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Kinder Morgan (KMI) Begins Open Season for Pipeline Expansion
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Kinder Morgan’s (KMI - Free Report) subsidiary SFPP, L.P., announced the commencement of a binding open season to solicit commitments for expanding the East Line portion of its pipeline system. The expansion will enhance capacity from El Paso, TX, to Tucson, AZ.
The open season began at 8:00 a.m. CST on Jun 10, 2024 and will conclude at 5:00 p.m. CST on Aug 9, 2024.
Expansion Highlights
The proposed expansion is designed to offer an additional 10,000 barrels per day of capacity on a gasoline-equivalent basis. This increased capacity will facilitate the transportation of various products, including diesel for export to Mexico and domestic-grade products, such as gasoline, jet fuel and diesel. The scalable nature of the expansion allows SFPP to adjust the total capacity based on the level of interest and commitments received during the open season.
Potential shippers are invited to secure firm capacity by making take-or-pay volume commitments during the binding open season. This approach ensures that SFPP can gauge the demand and secure the necessary commitments to justify the expansion.
Operational Timeline
The expanded capacity is projected to be operational by Jul 1, 2025, aligning with the growing demand for refined petroleum products in domestic and international markets.
The launch of this open season represents a strategic move by Kinder Morgan to enhance its infrastructure and support the increasing demand for energy transportation. The successful expansion of the Texas-to-Arizona pipeline is likely to enhance the company’s capacity and contribute to the efficient distribution of essential petroleum products across the region.
Zacks Rank & Key Picks
Kinder Morgan currently carries a Zacks Rank #3 (Hold).
Hess is a leading oil and natural gas exploration and production company that made several world-class oil discoveries in the Stabroek Block, located off the coast of Guyana. The company is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. The merger is likely to result in the creation of an energy behemoth with a massive portfolio of producing assets.
The Zacks Consensus Estimate for HES’ 2024 EPS is pegged at $10.28. The company has a Growth Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes more than 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.17, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $6.95. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2025 in the past seven days.
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Kinder Morgan (KMI) Begins Open Season for Pipeline Expansion
Kinder Morgan’s (KMI - Free Report) subsidiary SFPP, L.P., announced the commencement of a binding open season to solicit commitments for expanding the East Line portion of its pipeline system. The expansion will enhance capacity from El Paso, TX, to Tucson, AZ.
The open season began at 8:00 a.m. CST on Jun 10, 2024 and will conclude at 5:00 p.m. CST on Aug 9, 2024.
Expansion Highlights
The proposed expansion is designed to offer an additional 10,000 barrels per day of capacity on a gasoline-equivalent basis. This increased capacity will facilitate the transportation of various products, including diesel for export to Mexico and domestic-grade products, such as gasoline, jet fuel and diesel. The scalable nature of the expansion allows SFPP to adjust the total capacity based on the level of interest and commitments received during the open season.
Potential shippers are invited to secure firm capacity by making take-or-pay volume commitments during the binding open season. This approach ensures that SFPP can gauge the demand and secure the necessary commitments to justify the expansion.
Operational Timeline
The expanded capacity is projected to be operational by Jul 1, 2025, aligning with the growing demand for refined petroleum products in domestic and international markets.
The launch of this open season represents a strategic move by Kinder Morgan to enhance its infrastructure and support the increasing demand for energy transportation. The successful expansion of the Texas-to-Arizona pipeline is likely to enhance the company’s capacity and contribute to the efficient distribution of essential petroleum products across the region.
Zacks Rank & Key Picks
Kinder Morgan currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Hess Corporation (HES - Free Report) , Sunoco LP (SUN - Free Report) and SM Energy Company (SM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hess is a leading oil and natural gas exploration and production company that made several world-class oil discoveries in the Stabroek Block, located off the coast of Guyana. The company is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. The merger is likely to result in the creation of an energy behemoth with a massive portfolio of producing assets.
The Zacks Consensus Estimate for HES’ 2024 EPS is pegged at $10.28. The company has a Growth Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes more than 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.17, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $6.95. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2025 in the past seven days.