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Energy Transfer (ETP) Reveals Bakken Pipeline Open Season

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Dakota Access LLC and Energy Transfer Crude Oil Company LLC ("ETCO"), an arm of Energy Transfer Partners, L.P. , together declared the supplemental binding open season for Bakken Pipeline. Both Dakota Access and ETCO are involved in the operation and development of the pipeline. The open season started on Aug 12, 2016.

Both Dakota Access and Energy Transfer Crude Oil Company revealed that the incremental carrying capacity for the pipeline will be decided on shippers’ commitment.  

The open season is meant to judge shippers’ demand for the pipeline from Bakken/Three Forks play to multiple markets. It is to be noted that Bakken Holdings Company LLC has a 75% interest in each of ETCO and Dakota Access. The residual 25% interest belongs to Phillips 66 (PSX - Free Report) . Investors should also know that Energy Transfer Partners LP has a 60% ownership interest in Bakken Holdings while the remaining 40% is in the possession of Sunoco Logistics Partners LP (SXL - Free Report) .

Dallas, TX-based Energy Transfer Partners is a master limited partnership (MLP) engaged primarily in the gathering, processing, storage and transportation of natural gas through a network of pipelines spanning some 24,000 miles. Recently, the partnership reported second-quarter 2016 earnings of 10 cents per limited partner unit, which missed the Zacks Consensus Estimate of 19 cents. The bottom line also decreased from the year-ago quarter profit of 67 cents.

ENERGY TRAN PTR Price

 

Philadelphia-based Sunoco Logistics Partners is also a MLP that acquires, owns, and operates a geographically diverse portfolio of refined product and crude oil pipelines and terminal facilities. The partnership also reported disappointing second-quarter 2016 earnings. Sunoco Logistics reported adjusted loss per unit of 10 cents, contrary to the Zacks Consensus Estimate of a profit of 19 cents and the year-ago quarter earnings of 43 cents.

SUNOCO LOGISTIC Price

 

Both Energy Transfer Partners and Sunoco Logistics carry a Zacks Rank #3 (Hold), implying that the stock will perform in line with the broader U.S. equity market over the next one to three months.

A better-ranked player in the energy sector is Murphy USA Inc. (MUSA - Free Report) with a Zacks Rank #1 (Strong Buy).

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