Magellan Midstream Partners, L.P. (NYSE: MMP), Enterprise
Products Partners L.P. (NYSE: EPD) and Intercontinental Exchange,
Inc. (NYSE: ICE) today announced that the “no-charge” arrangement
between the Magellan East Houston (“MEH”) and the Enterprise Crude
Houston (“ECHO”) terminals to transfer crude oil delivered through
the Midland WTI AGC futures contract (ICE: HOU) has been expanded
to include deliveries conducted via ICE’s Exchange for Physical
(“EFP”) and Alternative Delivery Procedure (“ADP”) mechanisms.
If customers take an HOU futures position to delivery and they
are not matched by the exchange at the buyer’s preferred terminal,
the barrels are transferred between the MEH and ECHO terminals at
no cost. Magellan and Enterprise are expanding this arrangement to
now include HOU futures customers who take delivery via ICE’s EFP
or ADP mechanisms at one terminal and desire to transfer the
barrels to the other terminal.
“Expanding the free pump-over to include EFP and ADPs provides
customers added flexibility to optimize their use of capital while
still realizing the savings on the transfer costs they would
otherwise incur,” said Jeff Barbuto, Global Head of Oil Markets at
ICE.
The waived transfer costs apply to EFP and ADP deliveries in
addition to all volume that goes to delivery through the HOU
futures contract and is executed in accordance with ICE’s rules,
and will remain in effect through March 31, 2023. A 10-cent per
barrel charge will continue to apply for all other general
transfers meeting HOU quality specifications.
The EFP mechanism allows participants to exchange HOU futures
positions for the equivalent quantity of underlying physical
Midland WTI barrels in the same delivery month. The ADP mechanism
allows a buyer and seller to vary the terms of the delivery
including, but not limited to, the location. For questions or
information regarding EFPs and ADPs, please refer to ICE's
rules.
Since the contract began trading earlier this year,
approximately 67,800 HOU futures have traded, representing 67.8
million barrels, including a record volume day on March 10 of 3,065
contracts. Open interest is at 2,647 contracts and goes out to
January 2023.
###
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. Services
include: natural gas gathering, treating, processing,
transportation and storage; NGL transportation, fractionation,
storage and marine terminals; crude oil gathering, transportation,
storage and marine terminals; petrochemical and refined products
transportation, storage, and marine terminals and related services;
and a marine transportation business that operates on key United
States inland and intracoastal waterway systems. The partnership’s
assets include more than 50,000 miles of pipelines; over 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.
Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500
company that designs, builds and operates digital networks to
connect people to opportunity. We provide financial technology and
data services across major asset classes that offer our customers
access to mission-critical workflow tools that increase
transparency and operational efficiencies. We operate exchanges,
including the New York Stock Exchange, and clearing houses that
help people invest, raise capital and manage risk across multiple
asset classes. Our comprehensive fixed income data services and
execution capabilities provide information, analytics and platforms
that help our customers capitalize on opportunities and operate
more efficiently. At ICE Mortgage Technology, we are transforming
and digitizing the U.S. residential mortgage process, from consumer
engagement through loan registration. Together, we transform,
streamline and automate industries to connect our customers to
opportunity.
Trademarks of ICE and/or its affiliates include Intercontinental
Exchange, ICE, ICE block design, NYSE and New York Stock Exchange.
Information regarding additional trademarks and intellectual
property rights of Intercontinental Exchange, Inc. and/or its
affiliates is located here. Key Information Documents for certain
products covered by the EU Packaged Retail and Insurance-based
Investment Products Regulation can be accessed on the relevant
exchange website under the heading “Key Information Documents
(KIDS).”
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 and ICE
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, Magellan’s and ICE’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, Magellan and ICE 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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version on businesswire.com: https://www.businesswire.com/news/home/20220601005776/en/
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
ICE Contacts Mary Caroline O’Neal,
Investor Relations, (770) 738-2151, marycaroline.oneal@ice.com
Rebecca Mitchell, Media Relations, +44 7951 057 351,
rebecca.mitchell@ice.com
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