Enterprise Products Partners L.P. (EPD - Free Report) has become the sole supplier of residual marine fuel (“RMG 380”) and marine gas oil (“MGO”) to deep-draft vessels on the Houston Ship Channel. The fueling capability additions, from its Enterprise Hydrocarbons Terminal (“EHT”), became functional on Jun 1.
The deep-draft vessels that dock at the EHT facility use RMG 380 and MGO as the main transportation fuel. Barge and dedicated tanks, with a storage capacity of about 300,000 barrels, carry these fuels to the terminal. Each of EHT’s seven docks receives fuels through pipelines.
The facility will fuel ships when they load and offload product at the EHT. This will simplify the process and is more economical. Customers will be able to save time and money as the service eradicates the need to stop at a third-party facility. This service emphasizes the partnership’s capability and commitment toward the upgrade of services to capitalize on growth opportunities.
Enterprise Products has a long history of successful execution of growth projects, mergers and acquisitions. Since its IPO in 1998, the partnership has completed $38 billion of organic growth projects and $26 billion of major acquisitions through 2017. Currently, it has growth capital projects of about $4.9 billion under construction. In 2018, the partnership expects to commission growth capital projects worth $800 million.
Enterprise Products’ extensive network of pipeline, which is spread across 50,000 miles, is a notable factor. The network is connected to every major U.S. shale play and provides services to producers and users of commodities by transporting gas, liquids as well as refined products. Other assets include about 260 million barrels of storage capacity for NGLs, refined products and crude oil, 14 billion cubic feet of natural gas storage capacity, 28 natural gas processing plants, 23 fractionators and 11 condensate distillation facilities.
In the past three months, Enterprise Products’ shares have gained 13.3% compared with the industry’s 14.5% rise.
Zacks Rank & Key Picks
Enterprise Products Partners carries a Zacks Rank #3 (Hold).
A few other better-ranked players in the same sector are Occidental Petroleum Corporation (OXY - Free Report) andChina Petroleum and Chemical Corporation (SNP - Free Report) and CVR Refining, LP (CVRR - Free Report) . These stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Occidental Petroleum is an international oil and gas exploration and production company. It pulled off an average positive earnings surprise of 30.2% in the last four quarters.
Sinopec is one of the largest petroleum and petrochemical companies in Asia. The company delivered an average positive earnings surprise of 492.8% in the last four quarters.
Sugar Land, TX-based CVR Refining is an independent downstream energy partnership with refining and associated logistics properties in the Midcontinent United States. The company delivered an average positive earnings surprise of 7.05% in the last four quarters.
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