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Magellan (MMP) to Expand Saddlehorn Capacity to 290,000BPD

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Magellan Midstream Partners, L.P. recently announced that it will expand the capacity of its Saddlehorn pipeline system.

Currently, Saddlehorn pipeline has a capacity of carrying 190,000 barrels per day (bpd) of crude oil and condensate. With this upgrade, the pipeline’s volume will be enlarged by 100,000 bpd, resulting in the new total capacity of 290,000 bpd.

Owing to growth in volume per shippers’ demand during a July open season, Magellan Midstream has decided to expand the size of its pipeline.

The Saddlehorn pipeline transports crude oil and natural gas liquids from DJ and Powder River Basins, CO to the chief storage facilities in Cushing, OK.

Subsequent to the inclusion of incremental pipeline and storage capabilities, this Saddlehorn pipeline operator, currently carrying a Zacks Rank #2 (Buy), intends to make its higher capacity pipeline accessible by this 2020 end.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Magellan Midstream collectively owns Saddlehorn Pipeline along with Plains All American Pipeline (PAA - Free Report) and Western Midstream Partners (WES - Free Report) .

Coupled with the capacity extension demanded by shippers, the Houston-based Noble Midstream Partners LP through its subsidiary Black Diamond Gathering LLC will have a choice to purchase up to a 20% ownership interest in Saddlehorn with Magellan Midstream and Plains All American selling up to a 10% interest each to Noble Midstream if the option is exercised.

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