Tue, Jan. 27, 12:24 PM
- Analysts say Energy Transfer Partners (ETP -1.4%) $11B deal to consolidate its Regency Energy Partners (NYSE:RGP) unit under one roof could be a harbinger of more M&A action to come for energy companies whose balance sheets are being strained by cheap crude oil prices.
- Pipelines, processing units and storage tanks have retained their value better than drilling acreage and equipment, prompting some producers to put their pipes up for sale to raise cash needed to prop up drilling operations and resulting in plenty of buying opportunities for companies seeking to expand their reach or fill in blank spots in their networks.
- Buckeye Partners (NYSE:BPL), NuStar Energy (NYSE:NS) and World Point Terminals (NYSE:WPT) are considered attractive candidates for large pipeline owners able to do deals now, some analysts say, because almost all of their cash flow comes from contracted fees that do not change with commodity prices.
Mon, Jan. 26, 9:29 AM
Mon, Jan. 26, 9:15 AM
- Energy Transfer Partners (NYSE:ETP) agrees to acquire Regency Energy Partners (NYSE:RGP) for ~$18B, including the assumption of $6.8B in debt.
- RGP unitholders will receive 0.4066 ETP common units and $0.32/unit, implying an all-in price for RGP of $26.89/unit, representing a ~13% premium to RGP's Friday closing price.
- The merger bringing together two companies both controlled by parent company Energy Transfer Equity (NYSE:ETE) would make ETP the second largest MLP, with operations in substantially all major producing areas in the U.S.,
- RGP +13.4% premarket.
Wed, Jan. 21, 6:20 PM
- The energy analyst team at Credit Suisse today cut price targets on 10 top MLPs even while upgrading Energy Transfer Partners, expecting the group to remain broadly under pressure in the near term until crude oil prices find a floor and despite positive valuation indicators based on yield spreads.
- Credit Suisse expects crude to bottom some time later in Q1, most likely in March as refineries are in full turnaround season, undercutting crude oil demand; the debate is how long crude takes to rebound off the lows.
- The firm applied price target cuts for BBEP, DPM, ENLC, [ETP, [EVEP]], MWE, MEP, NGLS, TRGP and RGP.
Wed, Jan. 21, 11:23 AM
- Energy Transfer Partners (ETP +2.2%) is upgraded to Outperform from Neutral with a $77 price target at Credit Suisse, which believes the recent softness and volatility in the stock due to the depressed commodity price environment has created a solid buying opportunity.
- The firm sees a lot to like about the name, with the bulk of ETP's exposure on the natural gas side, some internal hedges to lower crude prices with the retail marketing part of the business, as well as the upcoming drops to SUN to help fund a bulk of capex spending ahead.
Dec. 31, 2014, 2:48 AM
- The U.S. Bureau of Industry and Security said it will allow companies to sell oil condensate that has been processed through a basic distillation tower, giving them a green light for export without violating a four decade old ban.
- The agency also published a list of answers to common questions about crude exports, providing guidelines for the first time on an area that has been blanketed in confusion, although many are saying there is still a lot of room for interpretation.
- Previously: U.S. gives silent okay to condensate exports (Dec. 30 2014)
- Related tickers: PXD, EPD, BHP, PSX, KMI, ETP, RGP, CVX
Dec. 30, 2014, 8:13 AM
- The U.S. Commerce Department is telling some oil companies that they should consider exporting condensate without formal permission, Reuters reports.
- Officials familiar with the law said the agency's discussions did not represent a change in policy since self-classification is allowed under U.S. export controls.
- Despite the policy, Pioneer Natural Resources (NYSE:PXD) and Enterprise Products Partners (NYSE:EPD) obtained explicit permission from the agency to export in June, while last month BHP Billiton (NYSE:BHP) became the first company to announce that it would export condensate without authorization from the government.
- Related tickers: PSX, KMI, ETP, RGP, CVX
Dec. 17, 2014, 11:55 AM
- The fundamentals underlying oil and gas pipeline MLPs have fallen much less than energy stocks in recent days, acording to Forbes' John Dobosz, who suggests seeking out MLPs with a long history of rising distributions, payouts well covered by cash flow, a strong balance sheet and an investment-grade credit rating.
- Two MLPs that fit these criteria, Dobosz writes, are Enterprise Products Partners (EPD +3.2%) and Magellan Midstream Partners (MMP +3.9%); he also likes Sunoco Logistics Partners (SXL +5.2%), which is expected to increase revenue 15% to $22B in 2015, with EBITDA rising 20% and distributions growing 18% this year.
- Spectra Energy Partners (SEP +2.3%), Western Gas Partners (WES +2.7%) and Energy Transfer Partners (ETP +2.4%) are appealing because of consistently rising distributions and revenues, Dobosz adds.
Dec. 4, 2014, 11:59 AM
- Energy Transfer Partners (ETP -0.3%) is upgraded to Outperform from Neutral with a $77 price target, up from $65, at Baird, which cites progress made at the partnership and beating the firm's estimates for three straight quarters.
- After another mega-model rebuild, Baird revises forecasts and valuations for the Energy Transfer family of partnerships - ETP, ETE, RGP, SUN and SXL - with SXL likely boasting the best fundamentals tailwinds with a return to crude oil contango.
Dec. 2, 2014, 7:21 PM
- A fresh report this week from BofA Merrill Lynch’s MLP team highlights which MLPs may be mostly insulated from the carnage in oil prices, as long as the situation does not deteriorate further: Enterprise Products (NYSE:EPD), Magellan Midstream (NYSE:MMP), Buckeye Pipeline ([BPL), Energy Transfer (NYSE:ETP), Plains All American (NYSE:PAA), and - even though it is now a corporation rather than a parent of three MLP entities - Kinder Morgan (NYSE:KMI).
- The firm considers these MLPs as relatively lower-risk because of their diverse asset bases, investment grade balance sheets, low direct commodity sensitivity, seasoned management teams and solid organic growth outlook.
Nov. 28, 2014, 10:20 AM| 17 Comments
Nov. 18, 2014, 10:58 AM
- Energy Transfer Partners (ETP +0.7%) agrees to acquire a 45% interest in the Bakken pipeline project from Energy Transfer Equity (ETE +3.5%) via an asset swap the companies value at ~$3.75B, according to an SEC filing.
- The deal will increase ETP’s stake in the Bakken pipeline to 75% from 30%; ETP also plans to retire 30.8M of its common units currently held by ETE, which will reduce ETP’s outstanding units to ~322M, reducing its quarterly distributions and incentive distribution obligations to ETE.
- ETE will receive additional Class H units that will entitle it to receive 90% of the underlying economics of the general partner interest and incentive distribution rights of Sunoco Logistics Partners (NYSE:SXL); ETE says the deal also is part of its long-term strategy to become a pure-play general partner.
Nov. 17, 2014, 8:57 AM
- Energy Transfer Partners (NYSE:ETP) and Regency Energy Partners (NYSE:RGP) say their Lone Star NGL joint venture will construct a 533-mile natural gas liquids pipeline from the Permian Basin to Mont Belvieu, Tex., and convert Lone Star's existing West Texas NGL pipeline into crude oil/condensate service.
- The new pipeline and conversion projects are estimated to cost $1.5B-$1.8B, and are expected to be operational by Q3 of 2016 and Q1 of 2017, respectively.
- The new pipeline is being built to accommodate Lone Star's contracted NGL transportation volumes that will exceed Lone Star's existing 290K bbl/day of capacity from the Permian Basin by 2016.
Nov. 5, 2014, 5:22 PM| 2 Comments
Nov. 5, 2014, 4:57 PM
- Energy Transfer Partners (NYSE:ETP) says it has begun construction on two new cryogenic gas processing plants and additional gas gathering pipelines in the growing Eagle Ford and Eaglebine production areas in Texas.
- ETP estimates the new East Texas Plant, REM Eagle Ford Plant II and Volunteer pipeline projects will cost a combined $375M-$410M, and will add to its strong presence in an area where it already has spent more than $3B on pipelines, plants and associated infrastructure.
- Also, ETP and Regency Energy Partners (NYSE:RGP) say their Lone Star NGL joint venture will construct a third 100K bbl/day natural gas liquids fractionation facility at Mont Belvieu, Tex., for an estimated cost of $420M-$430M.
- The fractionator is fully subscribed by multiple long-term contracts, and is scheduled to be operational by year-end 2015.
Nov. 4, 2014, 5:35 PM
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