A wave of cheap money chasing deals is taking the pressure to divest midstream assets off of upstream operators, while making deals more challenging.
The downturn is forcing change—for the better.
Thanks in part to low energy prices, an ongoing expansion could be one of the longest on record, Morgan Stanley’s chief U.S. economist says.
Duff & Phelps experts explore potential, perils of 2015 for sector.
Commercially operable Joliet Terminal can unload about 85,000 barrels per day of crude oil. There are about 300,000 barrels of onsite storage, and connections to common carrier crude oil pipeline.
Shell Midstream Partners LP will acquire additional interests in Zydeco Pipeline Co. LLC and Colonial Pipeline Co. for $448 million in a dropdown from Shell Pipeline Co. LP.
China’s government might spin biggest oil companies’ pipelines into separate businesses, people with knowledge of private matter told Bloomberg. An analyst said the assets could be worth US$300 billion.
Combined midstream operations will include the Marcellus, Utica, Eagle Ford, Haynesville, Barnett, Midcontinent and Niobrara. It’s anticipated to be one of the largest, high-dividend paying C-Corps in the energy sector.
While M&A activity has slowed in the energy sector, private equity is finding new ways to invest until it picks up again.
Notes will be issued in separate series. Net proceeds will pay about $1.02 billion in intercompany debt between Columbia and parent company NiSource Inc., and dividend concerning Columbia’s planned separation.
Financial terms of the joint venture were not disclosed, but KKR will provide equity. Monterra will own, develop, build and operate midstream infrastructure through greenfield and brownfield projects and assets.
Proceeds will be used to repay amounts borrowed under its revolving credit facility and for general partnership purposes.