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Phillips 66's Oil Pipeline JVs Seek Additional Shipper Vows

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Phillips 66’s (PSX - Free Report) crude oil pipeline joint ventures (JVs) announced supplemental open seasons for additional transportation capacity of the commodity. The open season is meant for additional shippers willing to carry crude volumes for a long term to destinations including Cushing, Oklahoma and Gulf Coast from Bakken and Rockies.

It is to be noted that Phillips 66’s JVs are Liberty Pipeline LLC and Red Oak Pipeline LLC. With Phillips 66, the JV partner of Liberty Pipeline LLC is Bridger Pipeline LLC. In the JV, each party has a 50% interest. The JV partners for Red Oak Pipeline are Phillips 66 and Plains All American Pipeline (PAA).

The 24-inch pipeline that Liberty Pipeline LLC is constructing is meant to carry crude to Cushing, OK from Guernsey, WY. The date when the pipeline is likely to initiate operations is the first quarter of 2021. Phillips 66 will be the operator of the pipeline whose cost is estimated by the company at $1.6 billion.

Notably, the pipeline projects will assure producers in Bakken and Rockies that their increased production of crude oil volumes will be transported to key destinations in the United States and across the globe, according to Bridger Pipeline LLC.

Headquartered in Houston, TX, Phillips 66 is involved in businesses with midstream assets like transportation pipelines and storage terminals along with operations like refining, marketing and chemicals.

The company currently carries a Zacks Rank #3 (Hold). Meanwhile, better-ranked players in the energy space include Enterprise Products Partners L.P. (EPD - Free Report) , Helix Energy Solutions Group, Inc. (HLX - Free Report) and Approach Resources Inc. . While Enterprise Products carries a Zacks Rank #2 (Buy), Helix Energy and Approach Resources sport a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

Enterprise Products beat the Zacks Consensus Estimate for earnings in the last four quarters.

Helix Energy is likely to see earnings growth of 47.4% through 2019.

Approach has surpassed the Zacks Consensus Estimate for its bottom line in three of the past four quarters.

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