HollyFrontier Corp.’s (HFC) aim is simple: get higher values at the bottom of the barrel.
A pair of deals is the latest step in incrementally upping the company’s take home pay.
Affiliate Holly Energy Partners LP (HEP) said Sept. 3 it has acquired a 50% interest in Frontier Pipeline Co., owner of the Frontier Pipeline of Wyoming, from an affiliate of Enbridge Inc. (ENB).
HollyFrontier also executed a dropdown to Holly Energy that gives it a stake in a refinery locked in with Cushing, Okla.
The Frontier Pipeline Co. will continue to be operated by an affiliate of MLP Plains All American Pipeline LP (PAA), which owns the remaining 50% interest.
The 296-mile crude oil line runs from Casper, Wyo., to Frontier Station, Utah. It has a 72,000 barrel per day (bbl/d) capacity. The line supplies Canadian and Rocky Mountain crudes to Salt Lake City area refiners through a connection
Enbridge Pipelines Inc. and Enbridge Pipelines Athabasca Inc. comprised the business. An indirect subsidiary of the fund acquired the business for CA$30.4 billion and incentive/performance rights.
About 1,000 miles of low- and high-pressure natural gas gathering pipelines and a cryogenic processing plant will serve Martin, Midland and Glasscock counties, Texas. Private-equity firm Warburg Pincus financed transaction.
Canexus Corp.’s North American Terminal Operations crude-by-rail transloading facility has connections to Cold Lake and Access crude oil pipeline systems, and links to Canadian Pacific and Canadian National rail lines.
The Tulsa, Okla.-based company is working to quickly reduce debt just two weeks after closing its $2.75 billion acquisition of privately held RKI Exploration & Production LLC.
The US$907 million sale to North Sea Midstream Partners, an ArcLight Capital affiliate, includes the Frigg U.K. and SIRGE gas pipelines and the St. Fergus gas terminal, Reuters said.
Schlumberger Ltd. (NYSE: SLB) and Cameron (NYSE: CAM) have reached a definitive merger agreement in which the companies will combine in a stock and cash transaction, the companies said in a joint statement.
The deal is valued at $14.8 billion. The agreement was unanimously approved by the boards of directors of both companies.
“This agreement with Cameron opens new and broader opportunities for Schlumberger. At our investor conference in June 2014, we highlighted how the E&P industry must transform to deliver increased performance at a time of range-bound commodity prices,” Schlumberger CEO Paal Kibsgaard said. "With oil prices now at lower levels, oilfield services companies that deliver innovative technology and greater integration while improving efficiency, which our customers increasingly demand, will outperform the market.
Under the terms of the agreement, Cameron shareholders will receive 0.716 shares of Schlumberger common stock and a cash payment of $14.44 in exchange for each Cameron share, the release said.
After a decade in the Haynesville, the company shifted from natural gas to a broader asset base that included liquids. The company also gains relief from obligations to its midstream assets.
Magnum Hunter, which has struggled with weak gas prices, said in June that it expected to raise up to $700 million by selling its stake in Eureka Hunter, Reuters reported.
AGL is planning to spend $670 million on interstate pipeline construction projects, including infrastructure from the Marcellus and Utica and that could grow volumes moving to the Southeast, Midcontinent and Eastern Canada.
Denver-based Evolution was launched in July and provides greenfield and strategic acquisition solutions to operators in the Rockies, Bakken Shale, Permian Basin, Midcontinent and Appalachia.
The combined company will operate nearly 200,000 miles of electric lines and more than 80,000 miles of gas pipelines. The deal is valued at about $12 billion, Reuters said.