Takeaway capacity in Appalachia As we’ve learned so far in this series, rising natural gas production in the Appalachian region has created the need for new midstream infrastructure, including natural gas processing plants (see the previous article) and pipelines. Several new pipeline projects are being developed to increase takeaway capacities from the Marcellus and Utica supply […]
On January 27, 2017, Midcoast Energy Partners (MEP) announced an agreement with Enbridge Energy (EECI), an indirect wholly-owned subsidiary of Enbridge (ENB).
DCP Midstream Partners (DPM) and DCP Midstream LLC announced a simplification of their organizational structures. The combined partnership would have an enterprise value of ~$11 billion.
On September 6, 2016, Enbridge (ENB) and Spectra Energy (SE) announced a stock-for-stock merger agreement, which values Spectra Energy common stock at $28 billion.
Spectra Energy’s debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio of 6.8x ratio remained stable in 2Q16 compared to 1Q16.
SEP’s 4Q15 EBITDA growth mainly came from expansion projects in its natural gas transmission business. These projects should continue to contribute to the segment’s EBITDA in 1Q16.
In 2015, non-utility operations contributed nearly 40% to DTE Energy’s (DTE) operating revenues. This is expected to increase due to DTE’s aggressive focus on its midstream segment.
Compared to crude oil, natural gas prices seem to have a lesser impact on the selected midstream stock prices, even though many of them have significant natural gas operations.
On February 24, 2016, the EIA (U.S. Energy Information Administration) reported that the US distillate inventory fell by 1.7 MMbbls (million barrels) to 160.7 MMbbls for the week ending February 19, 2016.
Of analysts surveyed by Bloomberg, 40% rated ONEOK (OKE) a “buy,” 47% rated it a “hold,” and 13% rated it a “sell.” The consensus target price for ONEOK in one year is $28.10.
ONEOK Partners’ (OKS) EBITDA growth in 4Q15 was driven by increased NGL (natural gas liquids) gathering and fractionating volumes from recently connected natural gas processing plants.
The EIA reported that Cushing crude oil stocks rose by 523,000 barrels to 64.7 MMbbls for the week ending February 5, 2016—the highest number since April 2004.
The midstream Kinder Morgan trades 39% below its 100-day moving average. During the last rate hike in December 2015, KMI traded in the range of $15 to $16.
As of January 26, midstream giants Kinder Morgan and Williams Companies were trading 36.2% and 40.1%, respectively, below their 100-day moving averages.
Spectra Energy Partners’ debt-to-equity ratio has remained below 1 over the last two years. A ratio of below 1 is considered pretty conservative for MLPs.
Spectra Energy Partners manages its business through its US Transmission and Liquids segments. Its US Transmission segment contributes nearly 85% of EBITDA.
Columbia Pipeline Group has reaffirmed its 2015 targets in its 2Q15 and 3Q15 earnings releases—its only earnings releases since separating from NiSource.
Despite a decrease in the last two quarters, ONEOK’s (OKE) debt-to-equity ratio is still 2.2x. It had a total outstanding debt of $8.7 billion at the end of 3Q15.
ONEOK’s cash flow available for dividends for the nine months ended September 30, 2015, is $474.7 million. So it’s on track to meet its guidance for cash flow available for dividends.
One factor impacting Spectra Energy’s stock price is the value of the Canadian dollar. Nearly 60% of SE’s 2014 revenues came from its Canadian operations.
Spectra Energy’s performance in 2015 up to the third quarter is in-line with the guidance for the year provided in the company’s February analyst meeting.
What should fixed income investors do today? Generally, widening spreads provide a buying opportunity for investors, because spreads widen when yield of a security rises.
According to data from the U.S. Energy Information Administration, US crude production dropped to 9.4 million barrels per day in the week ended July 24.
The storage and transportation subsector within XLE rose by 0.66% during the week. Spectra Energy (SE) and Kinder Morgan (KMI) were the best and worst performers, respectively, in this subsector.
Kinder Morgan expects higher oil and gas prices in 2015. Its crude oil and natural gas estimates are 27% and 47% higher than current prices, respectively.
DCP Midstream’s 4Q14 earnings fell short of estimates by 6% in adjusted revenues. But adjusted revenues exceeded consensus revenues by 3% in ten quarters.
Kinder Morgan (KMI) is one of the largest independent operators of liquids terminals in the US. Its terminals are located throughout the US and in some parts of Canada.
Kinder Morgan (KMI), a Houston-based energy company, is one of the largest midstream operators and energy infrastructure companies in the United States.
From 4Q13 to 4Q14, EBITDA jumped for Spectra Energy Partners and the Western Canada Transmission & Processing segments. But, Field Services recorded a loss.
A drop in crude oil price reduces upstream oil companies’ revenues. Some companies have reduced their capex (capital expenditures) budgets in response.
Spectra Energy is a Texas-based midstream energy company that deals in natural gas gathering and processing, transmission and storage, and distribution.
The NGL Pipelines & Services segment’s revenues fell 4.8% to $4.02 billion in 3Q14—from $4.23 billion recorded last year. However, operating profit increased 11.3% to $711.5 million.
Williams Companies (WMB) has $30 billion in total committed and potential capital investments in Williams Partners (or WPZ) and Access Midstream Partners (or ACMP).
Williams Companies Inc. (WMB) engages in the energy transport and processing infrastructure business. WMB’s assets are mainly located in the U.S. However, it has operations in Canada.
Williams Companies (WMB) released its 3Q14 earnings on October 29, 2014. Between 3Q12 and 3Q14, WMB’s adjusted earnings per share (or EPS) decreased ~40%.
Recently, Dominion (D) completed the initial public offering (or IPO) of its master limited partnership (or MLP). It offered 17.5 million MLP shares at $21 per stock.
EPCO, or Enterprise Products Company, is the general partner of Enterprise Products Partners (EPD). It also owns 35.3% of EPD’s limited partner interests
Williams Companies’ (WMB) NGL & Petchem Services segment consists primarily of Canadian midstream operations and certain domestic olefins pipeline assets.
Williams Companies Inc. (WMB) is in the business of energy transport and processing infrastructure. Its diversified operations include interstate gas pipelines, local midstream operations, and olefins production.
Spectra Energy Corp. (SE) was borne out of Duke Energy Corporation (DUK), which is an energy utility firm, forming Spectra Energy Partners (SEP) in 2007.
Spectra Energy Corp. (SE), headquartered in Houston, Texas, owns and operates a large and diversified portfolio of natural gas–related assets in North America.
