Energy Transfer Partners, L.P.NYSE
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%
Wed, Nov. 30, 9:50 AM
- Shares of energy companies surge at the open, as hopes for an OPEC deal to cut production send crude oil futures soaring.
- Reports say Saudi Arabia is prepared to accept "a big hit" to production and agree to Iran freezing output at pre-sanctions levels.
- In early trading: XOM +2.2%, CVX +2.3%, RDS.A +3.6%, BP +3.4%, TOT +1.7%, STO +5.1%, PBR +8.1%, COP +7.2%, MRO +12.1%, APC +8%, DVN +12.7%, HES +9.5%, ENB +2.1%, PSX +0.8%, SLB +4.2%, HAL +8.3%, BHI +4.3%, KMI +4.8%, EPD +2.7%, ETP +3.8%, WMB +5.4%, RIG +11.3%, SE +2.2%, CHK +9.4%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, PXI, FIF, PXJ, RYE, NDP, GUSH, PSCE, DRIP, DDG, FXN, CRAK
Tue, Nov. 29, 10:20 AM
- Crude oil continues to slide - WTI now -3.8% at $45.27/bbl, and Brent -3.8% at $46.40/bbl - dragging oil and gas equities (XLE -2.1%) down with it.
- Iran's oil minister says he is not prepared to reduce supply, and Saudi Arabia says it would not participate in a production deal without Iran and Iraq.
- Reuters reports that Iran has written to OPEC saying Saudi Arabia needs to cut oil output to 9.5M bbl/day; Saudi has said it was prepared to reduce its production only by 500K bbl/day from current levels of 10.5M.
- In early trading: XOM -1%, CVX -1.7%, RDS.A -1.4%, BP -1%, TOT -0.3%, STO -1.8%, PBR -3.7%, COP -2.9%, MRO -4%, APC -2.8%, DVN -2.7%, HES -3.6%, ENB -2.3%, PSX -1.2%, MPC -0.8%, SLB -2.2%, HAL -2.3%, BHI -2.1%, KMI -1.4%, EPD -2%, ETP -2.2%, WMB -2.4%, SE -2.3%, CHK -2.6%.
- ETFs: XLE, VDE, ERX, OIH, XOP, FCG, ERY, GASL, DIG, DUG, BGR, XES, IYE, IEO, FENY, IEZ, PXE, GASX, FIF, PXJ, RYE, NDP, GUSH, DRIP, DDG, FXN, CRAK
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%.
Tue, Nov. 22, 3:18 PM
- Energy Transfer Partners (ETP -3%) and Sunoco Logistics Partners (SXL -2.7%) are lower for a second straight session following yesterday's unit-for-unit merger deal (I, II), while Enbridge Energy Partners (EEP +2.8%) rises for a third consecutive day.
- Stifel downgrades ETP to Hold from Buy with a $37 price target, trimmed from $48, as the firm sees little upside at current valuations given that units now effectively track movements in the price of SXL, which the firm reiterates at Hold with a $24 target, cut from $29.
- Tudor Pickering says it would be buyers of SXL “despite investor fears of a forced SXL takeout bid materializing,” and adds that the deal cuts yield for ETP unitholders in exchange for no premium takeout, while SXL owners “have their asset base diluted to shore up ETP’s unsustainable payout."
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, 2:01 PM
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, 7:21 PM
- TransCanada’s (NYSE:TRP) decision this week to end plans for lower tolls on its gas pipeline to eastern Canada means less supply will head there from the country’s western reservoirs, opening the door for U.S. explorers to edge out Canadian competitors and ship more gas north of the border, Bloomberg reports.
- Drillers in the Marcellus Shale are now poised to expand their reach in Canada’s population centers, and Evercore ISI analysts say Antero Resources (NYSE:AR), Rice Energy (NYSE:RICE) and Gulfport Energy (NASDAQ:GPOR) stand to benefit the most from TRP's move.
- TRP said its decision was forced by a lack of interest from western Canadian producers, but it raises the odds that the proposed Nexus pipeline, developed by Spectra Energy (NYSE:SE) and DTE Energy (NYSE:DTE), or the Rover project led by Energy Transfer Partners (NYSE:ETP), will allow Marcellus gas to displace Canadian supplies, GMP FirstEnergy's Martin King says.
- While some western Canadian producers are banking on a better pipeline deal from TRP, that offer may never come, says one natural gas consultant.
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%.
Tue, Nov. 15, 2:57 PM
- Energy Transfer Partners (ETP -0.5%) and its Sunoco Logistics Partners (SXL -0.4%) subsidiary file papers in U.S. district court in Washington, D.C. seeking declaratory relief to "end the Administration's political interference in the Dakota Access Pipeline review process," and noting government delays already have cost more than $100M.
- The companies are seeking an easement to tunnel under Lake Oahe, the water source at the heart of accelerating protests against the pipeline, but yesterday the U.S. Army Corps of Engineers again delayed approval, saying it plans to get more input from the Standing Rock Sioux in light of the tribe repeatedly being "dispossessed" from its lands in the past.
- More protests against the pipeline are taking place taking outside Army Corps offices and major banks financing construction of the pipeline, such as TD Bank and Citigroup; police used mace and arrested several protesters in Cannon Ball, N.D., near the path of the pipeline.
- Analysts still expect the pipeline to be completed, but "what is less clear is the startup date, and the exact routes," says an analyst at Wood MacKenzie.
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