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
CM - Energy Transfer ‘probably will’ change to an Up-C structure - February 2020Energy Transfer CEO Kelcy Warren told attendees at the Argus Americas Crude Summit that the LP will “probably” become an Up-C. He said that master limited partnerships have fallen “so out of favor” that he and his team “will probably have an alternative currency for our unitholders to look at.” However, Warren doesn’t intend to throw MLPs under the bus. He believes the structure will return to favor: “MLPs are just too good of an instrument. They’re just too efficient not to attract people back...
Feb 21, 2020
MI - ET to add SemGroup and its Houston crude terminal for $5B - September 2019Energy Transfer agreed to acquire SemGroup Corp. in a stock-and-cash transaction valued at $4.98 billion, a boon for ET’s crude and NGL transportation businesses. The most prized asset: the Houston Fuel Oil Terminal, a crude export facility on the Houston Ship Channel with 18.2 MMbo of storage capacity, five deepwater ship docks and seven barge docks. The deal also expands ET’s gathering and transport network into Colorado’s DJ Basin and Alberta while expanding its Midcontinent gathering...
Sep 26, 2019
CM - Enterprise sells $2.5 billion in notes, will pay down debt - July 2019Enterprise Products Partners LP offered a total $2.5 billion principal amount in
bonds on June 25, the proceeds from which the partnership said it would pay down
both commercial paper and senior notes. Through its subsidiary Enterprise Products
Operating LLC priced $1.25 billion each of 3.125% senior notes due 2029
at 99.955 and 4.2% senior notes due 2050 at 99.792. The 2029 notes were
designated Senior Notes YY
and the 2050s Senior Notes ZZ. Settlement
occurred July 8.
EPP said that it...
Jul 12, 2019
CM - People & Companies - March 07, 2019Directors who have announced
they do not intend to stand for re-election
at their company’s next annual meeting
of shareholders: Mark C. McKinley
from Anadarko Petroleum, George
D. Lawrence from Apache, Martin S.
Craighead, vice chairman, from Baker
Hughes, a GE company, Charles
L. Fabrikant from Diamond Offshore
Drilling, Inc., B.Z. (Bill) Parker from
Laredo Petroleum, Inc., Gary L. Warren
from Newpark Resources, Inc. Berry Petroleum Corp. elected
Donald L. Paul to its board of...
Mar 07, 2019
PAA orders pipe as Permian JV with Exxon, Lotus is a goExxonMobil, Plains All American Pipeline and Lotus Midstream are moving ahead with their Permian Basin crude takeaway pipeline, the first such project firmly scheduled after 2020. The trio formed Wink to Webster Pipeline LLC, and the JV ordered nearly 650 miles of domestically sourced 36-inch line pipe.The pipeline will be capable of carrying more than 1.0 MMbo/d and is targeted to commence operations in 1H21. An entirely Texas project, the Wink to Webster pipeline system will have...
Feb 05, 2019
Antero & EnLink next aboard the midstream rollup trainMaster limited partnerships are continuing to disappear. With Energy Transfer rolled up (PG.9), the sector has brought up two new deals that will combine existing MLPs with their parent companies, much the way ET, ONEOK, Targa Resources and Kinder Morgan have simplified their structures. The desire to get rid of costly incentive distribution rights, which MLPs pay to their general partners from distributable cash flow, has been the main reason companies have cited for rolling up MLPs, though...
Oct 26, 2018
MI - Analyst Notes - October 16, 2018Goldman Sachs gung-ho on midstreamMLPs, pipeline companies and C-Corps have had a so-so year overall, but Goldman
Sachs’ Michael Lapides believes now is the time to buy. Lapides cites a total return
potential of 13% across his coverage for his bullish call, along with improving
cash flow from this year through 2021. He notes that the companies will also benefit
from ongoing simplification of corporate structures, as more companies morph into
C-Corps. Kinder Morgan is his top pick, which...
Oct 16, 2018
Enterprise prices $3B in senior notes to pay short-term debtEnterprise Products Partners issued $3.0 billion in senior notes, one of the largest such offerings in the sector this year. The transaction by subsidiary Enterprise Products Operating LLC adds to Enterprise’s senior debt, which ended Q2 at $22.7 billionEnterprise intends to use the $2.97 billion in net proceeds of this offering to repay its commercial paper program, The company ended Q3 with $2.71 billion in short-term notes outstanding under the program, an increase from $1.97 billion...
Oct 16, 2018
Quantum leads $200MM+ backing of Trace MidstreamTrace Midstream Partners, LLC announced a more than $200 million equity commitment led by Quantum Energy Partners that also includes members of Trace’s management. The company said it would pursue gas, crude and water midstream solutions in various North American basins but first focus on the Eagle Ford, where it has a long-term fee-based agreement with Vitruvian Exploration IV, LLC.Under an agreement that dedicates over 130,000 of Vitruvian’s acres in Webb, LaSalle and McMullen...
Oct 04, 2018
MI - Analyst Notes - September 25, 2018Cheniere Energy Inc. (NYSE: LNG; Sept. 21—$68.01; Market Perform)
Due to the merger, shareholders of CQH have received 0.4750 shares of LNG per
share of CQH. This results in less than ~9 million newly issued shares of LNG given LNG's
substantial ownership in CQH of ~92%. LNG had previously tried and
failed at a CQH roll-up in the past, before resorting to purchasing shares
of CQH on the open market up until the May/June deal action. With investor appetites
trending toward streamlined...
Sep 25, 2018
Q2 reporting winds down, capex guidance trends upSeveral earnings reports disclosed capex increases for the remainder of the year across a wide variety of reporting companies, including Concho Resources (PG 15) owing to its recent acquisition of RSP Permian, California Resources Corp (PG 11) because of stronger-than-expected cash flow, Parsley Energy (PG 14) as it experiences shorter cycle times and higher working interests, and Noble Energy (PG 14) on factors that include service cost inflation, which was mentioned as an increasing condition...
Aug 23, 2018
Analyst Notes - July 24, 2018Antero Midstream Partners (NYSE: AM; July 23–$31.64)Most of the Appalachian basin’s output has come on line in the last five years, but it'll grow by an even larger amount in the next five years. Few companies are better positioned to capitalize than AM. In 2014 the midstream operator generated just $66 million in adjusted EBITDA. Full-year 2018 guidance calls for $730 million, a compound annual growth rate of 82%. That growth allowed AM to grow its distributable cash flow 1,032% since...
Jul 24, 2018
CM - News Briefs - March 28, 2019Brigham Exploration Co, LLC
announced March 18 that its BEXP I, LP
subsidiary closed on equity commitments
from institutional and private investors. The
company did not disclose terms, amounts
or identities of the counterparties in the
deal. It was founded in 2017 by Ben M.
“Bud” Brigham, who is leading Brigham
Minerals towards a possible IPO (PG.1). Diamondback Energy, Inc.
launched an offer March 22 to exchange up
to $750 million aggregate principal amount
of its registered 4.75%...
Mar 28, 2019
MI - People Briefs - November 06, 2018Sempra energy named Bethany
Mayer to the newly created position of EVP
of corporate development and technology.
Mayer, currently an executive
partner with private equity firm
Siris Capital Group, will join
Sempra Energy on Nov. 26 in her new
role. Mayer served on the Sempra Energy
board of directors from February 2017
until Oct. 30, 2018, when she resigned her
seat in advance of her new role. Timothy Aydt, president of Marathon
Pipe Line LLC and VP of operations
of MPLX GP LLC, the...
Nov 06, 2018