-term contract, Double Eagle will carry the increased crude and condensate produced at the Eagle Ford Shale from Gardendale, Texas to the Houston Ship Channel through the Kinder Morgan Crude and Condensate pipeline system (KMCC). Thus, this will result in the expansion of Double Eagle’s Eagle Ford transportation facility.

To support the expansion project, Double Eagle is planning to manufacture a pump station along with a storage facility of 160,000 barrels capacity at Gardendale. Double Eagle will also construct a 10-mile pipeline for connecting Double Eagle Pipeline with KMCC Pipeline.  

Double Eagle will carry the crude and condensate output from its to be manufactured station at Gardendale to the Helena station of KMCC. At the Helena station, KMCC will manufacture a 240,000 barrel-storage facility to store the transported crude and condensate, from where KMCC will carry the output to the Houston Ship Channel. Magellan Midstream added that the creation of the facilities will likely be over by the first half of 2015.

Magellan Midstream believes that the expansion project will be beneficial to the Eagle Ford producer Anadarko Petroleum for getting access to the markets in the Houston region. Moreover, the development is likely to earn increased cash flows for unitholders.

Tulsa, Oklahoma-based Magellan Midstream owns and operates a diversified portfolio of energy infrastructure assets. The partnership currently carries a Zacks Rank #2 (Buy), which implies that it is expected to outperform the broader U.S. equity market over the next one to three months.

One can also consider Harvest Natural Resources Inc. (HNR - Snapshot Report) in the energy sector that offers value. The stock sports a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UNITED THER… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%