Wed, Jul. 22, 11:59 AM
- Cheap natural gas trapped in the northeast U.S. will be heading south by the end of the year, narrowing the premium for gas in the southeast to as little as $0.30/mmBtu from more than $1 vs. the northeast, analysts say.
- Pipeline expansions by Williams Cos. (WMB, WPZ), Kinder Morgan (NYSE:KMI) and Spectra Energy (SE, SEP) will carry shale gas from the Marcellus reservoir to southern states as early as Q4, closing the divide between the winners and losers of the U.S. shale revolution.
- Projects capable of carrying as much as 2.1B cf/day, or ~17% of southeast demand, are scheduled to begin service by the end of the year, and some of the shale gas will flow to Florida, where power plant demand for the fuel hit a record for April, up 13% Y/Y.
- ETFs: UNG, UGAZ, DGAZ, BOIL, GAZ, KOLD, UNL, DBE, DCNG, RJN, JJE, ONG, UBN
Wed, Jul. 15, 7:55 AM
- Canada's National Energy Board orders Spectra Energy (NYSE:SE) to correct a series of "management system failures" following more than two dozen safety and security incidents at its Canadian plants and facilities since 2014.
- The regulator outlines several concerns and asks SE to fix problems at its Westcoast Energy processing plants in western Canada, and says more sanctions could follow if the company is unable to abide by the order.
- The order says SE violated regulations, related to issues such as inadequate inspection and testing of material handling equipment, 27 times since April 2014.
Wed, Jul. 8, 12:50 PM
Wed, May 6, 2:48 PM
- Spectra Energy (SE -1.4%) drifts lower after Q1 earnings and revenues both miss analyst estimates, hurt by the downturn in energy prices and the weaker Canadian dollar, even as the company said it exceeded its expectations for adjusted profit and cash generation.
- Spectra Energy Partners, the company's largest business, reported a 6% rise in EBITDA to $455M, driven by increased earnings from expansion projects and higher volumes at its Sand Hills natural gas pipeline.
- Q1 revenues at SE's Western Canada Transmission business, which accounted for nearly 25% of the company's overall profit last year, plunged 35% largely due to currency fluctuations and lower oil; EBITDA in the segment fell 32% to $161M.
- Q1 EBITDA in the distribution business fell 15% Y/Y to $192M, also mostly because of the weaker Canadian currency.
- SE's field services segment swung to a $14M loss from a year-earlier profit of $130M, attributed to lower commodity prices and a decrease in gains associated with the issuance of partnership units by DCP Midstream Partners.
Wed, May 6, 11:53 AM
- Duke Energy (NYSE:DUK) acquires a 7.5% ownership stake in the proposed $3B Sabal Trail natural gas pipeline that will traverse Georgia, Alabama and Florida.
- DUK plans to invest ~$225M in the 500-mile underground pipeline that will have the capacity to deliver 1.1B cf/day of natural gas per day to the southeast U.S. market.
- DUK gained its ownership share from Spectra Energy (NYSE:SE), which will own 59.5% of the project, the other partner, NextEra Energy (NYSE:NEE), owns 33%.
- The pipeline, scheduled to begin service in 2017, requires federal and other regulatory approvals.
Wed, May 6, 6:31 AM
Tue, May 5, 5:30 PM
- ANSS, ARQL, ATHM, AVA, AYR, BAM, BUD, CEQP, CHH, CHK, CKSW, CLH, CMLP, CRNT, CRZO, CSTE, DAVE, DDD, DNR, EE, EGAN, ENB, EXK, GDP, GLOG, HAIN, HCLP, HFC, HSC, HSNI, HTA, IMN, INFI, KELYA, LAMR, LG, LINC, MEMP, MPO, MSI, MWE, NOR, NXTM, OXY, PERI, PGNX, POWR, RDC, RHP, SBGI, SCMP, SE, SNH, SODA, STRA, SUP, SWC, TMHC, TRXC, VG, VOYA, VSI, WCG, WD, WEN, WIX, WMC, WPX, XLS, XRAY
Tue, Apr. 28, 7:37 AM
Fri, Mar. 27, 2:31 PM
- The FERC directs the partnership behind the Nexus natural gas pipeline proposed for northeast Ohio to investigate an alternative route that would relocate the $2B project to less populated areas.
- The agency's move comes a day after the city of Green proposed moving 103 miles of the pipeline through the Akron-Canton area to locations that would conflict less with residential areas.
- Nexus, a partnership of Spectra Energy (SE, SEP) and DTE Energy (NYSE:DTE), would transport as much as 2B cf/day of gas from the Utica Shale formations in eastern Ohio.
Tue, Mar. 17, 10:58 AM
- The Keystone pipeline disappointment is hardly a death knell for TransCanada (NYSE:TRP), as the company remains one of the top holdings in Skip Aylesworth’s Hennessy Gas Utility fund, which climbed 21% last year as distribution gains trumped price drops.
- TRP is "a fine, healthy company and, yes, this is a hiccup, and they would love to see Keystone happen, but it is just a part of their business," Aylesworth tells Barron's.
- Of one Aylesworth's favorite energy investments actually is Berkshire Hathaway (BRK.A, BRK.B), which is heavily involved in the distribution of natural gas and owner of Burlington Northern, which is exploring using natural gas to fuel long-distance freight trains.
- Other favorites: ENB, WMB, LNG, NJR, KMI, SE
Tue, Feb. 24, 3:43 PM
- Morgan Stanley’s (NYSE:MS) infrastructure arm has begun seeking bids for natural gas pipeline operator Southern Star Central, Bloomberg reports.
- MS reportedly has sent offering documents to potential bidders including Tallgrass Energy Partners (NYSE:TEP) and TransCanada (NYSE:TRP), and is said to be soliciting bids from operators of gas pipelines including Williams Cos. (WMB, WPZ), Spectra Energy (NYSE:SE) and Boardwalk Pipeline Partners (NYSE:BWP), as well as other infrastructure investors such as Macquarie (NYSE:MIC).
- Southern Star operates 6K miles of natural gas pipelines in the midwestern U.S., and is valued at as much as $1.5B.
Thu, Feb. 5, 6:10 PM
- Spectra Energy (NYSE:SE) climbed 4.4% today after raising its projection for 2015 net income growth by a full percentage point over its prior forecast to a new range of 9%-10% above 2014 levels.
- SE also said it continues to expect to distribute ~$1.2B to unitholders this year despite the slide in energy prices, increasing the annual dividend by $0.14/share.
- Spectra Energy Partners (NYSE:SEP) sees distributable cash flow in 2015 of $1.1B, distribution increases of 8%/year through 2017, and a compound annual growth rate of 12.7% through 2017.
Wed, Feb. 4, 10:49 AM
- Spectra Energy (SE -0.9%) is lower after reporting better than expected Q4 earnings, with growth in its western Canada transmission business helping offset plant turnarounds, the weaker Canadian dollar and falling gas prices.
- SE says its distributable cash flow was flat at $316M at year-end 2014 compared to $315M in the prior year.
- SE enjoyed a boost from its Canadian business, where earnings rose to $250M vs. $215M a year ago, as the business gained from its hedges as well as gathering and processing revenues.
- Reported an $18M Q4 loss in its field services division compared to the previous years’ $72M gain, with the loss primarily due to lower commodity prices and asset transfers to DCP Midstream, of which SE splits 50-50 ownership with Phillips 66.
- Meanwhile, Spectra Energy Partners (SEP -1.5%) reported EBITDA of $444M, up from $368M a year earlier, with distributable cash flow of $245M, vs. $120M in the prior-year quarter.
Wed, Feb. 4, 6:33 AM
Tue, Feb. 3, 5:30 PM
Thu, Jan. 22, 4:55 PM
- Spectra Energy (NYSE:SE) and Spectra Energy (NYSE:SEP) Partners agree to acquire from ConocoPhillips (NYSE:COP) all equity interest in the Brazoria Interconnector Gas Pipeline.
- The BIG Pipeline will be a component of the Stratton Ridge Project, an expansion project of the Texas Eastern Transmission pipeline system to deliver up to 400K dka/day of natural gas.
- The project has an expected cap of $200M and is anticipated to be in service by Q1 2019.
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