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Enterprise sees industry rebound; Enbridge to take Midcoast private


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Enterprise sees industry rebound; Enbridge to take Midcoast private

Enterprise execs see return to optimism for oil, gas industry in 2017

After enduring two difficult years, the U.S. oil and gas industry should experience a rebound in 2017, the CEO of Enterprise Products Partners LP's general partner said Jan. 30.

Speaking during Enterprise's fourth-quarter 2016 earnings call, A.J. "Jim" Teague said Enterprise's customers had gone from being hesitant to put out a capital budget in 2016 to expanding budgets in 2017.

Teague also said Enterprise is working to keep pace with expected growth in critical areas, including the Permian Basin. He noted the partnership had completed two cryogenic gas processing plants in the play last year, as well as an ethane export facility on the Houston Ship Channel.

Enbridge affiliate to acquire, take private Midcoast Energy for $170M

An Enbridge Inc. unit agreed to acquire all the outstanding common units of Midcoast Energy Partners LP for $170.2 million, resulting in its privatization.

Under the terms of the deal, Midcoast would no longer be a publicly traded company, and its assets would be privately held within the Enbridge family of companies, which is expected to cut costs and simplify Enbridge's corporate structure, CFO John Whelen said in a Jan. 27 news release.

An indirect subsidiary of Enbridge, Enbridge Energy Company Inc., will purchase Midcoast's units for $8 apiece, representing a 5.5% premium to the trailing 30-day volume-weighted average price of the common units as of Jan. 26.

Enbridge partnership shuffles capital structure as it weighs strategic options

As it continues its strategic review, Enbridge Energy Partners LP has launched three actions to help fund ongoing projects and improve cash flow, among them the recently announced deal to take Midcoast Energy Partners LP private.

"The objectives are to improve EEP's financial position and strengthening its future outlook," Mark Maki, principal executive officer of general partner Enbridge Energy Co. Inc., or EECI, said on a Jan. 27 conference call. "Together, these actions reduce short-term capital expenditure requirements and enhance EEP's cash flow."

The strategic review is expected to continue into the second quarter.

Potential record January drawdown in propane stocks pushes prices higher again

Data showing another sharp decline in propane inventories helped propel prices of the commodity through the week ended Jan. 27 to the highest levels since November 2014.

Lone Star pipeline grade propane at Mont Belvieu, Texas, rose 4.80 cents to trade at 79.70 cents per gallon in the week ended Jan. 27, while non-LST propane gained 4.15 cents to trade at 77.70 cents per gallon. Prices at the hub in Conway, Kan., advanced 5.00 cents and traded at 76.50 cents per gallon.

Azure Midstream Partners files for Chapter 11, may sell all assets

Azure Midstream Partners LP filed for Chapter 11 bankruptcy protection, which is expected to include a restructuring plan and the sale of all or substantially all of its assets.

The partnership struck an agreement with lenders under its Feb. 27, 2015, credit agreement and expects operations to continue as usual as it maintains enough liquidity to do so until the planned sale materializes, according to a Jan. 30 news release.

The partnership's parent company, Azure Midstream Energy LLC, is not involved in the Chapter 11 proceedings.