MI - Investors & operators show optimism, regulators defend - May 2020Q2 is proving to be a rocky quarter for the midstream sector, whether it be from the effects of producers’ shut-ins, fallen product demand or even direct exposure to commodities. Investment bank SunTrust expects a 7% YOY drop in EBITDA for the quarter after many companies in the sector reported fantastic Q1 numbers (PG.12). But there’s still plenty of good news. Investors see the sector as a safe place to spend fresh capital for the long term (PG.1). Quarter-to-date investment through...
May 27, 2020
MI - People & Companies - May 27, 2020Kristie L. Colvin was appointed to the board of Enable GP, LLC, the general partner of Enable Midstream Partners, LP, by CenterPoint Energy Midstream Inc., whose parent company CenterPoint Energy, Inc., owns a 50% governance interest and a 40% economic interest in Enable GP. Colvin replaced Xia Liu, who resigned from the board on May 1, along with her departure from CenterPoint Energy as EVP and CFO, roles that now belong to Colvin. Enbridge Inc. announced the departure of SVP and chief...
May 27, 2020
CM - Prices plunge, and then along comes earnings… - May 2020First-quarter earnings have been mostly painful with the writedowns of billions in impaired oil and gas assets. Exxon Mobil Corp. incurred its first quarterly loss in 32 years (PG.1), ConocoPhillips reported a $1.7 billion loss (PG.12), Hess Corp. a $2.4 billion loss (PG.12), Diamondback Energy Inc. lost $272 million (PG.14) and Concho Resources Inc. has reported quarterly losses in five out of the last 10 quarters but never even close to the almost $9.3 billion (PG.13) it lost in Q1. Reliable...
May 15, 2020
MI - People & Companies - May 6, 2020Blue Mountain Midstream announced the resignation of C. Gregory Harper as president and CEO effective April 27. As a result, parent company Riviera Resources plans to consolidate Blue Mountain’s management with its own. The board is also reducing its size to five members from six. Enable GP, LLC, the general partner of Enable Midstream Partners, LP, elected Kristie L. Colvin director, effective May 1. Colvin, who is interim EVP and CFO of CenterPoint Energy, is that company’s designee...
May 06, 2020
MI - Not even midstream sector is immune from this slowdown - March 2020The midstream sector, often credited with being more stable than other parts of the oil and gas industry, is not invincible. As E&P firms start gutting their capex budgets, midstream companies are tightening their belts too, postponing projects, revisiting their dividends and socially distancing themselves from earlier 2020 plans. The construction slowdown will be delayed, as companies generally committed to complete ongoing projects, with capex cuts going into 2021. One of the sharpest...
Mar 26, 2020
ES - Williams Highlights - March 10, 2020Williams and its partners pulled the plug on the 650 MMcf/d Constitution pipeline only a few months after federal regulators overturned New York’s decision to block the project. “Following extensive evaluation and discussion, [we] recently determined that the underlying risk-adjusted return for this greenfield pipeline project has diminished in such a way that further development is no longer supported,” said...
Mar 10, 2020
MI - Williams-led JV tears up plans to build Constitution pipeline - March 2020Williams and its partners pulled the plug on the 650 MMcf/d Constitution pipeline only a few months after federal regulators overturned New York’s decision to block the project. The Tulsa-based company, which owned a 41% stake in Constitution, took a $354 million impairment on the project in 4Q19. “The members of Constitution, following extensive evaluation and discussion, recently determined that the underlying risk-adjusted return for this greenfield pipeline project has diminished in...
Mar 05, 2020
MI - Midstream firms suffered in sickening February - March 2020When China and other parts of the world caught the novel coronavirus in February, the US energy industry also fell ill. Fear of disease isn’t the only problem facing the US sector, but it was the catalyst that turned a slump into a rout. Not even the normally more stable midstream market was immune. The Midstream Market Movers table (PG.14) shows that every significant midstream stock declined in the past month, with the “winners” down only 1%. LNG looks particularly affected. Soft...
Mar 05, 2020
MI - People & Companies - March 5, 2020ARB Midstream co-founder and CEO Adam Bedard is leaving day-to-day executive leadership but will remain a member of its board. He is succeeded by Dan Campbell, a member of ARB’s board and a former CFO of American Midstream Partners. John Roark also recently joined ARB as COO and will have responsibility for all gathering and transportation operations. Prior to joining ARB, Roark was VP of terminalling, transportation and storage for Andeavor. Co-founder Rogan McGillis remains CFO....
Mar 05, 2020
MI - People & Companies - February 11, 2020Investment manager EnCap Flatrock Midstream promoted both Zachary Kayem and Thomas Waldrip from VP to managing director and Bradley Misialek from associate to VP. Enterprise Products Partners directors promoted Randall Fowler, making him co-CEO with Jim Teague. Both will continue to serve as directors and members of the four-person office of the chairman, which also includes Randa Duncan Williams, chairman of Enterprise’s general partner and chairman of privately held Enterprise...
Feb 11, 2020
A&D - Dominion completes $2.1B sale of 25% Cove Point LNG stake - January 2020Brookfield Super-Core Infrastructure Partners, an infrastructure fund managed by Brookfield Asset Management, closed its $2.1 billion acquisition of a 25% interest in the Cove Point LNG facility in Lusby, Maryland, from Dominion Energy. The Virginiabased utility and midstream company will retain operational control of Cove Point, the second US facility to export LNG. Brookfield acquired a stake in Dominion Energy Cove Point LNG, the entity that owns the facility on the western shore of the...
Jan 16, 2020
MI - Out with the old projects, in with the new capex limits - January 2020As the old year wound down, it seemed as if companies used December to check off their 2019 to-do list. Start up a $1.4 billion NGL pipeline? Check for Oneok. Export first LNG cargo? Check for Kinder Morgan Inc. Sell a majority stake in a $5 billion gas pipeline? Check for TC Energy. Agree to terms for going private? Check for Tallgrass Energy (PG.9). Oneok put into service its $1.4 billion Elk Creek pipeline, part of its $5.1 billion effort to turn gas currently being flared into...
Jan 03, 2020
MI - Dominion completes $2.1B sale of 25% Cove Point LNG stake
- January 2020Brookfield Super-Core Infrastructure Partners, an infrastructure fund managed by Brookfield Asset Management, closed its $2.1 billion acquisition of a 25% interest in the Cove Point LNG facility in Lusby, Maryland, from Dominion Energy. The Virginia based utility and midstream company will retain operational control of Cove Point, the second US facility to export LNG. Adding 5.25 mtpa liquefaction and export capacity to the existing regasification facility cost Dominion $4.1 billion....
Jan 03, 2020
MI - NJR raises about $270MM with common stock offering - January 2020Energy services holding company New Jersey Resources Corp. closed a public offering of 5.7 million common shares at $41.25 each on Dec. 9. Wells Fargo and JP Morgan led the offering syndicate, which was also granted a 30-day overallotment option of 845,454 additional shares. Proceeds helped repay borrowings for the October acquisition of a storage facility. Of the 5.7 million common shares in the main part of the offering, NJR sold 5,333,334 to the underwriters and lent a total of...
Jan 03, 2020
MI - Pipelines Briefs - January 23, 2020Energy Transfer applied to the Federal Energy Regulatory Commission for approval to increase certified capacity on its operated Rover pipeline to increase its certified capacity to 3.425 Bcf/d. When completed in 2018, the 713-mile pipeline from West Virginia and Pennsylvania to the Midwest hub in Ohio and Michigan’s Vector hub was originally listed as a 3.25 Bcf/d pipeline. Rover said the increase does not entail any new construction or modifications but is just a reflection actual pipeline...
Jan 23, 2020