Tulsa, OK-based publicly traded energy pipeline partnership, Magellan Midstream Partners LP (MMP - Free Report) declared that that the open season of BridgeTex Pipeline has been extended to Aug 14, 2014. The pipeline is jointly owned by Magellan Midstream and Occidental Petroleum Corp. (OXY - Free Report) − an oil and gas exploration and production company. The extension will mainly accommodate additional commitments from shippers to use the pipeline for transporting crude oil.
The BridgeTex Pipeline is nearing completion and is in the final stage of construction. When fully operational, the 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 crude is expected to begin by mid third quarter.
The pipeline system will offer shippers the option to access 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 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.
Both Magellan Midstream and Occidental Petroleum currently carry a Zacks Rank #3 (Hold), implying that the stocks are expected to perform in line with the broader U.S. equity market over the next one to three months.
Meanwhile, one can look at better-ranked players in the energy sector like Patterson-UTI Energy Inc. (PTEN - Free Report) and Pioneer Energy Services Corp. (PES - Free Report) . Both players sport a Zacks Rank #1 (Strong Buy).