CM - People & Companies - April 24, 2020EnLink Midstream, LLC elected Deborah G. Adams and James K. Lee to its board, expanding it to 10 directors. Adams is an independent director while Lee replaced Matthew C. Harris, who resigned. The changes took effect March 1. The company has four independent directors. Murphy Oil Corp. announced the return of Roger W. Jenkins to his roles as president and CEO following a medical-related leave of absence. David Looney, who stepped in for Jenkins, has returned to his day-to-day role as...
Apr 24, 2020
MI - People & Companies - April 17, 2020Adams Resources & Energy, Inc. named Greg L. Mills president of its GulfMark Energy, Inc. subsidiary, replacing Adams CEO and president Kevin J. Roycraft, who had held the GulfMark position on an interim basis. Altus Midstream Co. elected CEO and president Clay Bretches to the additional role of chairman of the board, replacing W. Mark Meyer, who also resigned as a director. The company elected Stephen Noe to fill the vacant director seat. Antero Midstream Corp. elected...
Apr 17, 2020
CM - People & Companies - April 3, 2020Amazing Energy Oil and Gas Co. named Benjamin Jacobson III CFO effective Feb. 13, succeeding Marty Dobbins, who resigned. Prior to joining Amazing Energy, Jacobson co-founded ICP, LLC, which invests in E&P companies. Apache Corp. appointed Clay Bretches EVP, Operations, a promotion from SVP Operations. He will also continue to serve as CEO and a director of Apache subsidiary Altus Midstream Co., which he has done for over a year. Basic Energy Services, Inc. has reconfigured its...
Apr 03, 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 - EnLink still servicing XTO and LNG plant despite capex cut - March 2020EnLink Midstream halved its distribution and deferred several growth projects and reducing spending on well connection and gathering, cutting its 2020 capex by about 30% to $225-285 million. The Dallas-based company intends to proceed with projects to serve customers it believes will continue to be active in this market environment, including ExxonMobil subsidiary XTO Energy and Venture Global LNG. It did not spell out the projects to be delayed. In February, EnLink announced a 2020...
Mar 26, 2020
CM - EnLink cuts growth capex by 45% to $325MM at midpoint - March 2020EnLink Midstream, LLC booked goodwill impairments of $1.13 billion in 2019, 73% of it related to Oklahoma. The goodwill dates back to the creation of EnLink in 2014, and CFO Eric Batchelder said the only goodwill remaining on the books is about $185 million in its Permian segment. In turn, the company lost $1.12 billion for the year, compared with a $13 million net loss in 2018. Revenue of $6.05 billion was down 22% YOY. The company expects to do better this year with net income of $160-230...
Mar 13, 2020
MI - EnLink reduces growth capex in wake of 2019’s $1.1B net loss - March 2020EnLink Midstream intends to spend $275-375 million on growth capex in 2020, roughly 45% less than the $600 million it spent in 2019. The growth capex will be entirely funded by internally generated cash flow. The company also posted net losses of $939 million in 4Q19 and $1.12 billion in 2019, largely the result of $947 million in goodwill impairments in the last quarter. The largest capex project on tap for 2020 is completion of the 200 MMcf/d Tiger processing facility in the Delaware...
Mar 05, 2020
MI - People & Companies - March 5, 2020ARB Midstream co-founder and CEO Adam Bedard is leaving day-to-day executive leadership but will remain a member of its board. He is succeeded by Dan Campbell, a member of ARB’s board and a former CFO of American Midstream Partners. John Roark also recently joined ARB as COO and will have responsibility for all gathering and transportation operations. Prior to joining ARB, Roark was VP of terminalling, transportation and storage for Andeavor. Co-founder Rogan McGillis remains CFO....
Mar 05, 2020
OFS - People & Companies - February 4, 2020CAM Integrated Solutions, a provider of engineering, procurement and construction management services to onshore energy, promoted Israel Martinez to SVP of business operations. He has been with CAM since its founding in 2015. CAM promoted Jason Newton to Martinez’s previous role of VP of engineering operations. Wellhead and pressure control manufacturer Cactus Inc. appointed Melissa Law to the board of directors. Law currently serves as the president of global operations for Tate &...
Feb 04, 2020
CM - Analyst Notes - January 31, 2020Brigham Minerals Inc. (NYSE: MNRL; $19.35-Jan. 22; Buy; PT-$22) Initiating on MNRL With a BUY rating on line of sight to near term acquisitions and long term dividend growth, a diversified asset base levered to high quality upstream operators, an attractive valuation, and a clean balance sheet. We see MNRL as a simple story that should screen well in light of the market’s push for FCF within energy. We see the 2020 dividend (~8% yield) growing at a ~4% CAGR through 2025 without...
Jan 31, 2020
MI - EnLink cuts distribution and sticks to lower capex budget - January 2020EnLink Midstream cut its 4Q19
distribution to $0.1875/unit from 3Q19’s
$0.283/unit as it looks to increase free
cash flow. The Dallas-based company also
predicted it would make $160-200 million
net income in 2020, an improvement from
the $242 million net loss of 4Q18-3Q19, as it
proceeds with cost-cutting measures.
The cut to an annualized $0.75/unit is
expected to improve EnLink’s distribution
coverage to 1.95x-2.05x, exceeding the
goal of 1.3x-1.5x CEO Barry Davis...
Jan 23, 2020
MI - Analyst Notes - January 23, 2020Barclays revises ratings throughout the sector (Jan. 14)
We are downgrading WMB and MPLX [to Equal Weight] on the basis of Northeast gas
exposure and while expectations are reset given their respective underperformances in the
back half of last year, we are moving the rating as we don't expect outperformance in 2020.
The changes in PAA/PAGP, KMI and CNXM are valuation [to Overweight] calls as we think
the underperformance in the Plains complex tied to the overcapacity in...
Jan 23, 2020
CM - EnLink Midstream tightening belt with 50% less capex - January 2020EnLink Midstream’s planned 2020 growth capex spending of $275-375 billion will be 50% lower than its 2019 spending, as the company looks to cut costs. However, CFO Eric Batchelder said the 2020 number won’t require accessing the capital markets and will be funded with cash flow in excess of distributions. On that note, EnLink cut its 4Q19 distribution to $0.1875 per unit from the prior quarter’s $0.283 in order to increase free cash flow. With the new annualized rate of $0.75 a unit,...
Jan 21, 2020
CM - Midstream & Downstream Briefs - April 24, 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 24, 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