We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Plains All American Commences Open Season for New Pipeline
Read MoreHide Full Article
Plains All American Pipeline, L.P (PAA - Free Report) has started an open season to gauge the demand for its planned new crude oil pipeline extending from Permian Basin to Cushing, OK.
Duration of the Open Season
The midstream service provider’s open season began on Apr 18 and will end on May 30,giving enough time for interested upstream companies to come forward and sign up for a portion of the pipeline’s capacity rights.
The proposed pipeline will have origin points at Midland, TX and Colorado City, TX and will deliver crude oil to the storage hub in Cushing. If Plains All American gets required contracts from upstream operators with no hold back from regulatory bodies, the project could bring as many as 350,000 barrels of oil a day to the market by mid 2019.
The open season offers better visibility towards success of a new pipeline as it shields a pipeline operator from incurring losses because of a dearth of customers.
In the first week of April, Plains All American and Noble Midstream Partners LP announced the completion of Advantage Pipeline, LLC buyout for $133 million. This acquisition put both the midstream service providers in an advantageous position as the acquired pipeline operates in a liquid-rich area. (Read More: Plains All American & Noble Midstream Close Advantage Deal)
Plains All American is willing to expand its storage capacity in Cushing, OK. It is looking forward to invest about $30 million in 2017 to add around 2 million barrels of crude storage capacity.
Price Movement
In the last one year Plains All American’s units returned 24%, outperforming the Zacks categorized Oil/ Gas Production Pipeline MLP industry’s gain of 13.5%.
With the recovery in the price of crude, the partnership is expected to perform well in the coming days and the units are expected to fetch better returns.
Boardwalk Pipeline Partners LP’s 2017 Zacks Consensus Estimate moved up by nearly 1.5% to $1.33 per unit in the last 60 days.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar.
Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
Image: Bigstock
Plains All American Commences Open Season for New Pipeline
Plains All American Pipeline, L.P (PAA - Free Report) has started an open season to gauge the demand for its planned new crude oil pipeline extending from Permian Basin to Cushing, OK.
Duration of the Open Season
The midstream service provider’s open season began on Apr 18 and will end on May 30,giving enough time for interested upstream companies to come forward and sign up for a portion of the pipeline’s capacity rights.
The proposed pipeline will have origin points at Midland, TX and Colorado City, TX and will deliver crude oil to the storage hub in Cushing. If Plains All American gets required contracts from upstream operators with no hold back from regulatory bodies, the project could bring as many as 350,000 barrels of oil a day to the market by mid 2019.
The open season offers better visibility towards success of a new pipeline as it shields a pipeline operator from incurring losses because of a dearth of customers.
Open Season from a Peer
In Mar 2017, Kinder Morgan, Inc. (KMI - Free Report) started the non-binding open season for its Gulf Coast Express Pipeline project. (Read more: Kinder Morgan Starts Gulf Coast Pipeline Open Season)
JV to Expand Operation
In the first week of April, Plains All American and Noble Midstream Partners LP announced the completion of Advantage Pipeline, LLC buyout for $133 million. This acquisition put both the midstream service providers in an advantageous position as the acquired pipeline operates in a liquid-rich area. (Read More: Plains All American & Noble Midstream Close Advantage Deal)
Plains All American is willing to expand its storage capacity in Cushing, OK. It is looking forward to invest about $30 million in 2017 to add around 2 million barrels of crude storage capacity.
Price Movement
In the last one year Plains All American’s units returned 24%, outperforming the Zacks categorized Oil/ Gas Production Pipeline MLP industry’s gain of 13.5%.
With the recovery in the price of crude, the partnership is expected to perform well in the coming days and the units are expected to fetch better returns.
Zacks Rank and Stocks to Consider
Plains All American carries a Zacks Rank #3 (Hold). A better-ranked stock in the same space is Boardwalk Pipeline Partners L.P. carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Boardwalk Pipeline Partners LP’s 2017 Zacks Consensus Estimate moved up by nearly 1.5% to $1.33 per unit in the last 60 days.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar.
Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>