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Enterprise Oil Leak Temporarily Disrupts Seaway Pipeline Flows

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Key Takeaways

  • EPD halted part of the Seaway pipeline after a crude leak at its Houston terminal.
  • No injuries, fires, or offsite impacts were reported from the incident.
  • The Seaway line, co-owned with Enbridge, is expected to resume services soon.

Enterprise Products Partners L.P. (EPD - Free Report) is addressing a crude oil leak at its oil terminal in southeast Houston, prompting a temporary disruption in operations on the Seaway pipeline, per a Reuters report. The line, which runs from Cushing, OK, to Freeport, TX, and connects to the Enterprise Crude Houston (“ECHO”) terminal, saw flows decline early Wednesday after a portion went offline on Tuesday night.

EPD Confirms No Injuries or Offsite Impact From Leakage

The cause of the release remains under investigation. Enterprise confirmed there were no injuries, fires, or offsite impacts. The company activated its emergency response plan, initiated cleanup efforts, and is working closely with regulatory authorities to resolve the issue and restore operations.

Crude Price Reaction Highlights Market Sensitivity

The incident briefly affected crude markets, with West Texas Intermediate crude at East Houston climbing as much as 35 cents to trade at a $1.30 premium over WTI at Cushing before easing to about 90 cents by market close. The ECHO terminal serves as a key delivery hub for Midland crude, offering storage and connections to Gulf Coast refineries and marine terminals supplying both domestic and international markets.

Seaway Pipeline Joint Venture With Enbridge

The Seaway pipeline, operated by Enterprise and jointly owned with Canada’s Enbridge, plays a critical role in transporting crude to the Texas Gulf Coast. While Enbridge deferred operational queries to Enterprise, the report indicated that the line may be back in service later on Wednesday.

EPD’s Zacks Rank and Key Picks

EPD currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation (AM - Free Report) , Flotek Industries, Inc. (FTK - Free Report) and Enbridge Inc. (ENB - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 1.13%.

Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. In the oil and gas sector, Flotek serves major and independent energy producers and oilfield service companies, both domestic and international.

Flotek’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 65.2%. The Zacks Consensus Estimate for FTK’s 2025 earnings indicates 94% year-over-year growth.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts that act as a protection against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 5.61%.

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