Thu, Aug. 18, 1:48 PM
- Williams Cos. (NYSE:WMB) has jumped (as much as 11.6% minutes ago) on a report that Enterprise Product Partners (NYSE:EPD) approached it this summer with an acquisition.
- Williams shares have fallen back to just a 6.6% gain. EPD spiked briefly and has now headed for negative territory, -0.2%.
- Williams didn't make an official response, Reuters says, since its recent gains meant Enterprise's offer carried little to no premium.
- Despite that, Enterprise remains interested in a deal that would create an $80B giant, the Financial Times reports.
- A planned merger of Williams with Energy Transfer Equity fell apart in June as ETE walked away after a favorable court ruling.
Jul. 16, 2015, 7:25 AM
- Genesis Energy (NYSE:GEL) agrees to acquire the offshore pipeline and service business of Enterprise Products Partners (NYSE:EPD) for ~$1.5B.
- The business serves deepwater fields in the Gulf of Mexico, and assets include 2,350 miles of offshore crude oil and natural gas pipelines and six offshore hub platforms.
- GEL says the acquisition should be immediately accretive to cash available for distribution and improve the company's credit metrics over time.
- EPD expects to record ~$100M, or $0.05/unit, in non-cash asset impairment and related charges.
- To help fund the deal, GEL announces public offerings of 9M common units and $750M of senior unsecured notes due 2022 (I, II).
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.
May 13, 2015, 3:49 PM
- Energy MLPs are trading with mixed results, which is not in line with an analyst's expectation that several names in the space may be outperformers today after Williams Cos. (WMB +6.2%) agreed to buy Williams Partners (WPZ +22.7%).
- In an earlier note to investors, Credit Suisse named Plains GP Holdings (PAGP +1%), Targa Resources (TRGP +1.1%), NuStar GP Holdings (NSH -0.1%) and Western Gas Equity (WGP -0.7%) as MLPs that could climb on the news.
- Meanwhile, Wells Fargo says the deal is positive, since it reduces the WMB's cost of capital, will immediately increase its profits, and enhances its dividend growth outlook.
- Among major energy MLPs: EPD -1.5%, ETP +0.9%, PAA +0.2%, EEP -0.2%, MWE +2.2%, MMP -0.3%.
Nov. 12, 2014, 8:54 AM
- Oiltanking Partners (NYSE:OILT) +6.1% premarket on news of a merger agreement with Enterprise Products Partners (NYSE:EPD).
- OILT unitholders would receive 1.3 EPD common units for each OILT common unit, representing a 5.6% premium based on closing prices from Sept. 30, the day before the merger was originally proposed.
- If the merger is completed, consideration paid by EPD, including the Oct. 1 acquisition of general partner and limited partner interests in OILT, would total ~$6B.
- EPD says the combination of its system of midstream assets and OILT's access to waterborne markets and crude oil and petroleum products storage assets would extend and broaden its midstream energy services business.
Oct. 1, 2014, 9:19 AM
- Enterprise Products Partners (NYSE:EPD) agrees to acquire general partner and limited partner interests in Oiltanking Partners (NYSE:OILT) for $2.21B in cash and ~54.8M EPD common units for total consideration of ~$4.41B; EPD will own ~66% of OILT common units.
- Oiltanking Holding Americas is selling its 64.7% limited partner interest in OILT, represented by ~15.9M common units and ~38.9M subordinated units in the partnership, as well as its 2% general partner interest and related incentive distribution rights, to EPD.
- In a second step, EPD makes a takeover proposal for OILT through a unit exchange totaling another ~$1.4B.
- OILT owns marine terminals on the Houston Ship Channel and the Port of Beaumont with a total of 12 ship and barge docks and ~24M barrels of crude oil and petroleum products storage capacity on the Texas Gulf coast.
- EPD +1.5%, OILT +8.6% premarket.
Aug. 11, 2014, 7:15 PM
- As Rich Kinder abandons the MLP structure he helped popularize, CNBC's Jim Cramer feels confident that rivals are taking notice, thus investors should expect many more deals in the energy MLP space.
- Cramer tabs three MLPs he thinks could end up in play: Enterprise Products Partners (NYSE:EPD), the entity that received gained permission to export condensate in "a huge game-changer"; Energy Transfer Equity (NYSE:ETE), whose cash flows should "explode higher" and its payout increase dramatically once temporarily relinquished incentive distribution rights are reinstated, which should happen next year; and Atlas Energy (NYSE:ATLS), a relatively cheap stock which should be able to raise its distribution dramatically for the next few years.
- BofA/Merrill Lynch also thinks the deal may be a harbinger of what’s to come for other MLPs that grow too big: "While we do not see other GP-buying-LP transactions occurring yet, we also think it provides a template for a somewhat graceful exit from a structure that can prove long-term unwieldy as an MLP grows... [We] expect significant interest in potential MLP consolidation candidates."
- ETFs: AMLP, AMJ, MLPL, YMLP, MLPI, MLPA, ENY, MLPN, MLPG, EMLP, MLPS, MLPX, MLPY, MLPJ, AMU, YMLI, ATMP, ZMLP, MLPW, IMLP, ENFR, MLPC
Oct. 7, 2013, 3:05 PM
- Crestwood Midstream Partners (CMLP -0.9%), whose shareholders approved its merger with Inergy Midstream (NRGM), is on the hunt for more assets to expand its oil and natural gas liquids business, focusing on shale regions such as the Marcellus shale, CEO Robert Phillips tells Bloomberg.
- CMLP may target businesses of $100M-$1B in size, depending on how a deal could be financed, Phillips says; he's aiming for an investment grade rating from the credit agencies, and CMLP needs ~$500M in annual free cash flow to achieve it, which Phillips says "certainly" is within reach next year if it makes additional purchases.
- Phillips, former CEO at Enterprise Products Partners (EPD), says he’s a believer in EPD’s diversified portfolio; "We’re striving to replicate that business model. That’s the primary strategic rationale behind the Crestwood-Inergy merger."
Apr. 29, 2011, 9:09 AM
Duncan Energy (DEP) and Enterprise Products Partners (EPD) agree to a merger. DEP unitholders would receive 1.01 EPD common units in exchange for each DEP common unit, representing a 35% premium based on DEP's closing price on Feb. 22, the last trading day before EPD announced its initial buyout offer. (PR)| Apr. 29, 2011, 9:09 AM