El Paso Pipeline Partners, L.P. (EPB), Energy Transfer Equity, L.P. (ETE), Magellan Midstream Partners, L.P. (MMP): Three Midstream Companies to Consider

The outlook for the company has been very positive in the market as its fourth-quarter 2012 and first-quarter 2013 results were way above the estimates calculated by the analysts. This helped the company achieve a significant increase in its share prices. For the second quarter of 2013, analysts are estimating revenue figures close to $11.3 billion. The EPS estimates have also been increased by the analysts. The company will be counting on its several projects to deliver that; its Trunkline LNG export facility has great potential. The facility will have an export capacity of up to 15 mtpa (million metric tons per annum). It will continue to provide additional upstream transportation revenue. Energy Transfer Equity, L.P. (NYSE:ETE) is expecting to get a DOE non-FTA export permit for this facility this year.

Expansion efforts

Magellan Midstream Partners, L.P. (NYSE:MMP) engages in the transportation, storage and distribution of petroleum products in the United States. The company has entered into several joint-ventures which will start to bear fruit starting from the end of this year. The company started the delivery of crude oil to the Houston region from its Longhorn pipeline. The volumes from this pipeline are set to expand almost by 150% from their initial levels. Eight-hundred miles of Plains All American’s pipeline is also going to come under the Mangellan’s control.

What’s more: Mangellan is currently working on six more projects that will take crude from various locations in Texas and Oklahoma to refineries along the Gulf Coast. This would allow the company to transport up to 2 million barrels of crude oil a day. I believe the earnings at Magellan Midstream Partners, L.P. (NYSE:MMP) have just started

The takeaway

The midstream companies are enjoying a revival of activities in the oil-and-gas sector of the United States. From the above-mentioned companies, I expect Magellan Midstream Partners, L.P. (NYSE:MMP) to report solid profits in the coming years.

The article Three Midstream Companies to Consider originally appeared on Fool.com and is written by Awais Iqbal.

Awais Iqbal has no position in any stocks mentioned. The Motley Fool recommends El Paso Pipeline Partners LP and Magellan Midstream Partners, L.P. Awais is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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