CM - There’s no masking the spread of debt flotation - June 2020As has been the pattern, bonds continue to be the preferred way for energy companies to raise cash. As Q2 comes to an end, the industry is closing in on $120 billion principal amount of bond sales YTD, more than triple the $35 billion principal amount of bonds issued in the same time frame last year, according to data compiled by Enverus’ Capitalize platform. Upstream bond issuers this cycle include Comstock Resources (PG.1) and WPX Energy (PG.3). Midstream issuers include Plains All...
Jun 26, 2020
CM - Phillips 66’s $1B bond sale includes 2025 add-on and new 2030s - June 2020Phillips 66 launched debt offerings totaling $1 billion on June 9. The offerings comprised two tranches: $850 million aggregate principal amount of 2.15% senior notes due 2030 and a $150 million add-on tranche to its existing 3.85% senior notes due 2025, of which the company initially sold $500 million on April 9. The company said both 2025 offerings will be treated as a single series upon settlement. The new 2025 tranche was sold at a premium of 111.947, reflecting the existing 2025...
Jun 26, 2020
MI - Phillips 66’s $1B bond sale includes 2025 add-on, new 2030s - June 2020Phillips 66 launched debt offerings totaling $1 billion on June 9. The offerings comprised two tranches: $850 million aggregate principal amount of 2.15% senior notes due 2030 and a $150 million add-on tranche to its existing 3.85% senior notes due 2025, of which the company initially sold $500 million on April 9. Phillips 66 said both 2025 offerings will be treated as a single series upon settlement. The new 2025 tranche was sold at a premium of 111.947, reflecting the existing 2025...
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
A&D - Crestwood buys NGL & LPG assets from Plains for $160MM - May 2020Crestwood Equity Partners disclosed May 5 that it bought 7 MMbbl of NGL storage and seven LPG terminals in the Central and Eastern US from Plains All American Pipeline for $160 million. Crestwood said that the “demand-pull” assets complement its existing NGL platform and also included a multi-year supply agreement with PAA and additional access to transportation capacity from Mont Belvieu, Texas. Following the deal, which closed in April, Crestwood has 10 MMbbl of NGL and LPG storage capacity...
May 22, 2020
OFS - Gyrodata exits directional drilling with Intrepid agreement - May 2020Intrepid Directional Drilling Specialists doubled its directional drilling capabilities in North America by acquiring Gyrodata’s business in that segment. The sale effectively includes all of Houston-based Gyrodata’s directional drilling personnel, as well as its high-performance drilling motors and measurement-while-drilling tools. The acquisition also expands Intrepid’s presence in certain Latin American countries. The sale allows Gyrodata to refocus on “our core gyro surveying...
May 20, 2020
QP - The Week in Crude Oil Markets - May 11, 2020WTI for June delivery ended last week settling at $24.74/bbl, up 29.5% from Monday’s open. Prices continued to increase on news of deeper production cuts in the United States as well as green shoots emerging in gasoline demand. Still, one can’t help but get the sense that futures markets are getting a bit ahead of the recovery, especially when one considers the ominous signs emerging in distillates, difficult export arbs for US light sweet crude, and the rising longto-short ratio in Nymex WTI...
May 11, 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 - Marathon runs through market with a $2.5B dual-tranche sale - May 2020Marathon Petroleum Corp. sold $2.5 billion of notes across two tranches, following in the recent footsteps of peers Valero Energy and Phillips 66 by taking advantage of cheap interest rates and an investment-grade credit rating to raise fresh capital. It closed the sale of $1.25 billion principal amount each of 4.5% senior unsecured notes due 2023 and 4.7% senior unsecured notes due 2025 on April 23, matching in principal amount the recent combined sales of Phillips and Valero. Both of...
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 - Crestwood eases up on spending, plans to save about $80MM - May 2020Crestwood Equity Partners LP announced that it reduced 2020 capital expenditures by over $40 million and that its operating and maintenance, as well as G&A costs, are also going down by $40 million on an annual run-rate basis. It earlier announced it would spend $100-150 million on growth capex in 2020 as it wound down a $1 billion, three-year program that included completion of the 200 MMcf/d Bucking Horse II processing plant and Jackalope gas gathering and compression projects in the Powder...
May 06, 2020
MI - Tortoise Energy reverse splitting shares of four of its funds - May 2020Fund manager Tortoise Energy Infrastructure Corp. announced that the common shares of four of its closed-end funds will undergo reverse splits effective at the open of NYSE trading on May 1. The split ratios will be 4:1 each for Tortoise Energy Infrastructure (TYG) and Tortoise Pipeline & Energy Fund (TTP), 8:1 for Tortoise Energy Independence Fund (NDP) and 10:1 for Tortoise Midstream Energy Fund (NTG). Since the beginning of 2020, TYG has lost 84% of its value. Its top three...
May 06, 2020
QP - The Week in Crude Oil Markets - May 4, 2020June WTI settled at $19.78/bbl last Friday, up 17.5% from last Monday’s open. Prices were supported by smaller-than-expected US inventory builds as well as early indications that production cuts are beginning to take effect globally. Despite the recent easing in the rate of inventory builds, physical markets still remain oversupplied. Supply pressures persist even as refined product demand begins to come out of its vegetative state, and it is likely to take some time before demand recovers to...
May 04, 2020
OFS - People & Companies - April 29, 2020Huntington, West Virginia-based Energy Services of America, parent company of pipeline builder C.J. Hughes Construction, announced that the C.J. Hughes board named Chuck Austin president. Former C.J. Hughes president Douglas Reynolds will remain as Energy Services president. Richard Phillips will continue as C.J. Hughes general manager. Impact Fluid Solutions, a Houstonbased provider of wellbore specialty additives, established a $50,000 fund to assist its employees around the globe...
Apr 29, 2020
MI - Pipelines & Projects Briefs - May 27, 2020Oryx Delaware Oil Transport launched a binding open season for volume commitments to support a proposed expansion of a pipeline segment from the company’s Crane, Texas, station to a destination point at the Gray Oak pipeline, also in Crane. Oryx commenced the open season May 18 and will end it June 17. Phillips 66 Partners LP has proposed a tariff increase on the Gray Oak pipeline, a May 19 filing with FERC disclosed. The rates will go up July 1. Uncommitted rates would be assessed...
May 27, 2020