Magellan and Enterprise to Develop Joint Houston Crude Oil Futures Contract
January 21 2021 - 4:46PM
Business Wire
Magellan Midstream Partners, L.P. (NYSE: MMP) and Enterprise
Products Partners L.P. (NYSE:EPD) today announced that affiliates
of the two companies have entered into an agreement to jointly
develop a futures contract for the physical delivery of crude oil
in the Houston area in response to market interest for a
Houston-based index with greater scale, flow assurance and price
transparency. The quality specifications will be consistent with a
West Texas Intermediate (“WTI”) crude oil originating from the
Permian Basin with delivery capabilities at either Magellan’s East
Houston terminal or Enterprise’s ECHO terminal in Houston.
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“The industry-recognized quality and consistency of Midland WTI
crude oil at Magellan’s East Houston terminal, combined with
flexible and reliable market access offered by both Magellan and
Enterprise, make this joint effort a logical advancement for crude
oil futures to provide added value for our customers, both
domestically and globally,” said Michael Mears, Magellan’s chief
executive officer.
“We are pleased to join with Magellan on this initiative, which
will provide customers with enhanced flexibility, connectivity,
market access and price transparency for their physical barrels of
crude oil,” said A.J. “Jim” Teague, co-chief executive officer of
Enterprise’s general partner. “This project will leverage the
strengths of two major midstream infrastructure systems, featuring
five pipelines serving the Permian Basin capable of delivering 2
million barrels per day of crude oil into the Houston market (with
the potential for third-party pipelines to double the capacity of
Permian Basin crude oil into the market), a robust Gulf Coast
storage position, redundant connectivity to every refinery in the
Houston area, and access to the largest network of crude oil export
terminals located along the Houston Ship Channel.”
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly
traded partnership that primarily transports, stores and
distributes refined petroleum products and crude oil. Magellan owns
the longest refined petroleum products pipeline system in the
country, with access to nearly 50% of the nation’s refining
capacity, and can store more than 100 million barrels of petroleum
products such as gasoline, diesel fuel and crude oil. More
information is available at www.magellanlp.com.
Enterprise Products Partners L.P. is one of the largest publicly
traded partnerships and a leading North American provider of
midstream energy services to producers and consumers of natural
gas, NGLs, crude oil, refined products and petrochemicals. Our
services include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage and export and import terminals; crude oil gathering,
transportation, storage and export and import terminals;
petrochemical and refined products transportation, storage, export
and import terminals and related services; and a marine
transportation business that operates primarily on the United
States inland and Intracoastal Waterway systems. The partnership’s
assets include approximately 50,000 miles of pipelines; 260 million
barrels of storage capacity for NGLs, crude oil, refined products
and petrochemicals; and 14 Bcf of natural gas storage capacity.
Please visit www.enterpriseproducts.com for more information.
This press release includes “forward-looking statements” as
defined by the Securities and Exchange Commission. All statements,
other than statements of historical fact, included herein that
address activities, events, developments or transactions that
Enterprise and its general partner, as well as Magellan expect,
believe or anticipate will or may occur in the future are
forward-looking statements. These forward-looking statements are
subject to risks and uncertainties that may cause actual results to
differ materially from expectations, including required approvals
by regulatory agencies, the possibility that the anticipated
benefits from such activities, events, developments or transactions
cannot be fully realized, the possibility that costs or
difficulties related thereto will be greater than expected, the
impact of competition, and other risk factors included in
Enterprise’s and Magellan’s reports filed with the Securities and
Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of their dates. Except as required by law, Enterprise and Magellan
do not intend to update or revise their respective forward-looking
statements, whether as a result of new information, future events
or otherwise.
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Magellan Contacts Paula Farrell,
Investor Relations (918) 574-7650, paula.farrell@magellanlp.com
Bruce Heine, Media Relations (918) 574-7010,
bruce.heine@magellanlp.com
Enterprise Contacts Randy
Burkhalter, Investor Relations (713) 381-6812 or (866) 230-0745,
rburkhalter@eprod.com Rick Rainey, Media Relations (713) 381-3635,
rrainey@eprod.com
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