MI - Pembina Pipeline floats more bonds to pay down Cochin buy - June 2020Pembina Pipeline Corp. closed an offering of C$500 million ($353 million) of senior unsecured notes in two tranches: C$400 million of 4.67% Series 16 notes due 2050 and C$100 million of 3.71% Series 7 notes due 2026 through an add-on offering, bringing that series’ total outstanding to C$600 million. The 2050 notes were sold at 99.920 for a 4.675% yield to maturity, while the 2026 notes sold at 105.24, reflecting their current trading price, and provided a 2.749% yield to maturity for new...
Jun 17, 2020
MI - Texas LNG owner Glenfarne steps up for Magnolia project - June 2020While a final investment decision may still be several months away, the question of ownership of the proposed 8 mtpa Magnolia LNG project in Lake Charles, Louisiana, is finally settled. Magnolia LNG Holdings, LLC, a new company set up by Glenfarne Group, LLC, has completed the purchase of the project and 115-acre site from Australia’s LNG Ltd. That company first attempted to sell Magnolia LNG to British firm Global Energy Megatrend Ltd. for $2.25 million in a deal that fell apart. Glenfarne, a...
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
ES - Kinder Morgan Highlights - June 2, 2020Kinder Morgan restarted Trains 1 and 3 at its Elba Island LNG export facility after they were shut down as a precaution following a fire that erupted May 11 in a mixed refrigerant compressor of the plant’s Unit 2 movable modular liquefaction system. The company said it began the restart process for Unit 3 on May 19 and Unit 1 was slated to begin the restart process by May...
Jun 02, 2020
MI - Kinder getting Elba LNG terminal back in shape after fire - May 2020Kinder Morgan restarted trains 1 and 3 at its Elba Island LNG export facility after they were shut as a precaution following a fire that erupted in a mixed refrigerant compressor of the plant’s Unit 2 movable modular liquefaction system on May 11. The company said it began the restart process for Unit 3 on May 19. Unit 1 had been slated to begin the restart process by May 22. “We are conducting an investigation into the cause of the fire and do not have an estimated date for when Unit 2 will be...
May 27, 2020
MI - KMI’s Permian Highway hits a roadblock in Texas Hill Country - May 2020Hays County, in the Texas Hill Country, revoked permits allowing Kinder Morgan to bore the Permian Highway pipeline project under three county roads. The decision creates a setback for the 430-mile pipeline being built to carry 2.1 Bcf/d to Gulf Coast processors. The county’s April 22 action follows a March 28 boring accident in which 36,000 gallons of drilling fluid spilled into the Trinity Aquifer. KMI VP Allen Fore told Bloomberg that the county’s order was a “pause” in the...
May 06, 2020
MI - Kinder-Brookfield’s southbound line expansion OK’d by FERC - April 2020The Federal Energy Regulatory Commission approved construction for Phase 2 of a southbound pipeline expansion to be built by Kinder Morgan Inc. and Brookfield Infrastructure Partners LP. The Gulf Coast Express’ southbound expansion project carried out by Natural Gas Pipeline Co. of America LLC will add more horsepower to existing compressor stations to increase capacity out of the Permian Basin to Corpus Christi by another 300 MMcf/d. The project will include a new 10,000- hp compressor...
Apr 17, 2020
CS - Pembina slashes capex to $1.2-1.4B & postpones projects - April 2020Citing the pandemic and the collapse of global energy prices, Pembina Pipeline Corp. cut its 2020 capex budget from $2.3 billion to $1.2-1.4 billion through project postponements and other cost-cutting measures. The money will be directed to reducing leverage. The company also noted that the delayed projects were scheduled to go into service between 2021 and 2023, so 2020 EBITDA should not be affected. The largest project delayed was Pembina’s $2.7 billion investment in an integrated...
Apr 01, 2020
CM - Oil markets rocked, prices roll, prompting firms to recalibrate
- March 2020The oil, stock and capital markets are reacting to a price war launched by Saudi Arabia against Russia after the collapse of their three-year OPEC+ collaboration, which attempted to balance the markets. Though not a cartel member, Russia had considerable sway over OPEC policy, and the two parties failed to agree on more production cuts at a meeting last Friday in response to falling demand stemming from the worldwide coronavirus outbreak, which had already depressed prices. Russia’s belief that...
Mar 13, 2020
CM - Kinder Morgan sub closes $1B private placement of notes - March 2020Kinder Morgan’s Tennessee Gas Pipeline Company, LLC closed the sale on March 1 of $1 billion aggregate principal amount of 2.9% senior notes due 2030 at 99.801 via a private placement. The notes, issued to qualified investors under Rule 144A and Regulation S of the Securities Act of 1933, have a yield to maturity of 2.923%. TGP expects to use the proceeds from the offering to repay intercompany debt owed to KMI, which TGP incurred to repay debt maturing in 2016 and 2017, and for general...
Mar 13, 2020
CM - Southcross out of Chapter 11, focusing solely on Eagle Ford - February 2020Southcross Energy Partners exited bankruptcy on Feb. 3 after 10 months, reorganizing as a private Eagle Ford gathering and processing LLC. It issued new common stock to holders of its $450 million term loan and to lenders of its $81.1 million revolving credit facility. Subsequent to emerging, Southcross said it received over $30.4 million in new equity financing from 60 investors via a private placement. During its Chapter 11 process, Southcross sold its Mississippi and Alabama assets...
Feb 21, 2020
CM - Kinder Morgan net income at $2.2B, 2020 spending at $2.4B - February 2020Kinder Morgan posted a record $2.19 billion net income for 2019, a year in which every quarter was in the black. Net income was up 37% YOY though revenue, at $13.2 billion in 2019, was down 6% YOY. Cost of sales decreased by more than $1.1 billion, and it reported more than double the gains from asset sales YOY at $1.3 billion to help bring in the higher profits. A more than 10% rise in gas transportation, lifted by the September start up of the Gulf Coast Express pipeline out of the Permian,...
Feb 21, 2020
CS - Trans Mountain Corp. going to Ottawa with $12.6B cost estimate
- February 2020Trans Mountain Corp. said its board of directors approved a total cost estimate of $12.6 billion to bring its 890,000 bo/d pipeline expansion project into service by YE22, which is a 70% increase from the earlier $7.4 billion budget. The company has spent $2.5 billion to date, including the impact of delays and additional regulations. Trans Mountain anticipates spending an additional $8.4 billion to finish the project plus $1.7 billion in financial carrying costs. The company has also...
Feb 19, 2020
CS - Canada O&G: Do you want the good or bad news first? - February 2020What must feel like an unending litany of bad news in Canada’s oil and gas industry is showing some signs of relenting. The Canadian Association of Petroleum Producers is forecasting a $2 billion increase in upstream capital spending this year (PG.1), and the Petroleum Services Association of Canada revised its forecast for 2020 drilling up by 7% (PG.15). Both Cenovus and Imperial Oil have increased crude-by-rail shipments recently (PG.8), and rail shipments should continue to grow, although...
Feb 18, 2020
MI - Start of GCX caps record-setting year for Kinder Morgan - February 2020Kinder Morgan Inc. posted its sixth straight quarterly positive net income in 4Q19 and a record $2.19 billion net income for the year. Much of the strength came from growing gas volumes; Q4 was the company’s eighth consecutive quarter of more than 10% YOY gas transport increases, boosted by the recently commissioned Gulf Coast Express gas pipeline. The GCX out of the Permian to Agua Dulce, Texas, which entered service at the end of September, is “routinely” running at its full 2...
Feb 11, 2020