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Tulsa, OK-based publicly traded energy pipeline partnership, Magellan Midstream Partners L.P. (MMP - Analyst Report) and oil and gas exploration and production company, Occidental Petroleum Corp. (OXY - Analyst Report) announced that their jointly owned venture, BridgeTex Pipeline Company, LLC, has started an open season. The objective of this open season is to acquire additional commitments for BridgeTex Pipeline.

The companies announced that the open season would end on Aug 7, by when shippers can secure transportation commitments on the pipeline. An initially successful open season for the BridgeTex Pipeline, whereby the company secured long-term commitments, led to the construction of the pipeline in Nov 2012. The pipeline is nearing completion and is in the final stage of construction.

When fully operational, the BridgeTex pipeline is anticipated to have a transport capacity of 300,000 barrels of crude per day. The pipeline will deliver crude oil to the Houston Gulf Coast area from Colorado City, TX. Delivery of the crude is expected to begin by the middle of the third quarter of the year.

The BridgeTex Pipeline system will offer shippers the option to access the refining capacity and large transportation hubs in the Houston Gulf Coast area. The pipeline would also connect to several third-party terminals and distribution systems, providing shippers a wider area of coverage.  

Magellan Midstream owns an attractive portfolio of energy infrastructure assets that generate stable and recurring fee and tariff-based revenues. The partnership’s expansion plans, a sound liquidity position and strong track record for distribution growth are its other positives.

Los Angeles, CA-based Occidental Petroleum is an integrated oil and gas company, with significant exploration and production exposure. The company’s steady progress in growth projects, along with simultaneous strategic asset divestment, should help in improving its future performance.

Magellan Midstream currently sports a Zacks Rank #1 (Strong Buy) whereas Occidental Petroleum has a Zacks Rank #3 (Hold). Apart from Magellan Midstream, one can consider oil and gas production pipeline MLPs like Energy Transfer Partners, L.P. (ETP - Analyst Report) and TC PipeLines, LP (TCP - Analyst Report), both of which sport a Zacks Rank #1.