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Energy capital raises in 2017: Power sector bolsters YTD debt raises

This Data Dispatch will be updated throughout 2017 to tally capital offerings in the U.S. energy industry. Click here for a spreadsheet listing all energy capital offerings since Nov. 4, 2009.

The U.S. energy industry aggregate year-to-date capital raised reached $88.49 billion as of Sept. 29, according to S&P Global Market Intelligence data. The total comprises $67.97 billion of senior debt, $12.44 billion of common equity, $4.62 billion of subordinated debt, $2.98 billion of preferred equity and $480 million of trust preferred shares in 2017.

By sector, power companies have raised $50.08 billion of capital, midstream companies have raised $32.17 billion, gas utilities have raised $3.43 billion and the coal sector has raised $2.81 billion. Of the total common equity raises in 2017, energy companies raised $6.85 billion from 22 follow-on offerings, $2.12 billion from eight private-placement transactions, $1.84 billion from 47 at-the-market transactions, $1.06 billion from five "other" transactions and $570 million from four IPOs.

* Consumers Energy Co. on Sept. 28 sold $185 million of first mortgage bonds in a private placement. The CMS Energy Corp. subsidiary sold $40 million of 3.18% bonds due Sept. 28, 2032, $125 million of 3.52% bonds due Sept. 28, 2037, and $20 million of 3.86% bonds due Sept. 28, 2052. The company plans to use the sale proceeds to redeem $180 million of 6.875% senior notes due March 1, 2018, and for general corporate purposes.

* EQT Corp. on Sept. 27 sold $2.5 billion of senior notes and $500 million of senior floating-rate notes due Oct. 1, 2020, to help fund its pending $6.7 billion acquisition of Rice Energy Inc., other related expenses and for general corporate purposes. The offering consists of $500 million of 2.5% notes due Oct. 1, 2020, $750 million of 3% notes due Oct. 1, 2022, and $1.25 billion of 3.9% notes due Oct. 1, 2027. Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Merrill Lynch Pierce Fenner & Smith Inc. served as joint book-running managers, among others.

* Magellan Midstream Partners LP on Sept. 26 sold $500 million of its 4.20% senior unsecured notes due Oct. 3, 2047, to repay borrowings outstanding under its commercial paper program, with any remaining amount to be used for general partnership purposes. Barclays Capital Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC acted as joint book-running managers, among others.

* Oasis Midstream Partners LP on Sept. 20 sold $127.5 million of 7.5 million common units at $17 apiece. The partnership plans to use the proceeds to make a $113.9 million distribution to Oasis Petroleum, pay about $4.1 million of offering expenses and structuring fees and pay $1.9 million of origination fees and expenses related to its new revolving credit facility. Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and Wells Fargo Securities LLC served as joint book-running managers, among others.

* Georgia Power Co. on Sept. 18 sold $270 million of 5% series 2017A unsecured junior subordinated notes due Oct. 1, 2077. The Southern Co. subsidiary plans to use net proceeds to redeem all or a portion of 1.8 million shares of its 6.125% series class A preferred stock and 2.25 million shares of its 6.5% series 2007A preference stock and for general corporate purposes. Merrill Lynch Pierce Fenner & Smith Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC acted as joint book-running managers.

* National Fuel Gas Co. on Sept. 18 sold $300 million of its 3.95% senior unsecured notes due Sept. 15, 2027. The company plans to use the net proceeds for general corporate purposes, including repurchasing and/or redeeming all of its outstanding 6.50% senior notes due April 2018. Merrill Lynch Pierce Fenner & Smith Inc., U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC served as joint book-running managers

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