MLPs

Source Reuters

New Permian Gas Pipelines Will Reduce Flaring, But What About Prices?

From Forbes The NYMEX Henry Hub price for natural gas has firmed up in recent weeks, rising over the $2.50/Mmbtu mark in early September 9 trading thanks to the ongoing heat wave in Texas and other states where natural gas provides a high percentage of power generation. While that price is low in the context of the past 20 years, it is a significant improvement from its close on August 12 of $2.105/Mmbtu. Index prices for Permian Basin gas, where the Waha Hub spot price has averaged just $.72/Mmbtu during the first 8 months of this year due to lingering constraints on pipeline takeaway capacity, have also risen, closing at a recent high of $2.10/Mmbtu on August 28. That increase is mainly due to the market anticipating the startup of Kinder Morgan KMI +0%’s new, $1.75 billion Gulf Coast Express line, which is scheduled to go into service later in September. The addition of Gulf Coast Express’s 2 bcf[Read More…]

Source: The Houston Chronicle

Houston pipeline operators expand footprint in Colorado’s DJ Basin

From The Houston Chronicle A joint venture between two Houston pipeline operators is expanding its footprint in Colorado’s DJ Basin. Black Diamond Gathering, a joint venture between Noble Midstream Partners and Greenfield Midstream, has entered into a pair of deals that expand its oilfield footprint to 243,000 acres. Noble Energy and Black Diamond recently agreed to ship crude oil on the Magellan Midstream Partners-led Saddlehorn Pipeline, a project connecting shale basins in Powder River Basin Wyoming and DJ Basin in Colorado to storage terminals in Cushing, Oklahoma. Black Diamond’s deal with Magellan gives the joint venture an option to buy a 20 percent stake in the Saddlehorn Pipeline. “This opportunity is a natural expansion of Black Diamond’s strategic footprint, with the ability to realize economics further down the crude oil value chain while enhancing the all-in value proposition for our customers,” Noble Midstream Partners CEO Brent Smolik said in a statement.[Read More…]

September 3, 2019 - 4:14 pm Closing Bell Story, Downstream, Midstream, MLPs
Source: Crestwood Equity Partners

Crestwood Bolsters its Midstream Assets in the Bakken

By Tyler Losier, Energy Reporter, Oil & Gas 360 Commercial operations begin at the Bear Den II processing plant Crestwood Equity Partners LP (stock ticker: CEQP), a Houston-based master limited partnership, has begun commercial operations at its Bear Den II processing plant in Watford City, North Dakota. The Bear Den II facility is a 120 million cubic feet per day cryogenic processing plant located adjacent to Crestwood’s 30 million cubic feet per day Bear Den I plant, which has been in service since 2018. Bear Den II, still in its start-up phase, is currently producing approximately 65 million cubic feet per day. Once it reaches full capacity, Crestwood expects the facility to be able to support 100% of the gas volumes f… Login or click here to subscribe Username or E-mail Password Remember Me     Forgot Password

Source: Summit Midstream Partners LP

Summit Midstream Appoints New President and CEO

By Tyler Losier, Energy Reporter, Oil & Gas 360 Summit Midstream Partners appoints J. Heath Deneke as president, CEO and board member Summit Midstream Partners LP (stock ticker: SMLP), a master limited partnership located in The Woodlands, Texas, has appointed J. Heath Deneke to serve as its president and chief executive officer, effective September 16, 2019. Deneke was also nominated to serve on the board of directors for Summit Midstream GP LLC, the general partner of Summit Midstream Partners LP. He will replace Leonard Mallett, who has been serving as interim president and CEO for Summit since February 2019. Mallet will stay on as Summit’s chief operations officer, and will report to Deneke directly. “I am excited t… Login or click here to subscribe

Source: NGL Energy Partners

NGL Energy Partners Makes $300 Million Divestiture

By Tyler Losier, Energy Reporter, Oil & Gas 360 NGL Energy Partners sells TransMontaigne Product Services for $300 million NGL Energy Partners LP (stock ticker: NGL), a vertically integrated midstream company, has signed a definitive agreement to sell TransMontaigne Product Services and its associated assets to an undisclosed buyer for approximately $300 million. Proceeds from the transaction will be used to reduce outstanding indebtedness under NGL’s revolving credit facility. Additionally, the partnership expects to significantly reduce letter of credit commitments following the sale of TransMontaigne, an entity that makes up a portion of NGL’s refined products reporting segment. TransMontaigne’s asset base (source: Tran… Login or click here to subscribe

Alliance Resource Partners Completes Acquisition of Permian Mineral Interests

Alliance Resource Partners Completes Acquisition of Permian Mineral Interests

By Tyler Losier, Energy Reporter, Oil & Gas 360 Alliance Resource Partners Acquires $145 million worth of Permian mineral interests from Wing Resources Alliance Resource Partners L.P. (stock ticker: ARLP), a diversified natural resource company based in Tulsa, Oklahoma, has completed its previously announced acquisition of oil and gas mineral interests in the Permian Basin from Wing Resources LLC and Wing Resources II LLC. The transaction, which has a purchase price of $145 million, will increase Alliance’s Permian presence through the addition of approximately 9,000 net royalty acres in the Midland, with exposure to more than 400,000 gross acres. Source: EIA “Today’s announcement reflects ARLP’s commitment to build its… Login or click here to subscribe

Icahn Enterprises Completes Sale of Brazilian Resource Company

Icahn Enterprises Completes Sale of Brazilian Resource Company

By Tyler Losier, Energy Reporter, Oil & Gas 360 Icahn Enterprises closes sale of Ferrous Resources to Vale S.A. for $550 million Icahn Enterprises L.P. (stock ticker: IEP), a conglomerate company owned by American investor Carl Icahn, has closed on its previously announced sale of Ferrous Resources Limited to Brazilian mining company Vale S.A. for a total consideration of $550 million, including repaid indebtedness. Under generally accepted accounting principles (GAAP), Icahn Enterprises, which owns 77% of Ferrous Resources, will recognize a book gain of approximately $264 million. Icahn Enterprises acquired a majority stake in Ferrous Resources – a Brazilian iron mining company – in 2015, at a time when iron ore prices ha… Login or click here to subscribe

NGL Energy Partners Closes with Mesquite, Announces Multiple Investments

NGL Energy Partners Closes with Mesquite, Announces Multiple Investments

NGL Energy Partners LP Closes Combination with Mesquite and Announces Investment from EIG and FS Energy and Power Fund

Source: Plains All American Pipeline, L.P.

Anticipating More Wyoming Crude: Saddlehorn Pipeline Capacity to Expand by 50%

By Tyler Losier, Energy Reporter, Oil & Gas 360 New Ft. Laramie origin point announced, open season launched Saddlehorn Pipeline Company, owned in part and operated by Magellan Midstream (stock ticker: MMP), is planning to expand its Saddlehorn pipeline to a new origin point in Fort Laramie, Wyoming, which would subsequently increase the system’s capacity by up to 100,000 BOPD. Other stakeholders in the jointly-owned pipeline include Plains All American Pipeline (stock ticker: PAA) and Western Midstream Partners (stock ticker: WES). Currently, Saddlehorn transports 190,000 BOPD of crude and condensate from the DJ and Powder River Basins to storage facilities owned by Magellan and Plains All American in Cushing, Oklahoma. S… Login or click here to subscribe

Reliance Gathering to Explore a $500 Million Sale

Reliance Gathering to Explore a $500 Million Sale

From Bloomberg Reliance Gathering LLC, which transports crude oil in the Permian Basin, is exploring a sale, according to people familiar with the matter. Reliance is working with an adviser to run an auction that could value it at about $500 million, said one of the people, who asked not be identified because the matter is private. The company, based in Midland, Texas, may attract interest from private equity and infrastructure investors, the people said. Reliance might still decide not to pursue a sale, the people said, The company, founded by Gary McKinney, received an investment in 2016 from Metalmark Capital. “We are proud to have grown our gathering system to over 125 miles of pipeline with another 35 miles in process or planned and up to 200,000 barrels per day of capacity, covering more than 110,000 dedicated acres,” McKinney said in a statement at the time. A representative for Reliance declined[Read More…]

May 17, 2019 - 5:32 pm Closing Bell Story, Energy News, Midstream, MLP News, MLPs
Kinder Morgan Canada To Remain Independent After Strategic Review

Kinder Morgan Canada To Remain Independent After Strategic Review

From Reuters Pipeline company Kinder Morgan Canada Ltd said on Thursday it would continue as a stand-alone entity, following a strategic review that considered options including a sale. The company said its decision was consistent with the recommendation of a special committee of independent directors not affiliated with Kinder Morgan Inc, which holds about 70 percent majority voting interest in the Canadian entity. Kinder Morgan Inc said in October that it was exploring all options for Kinder Morgan Canada, as it saw a sellers’ market for the Canadian company’s assets. Kinder Morgan Canada highlighted its infrastructure operations across western Canada, underpinned by multi-year take-or-pay contracts, and stable cash flows for its decision to remain independent. Kinder Morgan Canada said it expects adjusted core earnings of about $213 million and distributable cash flow from continuing operations of about $109 million in 2019. The company said it plans to invest about $32[Read More…]

May 10, 2019 - 5:16 pm Canada, Closing Bell Story, Energy News, Midstream, MLP News, MLPs
Marathon Petroleum to Merge Midstream Units, Posts Surprise Loss

Marathon Petroleum to Merge Midstream Units, Posts Surprise Loss

From Reuters U.S. oil refiner Marathon Petroleum Corp said on Wednesday it would merge its midstream units in a $9 billion deal, and posted a surprise first-quarter loss due to higher prices of Canadian crude. The refiner said in October it planned to assess options for the two master limited partnerships, MPLX and Andeavor Logistics LP, which transport, store and market its products through pipelines, terminals and trucking operations. Under the terms of the agreement, Andeavor shareholders will receive 1.135 common units of MPLX for each common unit held and Marathon will receive 1.0328 MPLX common units for each ANDX common unit held. The deal has an enterprise value of $14 billion and will close in the second half of the year. Marathon has been strengthening its midstream operations and retail unit, which includes Speedway gas stations and convenience stores and Andeavor’s retail and direct dealer business, to diversify its[Read More…]

Enbridge Seeking At Least Eight-Year Oil Shipping Commitments on Canada Mainline, Worrying Small Producers

Enbridge Seeking At Least Eight-Year Oil Shipping Commitments on Canada Mainline, Worrying Small Producers

From Reuters Canada’s Enbridge is asking oil shippers to sign at least eight-year contracts to move crude on its Mainline pipeline network, as it proposes to shift away from a monthly allocation system, people with knowledge of the matter told Reuters. The minimum term Enbridge Inc is seeking, previously unreported, is raising fears among small Canadian producers that they will lose out to bigger players, at a time when pipeline congestion has damaged the energy sector’s outlook. Three sources with knowledge of the confidential talks confirmed the minimum term. Enbridge has previously disclosed that the maximum term is 20 years under a plan that still requires approval from Canada’s National Energy Board. The company declined, in an email, to confirm the minimum term it is seeking, saying it is commercially sensitive information. Locking shippers into long-term contracts offers Enbridge a chance to capitalize on delays to competitors’ plans to build[Read More…]

TransCanada Changes Name to TC Energy

TransCanada Changes Name to TC Energy

From Reuters Pipeline company TransCanada Corp said on Friday it has changed its name to TC Energy, to reflect the expansion of its business beyond Canada to the United States and Mexico. Calgary-based TC Energy has been struggling to make progress in building new oil export pipelines out of western Canada. The company has been working for more than a decade to build the controversy-ridden 830,000 barrel per day (bpd) Keystone XL pipeline, which would boost export capacity from the oil-rich province of Alberta to U.S. refineries. In 2017, TC Energy scrapped plans for the C$12 billion ($8.9 billion) cross-country Energy East project from Alberta to Canada’s Atlantic Coast because of mounting regulatory hurdles. “TC Energy better describes our complete business, which … has grown steadily to become a C$110 billion enterprise with critical assets and dedicated employees across three countries,” Chief Executive Russ Girling said at the company’s annual[Read More…]

May 6, 2019 - 3:56 pm Closing Bell Story, Energy News, Midstream, MLP News, MLPs
Pipe destined for TransCanada’s Keystone XL pipeline is stockpiled near Gascoyne, N.D. (CBC)

Canada Extends Deadline for Trans Mountain Pipeline Decision to June 18

From Reuters Canada has extended the deadline for a decision on whether to push forward with the expansion of the Trans Mountain oil pipeline to June 18 from mid-May, the government said on Thursday. The Trans Mountain expansion (TMX) project would nearly triple the amount of crude flowing from Alberta’s oil sands to British Columbia’s coast, but has been beset by regulatory delays and opposition from indigenous groups, environmentalists and the government of British Columbia. Amarjeet Sohi, Canada’s minister of natural resources, said the delay would give the federal Liberal government more time to consult with indigenous groups impacted by the pipeline. “The Government has consistently said that a decision would only be made on the project once we are satisfied that the duty to consult has been met,” he said. However, Conservative shadow minister for natural resource Shannon Stubbs said the delay meant another summer construction season would likely[Read More…]

Kinder Morgan In Discussions to Build Third Permian Basin Gas Pipeline: CEO

Kinder Morgan In Discussions to Build Third Permian Basin Gas Pipeline: CEO

From Reuters Kinder Morgan Inc has begun internal discussions about building a third natural gas pipeline in the Permian Basin as demand for gas takeaway capacity continues to surge, Chief Executive Officer Steven Kean told investors on Wednesday. As natural gas production has outpaced pipeline capacity in the Permian Basin, a gas glut has led to plummeting prices in the region, with spot prices at the Waha hub even trading at negative levels. Kinder Morgan believes demand for gas takeaway capacity could grow by 2 billion cubic feet per day each year over the next few years, equivalent to the Houston pipeline operator’s Gulf Coast Express project, Kean said. “Demand to get gas out of the Permian continues to grow and the desire to unlock value that’s in oil and (natural gas liquids) continues to put pressure on need for additional takeaway capacity,” Kean said. “There is interest in pipe[Read More…]

April 18, 2019 - 3:48 pm Closing Bell Story, Midstream, MLP News, MLPs, Natural Gas News
Pipe destined for TransCanada’s Keystone XL pipeline is stockpiled near Gascoyne, N.D. (CBC)

Kenney Win Puts Maligned Trudeau Pipeline Law Under New Pressure

From Bloomberg Alberta’s incoming premier is already fighting pipeline law changes that are in the offing. Jason Kenney’s conservative party swept to power Tuesday in Canada’s oil heartland after a campaign in which he regularly took aim at Prime Minister Justin Trudeau. In his victory speech, Kenney also criticized Trudeau for “imposing new laws that will make it impossible to get pipelines approved in the future.” A trio of proposed laws affecting pipeline, environmental and oil shipping laws are working their way through Canada’s Senate as Trudeau’s Liberals gear up for an October election, trailing in the polls. The most controversial is known as Bill C-69 — Kenney’s predecessor in Alberta also opposed its current wording, but his election will add pressure to Trudeau to bow to concessions sought by the oil industry. “I expect to see the federal government make substantial changes to that piece of legislation because they’re[Read More…]

April 18, 2019 - 3:21 pm Canada, Closing Bell Story, Energy News, Midstream, MLP News, MLPs
Source: Keystone-XL

Trump Takes Fresh Approach with Long-Delayed Keystone XL Pipeline

From Reuters U.S. President Donald Trump on Friday signed a new permission for TransCanada Corp to build the long-delayed Keystone pipeline for imports of Canadian oil, replacing his previous permits in a fresh attempt to get around the blocking of the $8 billion project by a court in Montana. In granting the permission, Trump revoked a previous permit for the pipeline issued in March 2017 and an executive order approving the project he issued two days after taking office in January that year. It was not immediately clear whether under the new approval the pipeline, which would carry 800,000 barrels per day of crude from Canada’s oil sands to refineries along the U.S. Gulf of Mexico, would have to undergo extensive new environmental reviews. The Keystone XL pipeline has been pending for more than a decade after environmental reviews and after former President Barack Obama rejected the project saying it[Read More…]

March 29, 2019 - 5:30 pm Closing Bell Story, Crude Oil News, Midstream, MLP News, MLPs
Source: Virginia Mercury

Duke Energy Needs ‘Plan B’ If Atlantic Coast Pipeline Fails, CEO Says

From Bloomberg Duke Energy Corp. will need another way to shuttle natural gas to customers in the U.S. Southeast if the troubled Atlantic Coast shale pipeline fails to overcome legal setbacks, Chief Executive Officer Lynn Good said. “Atlantic Coast pipeline was sized and designed with a time frame to meet the needs of our customers,” Good said Monday in an interview with Bloomberg Television at the BNEF Summit in New York. That time frame is in limbo after a federal appeals court vacated key permits that allowed the pipeline to cross the Appalachian Trail, a decision lead developer Dominion Energy Inc. is planning to appeal to the Supreme Court. Atlantic Coast has seen its start date pushed back several times and its price tag balloon to as much as $7.5 billion. Construction has been stopped since late last year. If the embattled conduit fails to prevail, a potential Plan B could include a[Read More…]

Photo by Mike Goldwater"

Wastewater – Private Equity’s New Black Gold in U.S. Shale

From Reuters Mike Christensen strides among rows of gleaming steel tanks, pointing to pipelines that arrive from miles around to this corner of former farmland near Midland, Texas, the heart of the largest oil patch in the United States. His company is one of dozens opening sites like this one that handles, not the lucrative oil, but the shale industry’s dirty secret: wastewater. While U.S. oil production has reached record levels on account of the shale revolution of the last decade, much of the supporting infrastructure has failed to keep up, including how to transport the large quantities of water used in the hydraulic fracturing process and the water that is produced from wells alongside oil and gas. Once managed individually by energy producers, the job of supplying, collecting and disposing of water is a rising cost, and has spawned a $34 billion a year business in the U.S. that[Read More…]

March 18, 2019 - 12:41 pm Closing Bell Story, Energy News, Midstream, MLP News, MLPs
Antero Closes Midstream Simplification Transaction

Antero Closes Midstream Simplification Transaction

Antero Midstream and AMGP Announce Closing of Midstream Simplification Transaction

March 14, 2019 - 5:15 am Closing Bell Story, Midstream, MLPs, Press Releases
Source: Enbridge

Enbridge Pipeline Delay Spooks Traders in Long-Term Canada Crude Market

From Reuters North American energy traders are reluctant to take up long-term positions on Canadian crude price moves, preferring to stick to spot deals, as uncertainty around government intervention in the market grows following delays to a critical pipeline project. Enbridge Inc unexpectedly said earlier this month its Line 3 oil pipeline will be delayed until the second half of 2020, dealing another blow to the oil-rich province of Alberta, which is struggling with long-running congestion on export pipelines. Severe pipeline bottlenecks depressed Canadian heavy oil prices to the weakest on record last year, prompting the Alberta government to order mandatory production cuts effective Jan. 1, a move that sent prices sky-rocketing and traders scrambling to cover positions. While some producers welcomed the government cuts, others including Suncor Energy and Imperial Oil criticized the move for causing uncertainty and unintended consequences, such as disrupting rail shipments of crude. Imperial declined[Read More…]

U.S. Court Dismisses Energy Transfer Partners Lawsuit Against Greenpeace

U.S. Court Dismisses Energy Transfer Partners Lawsuit Against Greenpeace

From Reuters A federal court in North Dakota has dismissed a lawsuit from Energy Transfer Partners LP against environmental group Greenpeace, according to a court order on Thursday. ETP had sued reut.rs/2SASoIv Greenpeace and other environmental groups in 2017, accusing them of racketeering and defamation with the aim of blocking the Dakota Access Pipeline. In the lawsuit, ETP argued that the environmental groups’ actions and negative publicity against it, its sister company Energy Transfer Equity LP and other firms caused billions of dollars in damages. The Dakota Access Pipeline became one of the most bitterly contested energy projects in years as environmental activists and Native American tribes had tried to block the pipeline during a months-long standoff with authorities in North Dakota in 2016. ETP said it was disappointed by the court order and said it intends to pursue its claims in the “appropriate venue,” without giving further details. Greenpeace in a[Read More…]

February 15, 2019 - 12:03 pm Closing Bell Story, Crude Oil News, Energy News, Midstream, MLP News, MLPs
Mariner East 2 Pipeline Open for Business: Delivering NGLs to Marcus Hook

Mariner East 2 Pipeline Open for Business: Delivering NGLs to Marcus Hook

Energy Transfer Announces Mariner East 2 Pipeline Is in Service

December 31, 2018 - 7:00 am Closing Bell Story, Midstream, MLPs, Press Releases
Enbridge Inc. Completes Mergers with Enbridge Energy Partners, L.P. and Enbridge Energy Management, L.L.C.

Enbridge Inc. Completes Mergers with Enbridge Energy Partners, L.P. and Enbridge Energy Management, L.L.C.

Enbridge Inc. Completes Mergers with Enbridge Energy Partners, L.P. and Enbridge Energy Management, L.L.C.

December 21, 2018 - 8:30 am Closing Bell Story, MLPs, Press Releases
SemGroup Announces New Cushing-to-Houston Pipe, Open Season for Gladiator

SemGroup Announces New Cushing-to-Houston Pipe, Open Season for Gladiator

SemGroup (ticker: SEMG) and DCP Midstream (ticker: DCP) have announced open season for a new pipeline system called Gladiator. The new Gladiator pipeline would run from SemGroup’s Cushing, Oklahoma terminal to Gulf coast markets, terminating near Houston, bringing producers the ability to transport segregated, light batches of crude oil all the way to the Gulf coast region. Conversion of Southern Hills from NGLs to crude service The pipeline will add capacity by converting the existing Southern Hills NGL line to crude oil service. The Gladiator line will have a capacity of 300 MBOPD and is expected to begin service in Q3 2020. DJ to Houston via Cushing opens option for proprietary crude storage in two locations This line can allow co… Login or click here to subscribe

Photo by Mike Goldwater"

Anadarko Divests Midstream Assets for $4 Billion

Western Gas announces drop-down, simplification Western Gas Partners (ticker: WES) announced several moves today, expanding its holdings and simplifying its corporate structure. Western Gas Partners will acquire $4 billion in midstream assets from its parent Anadarko (ticker: APC), all the company’s remaining midstream assets. These assets include oil and water gathering pipelines in the Delaware, including associated treatment and disposal facilities, plus 50% shares in 325 MMcf/d of gas processing in the basin. Western Gas will also acquire Anadarko’s oil gathering pipelines and a 290 MMcf/d processing plant in the DJ. Finally, Anadarko is divesting its interests in three pipelines, only one of which is controlling. Western gas pro… Login or click here to subscribe

EnerCom’s Midstream and MLP Scorecard – October 29 2018

EnerCom’s Midstream and MLP Scorecard – October 29 2018

EnerCom’s Midstream and MLP Scorecard is our weekly distribution of information emerging from the oil and gas midstream sector. This week’s Scorecard report delivers 33 comparative metrics on 60 midstream companies and partnerships. All of the names in the list have traded publicly for at least four quarters. Market capitalization ranges from under $10 million to more than $50 billion.   (Click Image to View Interactive Dashboard)      

October 29, 2018 - 12:53 pm Closing Bell Story, Midstream, MLP News, MLP Scorecard, MLPs
Enable Midstream Doubles Down on Crude with $440 Million Deal

Enable Midstream Doubles Down on Crude with $440 Million Deal

Velocity acquisition adds crude capacity in SCOOP/Merge Enable Midstream Partners (ticker: ENBL) significantly increased its crude business today with two moves to boost capacity. Enable will boost its presence in the SCOOP and Merge through the acquisition of privately-held Velocity Holdings, an integrated crude and condensate gathering and transportation company. Velocity owns about 150 miles of pipeline capable of flowing about 225 MBPD, along with 400 MBBL of storage and truck bays capable of unloading 100 MBPD. Velocity serves a large area, with over 2 million acres dedicated. Enable will pay $442 million for Velocity. The company announced it does not plan to raise equity to finance the move, and it only held $7 million in cash… Login or click here to subscribe

EnerCom’s Midstream and MLP Scorecard – October 22 2018

EnerCom’s Midstream and MLP Scorecard – October 22 2018

EnerCom’s Midstream and MLP Scorecard is our weekly distribution of information emerging from the oil and gas midstream sector. This week’s Scorecard report delivers 33 comparative metrics on 60 midstream companies and partnerships. All of the names in the list have traded publicly for at least four quarters. Market capitalization ranges from under $10 million to more than $50 billion.   (Click Image to View Interactive Dashboard)      

October 22, 2018 - 2:25 pm Closing Bell Story, Midstream, MLP News, MLP Scorecard, MLPs