DCP Midstream Partners, LPNYSE
DCP Midstream Partners: Perfectly Positioned For A Rebound In NGL Prices (And That's Starting To Happen Now)
Michael Fitzsimmons • 22 Comments
Michael Fitzsimmons • 22 Comments
Tue, Sep. 13, 1:37 PM
- Enbridge (ENB -4.2%) has indicated that the MLPs it amasses from its $28B takeover of Spectra Energy (SE -4.4%) will continue to be operated separately, but analysts say they are headed for some sort of consolidation in the long run.
- While ENB and SE rallied following their merger news, results have been mixed for Spectra Energy Partners (SEP -1.6%), Enbridge Energy Partners (EEP -3.2%), Midcoast Energy Partners (MEP -1.3%) and DCP Midstream Partners (DPM -5.4%) - the MLP jointly owned by SE and Phillips 66 - highlighting investor concerns about the post-merger fate of the units.
- ENB may take 2-3 years to decide the structure of its MLPs after closing on SE, says Hennessey Gas Utility Fund's Skip Aylesworth, adding that when it finally happens, “you might end up with two of the four” units.
Tue, Sep. 6, 7:17 AM
- Enbridge (NYSE:ENB) agrees to acquire Spectra Energy (NYSE:SE) in an all-stock deal valued at ~C$37B ($28B) that will create North America's largest energy infrastructure company.
- SE shareholders will receive 0.984 shares of the combined company for each SE share they own, the equivalent of $40.33/share, representing a ~11.5% premium to SE's closing price on Friday.
- After the deal, ENB shareholders will own ~57% of the combined company, while SE shareholders will own ~43%.
- The combined company will be called Enbridge Inc. and upon closing will be the largest energy infrastructure company in North America with a US$127B enterprise value.
- The companies’ MLP,s Spectra Energy Partners (NYSE:SEP) and Enbridge Energy Partners (NYSE:EEP), will continue to be separate publicly traded companies; SE also owns a 50% stake in DCP Midstream Partners (NYSE:DPM).
- SE +5.8% premarket.
Oct. 19, 2015, 8:58 AM
- Spectra Energy (NYSE:SE) agrees to acquire Spectra Energy Partners' (NYSE:SEP) one-third ownership interests in the Sand Hills and Southern Hills natural gas liquids pipelines in exchange for redemption and cancellation of 21.56M limited partner units and 440K general partner units.
- SE also says it has executed an agreement with Phillips 66 (NYSE:PSX) and DCP Midstream (NYSE:DPM), under which it will contribute its interests in the Sand Hills and Southern Hills pipelines and Phillips 66 will contribute $1.5B, respectively, to DPM; DPM is the 50-50 joint venture between SE and PSX.
Jul. 13, 2015, 6:57 PM
- U.S. midstream MLPs rallied today following the news that MarkWest Energy (NYSE:MWE) was acquired by MPLX (NYSE:MPLX), as the deal is seen as a validation of the long-term demand potential for U.S. natural gas liquids infrastructure despite current depressed prices.
- Among today's gainers in the group: GEL +3.7%, DPM +3.3%, OKS +2.6%, NGLS +2.5%.
- SunTrust's Tristan Richardson believes the deal is particularly bullish for Enterprise Products Partners (NYSE:EPD), since speaks to the long term potential for the NGL market and the buildout of NGL infrastructure to new sources of market demand, where EPD is a leader with significant organic growth opportunities.
- MPLX fell 14.5% today, as investors worry that adding a nat gas company to MPLX, which had been growing rapidly, could hurt growth and add more volatility to earnings; however, many analysts believe the deal is a safe bet for MPLX because the company is diversifying its sources of income to help it survive the ups and downs of the commodity cycles.
Jul. 15, 2014, 7:58 AM
- American Midstream Partners (NYSE:AMID) agrees to acquire entities holding onshore natural gas processing and offshore natural gas gathering and transportation and oil gathering assets from DCP Midstream (NYSE:DPM) for $115M.
- The assets to be acquired include the Mobile Bay gas processing plant, Dauphin Island gathering and transmission system, and DCPs interest in the Main Pass Oil Gathering System, which AMID says collectively provide strong cash flow visibility and a growing, high-quality customer base.
- To fund the deal, AMID plans to sell $200M of its common units in a private placement.
Jun. 19, 2012, 9:09 AM