Energy Transfer Equity, L.P.NYSE
Tue, Dec. 6, 6:34 PM
- Energy Transfer Partners (NYSE:ETP) is continuing to pursue a court challenge to force the Obama administration to approve completion of the Dakota Access pipeline instead of waiting for Pres.-elect Trump to take office next month.
- ETP's lawyers asked the U.S. District Court in D.C. for an expedited ruling late Monday that would allow the company to complete the project, and a hearing in the case is scheduled for Friday morning.
- ETP argued that the Army Corps of Engineers already had approved completion of the pipeline via a crossing underneath the Missouri River, and that the final easement is merely a perfunctory "ministerial" document, adding that the delays amount to political interference and are not supported by the law.
- The delays already have cost ETP $450M, according to court papers, and ETP has said continued delays cost ~$83M/month.
- Meanwhile, with access to the pipeline in limbo, shippers of Bakken crude will turn to rail, which poses its own dangers to the environment and local communities.
- Other relevant tickers include ETE, SXL.
Tue, Dec. 6, 12:36 PM
- A crude oil transmission line operated by Belle Fourche Pipeline Co. has been shut down in western North Dakota following a leak that spilled oil into a creek, a development that could harden the views of Native Americans, climate activists and other protesters camped ~200 miles away at the Dakota Access pipeline project worried that a leak there could contaminate the water supply.
- Many of the demonstrators say they are planning to stay at the Dakota Access site, despite a recent win against the building of the pipeline, the wishes of the chairman of the tribe that has led the protest and blizzard conditions.
- Meanwhile, the American Petroleum Institute and the MAIN Coalition, which represents entities that benefit from Midwest infrastructure projects, are calling on Pres.-elect Trump to pave the way for completion of the pipeline when he enters the White House.
- Relevant tickers include ETP, ETE, SXL.
Mon, Dec. 5, 2:27 PM
- Pres.-elect Trump supports completion of the Dakota Access pipeline, a Trump spokesperson says, a day after the Obama administration denied a permit needed to finish the project.
- Pipeline experts say Trump has several options once he takes office to enable the pipeline to proceed, including directing the Secretary of the Army to reinstate a previous permit for the reservoir crossing or issuing an executive order approving the pipeline: the Republican-led Congress, which reconvenes more than two weeks before the inauguration, also could get involved.
- But nearly any outcome delays completion until mid 2017, and ETP has said it expects to lose nearly $84M each month the pipeline is delayed, and that losing shippers could result in its cancellation.
- Some Trump advisors are devising ways to unlock energy resources on all Native American reservations, which cover just 2% of U.S. land but may contain ~20% of the country's oil and gas as well as vast coal reserves.
- Relevant tickers: ETP -1.7%, ETE -1.7%, SXL -1.4%, PSX +0.5%, MPC +0.3%, ENB +0.5%, EEP +0.6%.
Mon, Dec. 5, 9:55 AM
- Energy Transfer Partners (ETP -3.4%) and Sunoco Logistics Partners (SXL -3.5%) open lower after the U.S. Army Corps of Engineers refused a crucial permit needed for completion of their $3.7B Dakota Access pipeline project, which said the companies would need to consider alternative routes other than passing under Lake Oahe; also ETE -1.8%.
- In an angry statement, the companies say the decision is "a purely political action... the latest in a series of overt and transparent political actions by an administration which has abandoned the rule of law in favor of currying favor with a narrow and extreme political constituency."
- Analysts generally agree that a Trump administration eventually will approve the project but warn that investors should be aware of headline pressure on Dakota names including EOG Resources (EOG +1.8%), Marathon Oil (MRO +2.2%), Whiting Petroleum (WLL +2.4%), Continental Resources (CLR +1%) and Hess (HES +3.5%).
Fri, Dec. 2, 11:16 AM
- via Bloomberg
- The selloff following the deal for Sunoco Logistics (SXL +3%) to swallow Energy Transfer Partners (ETP +3.4%) is overdone, says analyst Elvira Scotto, boosting SXL to Outperform from Sector Perform.
- The proposed deal, says Scotto should improve the overall cost of capital, diversify business, and reduce cash outflows from distributions.
- Earlier this week, Baird's Ethan Bellamy said investors should buy ETP under "all" outcomes as the distribution cut is already priced in.
- ETE +1.35%
Tue, Nov. 29, 8:17 AM
- North Dakota's governor orders an "emergency evacuation" of thousands of protesters camped on federal property near the Dakota Access oil pipeline project, citing dangerous winter weather.
- The order, which Standing Rock Sioux Chairman Dave Archambault calls a "menacing action meant to cause fear," comes days after the U.S. Army Corps of Engineers, which manages the site, set a Dec. 5 deadline for the demonstrators to vacate their encampment.
- The National Weather Service has posted a storm warning for most of western and central North Dakota, forecasting the possibility of heavy snow through Wednesday.
- Relevant tickers: ETP, ETE, SXL
Mon, Nov. 28, 10:21 AM
- Dakota Access pipeline protesters say they will not leave the area where hundreds have camped for months, despite a U.S. Army Corps of Engineers directive that all federal lands north of the Cannonball River will be closed to public access Dec. 5 for "safety concerns."
- Several hundred protestors on Corps land in southern North Dakota have erected semi-permanent structures or brought motor homes and trailers in advance of the harsh winter; the Corps has said it would not evict the encampment, and Standing Rock Sioux tribal leader Dave Archambault says he does not believe the Corps would forcibly evict anyone.
- It's the federal government's job to peacefully close the camp because it allowed people to stay there in the first place, North Dakota Gov. Dalrymple says.
- Relevant tickers include ETP -2.3%, ETE -2.6%, SXL -2.5%.
Mon, Nov. 21, 5:47 PM
- Authorities are defending their decision to douse protesters with water during sub-freezing weather last night near the Dakota Access oil pipeline, and say they will not rule out doing it again if some of the protesters continue to throw objects including rocks, asphalt and water bottles at law enforcement officers.
- Protest organizers say at least 17 protesters were taken to the hospital, including some who were treated for hypothermia.
- Protesters massed against police today at a bridge near the protesters' main camp, but turned back at the request of Standing Rock Sioux elders after reports of firearms in the crowd.
- Relevant tickers include ETP, SXL, ETE.
Mon, Nov. 21, 3:18 PM
- Both Sunoco Logistics Partners (SXL -7.8%) and Energy Transfer Partners (ETP -7.9%) trade sharply lower on news of the plan for the much smaller SXL to purchase ETP that will result in a net implicit reduction in distribution yield for ETP unitholders.
- ETP investors will receive 1.5 units of SXL for each unit of ETP they own but their payouts will be reduced since SXL has a much lower dividend yield; CreditSights says the merger amounts to a “stealth distribution cut” that reduces the ETP cash payout by 29%.
- Bernstein Research notes CEO Kelcy Warren chose a path that protects Energy Transfer Equity (ETE +2.8%), the entity in the group of companies in which he holds more than 10% of shares outstanding.
- But analysts generally are pleased that the deal - if it is approved by unitholders - will simplify ETE's complex structure, which also includes Sunoco LP (SUN -3.6%) and PennTex Midstream Partners (PTXP +0.8%); Baird analyst Ethan Bellamy calls the deal "a major step in untangling... the most complex web of publicly traded partnerships."
- Seaport Global's Sunil Sibal calculates that the deal will lead to a distribution reduction of ~$1.22 per ETP unit, or $650M, but could turn out well in the long run, lowering the cost of capital through the Energy Transfer complex and positioning it for acquisitions as the industry continues to consolidate.
Mon, Nov. 21, 12:26 PM
- 52-week highs on 3x or more normal volume:
- Banco Santander Brasil (BSBR +5.8%) - now up 120% YTD
- Energy Transfer Equity (ETE +3.4%) - Energy Transfer Partners being acquired
- Arista Networks (ANET +6.1%)
- Hillenbrand (HI +1.3%)
- International Game Technology (IGT -4.3%) - strong results, but now reversing
- Lexmark International (LXK +0.5%)
- 52-week lows on just modestly higher than normal volume:
- CubeSmart (CUBE -0.9%)
- Extra Space Storage (EXR -0.9%)
- PLDT (PHI -1.9%)
- 58.com (WUBA -1%)
- Infosys (INFY)
- Novo Nordisk (NVO -0.5%)
- Grupo Televisa (TV -0.4%)
Mon, Nov. 21, 9:42 AM
- Sunoco Logistics Partners (SXL -1.6%) agrees to acquire Energy Transfer Partners (ETP -1%) in a unit-for-unit transaction.
- ETP unitholders will receive 1.5 common units of SXL for each common unit of ETP they own, which equates to a 10% premium to the volume weighted average pricing of ETP’s common units for the last 30 trading days.
- The companies say the combined partnership will offer increased scale and diversification across multiple producing basins and have greater opportunities to more closely integrate SXL's natural gas liquids business with ETP's natural gas gathering, processing and transportation business; the companies also anticipate more than $200M/year in commercial synergies and costs savings by 2019.
- Kelcy Warren, Chairman of parent company Energy Transfer Equity (ETE +10%), will be CEO of the combined company; ETE will continue to provide all incentive distribution right subsidies that are currently in effect for both partnerships.
Fri, Nov. 18, 3:39 PM
- Energy Transfer Partners (ETP +3%) CEO Kelcy Warren says the company will not consider rerouting its Dakota Access oil pipeline despite concerns from U.S. native groups, according to an AP interview.
- Warren says he would welcome the chance to meet with the head of the Standing Rock Sioux tribe to address concerns that the $3.8B pipeline would endanger drinking water and cultural sites, but says ETP has no alternative than to stick to its planned route.
- The 1,200-mile pipeline is largely complete except for a section that would pump oil under Lake Oahe, a Missouri River reservoir in southern North Dakota, and Warren says "we're going to cross the river at that location," calling it the "least impactful" site.
- Warren's latest remarks follow his recent NPR interview in which he expressed his determination to complete the project in spite of growing protests.
- Also: ETE +3.7%, SXL -2.5%.
Fri, Nov. 18, 11:22 AM
- The Army Corps of Engineers plans to "revise its regulations" to ensure more consultations with native groups as officials contemplate projects such as Energy Transfer Partners' (ETP +0.5%) Dakota Access crude oil pipeline.
- The proposed change, posted yesterday by the U.S. Office Information and Regulatory Affairs, comes in the form of an Advance Notice of Proposed Rulemaking, which states an agency's intention to issue a new regulation.
- The pending rule is being contemplated as the outgoing Obama administration decides whether to allow the Dakota Access pipeline; the new Trump presidency would have authority to invalidate many last-minute decisions from an outgoing administration.
- Also: ETE +1.9%, SXL -1.2%.
Thu, Nov. 17, 10:46 AM
- "We're building the pipeline" even if protests against construction of the Dakota Access pipeline continue, Energy Transfer Partners (ETP +0.7%) CEO Kelcy Warren tells NPR.
- "This is not a peaceful protest," Warren says. "So, if they want to stick around and continue to do what they’re doing, great, but we’re building the pipeline."
- On spill concerns, the CEO says, "We’re complying with all the laws, all the rules, and we’re over-designing. This pipeline is being built to safety standards that far exceed what the government requires us to do... the likelihood of a spill into Lake Oahe is just extremely remote."
- On complaints that construction is damaging sacred tribal sites, Warren calls the charges "complete lies... the Army Corps of Engineers concluded we have not damaged any historical sites."
- Also: ETE +0.8%, SXL +0.5%.
Mon, Nov. 14, 5:57 PM
- Energy Transfer Partners (NYSE:ETP) -1.2% AH on news that the Obama administration plans to extend its review before deciding on a permit for the $3.8B Dakota Access crude pipeline, further delaying work on a segment of the project that has been stalled since September.
- The U.S. Army Corps of Engineers says further talks are warranted given the importance of the lake to the Standing Rock Sioux Tribe, and that it will work with the tribe on a timeline “that allows for robust discussion and analysis to be completed expeditiously.”
- The setback likely will prove temporary, as the incoming Trump administration is expected to grant approval to finish the project.
- Other relevant tickers: SXL, ETE, PSX, MPC, ENB, EEP
Mon, Nov. 14, 1:48 PM
- Trump's victory has brightened optimism across the energy MLP space, and Credit Suisse's John Edwards updates his forecast across the Energy Transfer family to reflect Q3 results and other material events.
- The firm adds Equity Transfer Equity (ETE -0.9%) to its MLP Top Pick List and reiterates its Outperform rating and $20 price target, as it now expects project approval bottlenecks to break through and sees ETE's ~11% yield as an attractive entry point for long-term investors.
- Energy Transfer Partners (ETP +1.4%), also rated Outperform with a $50 price target, is "easily the biggest beneficiary of the election results," as construction on the final section of the Dakota Access pipeline beneath the Missouri River is finally expected to proceed.
- Sunoco Logistics Partners (SXL +0.3%), rated Neutral, has reported a quarter’s delay in the Mariner East 2 project, which is now scheduled to be placed in service in Q3 2017.
- Sunoco LP (SUN -2.5%) is reiterated Neutral, with Credit Suisse saying the margin outlook seems better than implied by guidance and management could revise its projections going ahead.