Columbia Pipeline Group

Whoa, we didn’t see this one coming! It seems there’s a big appetite on the part of investors for midstream (i.e. pipeline) companies. MDN told you just last week that Columbia Pipeline Group was floating 51 million shares of new stock, with an option to add another 10 million shares–at a price of $17.50 per share (see Columbia Pipeline’s 51M Share/Stock Offering Aims to Raise $892.5M). We estimated if they sold the 51 million shares they were aiming to sell, they’d bring in $892.5 million. But what’s this? Columbia reports they actually sold 71.5 million shares, and after expenses, they brought in $1.4 billion!! What it means is that Columbia won’t have to borrow any money until 2017 at the earliest…
Read More “Columbia Pipeline Sells 20M Shares More Than Forecast, Nets $1.4B”

Yesterday MDN told you that Columbia Pipeline Group, a major player in the Marcellus/Utica midstream, announced a stock offering of 51 million shares (see Columbia Pipeline Group Floats 51M Shares of New Stock). We speculated if they got the then-current price of $19.03 per share, they’d haul in close to $1 billion in new revenue. Of course stock offerings like this almost never receive the existing/going price. We also said if they got $15 a share, that would net them $756 million. We now know, a day later, what they’re aiming for: $17.50 per share, which will bring in $892.5 million…
Read More “Columbia Pipeline’s 51M Share/Stock Offering Aims to Raise $892.5M”

Columbia Pipeline Group, a major player in the Marcellus/Utica midstream, was spun out into its own company in July from parent NiSource (see NiSource/Columbia Pipeline Divorce is Final). The new company has made a number of investments in major projects, including $1.2 billion worth of investments in pipelines for the northeast in 2015 (see Columbia Pipeline 2Q15: Investing $1.2B in NE Projects This Year). With prices plummeting and investments increasing, how does a company like Columbia get more money to keep operating and expanding? One way is to sell debt (bonds and IOUs). Another way, the preferred way in our book, is to sell equity, or stocks. Right on cue Columbia announced yesterday they are floating 51 million shares of new stock in an effort raise money. The company doesn’t say how much they want to raise, but if you do some simple math and multiply this morning’s share price of $19.03 by 51 million you get a whopping $970.5 million–nearly $1 billion! They likely won’t get a full $19.03 per share, but hey, if even if they only get $15 per share that’s still $765M big ones. Here’s the announcement offering new stock in Columbia Pipeline…
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We don’t often or usually report on quarterly earnings/operational updates for pipeline companies since most of them operate across large parts of the country and they usually don’t break down their operations in their updates by region. But this one is different. Columbia Pipeline Group is the newly minted, completely independent company that was formerly a subsidiary of NiSource but now stands on its own two feet (see NiSource/Columbia Pipeline Divorce is Final). We believe it’s accurate to say that most of Columbia’s operations are concentrated in the Marcellus/Utica region. So we bring you a portion of their second quarter 2015 earnings/operations update below. Among the highlights: Columbia is on track to invest approximately $1.2 billion during 2015 and expects to triple its net investment level (over $3B!) by 2020–much of that dedicated to projects in the Marcellus/Utica…
Read More “Columbia Pipeline 2Q15: Investing $1.2B in NE Projects This Year”