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MPLX Subsidiary Signs a Deal to Buy Ozark Pipeline for $220M
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U.S.-based diversified partnership MPLX LP (MPLX - Free Report) recently announced that its subsidiary MPLX Pipeline Holdings has inked an asset purchase deal with Enbridge Inc.’s (ENB - Free Report) Ozark Pipeline LLC. Per the deal, an associate of MPLX Pipeline Holdings would purchase Ozark Pipeline for $220 million. The deal is subject to regulatory approvals and is scheduled for closure in the first quarter of 2017.
This purchase transaction is expected to prove beneficial for MPLX’s Midwest pipeline network as Ozark pipeline would expand the footprint of the partnership’s logistics and storage segment.
The Ozark Pipeline is a 433-mile crude oil pipeline originating in Oklahoma and terminating in Illinois with the capacity of transporting 230,000 barrels per day. Enbridge is currently planning an expansion project to enhance the pipeline’s capacity to 345,000 barrels per day by the second quarter of 2018. To achieve this, the company aims to increase the horsepower at pump stations along the pipeline and add drag-reducing agents to crude oil.
Zacks Rank and Key Picks
Headquartered in Ohio, MPLX deals with the processing and transportation of natural gas; transportation and marketing of natural gas liquids; and transportation and storage of crude oil and refined petroleum products. The partnership is well positioned for growth because of various organic projects and third party acquisitions. The partnership therefore carries a Zacks Rank #3 (Hold).
The partnership outperformed the Zacks categorized Oil & Gas Production and Pipeline industry over the last three months. During the aforesaid period, units of MPLX rose almost 18.65%, while the broader industry gained around 6.09%.
Better ranked players in the industry include Holly Energy Partners, L.P and Semgroup Corp. .
Holly Energy Partners is expected to post year-over-year growth of 9.29% and 13.32% on its revenues and earnings respectively.
Semgroup Corporation reported an average earnings surprise of 74.06% in the last four quarters.
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MPLX Subsidiary Signs a Deal to Buy Ozark Pipeline for $220M
U.S.-based diversified partnership MPLX LP (MPLX - Free Report) recently announced that its subsidiary MPLX Pipeline Holdings has inked an asset purchase deal with Enbridge Inc.’s (ENB - Free Report) Ozark Pipeline LLC. Per the deal, an associate of MPLX Pipeline Holdings would purchase Ozark Pipeline for $220 million. The deal is subject to regulatory approvals and is scheduled for closure in the first quarter of 2017.
This purchase transaction is expected to prove beneficial for MPLX’s Midwest pipeline network as Ozark pipeline would expand the footprint of the partnership’s logistics and storage segment.
The Ozark Pipeline is a 433-mile crude oil pipeline originating in Oklahoma and terminating in Illinois with the capacity of transporting 230,000 barrels per day. Enbridge is currently planning an expansion project to enhance the pipeline’s capacity to 345,000 barrels per day by the second quarter of 2018. To achieve this, the company aims to increase the horsepower at pump stations along the pipeline and add drag-reducing agents to crude oil.
Zacks Rank and Key Picks
Headquartered in Ohio, MPLX deals with the processing and transportation of natural gas; transportation and marketing of natural gas liquids; and transportation and storage of crude oil and refined petroleum products. The partnership is well positioned for growth because of various organic projects and third party acquisitions. The partnership therefore carries a Zacks Rank #3 (Hold).
The partnership outperformed the Zacks categorized Oil & Gas Production and Pipeline industry over the last three months. During the aforesaid period, units of MPLX rose almost 18.65%, while the broader industry gained around 6.09%.
Better ranked players in the industry include Holly Energy Partners, L.P and Semgroup Corp. .
Holly Energy Partners sports a Zacks Rank #1 (Strong Buy). Whereas, Semgroup carries a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Holly Energy Partners is expected to post year-over-year growth of 9.29% and 13.32% on its revenues and earnings respectively.
Semgroup Corporation reported an average earnings surprise of 74.06% in the last four quarters.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>