MI - Investor confidence trickling back with ‘cautious optimism’
- June 2020Midstream companies and MLPs have rebounded on the stock market significantly from their lows in March but are still down around 20% YTD, midstream and infrastructure fund specialist Alerian noted. The performance of the Alerian Midstream Energy Select Index (AMEI) is off 19.5% this year but still outshines all other major energy industry benchmarks. In its latest report, the group said that its 21-constituent MLP Infrastructure Index (AMZI) fell 67.4% from the end of 2019 through...
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 - Shippers & SPR helping producers with new storage solutions - May 2020Energy Transfer sought and obtained permission from the Texas Railroad Commission to turn two pipelines in the state into storage vessels for almost 2 MMbo, according to press reports. The company plans to “move product around” to idle the pipelines so that it can fill them with crude by mid-May, company sources told Argus. If Energy Transfer’s plan is approved, the company said it will be easy to add pumps to the lines. It’s a creative solution to a growing problem as Texas producers need...
May 06, 2020
MI - At $16.8B, midstream sector bond issuers led the way in Q1 - May 2020The midstream sector generated $16.8 billion of fixed income securities sales in Q1 according to Enverus’ Capitalize platform, the largest share of all of the $39.9 billion of energy industry debt issued during the quarter. With $4.5 billion principal amount of debt sold across five tranches, Energy Transfer LP was the sector’s largest issuer. Western Energy Partners was second with $3.5 billion issued across four tranches, and Enterprise Products Partners came in third with $3.0 billion....
May 06, 2020
MI - Sector a bond-buyer haven, but fish & beetles have other plans - May 2020With $16.8 billion of debt raised during Q1, midstream was again the lead US energy sector according to Enverus’ Capitalize platform (PG.3). Energy Transfer LP, which raised the most at $4.5 billion (and $1.6 billion in equity), is also using it to help alleviate a crude storage shortage (PG.1), as are owners of Jones Act vessels (PG.3). Enterprise Products Partners, which raised $3.0 billion during the quarter, also earned 7% higher net income YOY in Q1 (PG.13). The sector’s allure to debt...
May 06, 2020
CM - Energy issuers raised $41.6B in a quarter unlike any other - April 2020In the most chaotic of quarters marked by a record-low Fed funds rate, a pandemic and its resulting economic slowdowns, and an oil price war between two former collaborators, energy companies raised a total of $41.6 billion through public capital markets, and almost all of it was debt. Enverus’ Capitalize platform tracked the issuance of $39.9 billion of bonds across 46 separate offerings and $1.7 billion in public equity sales through five offerings during Q1, over 90% of which were preferred...
Apr 24, 2020
PS - Gulf Coast LNG projects hit roadblocks amid global slowdown - April 2020A number of LNG projects have hit snags in the last month, potentially impacting dry gas producers in the Haynesville. The Federal Energy Regulatory Commission has suspended its environmental review schedule for Commonwealth LNG’s proposed export terminal in Cameron Parish, Louisiana. Under the previously released schedule, the draft environmental impact statement was due in May, and the final EIS was due in October. In Calcasieu Parish, Shell has pulled out of the Lake Charles LNG...
Apr 22, 2020
MI - ET going it alone on Lake Charles LNG project after Shell pullout - April 2020Energy Transfer LP is taking over development of the Lake Charles LNG export project after joint venture partner Royal Dutch Shell decided to forgo an equity investment in the project. Shell said current market conditions influenced its decision but that it will support ET in the ongoing bidding process for the engineering, procurement, and construction contract, before a phased handover of the project’s remaining activities. Shell entered the project four years ago by way of its purchase of BG...
Apr 17, 2020
A&D - Ring Energy’s trek from the Midcontinent to the Permian - April 2020Ring Energy was founded in 2004 as a public shell company called Transglobal Mining Corp. and changed its name to Ring Energy in March 2008. During the following years, the Tulsa-based company acquired assets in Gray, Finney and Haskell counties, Kansas. Its June 2012 purchase of Stanford Energy marked its debut in the Permian Basin through the acquisition of interests in Andrews County, Texas, which was the first step in building what would become Ring’s core Central Basin Platform portfolio....
Apr 07, 2020
ALT - Commonwealth LNG Highlights - April 2, 2020A number of LNG projects have hit snags in the last month, potentially impacting dry gas producers in the Haynesville. The Federal Energy Regulatory Commission has suspended its environmental review schedule for Commonwealth LNG’s proposed export terminal in Cameron Parish, Louisiana. Under the previously released schedule, the draft environmental impact statement was due in May and the final EIS was due in October. In Calcasieu Parish, Shell has pulled out of the Lake Charles LNG project due...
Apr 02, 2020
MI - ET to focus on locking customers into long-term renewals - March 2020Energy Transfer signed a suite of gathering, processing, transportation and fractionation agreements in Texas with an investment-grade integrated energy company. The announcement reinforced ET’s message in its 4Q19 earnings conference call that it will prioritize contract renewals over growth projects. However, the extension will probably restrain immediate earnings as the company offers shippers short-term discounts in exchange for higher volume commitments in the future. The latest agreements...
Mar 05, 2020
IS - Aker BP swaps North Sea & tries Barents for perhaps final time - March 2020Norway-focused Aker BP struck an asset swap deal with Poland’s PGNiG to strengthen its position in the Skarv area of the North Sea and facilitate development of the recent Shrek discovery. Aker BP will transfer to PGNiG its entire 3.3% WI in Gina Krog field and an 11.9% stake in License 127C, which contains the Alve Nord discovery and the Alve Northeast prospect. In exchange, it will acquire from PGNiG 5% WI and operatorship in License 838 containing Shrek, which it intends to tie back to its...
Mar 03, 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 - 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
IS - News Briefs - March 3, 2020Berlanga International is expected to spud its first wildcat off Myanmar on Block M-8 by the end of Q1, according to the Enverus International Web App. The Noble Clyde Boudreaux semisubmersible will drill the well in 100-300 meters of water to a planned depth of 1,100 meters, and drilling operations are expected to last for 30 days. Depending on the results of the wildcat, Berlanga may drill an appraisal well 3.2 km to the southeast of the first well. The company is targeting a prospect that...
Mar 03, 2020