Page 12 - NorthAmOil Week 49

NorthAmOil
NEWS IN BRIEF
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additional agreements with other third party midstream providers. Antero Resources also announced commencement of an asset sale programme targeting $750mn to $1bn in proceeds to be completed in 2020. The asset sale programme was initiated with a $100mn sale of AM shares to Antero Midstream. The amendment to the gathering agreement and the share repurchase with Antero Midstream were negotiated and recommended by the Conflicts Committees of Antero Midstream and Antero Resources and approved by both boards of directors.
ANTERO RESOURCES, December 09, 2019
Kinder Morgan announces 2020 financial expectations
Kinder Morgan, Inc. (KMI) today announced its preliminary financial projections for 2020. KMI remains committed to maintaining
a strong balance sheet, investing in
attractive projects, and returning value to its shareholders. Further, as was demonstrated with the sale of the TransMountain system
in 2018 and the pending sale of Kinder Morgan Canada Limited (KML) in 2019, KMI continues to consider attractive divestitures when they strengthen the balance sheet and improve shareholder value.
“With the expected close of Pembina’s acquisition of the Cochin pipeline and all of KML’s outstanding shares prior to the end
of 2019, we expect our year-end 2019 Net Debt-to-Adjusted EBITDA ratio to improve to 4.4 times, versus our long-term target
of approximately 4.5 times. We expect the ratio to further improve to 4.3 times in 2020. This is a nice improvement from our third quarter ratio of 4.7 times,” said Steve Kean, KMI chief executive officer. “In 2020, we expect to generate $5.1bn of distributable cash flow (DCF), which is an approximately 3%
increase over our current forecast for 2019 DCF. Our growth is a result of expansion projects coming online, built-in contract and tariff escalators, lower interest expense and improved realized prices in our CO2 business; which is partially offset by the full-year impact of the sale of Cochin and KML, the full-year impact of the rate settlements in our Natural Gas Pipelines segment, higher sustaining capital expenditures, and lower re-contracting rates on certain Natural Gas Pipeline
segment assets as well as on our crude and condensate assets. Our budget guidance assumes that the proceeds from the Pembina transactions will be used to pay down debt
– creating approximately $1.2bn of balance sheet/borrowing flexibility, representing the difference between the 4.3 times and the 4.5 times target for our Net Debt-to-Adjusted EBITDA,” continued Kean.
The balance sheet/borrowing flexibility provides KMI with attractive optionality. KMI can retain that financial flexibility or
use some or all of it to repurchase shares or invest in attractive projects. The company
will continue to make those choices based on shareholder value. For illustrative purposes only, using the $1.2bn for share repurchases or to invest in projects could increase the company’s DCF/share growth to 5 or 6%, respectively, assuming a full-year benefit from the repurchases or projects.
KINDER MORGAN, December 05, 2019
Energy Transfer and SemGroup announce successful completion of merger
Energy Transfer and SemGroup Corporation today announced the completion of their
previously announced merger, which resulted in the acquisition of Tulsa-based SemGroup by Dallas-based Energy Transfer. The terms of the agreement were approved by the holders of a majority of SemGroup’s outstanding voting stock at a special meeting of SemGroup stockholders on December 4, 2019. As a
result of the merger, Energy Transfer issued approximately 57.6mn of its common units to SemGroup stockholders.
Effective with the opening of the market today, SemGroup will cease to be a publicly traded company and its common stock will discontinue trading on the NYSE.
The combined operations of the two companies are expected to generate annual run-rate efficiencies of more than $170mn, consisting of commercial and operational synergies of $80mn, financial savings of $50mn and cost savings of $40mn.
Energy Transfer’s acquisition of SemGroup’s Houston Fuel Oil Terminal (HFOTCO) strengthens its crude oil transportation, terminalling and export capabilities, and provides Energy Transfer
a strategic position on the Houston Ship Channel. HFOTCO is a world-class crude
oil terminal with more than 18mn barrels of crude oil storage capacity, five deep-water ship docks and seven barge docks.
To provide shippers further access from the Houston Ship Channel to markets along the Gulf Coast, Energy Transfer is constructing the Ted Collins pipeline, a 75-mile crude
line that will connect HFOTCO to Energy Transfer’s Nederland terminal. The pipeline is expected to be in service in 2021, and will have an initial capacity of 500mn barrels per day.
This acquisition expands Energy Transfer’s pipeline footprint by adding crude oil and NGL gathering systems and transmission lines in the DJ Basin in Colorado and the Anadarko Basin in Oklahoma and Kansas with connections to crude oil terminals in Cushing, Oklahoma. The acquisition will also provide a significant natural gas gathering and processing presence in the Alberta Basin in Western Canada.
ENERGY TRANSFER, December 05, 2019
Tallgrass Energy
announces open season
for transportation on Pony
Express pipeline
Tallgrass Energy, through its affiliate Tallgrass Pony Express Pipeline, today announced
a binding open season soliciting shipper
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Week 49 11•December•2019