In a bid to bolster its foothold in the Permian play, Andeavor recently acquired Rangeland Energy II, LLC. Financial details of the transaction have been kept under wraps. Subject to satisfactory closing conditions and regulatory approvals, the deal is set for closure by March this year.
Per the deal, Andeavor will acquire Rangeland II’s assets in Midland and Delaware Basins, which include storage tanks and frac sand terminal along with 110-mile Rio Pipeline with throughput capacity of 145,000 barrels per day.
Post the acquisition, Andeavor intends to integrate the crude oil infrastructure with its Conan Crude Oil Gathering System, which is currently under construction.The $225 million Conan pipeline is around 130 miles long with a capacity to transport around 250,000 barrels of oil a day.
The integration of two pipeline systems will provide producers access to multiple markets and also support Andeavor's development of additional gathering systems in the area. It will also boost the commercial opportunities by providing direct access to the Midland Basin. Eventually, Andeavor intends to drop down the pipeline assets to its midstream spin-off Andeavor Logistics, LP. .
Apart from bolstering the network of assets, the acquisition will enhance its geographic footprint in the prolific Permian Basin and lead to several commercial and financial synergies. As it is, over the last two years despite the industry’s downturn, the energy companies like Exxon Mobil Corporation (XOM - Free Report) , Noble Energy, Inc. and many others have been increasing their investment in the prolific Permian Basin owing to its lower costs and widespread infrastructure.
Zacks Rank and Key Picks
Headquartered in Texas, Andeavor is one of the world’s largest independent refiners. Driven by organic growth, major capital projects, dropdowns, mergers and acquisitions, the company intends to grow its EBITDA by 45% over the next three years. Andeavor expects synergies from Western Refining buyout to be fully achieved by June 2019. The company currently carries a Zacks Rank #3 (Hold).
A top-ranked player in the same industry is Delek US Holdings, Inc. (DK - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings is expected to witness year-over-year earnings growth of 103.61% in 2018.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
In a bid to bolster its foothold in the Permian play, Andeavor recently acquired Rangeland Energy II, LLC. Financial details of the transaction have been kept under wraps. Subject to satisfactory closing conditions and regulatory approvals, the deal is set for closure by March this year.
Per the deal, Andeavor will acquire Rangeland II’s assets in Midland and Delaware Basins, which include storage tanks and frac sand terminal along with 110-mile Rio Pipeline with throughput capacity of 145,000 barrels per day.
Post the acquisition, Andeavor intends to integrate the crude oil infrastructure with its Conan Crude Oil Gathering System, which is currently under construction.The $225 million Conan pipeline is around 130 miles long with a capacity to transport around 250,000 barrels of oil a day.
The integration of two pipeline systems will provide producers access to multiple markets and also support Andeavor's development of additional gathering systems in the area. It will also boost the commercial opportunities by providing direct access to the Midland Basin. Eventually, Andeavor intends to drop down the pipeline assets to its midstream spin-off Andeavor Logistics, LP. .
Apart from bolstering the network of assets, the acquisition will enhance its geographic footprint in the prolific Permian Basin and lead to several commercial and financial synergies. As it is, over the last two years despite the industry’s downturn, the energy companies like Exxon Mobil Corporation (XOM - Free Report) , Noble Energy, Inc. and many others have been increasing their investment in the prolific Permian Basin owing to its lower costs and widespread infrastructure.
Zacks Rank and Key Picks
Headquartered in Texas, Andeavor is one of the world’s largest independent refiners. Driven by organic growth, major capital projects, dropdowns, mergers and acquisitions, the company intends to grow its EBITDA by 45% over the next three years. Andeavor expects synergies from Western Refining buyout to be fully achieved by June 2019. The company currently carries a Zacks Rank #3 (Hold).
A top-ranked player in the same industry is Delek US Holdings, Inc. (DK - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings is expected to witness year-over-year earnings growth of 103.61% in 2018.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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