Energy pipelines and terminals operator Sunoco Logistics Partners LP SXL declared that it has started the binding open season for the Mariner East 2 Expansion development. The expanded project will likely start operations by 2017.
The open season is for shippers willing to transport extra volumes of petroleum products and natural gas liquids to the Marcus Hook Industrial Complex on the Delaware River from Marcellus and Utica Shale regions − located in Western Pennsylvania, West Virginia and Eastern Ohio. Subject to the customer demand, the transported liquids might include ethane, propane, butane, C3+, natural gasoline, refined products and condensate.
Sunoco Logistics added that customers willing to commit to transporting volume for a length of time will get priority services.
Philadelphia-based Sunoco Logistics, a master limited partnership, acquires, owns, and operates a geographically diverse portfolio of refined product and crude oil pipelines and terminal facilities. With its low-risk and stable cash flow generating energy infrastructure assets, the partnership offers investors an opportunity to capture income growth through steadily rising cash distribution and capital appreciation.
However, the actual amount of cash distributed to Sunoco Logistics unitholders may fluctuate and is directly exposed to the partnership’s future operating performance, which is susceptible to movements in margins and throughput volumes. Realized margins and volumes could differ significantly from our estimates, thereby affecting Sunoco Logistics’ cash distributions.
The partnership carries a Zacks Rank #3 (Hold), which implies that the stock will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players from the energy sector are Seadrill Partners LLC SDLP, Alon USA Partners, LP ALDW and Halcón Resources Corporation HK. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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