Columbia Pipeline Group

Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | TC Energy/TransCanada

Columbia Pipeline’s Top Leadership Quits After Sale to TransCanada
July 5, 2016July 5, 2016

Last Friday MDN told you that TransCanada completed its $10 billion purchase of Columbia Pipeline Group (see TransCanada and Columbia Pipeline Tie the Knot Today). Promptly following the deal’s close, most of Columbia’s top management, including the CEO, president, executive vice president/chief financial officer and the company’s top lawyer quit. Although the announcement doesn’t say, we suspect they had golden parachutes of some kind. Given the timing of the announcement, immediately following the deal’s closing, it was no doubt in the works for months…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | TC Energy/TransCanada

TransCanada and Columbia Pipeline Tie the Knot Today
July 1, 2016July 1, 2016

In March MDN reported that Canadian midstream giant TransCanada wants a bigger piece of the Marcellus/Utica pipeline pie and decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). The deal is now done. As of today, Columbia Pipeline Group’s stock is officially de-listed from the New York Stock Exchange and trades no more. Columbia is now a wholly-owned subsidiary of Canadian midstream giant TransCanada…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | TC Energy/TransCanada

Columbia Pipeline Shareholders Approve July 1 TransCanada Buyout
June 29, 2016June 29, 2016

The July 1st merger (buyout) of Columbia Pipeline Group by TransCanada barrels on. In March MDN reported that Canadian midstream giant TransCanada wants a bigger piece of the Marcellus/Utica pipeline pie and has decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). Last week 95% of Columbia’s shareholders voted to approve the merger. TransCanada says everything is on track for a July 1 closing…
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Columbia Pipeline Group | Energy Services | Energy Transfer Partners | Industrywide Issues | Monroe County | Noble County | Ohio | Pipelines | Regulation | Statewide OH

FERC Tells Rover, Leach XPress Pipes to Redesign Routes in SE OH
June 27, 2016June 27, 2016

Two major pipeline projects have just received a big red light from the Federal Energy Regulatory Commission (FERC), pending changes to their plans. Energy Transfer’s Rover pipeline, a $3.7 billion, 711-mile Marcellus/Utica natural gas pipeline that will run from PA, WV and eastern OH through OH into Michigan and eventually into Canada, along with Columbia Pipeline’s Leach XPress, running from Marshall County, WV through Ohio to Leach, KY, got word from FERC that a small section where the pipelines cross must be reworked or it’s a “no go” for both projects…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Marshall County | Pipelines | Regulation | West Virginia

Federal EPA Throws Cold Water on Leach XPress, Rayne Xpress Pipes
June 16, 2016June 16, 2016

Columbia Leach Express map – click for larger version

In August 2014, MDN told you that Columbia Pipeline Group, a division of NiSource, had decided to move forward with investing $1.75 billion dollars for two new projects: the Leach XPress and Rayne XPress pipeline projects (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). Leach Xpress will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky. Rayne Xpress will beef up an existing pipeline from Leach, Kentucky that goes all the way to Rayne, Louisiana with new compressor stations and looping. The two projects together mean up to 2.7 billion cubic feet per day (Bcf/d) of natural gas can move through the entire system–from West Virginia to the Gulf Coast and all point in between. In April of this year, the Federal Energy Regulatory Commission (FERC) issued their draft Environmental Impact Statement (EIS), which was positive. Earlier this week the federal Environmental Protection Agency (EPA) came along with their comments and decided to throw cold water on both projects. Why are we not surprised?…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Pipelines | TC Energy/TransCanada

TransCanada’s July 1 Merger with Columbia Pipeline Advances
May 19, 2016May 19, 2016

In March MDN reported that Canadian midstream giant TransCanada wants a bigger piece of the Marcellus/Utica pipeline pie and has decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). Columbia Pipeline shareholders are due to vote on the deal in June (see Columbia Pipeline Shareholders to Vote on TransCanada Deal June 22). There are numerous regulatory hoops to jump through before the merger/purchase becomes official. TransCanada has announced another such hoop has been successfully jumped through. On Tuesday, TransCanada announced the waiting period under the Hart-Scott-Rodino Anti-Trust Improvements Act (HSR Act) was terminated early by the U.S. Federal Trade Commission. That means the FTC has taken a look and doesn’t object…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | TC Energy/TransCanada

TransCanada to Refile FTC Merger Notification in Columbia Deal
May 5, 2016May 5, 2016

In March MDN reported that Canadian midstream giant TransCanada wants a bigger piece of the Marcellus/Utica midstream (i.e. pipeline) pie and has decided to buy Columbia Pipeline Group for $10 billion (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). Columbia Pipeline shareholders are due to vote on the deal in June (see Columbia Pipeline Shareholders to Vote on TransCanada Deal June 22). But what’s this? Apparently there’s been a small bump on the road to a happy union. TransCanada announced yesterday they have withdraw their pre-merger notification with the U.S. Federal Trade Commission (FTC) and will refile the notification again on May 6 (tomorrow). Why? To restart the clock for FTC regulators who are reviewing the deal. Apparently there is a 30-day period at the end of which the FTC must render an opinion. Sometimes big, complex deals like this one take longer than 30 days, so a common practice is to pull the notification and re-file to buy the FTC more time…
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Columbia Pipeline Group | Energy Services | Iroquois Gas Transmission | TC Energy/TransCanada

TransCanada 1Q16: Sets its Sights on the Marcellus/Utica
May 4, 2016May 4, 2016

TransCanada Corporation is Canada’s largest midstream (i.e. pipelines and storage) company. TransCanada is the company that wanted to build out the Keystone XL oil pipeline into the United States, but the Obamadroids squashed it (it would flow nasty, icky oil through it). TransCanada is also making a major play to move into the Marcellus/Utica region by buying out/merging in Columbia Pipeline (see Rumor Comes True: TransCanada Buying Columbia Pipeline for C$13B). What’s happening with the buyout? We learn quite a bit from TransCanada’s first quarter 2016 update, released last Friday…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Pipelines | Regulation

FERC Fights Critics with Draft EIS for Marcellus/Utica Projects
April 22, 2016April 22, 2016

Columbia Leach Express map – click for larger version

In August 2014, MDN told you that Columbia Pipeline Group, a division of NiSource, had decided to move forward with investing $1.75 billion dollars for two new projects: the Leach XPress and Rayne XPress pipeline projects (see Columbia Gas: $1.75B for 2 Projects to Send Marcellus Gas to Gulf). Leach Xpress will begin in Marshall County, West Virginia, cross Ohio and end up in Leach, Kentucky. Rayne Xpress will beef up an existing pipeline from Leach, Kentucky that goes all the way to Rayne, Louisiana with new compressor stations and looping. The two projects together mean up to 2.7 billion cubic feet per day (Bcf/d) of natural gas can move through the entire system–from West Virginia to the Gulf Coast and all point in between. The Federal Energy Regulatory Commission (FERC) has just issued a press release announcing their draft Environmental Impact Statement (EIS) results. The press release isn’t a typical FERC press release. They take great pains to link to the extensive paperwork that makes up the EIS. What it signals is FERC’s attempt to counter false claims that the agency is simply a rubber stamp for Big Oil & Gas. So the press release below is important for two reasons: (1) It means Leach XPress and Rayne XPress have achieved another significant milestone on their way to being built, and (2) it signals that FERC isn’t going to let anti-fossil fuel nutters set the narrative about the agency any more…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | Pipelines | TC Energy/TransCanada

Columbia Pipeline Shareholders to Vote on TransCanada Deal June 22
April 21, 2016April 21, 2016

In March MDN told you that Canadian midstream giant TransCanada is making a play to buy American Columbia Pipeline Group for $10 billion/C$13 billion (see Rumor Comes True: TransCanada Buying Columbia Pipeline for C$13B). Columbia is a major Marcellus/Utica midstream (i.e. pipelines and processing plants) company. Yesterday Columbia set the date for when its shareholders will vote on the deal. The magic date is June 22…
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Columbia Pipeline Group | Energy Services

Columbia Pipeline Offers to Swap Notes Worth $2.75B
April 15, 2016April 15, 2016

Click image for larger version

Columbia Pipeline Group is being pursued as a buyout target by TransCanada for $10 billion (see Rumor Comes True: TransCanada Buying Columbia Pipeline for C$13B). We don’t know if the proposed merger is the reason, but yesterday Columbia announced they want to swap IOUs, or “unsecured notes” worth $2.75 billion for new notes. Why? If you figure it out tell us, please! The old notes are “unregistered” and the new notes will be “registered”. Does that make them more valuable? Does it mean the noteholders get more favorable treatment in the unlikely event of a bankruptcy? No idea. Here’s the rather short statement from Columbia about swapping notes…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | Pipelines | TC Energy/TransCanada

Rumor Comes True: TransCanada Buying Columbia Pipeline for C$13B
March 18, 2016March 21, 2016

That was pretty fast. One week ago MDN told you that the rumor mill was working overtime about a potential buyout of Columbia Pipeline Group, a major Marcellus/Utica midstream company, by TransCanada, of Keystone XL Pipeline fame (see TransCanada Makes Play to Buy Columbia Pipeline for $10B). The number bandied about was $10 billion to buy Columbia. Neither Columbia nor TransCanada would confirm the rumors. But yesterday, TransCanada announced they’ve reached a deal with Columbia, to buy them for $13 billion (Canadian dollars, which is ~$10 billion US). It gives TransCanada a set at the midstream table since increasingly natural gas is flowing from the U.S. to Canada–after years of it being primarily the other way around. One of the primary selling points, according to TransCanada, is Columbia’s Marcellus/Utica assets. Here’s the Columbia/TransCanada announcement…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | M&A | Pipelines | TC Energy/TransCanada

TransCanada Makes Play to Buy Columbia Pipeline for $10B
March 11, 2016March 11, 2016

It was only in mid-2015 that Columbia Pipeline Group broke away from parent NiSource to become it’s own company (see NiSource/Columbia Pipeline Divorce is Final). And lookie here… TransCanada, the company that Obama screwed out of building the Keystone XL Pipeline, is in serious talks to buy out/merge with Columbia. The deal being rumored is on the order of $10 billion. TransCanada confirms they’re talking with someone, but won’t specifically name Columbia. But everyone knows its Columbia. Such a combination would create a powerhouse midstream company in North America…
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Columbia Pipeline Group | Energy Services | Industrywide Issues | Pipelines

Columbia Pipeline 2015: $267M Income; Project Updates Galore
February 19, 2016February 19, 2016

Columbia Pipeline Group (CPG) turned in their fourth quarter and full year 2015 financial and operational update yesterday. Unlike Williams that lost $1.4 billion in 2015, CPG made $267.6 million in 2015. Along with a financial update, CPG also gives an extensive update on a number of Marcellus/Utica pipeline projects. Well worth the read! Here’s yesterday’s CPG update…
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Chesapeake Energy | Columbia Pipeline Group | Energy Companies | Energy Services | Energy Transfer Partners | Industrywide Issues | Marathon Petroleum | Pipelines | Spectra Energy | Williams

Pipeline Companies May Lose Big-Time if Chessy “Restructures”
February 9, 2016February 9, 2016

Yesterday’s free fall of Chesapeake Energy’s stock based on rumors that the company may be considering bankruptcy (see today’s lead story) is not only affecting Chesapeake’s stock price. It’s also affecting the stock price of Energy Transfer Equity and Williams, two huge midstream companies. Why? ETE, you may recall, is in the process of buying Williams for $37.7 billion (see Looks Like a March 2016 Wedding for ETE & Williams). The main reason ETE is buying Williams, with its major presence in the Marcellus/Utica, is because of long-term contracts to use its pipelines in the northeast. One of Williams’ main customers with those long-term contracts is (yes) Chesapeake Energy. What if Chessy is forced to renegotiate or cancel or otherwise can’t honor those contracts? Whoops. There goes one of the big reasons for the deal in the first place. Which may explain why ETE’s stock went from $7.01 on Friday to closing at $4.09 yesterday (down 42%), and why Williams’ stock went from $17.11 on Friday to closing at $11.16 yesterday (down 35%). Here’s how/why Chesapeake’s troubles will not only affect ETE and Williams, but other midstream companies like Spectra Energy, Columbia Pipeline Partners and Marathon Petroleum as well…
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Calhoun County | Columbia Pipeline Group | Doddridge County | Energy Services | Industrywide Issues | Jackson County | Pipelines | Taxation | West Virginia

Mountaineer XPress Pipeline Seeks Tax Break from WV Counties
February 9, 2016February 9, 2016

Columbia Pipeline Group is trying to convince counties in West Virginia where its proposed Mountaineer XPress Pipeline will be built, to reduce the amount of property tax they will have to pay under WV state law. Mountaineer XPress Project (MXP) includes 165 miles of new pipeline from Marshall County, WV to Wayne County, WV with approximately 2.7 billion cubic feet per day (Bcf/d) of transportation capacity from existing and future points of receipt along or near CPG’s system (see Columbia Pipeline’s Mountaineer XPress Project Accepted by FERC). In addition to new pipeline, the $2 billion project also includes constructing three new compressor stations and upgrading three existing stations. Columbia is shopping the concept of a PILOT–a Payment In Lieu Of Taxes. Such a plan essentially means they will pay less money than a county would otherwise collect in regular property taxes on the pipeline. Here’s the strange thing–the counties and school districts affected would end up keeping more of the money collected from PILOT payments than they would from regular property tax payments. It’s actually a win/win–Columbia pays less and more of the money paid stays local. Go figure…
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