Weekly Wrap-Up: Last Week’s Key Midstream Sector Updates
By Rekha Khandelwal, CFAAug. 27 2018, Published 2:42 p.m. ET
EPD’s Pascagoula plant
On August 23, Enterprise Products Partners (EPD) announced an agreement with American Midstream Partners (AMID) providing the latter with the option to purchase a 25% stake in Enterprise Products’ Pascagoula gas processing plant.
The agreement requires American Midstream to modify certain facilities on its High Point pipeline system that will allow for the transportation of gas to the Pascagoula plant. The move comes after Enterprise Products and other owners decided to close a gas processing plant in Louisiana.
The proposed agreement optimizes the use of Enterprise Products’ processing assets in the Gulf Coast.
In an unrelated development, on August 24, Enterprise Products Partners disclosed the resignation of Bryan F. Bulawa as its CFO effective immediately. W. Randall Fowler has replaced him as the new CFO. Enterprise Products Partners stock rose 2.7% last week.
Sale of interest in BridgeTex Pipeline
On August 21, Plains All American Pipeline (PAA) and Magellan Midstream Partners (MMP) announced their joint sale of 50% interest in BridgeTex Pipeline to OMERS Infrastructure Management. PAA, MMP, and OMERS will hold 20%, 30%, and 50% stakes, respectively, in the pipeline after the transaction is over. Magellan Midstream Partners will continue to operate the pipeline. Plains All American stock rose 0.2%, whereas Magellan Midstream stock fell 0.9% last week.
