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Enterprise's (EPD) New Fractionator to Meet NGL Product Need

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Enterprise Products Partners L.P. (EPD - Free Report) announced the commencement of building of a new natural gas liquid (“NGL”) fractionator. In the Mont Belvieu region, the new unit marks the tenth NGL fractionator.

The partnership is expecting the fractionator — backed by long-term customer accords — to commence operations by the first quarter of 2020.

The tenth fractionator will likely have the capacity to process 150,000 barrels per day (B/D). This will lead Enterprise Products establishing the processing capability of 905,000 B/D in Mont Belvieu. Moreover, the new unit will likely help the partnership record total fractionation capacity of 1.4 million B/D.

With the construction of the tenth unit, the partnership will be able to support the growing NGL volumes in the Unites States. Notably, in the coming four years, Enterprise Products projects NGL output in the Permian Basin to more than double. The fractionator will also meet the mounting need for NGL products both in the domestic market and abroad.

Headquartered in Houston, TX, Enterprise Products is among the leading midstream energy players in North America. The stock has rallied 11.4% over the past year, outperforming the 1.8% collective growth of the stocks belonging to the industry.

The partnership boasts an extensive network of pipeline that spreads across 50,000 miles. Importantly, the pipeline network is connected to every major shale play in America.

Presently, the stock carries a Zacks Rank #2 (Buy). Other top-ranked players in the energy space include McDermott International, Inc. (MDR - Free Report) , Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

McDermott’s earnings surpassed the Zacks Consensus Estimate in the last four quarters, the average positive surprise being 101.7%.

Petrobras’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 10.4%.

Helix Energy’s bottom line exceeded the consensus mark in three of the last four quarters, the average earnings surprise being 66.7%.

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