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
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
CM - Extraordinary measures to meet extraordinary conditions - April 2020Prevailing market and social conditions have remade goals, guidance and priorities. Most companies have announced that their 2020 annual shareholders meetings will be virtual only. At two virtual meetings, holders of Chesapeake Energy (PG.3) and Nabors Industries (PG.19) common stock voted to allow their boards to reverse-split their shares by ratios of 200:1 and 50:1, respectively. Callon Petroleum (PG.4) will also reverse-split its common, and midstream fund manager Tortoise Energy...
Apr 24, 2020
MI - Valero Energy offers $1.5B in debt, signs new $875MM revolver - April 2020Valero Energy Corp. issued $1.5 billion aggregate principal amount of new senior notes to the public: $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, while the five-year notes fetched 99.926 for a 2.866% yield to maturity. The interest rate for both tranches was based on a 245 bps spread over Treasuries. The company said it would use net proceeds for general purposes. The new notes...
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 - ExxonMobil intends to sell 60,000 bo/d Montana refinery - November 2019ExxonMobil is looking for a buyer for its 60,000 bo/d refinery in Billings, Montana, Reuters reported. So far, representatives from Valero Energy Corp. and Marathon Petroleum Corp. have toured the refinery, although a smaller refiner may ultimately end up buying the asset. The refinery produces about 600 million gallons of gasoline and diesel fuel a year. An acquisition of the plant is expected to cost around $500 million. Exxon is making the move to focus investments on its three Gulf...
Nov 07, 2019
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
Valero acquires 20% of Permian pipeline from PAAValero Energy Corp. acquired
a 20% stake in the Sunrise pipeline
in Texas from Plains All American
Pipeline for $135 million as PAA looks
to expand it. The 350,000 bo/d pipeline
runs from Midland to Colorado City.
PAA has announced plans to loop the
line, increasing capacity to Colorado
City to 550,000 bo/d. In addition, PAA
will extend the line from Colorado City
to Wichita Falls. The expansions are
scheduled to go into service in...
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
What the Analyst Are Saying About A&D - September 27, 2017Magellan (MMP; $70.76-Sept. 14); Valero (VLO; $70.90-Sept. 14)Magellan Midstream Partners (MMP) and Valero (VLO) will form a JV to expand the Pasadena marine terminal. The firms will jointly develop the marine storage facility currently under construction along the Houston Ship Channel. Under the new arrangement, MMP expects additional capex of $75MM related to Phase 2 of the project, on top of the...
Sep 27, 2017
Magellan spending $410MM on Ship Channel terminalMagellan Midstream Partners said that its incremental capital spending will be about
$75 million more than its previous spending estimates of $335 million for the first phase
of the Pasadena marine terminal that it is building jointly with Valero Energy Corp along
the Houston Ship Channel. The construction is being completed in two phases
costing the companies about $820 million combined, they announced jointly.
The Pasadena marine storage facility will handle products, including...
Sep 21, 2017
DOE releases 4.5 MMbo from SPR after HarveyThe US Department of Energy in
early September approved the release of
4.5 MMbo from the Strategic Petroleum
Reserve in response to Hurricane Harvey,
which knocked a sizeable chunk of U.S.
refining capacity offline. The move
marked the first time the nation has
tapped the SPR since 2012.
After the storm the Energy Department
initially said it would provide 3.0 MMbo to
Marathon Petroleum Corp. and 500,000
barrels to Valero Energy Corp. The
department later said it also approved...
Sep 21, 2017