trending Market Intelligence /marketintelligence/en/news-insights/trending/6pxTZBtENCE4WplP2L274g2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Shell Midstream posts earnings decline, to buy stake in Permian gathering system

Essential Energy Insights - September, 2020

Bull market leaves US utilities behind in August

Rate case activity slips, COVID-19 proceedings remain at the forefront in August

Utilities, midstream reckon with energy transformation on the horizon


Shell Midstream posts earnings decline, to buy stake in Permian gathering system

Shell Midstream Partners LP on Aug. 3 reported $65.5 million of net income attributable to the partnership in the second quarter, falling from $70.8 million in the prior quarter. Limited partners' interest in net income came to $51.2 million, or 29 cents per unit, in the second quarter, down from $58.7 million, or 33 cents per unit, in the first quarter.

The S&P Capital IQ consensus normalized EPS estimate for the second quarter was 32 cents.

Adjusted EBITDA for the second quarter declined to $82.7 million from $86.6 million in the quarter ended March 31.

Cash available for distribution attributable to the partnership dropped to $88.7 million from $90.5 million in the prior quarter. Shell Midstream's distribution coverage ratio in the second quarter was 1.3x.

Among other factors, Shell Midstream's second-quarter results were affected by cash impact related to deferred revenue, translating to a $10 million reduction in cash available for distribution compared to the previous quarter.

Shell Midstream also agreed to exercise its option to acquire a 50% stake in the Nautilus gas gathering system from Crestwood Permian Basin Holdings LLC, a joint venture between Crestwood Equity Partners LP and First Reserve Corp., for $47.0 million.

Shell Midstream has a 20-year tiered, fixed-fee contract on the Nautilus system for gas gathering of majority of its operated Delaware Basin gas. "This is another example of diversifying our cash flow, building on an already robust onshore portfolio and linking directly to our Sponsor's footprint," said John Hollowell, CEO of Shell Midstream. "The Permian Basin is the most important asset in Shell's Unconventionals portfolio."

The deal is expected to close in the fourth quarter.