| Anadarko Exercises Option to Join Saddlehorn Pipeline - Analyst Blog | |
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Woodlands, TX-based Anadarko Petroleum Corporation’s APC wholly owned subsidiary has decided to exercise the option given by Magellan Midstream Partners LP MMP and Plains All American Pipeline LP PAA to join Saddlehorn Pipeline Company.
Saddlehorn Pipeline Company – a Magellan Midstream and Plains All American initiative – aims to construct, own and operate the 550-mile Saddlehorn Pipeline. Magellan Midstream and Plains All American had a 50% stake each in this limited liability company.
With Anadarko joining the venture, Magellan Midstream and Plains All American will now own a 40% ownership apiece in the company while the remaining 20% will be held by Anadarko.
The Saddlehorn pipeline is expected to carry oil of different grades from the resource plays in the DJ Basin and Rocky Mountain area to storage facilities in Cushing, OK. With an initial capacity of around 200,000 barrels per day (bpd), this 20-inch pipeline is projected to have an ultimate capacity of transporting up to 400,000 bpd of oil.
The total cost of the project is estimated at $800–$850 million. The pipeline is expected to commence commercial operations by mid 2016. Magellan Midstream will be the operator of the pipeline.
Last month, Anadarko joined another pipeline expansion project – The Panola Pipeline – primarily owned by Enterprise Products Partners L.P. EPD. Originating in Carthage, TX, the Panola Pipeline stretches for 181 miles to Mont Belvieu and transports natural gas liquids (“NGL”).
Expanding its footprint in the midstream business will provide Anadarko additional capacity for transporting its oil and NGL production besides offering an added revenue stream.
Anadarko Petroleum currently has a Zacks Rank #3 (Hold). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ENTERPRISE PROD (EPD): Free Stock Analysis Report PLAINS ALL AMER (PAA): Free Stock Analysis Report MAGELLAN MDSTRM (MMP): Free Stock Analysis Report ANADARKO PETROL (APC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Anadarko
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CODE : APC |
ISIN : US0325111070 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Anadarko is a exploration company based in Canada. Anadarko is listed in Germany and in United States of America. Its market capitalisation is US$ 38.6 billions as of today (€ 34.5 billions). Its stock quote reached its lowest recent point on May 12, 1995 at US$ 10.00, and its highest recent level on May 23, 2014 at US$ 99.93. Anadarko has 531 000 000 shares outstanding. |