Duff & Phelps experts explore potential, perils of 2015 for sector.
Both DCP Midstream Partners and Enterprise Products Partners will spend prudently in 2015 as they rely on their current asset base to weather the price decline.
During the U.S. shale boom, companies in virtually all sectors of the OGC industry lacked a “cost culture,” according to a recent study by AlixPartners. If companies are to survive the current downturn in commodity prices, they will need to plan and manage their projects for greater capital productivity.
Headlines for Boardwalk this time last year were brutal, but that seems set to change.
Chevron Global Energy Inc. will sell its stake in refiner Caltex Australia Ltd., Business Wire said. Bloomberg said this marks Chevron’s exit from shale gas in Beach Energy’s Nappamerri Trough.
The pipeline transports condensate from DeWitt County, Texas, to the Port of Victoria. It handles about 50 Mbbl/d. The dropdown transaction’s total cost ranges between $210 million and $220 million.
After spending more than $5 billion in the Marcellus and buying assets from Statoil and WPX, the company plans to divest up to $800 million to overcome a cash flow gap.
Net proceeds are expected to total $793.8 million. They will repay outstanding commercial paper program amounts and support general partnership purposes.
Moda was formed in early 2015 and its four founding partners previously were members of the executive team at Oiltanking North America LLC and Oiltanking Partners LP.
On April 6, the proceeds will redeem US$700 million in long-term debt that matures in 2017 and CA$750 million in long-term debt that matures in 2018.
The notes are due 2021 and will be redeemed for cash on April 15.