Tallgrass Energy, LP (TGE - Free Report) along with Silver Creek Midstream, LLC recently launched a binding open season to obtain supplemental shipping agreements for their Niobrara (API 34 - 42) crude oil transportation service that uses the Iron Horse Pipeline.
Notably, the 16-inch pipeline already secured a 10-year commitment for 15 thousand barrels a day (MBbls/d) of shipping capacity from a producer. Presently, the pipeline is being constructed and expected to come online by Feb 1, 2019. The initial expected capacity of the pipeline is around 100 MBbls/d, which can be extended to about 200 MBbls/d. The pipeline is not reliant on the latest open season results.
The pipeline — a joint venture (JV) between Tallgrass Energy and Silver Creek — runs from the Powder River Basin to an oil hub in Guernsey, WO. The pipeline is expected to be around 80-mile long. Both the company’s Tallgrass Pony Express Pipeline and Iron Horse Pipeline can be accessed by shippers at Guernsey. The Silver Creek Gathering System, which is presently under construction, will be connected to the Iron Horse at the Midway Terminal of Silver Creek in Converse County. The open season will end on Aug 17.
Zacks Rank and Other Stocks to Consider
Currently, Tallgrass Energy sports a Zacks Rank #1 (Strong Buy). The company recently got an approval from the board of directors for second-quarter 2018 quarterly dividend of 49.75 cents per Class A share, representing a sequential hike of 2.1%. The new dividend will be paid on Aug 14 to its shareholders on record as of Jul 31, 2018. You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors interested in the Energy sector can also opt for other top-ranked stocks like BP p.l.c. (BP - Free Report) , EOG Resources, Inc. (EOG - Free Report) and Delek US Holdings, Inc. (DK - Free Report) , each sporting a Zacks Rank #1.
London-based BP is an integrated energy company. The company’s top line for 2018 is anticipated to improve 12.6% year over year, while its bottom line is expected to increase 77.7%.
Houston, TX-based EOG Resources is an upstream energy company. The company’s top line for 2018 is anticipated to improve 41.4% year over year. In the last four reported quarters, the company recorded an average positive earnings surprise of 30.1%.
Brentwood, TN-based Delek is an energy company. The company’s top line for 2018 is likely to improve 39.3% year over year, while its bottom line is expected to increase more than 270%.
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