NEW YORK (TheStreet) -- Magellan Midstream Partners, L.P. (MMP) sold about 90% of the capacity on its 300,000 barrel-per-day BridgeTex oil pipeline, which starts up later this month, according to company CEO Mike Mears, Reuters reports.
BridgeTex, which is expected to become a key supply route to alleviate a glut of crude oil in the Permian Basin, will run from Colorado City, TX, to refineries on the Gulf Coast near Houston, Reuters noted.
Capacity not booked will be used for short-term "spot" shipments, Mears said at the Barclays (BCS) CEO Energy Power Conference in New York, NY.
The company had two open seasons to promote shipper interest in using the line, the first generating about 75% of capacity and the second bringing it closer to 90%, Mears added.
Shares of Magellan Midstream Partners closed at $82.96 yesterday.
TheStreet Ratings team rates MAGELLAN MIDSTREAM PRTNRS LP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate MAGELLAN MIDSTREAM PRTNRS LP (MMP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."