CM - Downstream giants Phillips 66 & Valero stock up on cash - April 2020Valero Energy Corp. and Phillips 66 raised a combined $2.5 billion through bond offerings earlier in April, taking advantage of the near-zero Fed funds rate to supplement their treasuries. Both refiners said they will use net proceeds for general corporate purposes, which may include acquisitions, among other things. Valero sold $850 million of 2.7% senior notes due 2023 and $650 million of 2.85% senior notes due 2025. The 2023 notes were sold at 99.889 for a 2.739% yield to maturity,...
Apr 24, 2020
CM - Downstream giants Phillips 66 & Valero stock up on cash - April 2020Valero Energy Corp. and Phillips 66 raised a combined $2.5 billion through bond offerings earlier in April, taking advantage of the near-zero Fed funds rate to supplement their treasuries. Both refiners said they will use net proceeds for general corporate purposes, which may include acquisitions, among other things. Valero sold $850 million of 2.7% senior notes due 2023 and $650 million of 2.85% senior notes due 2025. The 2023 notes were sold at 99.889 for a 2.739% yield to...
Apr 24, 2020
MI - Midstream taking precautions but getting on with life - April 2020The midstream sector has not escaped the one-two punch of the coronavirus and the oil price war. As would be expected during a time like this, one of the first things that companies do is cut capital spending. The $2.5 billion Red Oak pipeline got the axe for now (PG.1) as Royal Dutch Shell decided to practice social distancing from the 16.45 mtpa Lake Charles LNG project (PG.1). The Keystone XL pipeline, on which TC Energy recently resumed building with a 2023 startup date, now faces new...
Apr 17, 2020
CM - Industry raises $106B in 2019 as bond offerings rise - January 2020Enverus’ Capitalize platform tracked an aggregate $105.9 billion raised through equity and debt offerings during 2019, essentially unchanged from the $106.8 billion raised during 2018. The less-than-1% divergence between the two years, after a 20% decline from 2017’s $133 billion to the 2018 figure, may suggest that investor confidence has not retreated any further from the industry and, in fact, may have crept up during 2019. The biggest fundraising event of the year, Occidental Petroleum’s...
Jan 31, 2020
MI - Magellan strikes Permian oil pipeline from capex budget - April 2019Magellan Midstream Partners believes the Permian Gulf Coast pipeline won’t come
to pass and has accordingly cut its 2019 and 2020 capex budgets. Instead, Magellan is
eyeing an extension out of Midland to its proposed Voyager crude pipeline from Cushing
to its East Houston terminal.
The Securities and Exchange
Commission filing from Magellan
marks the most definitive sign yet that the planned 600-mile PGC pipeline will be scrapped.
“Due to recent developments, it is unlikely that the...
Apr 09, 2019
MI - People & Companies - February 26, 2019Enbridge appointed Teresa
Madden and Susan Cunningham as
directors. Most recently, Madden was
working as EVP and CFO of Xcel Energy,
and Cunningham was working as EVP
of Noble Energy. Boardwalk Pipeline Partners
promoted Mercy Kamps to SVP of human
resources, communications and investor
relations. Mercy previously served as
Boardwalk’s VP, assistant general counsel,
and led the legal operations team. Chevron Corp. announced its
EVP of downstream and chemicals,
Pierre Breber,...
Feb 26, 2019
Companies may soon see benefits of MLP reformsRising distributions could be the tonic that the sector needs to revive investor interest, some observers are saying. Distributable cash flow rose 4.8% YOY in 4Q17, according to Cushing Asset Management, and analysts expect MLP distributions and dividends paid by midstream corporations to rise 10% in 2018.Once marketed as a stable investment that would be immune from the variability of commodity prices, MLPs were as hard hit as any other energy stock during the last bust. As external...
May 01, 2018
Valero Energy Partners issued $500MM in notesValero Energy Partners LP sold $500 million aggregate principal amount of 4.5% Senior Notes due 2028 in an offering that closed March 29. The notes were sold at 99.66 for a yield to maturity of 4.543%. The 2028 notes are the partnership’s second long-term debt offering, joining another $500 million principal amount of 4.375% notes due 2026 that were offered in December 2016. The BBB- rated partnership has a stable status on S&P Credit Watch. The partnership said it would...
Apr 19, 2018
Valero Energy Partners offering $500MM in 2028 notesValero Energy Partners priced
at 99.66% a public offering of $500
million of 4.500% senior notes due
2028. The partnership intends to use
the net proceeds from
the offering for general
partnership purposes,
which may include paying or refinancing
all or some of $410 million drawn from
its revolving credit facility and funding
working capital, capital expenditures or
acquisitions. Barclays; Credit Suisse;
Mizuho Securities; MUFG Securities;
Citigroup; Merrill Lynch, Pierce,
Fenner & Smith...
Apr 09, 2018
Analyst Takes - March 13, 2018Energy Transfer Partners (NYSE:ETP; March 8–$17.81)
The Big Three—Rover, Mariner East 2, and Revolution pipeline projects—all are
in gear, despite the usual dramatics. I see the following end-game outcomes: first, these
projects will get done and get into service; second, I believe it’s unlikely any other
company will be able to reproduce similar assets in the same geographic footprint. It’s
just too hard. Once the major northeast U.S. projects are complete and in service, I
suspect...
Mar 13, 2018
People & Companies - November 28, 2017Joe Kim will become CEO of Dallas-based Sunoco LP, effective Jan 1. Kim has been serving as president and COO since June after current CEO Bob Owens announced he would retire on Dec. 31. Owens will continue to serve as a consultant to through 2019. Kim has been EVP and chief development officer for Sunoco from October 2015 to this June, was formerly COO at Pizza Hut and worked at Valero Energy for 15 years. Transcanada appointed a new independent director, Thierry Vandal. He has more...
Nov 28, 2017
Fed government clears way for four major pipelinesThe Trump administration came through again for billions of dollars worth of pipeline projects. Back after months without a quorum, FERC issued certificates of public necessity to the Dominion Energy’s 600-mile Atlantic Coast and EQT’s 303-mile Mountain Valley pipelines, with the two Trump appointees overruling the vote of the last Obama appointee left of the commission The panel, which should have five members, shrank from three to one. The panel now has three with two more Trump nominees are...
Nov 01, 2017
Valero drops down TX terminal, MS-to-LA pipe for $508MMValero Energy’s MLP will add 8.5 MMbbl of storage in Texas and a 110,000 bbl/d Gulf Coast pipeline in a $508 million dropdown. The acquisition comes as Valero is nearing completion of the Diamond pipeline, a Cushing-to-Memphis project with Plains All American.The partnership, Valero Energy Partners (VLP), will acquire Port Arthur, TX, terminal assets consist of 47 tanks for crude, intermediates and refined petroleum products, which support Valero’s Port Arthur refinery. VLP already...
Nov 01, 2017
IPO a viable option for Quantum's Oryx MidstreamAs investors like Quantum Energy
Partners seek to realize a return on their
investment in busy Oryx Midstream, a
sale or even an initial public offering
that would value the Midlandbased
company at around
$3.0 billion could be in the
offing. Bloomberg reported the IPO
option after Oryx announced that WPX
Energy would dedicate 300,000 acres
to a new 400,000 bo/d projects in the
Delaware basin.
Oryx hired Jefferies Group and
Citigroup to evaluate the prospects of
a sale or an IPO. The...
Oct 11, 2017
Oryx looking for buyers as it expands in DelawareInvestors in Oryx Midstream are reportedly interested in cashing out and are
considering a sale or an IPO that could value the Delaware basin-focused company at
$3.0 billion. The Bloomberg report came out shortly after Oryx announced that WPX
Energy will dedicate 300,000 acres to a new 400,000 bo/d project in the Delaware Basin.
Construction will begin immediately on the new Oryx II project, a 220-mile regional
transport line with receipt points from the Carlsbad, Stateline, Pecos and...
Oct 10, 2017