CM - Genesis cuts dividend but sees no ‘insurmountable challenges’ - April 2020Genesis Energy cut its quarterly distribution payable for Q1 by over 70% to $0.15 per unit from the $0.55 paid for 4Q19. The payout will remain at the new rate for the foreseeable future, saving Genesis about $200 million per year. The extra cash will be used to deleverage, the partnership said, helping to reduce YE19 net debt of $3.57 billion. It’s also evaluating other cost-cutting options, including a delay of the $300 million expansion of its Granger soda ash facility in Wyoming by up to a...
Apr 24, 2020
MI - Genesis’ Tarantula will carry GOM production from Katmai - April 2020Genesis Energy, LP will provide transportation for 100% of the crude oil production from the deepwater Gulf of Mexico Katmai field development through the existing Tarantula platform, the partnership announced. It signed agreements with Fieldwood Energy, LLC and two entities managed by Ridgewood Energy Corp.—Ridgewood Katmai, LLC and ILX Prospect Katmai, LLC. The platform is connected to Genesis’ Tarantula lateral, and the crude oil production will then flow to its 64% owned Poseidon crude oil...
Apr 17, 2020
CM - Parkman Whaling & Morris Energy Advisors joining forces
- February 2020Investment banks Parkman Whaling and Morris Energy Advisors announced that they will combine in a transaction that will expand Parkman’s coverage to all energy industry sectors, including E&P, midstream, downstream, specialty chemicals, and special products and services and equipment. This will be the third time that respective principals Jim Parkman and George Morris will work together. The two met early in their careers at First Boston Corp. and later at boutique investment bank...
Feb 21, 2020
MI - Layne Water expands contract with state on Permian acreage - February 2020Layne Water Midstream received exclusive reuse and disposal rights on 88,000 acres owned by the Texas General Land Office in Reeves and Culberson counties in the Delaware Basin. The rights are an expansion of a long-term agreement signed in 2017 that permitted the company to develop non-potable water resources for use in drilling on the property. The contract amendment will enable Layne to develop, construct and operate water infrastructure on GLO acreage that will gather, transport,...
Feb 11, 2020
OFS - Layne Water expands deal with state on Delaware Basin acreage - February 2020Layne Water Midstream received exclusive reuse and disposal rights on 88,000 acres owned by the Texas General Land Office in Reeves and Culberson counties in the Delaware Basin. The rights are an expansion of a long-term agreement signed in 2017 that allows the company to develop non-potable water resources for use in drilling on the property. The contract amendment will enable Layne to develop, construct and operate water infrastructure on GLO acreage that will gather, transport,...
Feb 04, 2020
MI - ET & Enterprise lead way as 2020 starts with $14B of bonds - January 2020Energy Transfer and Enterprise Products Partners each started the new year with triple-tranche, multibillion-dollar bond offerings resulting in a combined $7.5 billion of new midstream sector debt in the market. Western Midstream (PG.16), Genesis Energy (PG.13) and Sempra Energy subsidiary Southern California Gas Co. (PG.16) also issued bonds early into 2020. Midstream companies issued $14 billion in senior notes, preferred units or bonds in the first 10 days of January, compared with $16.2...
Jan 23, 2020
MI - EnCap Flatrock puts $400MM into Edgewater Midstream - January 2020Financier EnCap Flatrock committed an initial $400 million to new portfolio company Edgewater Midstream. The Houston-based provider of independent midstream logistics solutions was formed late last year and will focus on acquiring, developing and operating pipeline and terminal near major North American trading hubs and demand centers. EnCap Flatrock managing partner Gregory King said his firm’s partnership with the new company is “illustrative of our strategy of supporting outstanding...
Jan 23, 2020
MI - Genesis plans a $750MM bond issue, sells preferred units - January 2020Genesis Energy and its finance arm announced Jan. 8 that they will issue $750 million of senior unsecured notes due 2028 in a public offering. Net proceeds will fund the purchase of the partnership’s 6.75% senior unsecured notes due 2022, for which Genesis launched a tender offer on the same day. The partnership has $750 million outstanding of the 2022 notes. It offered a total payout of $1,019.88 per each $1,000 face amount of the $528 million notes that were validly tendered by the...
Jan 23, 2020
A&D - Edgewater eyes M&A after $400MM EnCap commitment - January 2020Houston-based Edgewater Midstream secured an initial capital commitment of $400 million from EnCap Flatrock Midstream and the Edgewater management team to pursue the acquisition, development and operation of pipeline and terminal solutions in North America. Edgewater was formed in late 2019 to provide independent midstream logistics solutions to refiners, producers and marketers of crude oil, refined products and other bulk liquids. “Changing dynamics in the North American petroleum...
Jan 16, 2020
CM - EnCap Flatrock commits $400MM to Edgewater Midstream - January 2020Midstream financier EnCap Flatrock committed an initial $400 million to new portfolio company Edgewater Midstream. The Houston-based provider of independent midstream logistics solutions was formed late last year and will focus on acquiring, developing and operating pipeline and terminal near major North American trading hubs and demand centers. EnCap Flatrock managing partner Gregory C. King said his firm’s partnership with the new company is “illustrative of our strategy of supporting...
Jan 10, 2020
CM - Genesis plans a $750MM bond issue, sells preferred units - January 2020Genesis Energy, LP and its finance arm announced Jan. 8 that they will issue $750 million aggregate principal amount of senior unsecured notes due 2028 in a public offering. Net proceeds will fund the purchase of the partnership’s 6.75% senior unsecured notes due 2022, for which Genesis launched a tender offer on the same day. The partnership has $750 million outstanding of the 2022 notes. It is offering a total payout of $1,019.88 per each $1,000 face amount of notes that are validly...
Jan 10, 2020
CM - A new IPO & PE investment as lenders redetermine - October 2019IPO activity has been sparse in 2019. When one does appear on the horizon, we celebrate it because it means that investors believe new companies and management teams in the energy industry are worth the risk. At a projected $115 million in gross proceeds including greenshoe, Fortis Minerals (PG.1) will be the smallest domestic IPO to occur year to date, but hopefully will not be the last. Both Elliott Management and legendary activist shareholder Carl Icahn are pushing forward on their...
Oct 04, 2019
CM - Genesis trona unit sells equity to Blackstone credit arm - October 2019Seeking money for its trona and trona-based exploration business, Genesis Energy LP sold $55 million of preferred shares in Genesis Alkali Holdings Co. to GSO Capital Partners LP, the credit arm of giant private equity group Blackstone. Under a three-year commitment, GSO will purchase up to an additional $295 million of preferred interests in the Genesis sub. Alkali Holdings explores, mines, processes, produces, markets and sells trona, a common source of soda ash, which is used to make...
Oct 04, 2019
OFS - News Briefs - March 17, 2020Babcock International won a fiveyear offshore transport contract from the Integrated Aviation Consortium to operate over 100 helicopter flights per month between the Shetland Islands and North Sea rigs for CNR International, EnQuest and TAQA. The flights will operate from Sumburgh, Shetland, and are expected to begin in July. The IAC also awarded a fixedwing contract to Loganair to transport workers from Aberdeen, Scotland, to the Shetland Islands. BHP has selected SBM Offshore,...
Mar 17, 2020
OFS - Finance Briefs - August 06, 2019CP Energy Services recapitalized
Spartan Energy Services and brought it
into the CP fold. Spartan provides throughtubing, fishing and milling, flow control, and
well testing services in Texas, Louisiana,
and Pennsylvania. Spartan “provides us
with a substantially stronger geographical
presence in the Eagle Ford, Haynesville,
and Marcellus,” said CP CEO Tracy Scott
Turner. CP provides oilfield services and
equipment rental, flowback and well
testing, specialty pumping, water transfer,
and...
Aug 06, 2019