ExxonMobil to Acquire 40% Stake in Enterprise's Bahia Pipeline Project

Exxon Mobil Corporation XOM, the integrated energy major, has entered into an agreement with Enterprise Products Partners (EPD) to acquire a 40% joint interest in the Bahia natural gas liquids (NGLs) pipeline. The pipeline, currently in the commissioning phase, is expected to begin commercial services shortly after the commissioning phase.Under the terms of the agreement, ExxonMobil will contribute its proportional share of the pipeline project’s construction costs, totaling $650 million. The Bahia NGL pipeline, spanning 550 miles, will transport NGLs from the Midland and Delaware basins to EPD’s Mont Belvieu fractionation facility in Texas. Initially, the pipeline is expected to have a transportation capacity of 600,000 barrels per day (bbl/d) of NGLs. The transaction is expected to be concluded by early 2026.Planned Expansion of the Bahia PipelineEnterprise and ExxonMobil intend to expand the transportation capacity of the Bahia pipeline to 1 million bbl/d after closing the deal. This expansion includes boosting pumping capacity along the line and constructing an extension from the main Bahia pipeline to ExxonMobil’s Cowboy natural gas processing plant in Eddy County, NM. This 92-mile extension shall also connect several processing facilities in the Delaware Basin owned by Enterprise. The expansion project is expected to be concluded in the fourth quarter of 2027.Rising Permian NGL Output Drives Midstream InvestmentEnterprise expects the natural gas and NGL mix from the Permian Basin to grow in the upcoming years. As such, the Bahia pipeline will play a crucial role in transporting the NGL production from the Permian to the fractionation complex in Mont Belvieu. According to an Enterprise spokesperson, the NGL production in the Permian is anticipated to rise more than 30% between 2024 and 2030. The expansion of the Bahia pipeline is expected to provide incremental transportation and processing capacity for the growing NGL volumes, allowing both XOM and EPD to benefit from the same.XOM’s Zacks Rank and Key PicksXOM currently carries a Zacks Rank #3 (Hold).Some top-ranked stocks from the energy sector are Oceaneering International OII, Canadian Natural Resources Ltd. CNQ and FuelCell Energy FCEL. While Oceaneering and Canadian Natural Resources currently sport a Zacks Rank #1 (Strong Buy) each, FuelCell carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Exxon Mobil Corporation (XOM): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks