MI - Enbridge looks to diversify with more gas, some wind & sun - June 2020North America’s largest midstream company, Enbridge, Inc., plans to gradually transition its asset mix toward more natural gas and renewables, investing larger portions of its capital in those areas. The company currently earns 55% of its income from liquids pipelines and about 40% from gas and storage, with 4% from renewables. “If you look at the energy supply/demand balance globally, we as a company kind of mirror that,” CEO Al Monaco told Canada’s Financial Post. Enbridge has just...
Jun 17, 2020
MI - People & Companies - June 17, 2020Enbridge Inc. elected Stephen S. Poloz director. He was governor of the Bank of Canada from 2013 until June 2, as well as chairman of the bank. He had previously been president and CEO of Export Development Canada from 2011 to 2013. Trade Association GPA Midstream announced new officers elected to one-year terms. Its new board chairman is Bill Ward, SVP of commercial activity at Superior Pipeline. The chair-elect is John Poarch, president of ARM Energy Midstream/Salt Creek Midstream....
Jun 17, 2020
MI - People & Companies - May 27, 2020Kristie L. Colvin was appointed to the board of Enable GP, LLC, the general partner of Enable Midstream Partners, LP, by CenterPoint Energy Midstream Inc., whose parent company CenterPoint Energy, Inc., owns a 50% governance interest and a 40% economic interest in Enable GP. Colvin replaced Xia Liu, who resigned from the board on May 1, along with her departure from CenterPoint Energy as EVP and CFO, roles that now belong to Colvin. Enbridge Inc. announced the departure of SVP and chief...
May 27, 2020
MI - Tortoise Energy reverse splitting shares of four of its funds - May 2020Fund manager Tortoise Energy Infrastructure Corp. announced that the common shares of four of its closed-end funds will undergo reverse splits effective at the open of NYSE trading on May 1. The split ratios will be 4:1 each for Tortoise Energy Infrastructure (TYG) and Tortoise Pipeline & Energy Fund (TTP), 8:1 for Tortoise Energy Independence Fund (NDP) and 10:1 for Tortoise Midstream Energy Fund (NTG). Since the beginning of 2020, TYG has lost 84% of its value. Its top three...
May 06, 2020
CM - Downstream giants Phillips 66 & Valero stock up on cash - April 2020Valero Energy Corp. and Phillips 66 raised a combined $2.5 billion through bond offerings earlier in April, taking advantage of the near-zero Fed funds rate to supplement their treasuries. Both refiners said they will use net proceeds for general corporate purposes, which may include acquisitions, among other things. Valero sold $850 million of 2.7% senior notes due 2023 and $650 million of 2.85% senior notes due 2025. The 2023 notes were sold at 99.889 for a 2.739% yield to maturity,...
Apr 24, 2020
CM - Downstream giants Phillips 66 & Valero stock up on cash - April 2020Valero Energy Corp. and Phillips 66 raised a combined $2.5 billion through bond offerings earlier in April, taking advantage of the near-zero Fed funds rate to supplement their treasuries. Both refiners said they will use net proceeds for general corporate purposes, which may include acquisitions, among other things. Valero sold $850 million of 2.7% senior notes due 2023 and $650 million of 2.85% senior notes due 2025. The 2023 notes were sold at 99.889 for a 2.739% yield to...
Apr 24, 2020
CM - Tortoise reverse-splitting shares of four of its closed-end funds - April 2020Fund manager Tortoise Energy Infrastructure Corp. announced that the common shares of four of its closed-end funds will undergo reverse splits effective at the open of NYSE trading on May 1. The split ratios will be 4:1 each for Tortoise Energy Infrastructure (TYG) and Tortoise Pipeline & Energy Fund (TTP), 8:1 for Tortoise Energy Independence Fund (NDP) and 10:1 for Tortoise Midstream Energy Fund (NTG). Since the beginning of 2020, TYG has lost 84% of its value. Its top three...
Apr 24, 2020
CS - CEO likes where Enbridge is at start of market meltdown - April 2020Enbridge is in a place of “resilience and stability” even amid the coronavirus and commodity turmoil, CEO Al Monaco said March 17. He pointed to past A&D as having put the midstream giant into that place—its $67.2 billion acquisition of Spectra Energy in 2017 and its 2018 divestments of its gathering and processing businesses. Calgary-based Enbridge was almost exclusively a crude company before it acquired Spectra. The deal allowed Enbridge to enter gas pipelines and gas utilities and...
Apr 01, 2020
MI - Not even midstream sector is immune from this slowdown - March 2020The midstream sector, often credited with being more stable than other parts of the oil and gas industry, is not invincible. As E&P firms start gutting their capex budgets, midstream companies are tightening their belts too, postponing projects, revisiting their dividends and socially distancing themselves from earlier 2020 plans. The construction slowdown will be delayed, as companies generally committed to complete ongoing projects, with capex cuts going into 2021. One of the sharpest...
Mar 26, 2020
MI - DCP Midstream won’t exercise Sweeny frac option this year
- March 2020DCP Midstream will defer a 30% ownership option in two 150,000 bbl/d fractionation trains at 50% owner Phillips 66’s Sweeny, Texas, refinery as it cuts capex by roughly 75% to $150 million from $550-650 million. Directors also decided to halve quarterly distributions to its common unitholders to $0.39/unit. Although DCP does not expect to exercise the option to acquire the stake in Sweeny Frac 2 and 3 for $400 million in 2020, Phillips 66 and the partnership are considering an option in...
Mar 26, 2020
MI - CEO likes where Enbridge is at start of market meltdown - March 2020Enbridge is in a place of “resilience and stability” even amid the coronavirus and commodity turmoil, CEO Al Monaco said on March 17. He pointed to past A&D as having put the midstream giant into that place—its $46.6 billion acquisition of Spectra Energy in 2017 and the 2018 divestments of its gathering and processing businesses. Calgary-based Enbridge was almost exclusively a crude company before it acquired Spectra. The deal allowed Enbridge to enter gas pipelines and gas utilities...
Mar 26, 2020
CS - Enbridge issues US$750MM in 2022 floaters, cancels swap - March 2020Enbridge,North America’s largest midstream company, sold US$750 million principal amount of two-year, floating-rate notes that will pay interest based on a spread of 50 basis points over three-month LIBOR.The notes are guaranteed by subsidiaries Enbridge Energy Partners, LP and Spectra Energy Partners, LP. The company intends to use net proceeds to refinance existing corporate or subsidiary debt and for other general corporate purposes. As adjusted for the new notes, Enbridge has over...
Mar 11, 2020
MI - Midcoast Energy takes FID on CJ Express expansion project - March 2020Midcoast Energy took a final investment decision for its CJ Express pipeline expansion project after entering into long-term anchor shipper agreements for the new capacity. The company said the project will add compression and pipeline facilities at multiple locations on the existing East Texas pipeline system. CJ Express will connect Midcoast’s existing pipeline assets in San Augustine County, Texas, and growing production in the Carthage and Shelby Trough area of the Haynesville to its...
Mar 05, 2020
MI - News Briefs - April 17, 2020Blueknight Energy Partners LP expects to use cash flow to fully fund its 2020 distribution payments and total expected capital expenditures of $9.5-10.5 million, including maintenance capex in the $7.5-8.0 million range. The partnership said 2020 spending will be 20% lower at midpoint YOY. It also expects to end 2020 with a leverage ratio of 4.0-4.25x and distribution coverage of 1.2x or more. Cheniere Energy disclosed on March 24 that its sub Sabine Pass Liquefaction, LLC closed a $1.2...
Apr 17, 2020
MI - Pipelines Briefs - March 5, 2020The Federal Energy Regulatory Commission approved Texas Eastern Transmission LP’s uncontested rate case settlement with customers, parent company Enbridge announced. Texas Eastern operates the second-largest gas pipeline in the US, a 9,071-mile system from Texas to the New York City metropolitan area. The FERC endorsement will allow rate increases to recover cost of service to go into effect. The settlement was reached in October. Energy Transfer launched a binding supplemental open...
Mar 05, 2020