Phillips 66 Partners LP (PSXP - Free Report) and Energy Transfer LP (ET - Free Report) announced the completion of the second phase of the Bayou Bridge Pipeline.
The 163-mile, 24-inch pipeline will source crude oil from Lake Charles, LA and transfer it to terminalling facilities outside St. James. The pipeline will come into service from Apr 1, 2019. Energy Transfer, the operator of the pipeline, has a stake of 60% and the remaining 40% is held by Phillips 66 Partners.
The first phase of the Bayou Bridge Pipeline was commissioned in April 2016. Currently, the 30-inch pipe with a length of 49 miles carries multiple grades of crude oil from Nederland, TX to Lake Charles.
The second phase of the Bayou Bridge Pipeline will offer Louisiana refiners with more proficient and sustainable access to North American crude oil as well as market diversification for North American producers. Additionally, the pipeline will reduce the country’s dependence on less reliable foreign sources for crude oil.
Headquartered in Houston, Phillips 66 Partners is a master limited partnership (MLP). It is involved in operating and developing midstream energy infrastructures. The midstream assets include terminals and pipelines for transporting oil, natural gas liquid and refined petroleum products. The partnership generates stable fee-based revenues from the midstream infrastructures that are located across the Gulf Coast, Central, Western and Atlantic areas of the United States.
Zacks Rank & Other Key Picks
Currently, Phillips 66 Partners carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the energy space are Antero Resources Corporation (AR - Free Report) and CrossAmerica Partners L.P. (CAPL - Free Report) . Both Antero Resources and CrossAmerica Partners sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Antero Resources is an independent explorer, primarily engaged in the acquisition and development of natural gas, natural gas liquids as well as oil resources in the Appalachian Basin. The company’s earnings beat the Zacks Consensus Estimate in two of the last four quarters.
CrossAmerica Partners is involved in the wholesale distribution of motor fuels, comprising gasoline and diesel fuel. The partnership delivered an average positive earnings surprise of 452.2% in the last four quarters.
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