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Enterprise Products Partners L.P. (EPD - Free Report) , through a subsidiary, recently acquired the ethylene trading hub and storage business of NOVA Chemicals, located in Mont Belvieu, TX. The financial terms of the deal are yet to be disclosed.
The deal is complementary in nature as it will cater to Enterprise Products’ growing ethylene network. The partnership has an ethylene export terminal of 1 million mt per annum capacity at the Houston Ship Channel and a Gulf Coast pipeline system. As such, the latest deal will enable the partnership to enhance its services provided to customers.
The move is expected to boost Enterprise Products’ olefins footprint. The addition of the assets from NOVA Chemicals is expected to make Enterprise Products a major player for physically settled futures markets. This will likely boost the partnership’s profitability from its trading arm. Also, the deal will enable NOVA Chemicals to focus on core operation of ethylene and polyethylene production.
Per the terms of the deal, Enterprise Products will have NOVA Chemicals as a long-term client for its storage business. Apart from a massive pipeline network of around 50,000 miles, the partnership already has a total liquids storage capacity of 260 million barrels. Furthermore, it has a natural gas storage strength of 14 billion cubic feet.
Price Performance
The stock has risen 10% in the past three months compared with 17.2% increase of the industry it belongs to.
Antero Resources’ profits for 2021 are expected to surge 335.7% year over year.
Magellan Midstream’s bottom line for 2021 is expected to rise 7.2% year over year.
Pembina Pipeline’s bottom line for 2021 is expected to jump 42.2% year over year.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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Enterprise Products (EPD) Buys NOVA's Storage & Trading Hub
Enterprise Products Partners L.P. (EPD - Free Report) , through a subsidiary, recently acquired the ethylene trading hub and storage business of NOVA Chemicals, located in Mont Belvieu, TX. The financial terms of the deal are yet to be disclosed.
The deal is complementary in nature as it will cater to Enterprise Products’ growing ethylene network. The partnership has an ethylene export terminal of 1 million mt per annum capacity at the Houston Ship Channel and a Gulf Coast pipeline system. As such, the latest deal will enable the partnership to enhance its services provided to customers.
The move is expected to boost Enterprise Products’ olefins footprint. The addition of the assets from NOVA Chemicals is expected to make Enterprise Products a major player for physically settled futures markets. This will likely boost the partnership’s profitability from its trading arm. Also, the deal will enable NOVA Chemicals to focus on core operation of ethylene and polyethylene production.
Per the terms of the deal, Enterprise Products will have NOVA Chemicals as a long-term client for its storage business. Apart from a massive pipeline network of around 50,000 miles, the partnership already has a total liquids storage capacity of 260 million barrels. Furthermore, it has a natural gas storage strength of 14 billion cubic feet.
Price Performance
The stock has risen 10% in the past three months compared with 17.2% increase of the industry it belongs to.
Zacks Rank & Key Picks
The partnership has a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Antero Resources Corporation (AR - Free Report) , Magellan Midstream Partners, L.P. and Pembina Pipeline Corporation (PBA - Free Report) , each having a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Antero Resources’ profits for 2021 are expected to surge 335.7% year over year.
Magellan Midstream’s bottom line for 2021 is expected to rise 7.2% year over year.
Pembina Pipeline’s bottom line for 2021 is expected to jump 42.2% year over year.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>