ONEOK Partners (NYSE:OKS) will not proceed with its planned Bakken Crude Express Pipeline project, the company announced this week. In a press release, ONEOK said it had not received sufficient long-term transportation commitments during an "open season" it held to solicit participants in the crude-oil pipeline.
The project was to have been a 1,300-mile pipeline connecting numerous locations in the Williston Basin in the Bakken Shale in North Dakota and Montana to the crude oil market hub in Cushing, Okla. It would have had a capacity of 200,000 barrels per day of light, sweet crude.
Following the decision not to go ahead with the project, the company revised its estimate for 2013 capital expenditures to $2.2 billion, from the previous $2.6 billion. ONEOK said it still expects its EBITDA will increase by an average of 17%-21% annually from 2012 to 2015.