Occidental to Build Oil Pipeline

RELATED QUOTES

SymbolPriceChange
OXY69.32-0.28
MMP69.98-0.21

Occidental Petroleum Corporation (OXY) has inked a contract with Magellan Midstream Partners, L.P. (MMP) for building a crude oil pipeline called BridgeTex Pipeline, stretching from Colorado City, Texas to the Houston Gulf Coast area. Both the organizations will jointly install this pipeline for transferring crude oil from the Permian Basin. This pipeline is expected to be online by the middle of 2014, subject to required approvals.

Per the agreement, the organizations will build few pipelines including an approximately 400 miles long 20-inch pipeline between Colorado City and Magellan Midstream Partners' terminal in East Houston and roughly 50 miles long 24-inch pipeline from East Houston to Texas City.

In addition, the organizations will construct 1.4 million barrels of crude oil storage at East Houston and approximately 1.2 million barrels of crude oil storage at Colorado City to ease the pipeline movements.

A jointly-formed project team will supervise this project. In particular, Magellan Midstream Partners will act as a construction manager and operator of the pipeline.

The BridgeTex Pipeline project will enable the organizations to transport roughly 300,000 barrels of oil per day (“Bbls/d”). Besides, the strategic location of the pipeline will facilitate it to access the Houston Ship Channel refineries, the Texas City refineries and several other refineries throughout the Gulf Coast through third-party pipelines.

It is evident from the past that most of the crude oil and natural gas companies install new pipelines or expand the existing ones after getting transportation and service contracts from the customers. In this project, the organizations have already received long-term transportation commitments and orders from the Federal Energy Regulatory Commission along with approvals related to pipeline’s tariff structure.

Currently, Occidental Petroleum’s 2012 capital expenditure is focused on active exploration and production activities. In the first nine months of 2012, the company utilized $7.7 billion under its capital investment program. A sharp rise in the company’s capital expenditure from $5.0 billion in the year-ago comparable period was primarily due to development expenses at its Oil and Gas, Chemicals and Midstream segments.

In third-quarter 2012, Occidental Petroleum produced 473 thousand barrels of oil per day (“MBbls/d”) including a production figure of 144 MBbls/d from the Permian operations. We view this deal as a positive catalyst for the company’s future growth along with strengthening and enhancing its crude oil transportation portfolio. As a result, the company will be able to provide uninterrupted services to its customers with the help of a well-equipped pipeline network provider Magellan Midstream Partners.

Los Angeles, California-based Occidental Petroleum Corporation along with its subsidiaries engages in exploration, development, production and marketing of crude oil, natural gas liquids and natural gas in the United States, Middle East, North Africa and Latin America. With a market capitalization of $61.14 billion, the company has 11,300 full time employees. Occidental Petroleum currently has short-term Zacks #3 Rank (Hold rating).

Read the Full Research Report on OXY

Read the Full Research Report on MMP

Zacks Investment Research



More From Zacks.com

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • Markit reports 3Q loss Associated Press - 6 minutes ago

    On a per-share basis, the London-based company said it had a loss of 9 cents. Earnings, adjusted for one-time gains and costs, came to 45 cents per share. The results surpassed Wall Street expectations. ... … More »

  • Saudis, Iran dash hopes for OPEC oil deal in Algeria
    Saudis, Iran dash hopes for OPEC oil deal in Algeria Reuters - 10 minutes ago

    Saudi Arabia and Iran on Tuesday dashed hopes that OPEC oil producers could clinch an output-limiting deal in Algeria this week as sources within the exporter group said the differences between the kingdom and Tehran remained too wide. "This is a … More »

  • Deutsche Bahn manager to become CEO of Vossloh - industry sources Reuters - 13 minutes ago

    Andreas Busemann, a senior manager with German rail operator Deutsche Bahn AG [DBN.UL] is expected to become chief executive of rail technology group Vossloh AG (VOSG.DE), industry sources said on Tuesday. The management change is on the agenda at … More »

  • Britain says economy needs an infrastructure upgrade after political drama Reuters - 28 minutes ago

    LONDON (Reuters) - Britain's economy needs an infrastructure and vocational education upgrade to deliver stability to businesses after months of political drama including the vote to leave the European ... … More »

  • SE Asia Stocks-Indonesia hits over 4-wk high on rupiah surge Reuters - 28 minutes ago

    By Anusha Ravindranath Sept 27 (Reuters) - Indonesian stocks recouped early losses to hit their highest in more than four weeks on Tuesday after the rupiah surged to a 17-month peak on likely inflows from ... … More »

  • Chinese hunger for Australia food leaves A$1 billion tax hole Reuters - 39 minutes ago

    Australia might be missing out on up to A$1 billion (588 million pounds) in uncollected taxes annually from Chinese agents who ship food back home to meet insatiable demand from a booming middle class. There are 40,000 so-called Chinese 'daigou' in … More »

  • France unlikely to achieve 2017 deficit target - fiscal watchdog Reuters - 46 minutes ago

    France is unlikely to meet its 2017 budget deficit target, the country's independent fiscal watchdog said on Tuesday, casting doubt on the government's plan to cut the shortfall to less than 3 percent of output. The government's deficit reduction … More »

  • Credit Suisse's Thiam guides for third quarter outflows in Swiss business Reuters - 48 minutes ago

    Credit Suisse Chief Executive Tidjane Thiam on Tuesday guided investors for some outflows in its domestic business in the third quarter as it looks to cut down on risk exposure. "We are going through our relationships with external asset managers … More »

  • Close Brothers shrugs off Brexit worries as FY profit rises Reuters - 54 minutes ago

    The Brexit vote had little direct impact on demand at the company's retail, commercial, and property lending operations, Chief Executive Preben Prebensen told Reuters. Unlike companies such as IG Group and CMC Markets, Close Brothers said its … More »

  • AccorHotels joins buoyant youth hostels market
    AccorHotels joins buoyant youth hostels market Reuters - 56 minutes ago

    AccorHotels is launching a youth hostel brand called Joe&Joe to tap the spending power of young adults, part of its response to the challenges posed by Airbnb and an entry into a high-growth sector. Europe's largest hotel group said on Tuesday it … More »

  • Oil prices slip as hopes for a deal in Algiers fade
    Oil prices slip as hopes for a deal in Algiers fade Reuters - 1 hour 3 minutes ago

    Saudi Arabia on Tuesday dashed hopes that OPEC oil producers could clinch a deal in Algeria this week as sources within the exporter group said the differences between the kingdom and rival Iran remained too wide. U.S. West Texas Intermediate (WTI) … More »

  • Global stocks, Mexico peso bounce as markets score one for Clinton
    Global stocks, Mexico peso bounce as markets score one for Clinton Reuters - 1 hour 4 minutes ago

    World shares swung higher and the Mexican peso surged more than two percent on Tuesday, as investors awarded the first U.S. presidential debate to Democrat Hillary Clinton over Republican Donald Trump. Markets have tended to see Clinton as the … More »

  • World stocks, Mexico peso bounce as markets score one for Clinton
    World stocks, Mexico peso bounce as markets score one for Clinton Reuters - 1 hour 4 minutes ago

    World shares swung higher and the Mexican peso surged more than two percent on Tuesday, as investors awarded the first U.S. presidential debate to Democrat Hillary Clinton over Republican Donald Trump. Markets have tended to see Clinton as the … More »

  • WTO cuts 2016 world trade growth forecast to 1.7 percent
    WTO cuts 2016 world trade growth forecast to 1.7 percent Reuters - 1 hour 15 minutes ago

    The World trade Organization cut its forecast for global trade growth this year by more than a third on Tuesday, reflecting a slowdown in China and falling levels of imports into the United States. The new figure of 1.7 percent, down from the WTO's … More »

  • China industrial profits rise most in 3 years as economy shows signs of stabilising
    China industrial profits rise most in 3 years as economy shows signs of stabilising Reuters - 1 hour 20 minutes ago

    Profits in China's industrial sector rose at the fastest pace in three years as the world's second-biggest economy showed more signs of stabilising, though some private forecasters say the improvement may be more fleeting than real. Profits of … More »

  • Air France 'shirt-ripping' trial opens AFP - 1 hour 24 minutes ago

    Fifteen people went on trial Tuesday over rowdy scenes a year ago in which an Air France executive had his shirt ripped as he fled a mob of workers angry over planned job cuts. Images of the incident near ... … More »

  • Asian Stocks Rise for First Time in Three Days After U.S. Debate Bloomberg - 1 hour 35 minutes ago

    The MSCI Asia Pacific Index rose 0.7 percent to 141.85 as of 4:30 p.m. in Hong Kong after sliding as much as 0.9 percent earlier, as S&P 500 Index futures climbed 0.4 percent. In a little more than 90 minute face-off, Trump and Clinton sparred on … More »

  • FTSE hovers near one-week lows as Wolseley slides Reuters - 1 hour 37 minutes ago

    Britain's top shares index hovered near one-week lows on Tuesday, weighed down by a drop in construction stocks such as Wolseley and weaker energy company stock prices. The blue-chip FTSE 100 index was flat at 6,819.59 points, near its lowest level … More »

  • Markets cheer Clinton in US presidential debate
    Markets cheer Clinton in US presidential debate AFP News - 1 hour 40 minutes ago

    Financial markets Tuesday cheered Hillary Clinton's performance in the first US presidential debate, with stocks and high-risk currencies staging a "relief rally" as investors saw her as victor over Republican rival Donald Trump. Key Asian bourses … More »

  • London still top finance centre, but Brexit may change that - survey
    London still top finance centre, but Brexit may change that - survey Reuters - 1 hour 41 minutes ago

    London's role as the world's top financial centre could be under threat as the implications of Britain leaving the European Union start to sink in, a survey showed on Monday. The Z/Yen 20th global financial centres index (GFCI), which looks at 87 … More »

  • WHY IT MATTERS: Social Security
    WHY IT MATTERS: Social Security Associated Press - 1 hour 45 minutes ago

    THE ISSUE: More than 60 million retirees, disabled workers, spouses and children rely on monthly Social Security benefits. That's nearly one in five Americans. The trustees who oversee Social Security ... … More »

  • China’s Shibor Climbs to Seven-Week High as PBOC Withdraws Funds Bloomberg - 1 hour 50 minutes ago

    (Bloomberg) -- Yuan borrowing costs in Shanghai rose to a seven-week high as China’s central bank pulled funds from the financial system for the second day in a row. … More »

  • Asian Hunger for Yield Tested by Junk-Rated Casino Bond Plan (2) Bloomberg - 1 hour 55 minutes ago

    Imperial Pacific International Holdings Ltd. plans to sell dollar bonds for the first time to fund its casino resort in Saipan Island, a U.S. territory in the Pacific Ocean, according to a bond document. The bond is rated B1, four steps below … More »

  • Euro zone lending stable in August, M3 beats expectations Reuters - 2 hours 13 minutes ago

    Lending growth to euro zone companies and households held steady last month while a broader measure of money circulating, often an indicator of future activity, rose past expectations, data from the European Central Bank showed on Tuesday. The … More »

  • Global money laundering group urges Singapore to step up its efforts Reuters - 2 hours 15 minutes ago

    An international group that monitors money laundering said on Tuesday that Singapore should pursue more offenders involved in international cases and take more action to confiscate suspicious funds moving through the city-state. "Singapore … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.141+0.003+2.17%
    N21.SI
    3.99+0.03+0.76%
    Z74.SI
    0.155+0.003+1.97%
    AFC.SI
    0.740.000.00%
    BS6.SI
    0.275+0.010+3.77%
    5ME.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.133+0.020+17.70%
    5PF.SI
    0.19+0.03+15.85%
    AWI.SI
    1.48+0.16+12.12%
    S91.SI
    0.198+0.020+11.24%
    M14.SI
    0.60+0.05+9.09%
    AZA.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.255-0.110-30.14%
    AZT.SI
    0.56-0.18-24.32%
    5VJ.SI
    0.395-0.070-15.05%
    K1Q.SI
    0.162-0.028-14.74%
    BGO.SI
    0.122-0.020-14.08%
    569.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3592-0.001-0.08%
    USDSGD=X
    1.5279-0.0024-0.16%
    EURSGD=X
    1.7600-0.0028-0.16%
    GBPSGD=X
    73.8450+0.121+0.16%
    SGDJPY=X
    5.7041+0.0048+0.08%
    SGDHKD=X
    3.0338-0.0004-0.01%
    SGDMYR=X
    9,530.4688-48.3535-0.50%
    SGDIDR=X
    4.9053+0.0035+0.07%
    SGDCNY=X
    1.0416+0.003+0.29%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,341.10-3.00-0.22%
    GCZ16.CMX
    19.52-0.08-0.39%
    SIZ16.CMX
    94.45-1.31-1.37%
    ^XAU
    2.18-0.02-0.71%
    HGZ16.CMX
    43.85+0.41+0.94%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.13-0.03
    ^FVX
    1.59-0.03
    ^TNX
    2.33-0.01
    ^TYX