Yahoo Finance Enbridge to Gauge Shippers' Interest in Gray Oak Pipeline
Enbridge Inc. ENB and Phillips 66 PSX plan to gauge shippers’ interest in transporting significant volumes of liquid, through Gray Oak Pipeline, to the Gulf Coast market from Permian Basin of West Texas. The to-be-built pipeline’s open season has been announced on Dec 11.
As per the firms’ estimates, the Gray Oak Pipeline will initially have a daily throughput capacity of 385,000 barrels. If shippers show significant interest, Phillips 66 and Enbridge will think of expanding capacity.
The Gray Oak Pipeline will likely commence operations by the second half of 2019. Investors should know that the pipeline system will open access to shippers and crude producers for transporting liquid to oil refining facilities and export terminals.
On Nov 29, energy infrastructure company Enbridge announced plans to focus on more profitable businesses as well as lower debt burden. Headquartered in Calgary, Canada, the company intends to streamline its portfolio by spending as much as C$22 billion on growth and maintenance developments through 2020-end.
Headquartered in Houston, TX, Phillips 66 announced its 2018 capital spending plan on Dec 8. Of the total $2.3-billion capital budget, roughly $1.2 billion has been allocated for midstream activities.
Enbridge and Phillips 66 carry a Zacks Rank #3 (Hold). Enbridge, belonging to the Zacks Oil Production Pipeline industry, has lost 8.5% year to date. Meanwhile, Phillips 66, belonging to the Zacks Oil Refining & Marketing industry, has gained 15.4%.
A few better-ranked players in the energy sector are China Petroleum & Chemical Corporation SNP and Northern Oil and Gas, Inc. NOG. Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Beijing, China Petroleum is a leading integrated energy player. The company will likely see year-over-year earnings growth of 59.1% in 2017.
Based in Minnetonka, MN, Northern Oil is an upstream energy player. The company’s 2017 revenues are estimated to grow almost 44%.
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