This New Pipeline Could Unlock Years of Growth for 4 Energy Stocks. Here's Why That's a Win for All of Them.

A consortium of energy companies is moving forward with a massive new gas pipeline in Texas. The Solitude Pipeline System is a joint venture (JV) between privately held energy infrastructure developer WhiteWater, oil and gas producers Diamondback Energy (NASDAQ:FANG) and Devon Energy (NYSE:DVN), and midstream companies MPLX (NYSE:MPLX) and Western Midstream Partners (NYSE:WES). The two-phased pipeline system should start operations in late 2029.

Here's a look at the new pipeline project and how it will fuel years of growth for those four energy stocks. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.

For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » WhiteWater and its JV partners recently announced that they reached a Final Investment Decision to build two new natural gas pipelines from the Permian Basin to Katy, Texas. The Solitude Pipeline System will have an initial capacity of around 2.25 billion cubic feet per day (Bcf/d) when the first phase enters commercial service in late 2029.

The partners plan to bring the second phase online in 2030, adding another 2.25 Bcf/d of capacity. The JV can further expand the system to meet shipper demand. They've already secured substantial long-term firm transportation agreements with investment-grade shippers to back the large-scale pipeline system.

WhiteWater will own 50% of the JV, Devon 25%, MPLX 10%, and Diamondback Energy and Western Midstream Partners 7.5% each. The pipeline system will enable oil and gas producers to deliver more gas from the Permian Basin to demand centers along the U.S. Gulf Coast, including liquefied natural gas (LNG) export terminals.

The pipeline will help oil and gas producers like Devon Energy and Diamondback Energy to unlock the value of their associated gas production in the Permian. Devon Energy highlighted in a press release announcing its participation in the project that "Permian producers have long absorbed volatile and periodically negative pricing at the Waha hub, where takeaway capacity has repeatedly failed to keep pace with associated gas growth." The company noted that firm, long-haul capacity to the Gulf Coast changes the equation for producers, enabling them to get more gas out of the region and into markets where they can sell it at higher prices. Solitude is just one aspect of Devon's strategy to unlock value.