Energy Transfer Partners

Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Sunoco Logistics

ETE Merging Sunoco Logistics and Energy Transfer Partners
November 22, 2016November 22, 2016

Click for larger version

Energy Transfer Equity (ETE) is a big and (on paper) complex company with a number of subsidiaries. Roughly speaking, ETE is the mother ship/parent, and under it are two subsidiaries–Regency Energy Partners and Energy Transfer Partners (ETP)–the company building the Dakota Access Pipeline. Under Energy Transfer Partners are other divisions and subsidiaries–notably Sunoco Logistics Partners, which is the builder of the Mariner pipeline projects. (Click on the org chart to view how the company is arranged.) Yesterday ETE announced that Sunoco LP is swallowing up ETP in a ~$20 billion, stock-swap deal. The confusing part is that although Sunoco LP is buying ETP, the new company will be called ETP and will be run by ETP’s current management…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Pipelines

Update on Two Important ETE Projects: Rover and DAPL
November 17, 2016November 17, 2016

Somehow or other MDN wound up on the distribution list for Deutsche Bank’s Equity Research (North America) updates. Which we like! Germany-based Deutsche Bank (DB) is the world’s 11th largest bank. They have some sharp analysts who keep tabs on multiple industries, one of those industries being oil and gas. Given the recent happenings with the Dakota Access Pipeline (DAPL), and the happenings with the Ohio Rover pipeline–both pipelines projects of Energy Transfer Equity–DB decided to do a quick update on both projects, giving us the investor/trader view of what will happen over the next 2-3 months. We found the update interesting and think you will too…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | Pipelines | Regulation | Sunoco Logistics

War: ETE Asks Fed Court to Overrule Corps of Politicized Engineers
November 16, 2016November 16, 2016

Yesterday MDN told you that a war of words has broken out between the Obama U.S. Army Corps of Politicized Engineers and Energy Transfer Equity (ETE) over the Dakota Access Pipeline (see It’s War: ETE vs. Obama’s Army Corps of (Politicized) Engineers). The war has quickly gone from words to litigation. ETE has filed a lawsuit in U.S. federal district court in Washington, D.C. asking the court to recognize the pipeline’s right to complete the project–a project now 90% complete–apart from final written approvals from the Corps of Engineers. ETE argues that the Obama Administration is politically interfering with the Corps, which had previously approved the project. ETE says: “…the Corps has never before declined to provide written documentation of the granting of an easement, a perfunctory ministerial act, to use federally owned land after granting regulatory permission for work on the very same land.” In other words, the Corps is using withheld paperwork to stop the project. Therefore, the lawsuit seeks the courts permission (called a declaratory judgment) to finish the pipeline apart from the politicized Corps’ written permission/paperwork. ETE wants to do what the Corps previously approved. They have a strong case…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Pipelines | Regulation | Sunoco Logistics

It’s War: ETE vs. Obama’s Army Corps of (Politicized) Engineers
November 15, 2016November 15, 2016

As we pointed out last week, the U.S. Army Corps of Engineers (USACE)–which is supposed to be an organization of, well, engineers–has gone hard-left political, no doubt under the direction of Lord Obama (see Army Corps of Engineers Turns Political in Dakota Access Fight). The USACE has taken to leveraging a sycophantic media to boost its message that Energy Transfer Equity, the company building the Dakota Access Pipeline, should stop building the pipeline (which is already 90% built) because it might hurt the feelings of paid mobsters who are protesting it. Our concern with the project is that the same mobsters protesting the Dakota Access Pipeline have promised to come to the Marcellus/Utica next (see Dakota Access Pipeline Protesters Turn Violent; Coming Here Next?). In addition to using the media to rally its cause, the USACE has just announced it will not, for now, grant a permit to cross under Lake Oahe in North Dakota. ETE is firing back with a caustic press release calling out the USACE as unjust lawbreakers. Yeah, it’s open war now–and Trump can’t assume office fast enough to put an end to the horse manure being pedaled by the Army Corps of Politicized Engineers…
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Energy Services | Energy Transfer Partners | Industrywide Issues | NEXUS Pipeline | Pipelines | TC Energy/TransCanada

Will TransCanada’s Lower Pipeline Rates Jeopardize Nexus/Rover?
October 24, 2016October 24, 2016

Two weeks ago MDN told you that TransCanada is attempting to block Marcellus/Utica gas from entering the eastern Canadian market by lowballing pipeline transportation costs from western Canada (see TransCanada Launches Open Season to Lowball Marcellus/Utica Gas). How much are they lowballing? TransCanada is offering transportation costs of $0.66 per thousand cubic feet (Mcf). The proposed Nexus pipeline, which crosses Ohio and connects to a pipeline in Michigan that would go on from there to Canada, is charging $1.21/Mcf. The proposed Rover pipeline which also would connect to Canada is charging $1.01/Mcf. An BTU Analytics analyst does a deep dive and asks the question (our words, not hers): Will TransCanada’s lowball prices kill the Nexus and/or Rover?…
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Energy Services | Energy Transfer Partners

ETE CEO Tries to Salvage Deal-Making Reputation Post-Williams Deal
August 15, 2016August 15, 2016

Kelcy Warren

Apparently stung by the deservedly poor reputation he’s brought on himself, Energy Transfer Equity CEO Kelcy Warren is attempting to rehabilitate his reputation following his bungled attempt to buy Williams by claiming he’s “back in the deals game.” Warren is once again in the hunt for more takeover targets–and talking to reporters about it. The question we have is this: Who in their right minds would talk to him following his action in forcing Williams to the table, and then turning tail and running?…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Regulation | Statewide OH

Big News: FERC Grants Final EIS for ET Rover Pipeline
August 1, 2016August 1, 2016

ET Rover Pipeline map – click for larger version

In June the Federal Energy Regulatory Commission (FERC) handed Energy Transfer’s proposed Rover pipeline project, 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, a big red light (see FERC Tells Rover, Leach XPress Pipes to Redesign Routes in SE OH). FERC told Rover and another pipeline project, Leach XPress, which will run from Marshall County, WV through Ohio to Leach, KY, that where their two projects meet something different would have to be worked out. Shortly thereafter the two projects being developed by different companies became best friends (see Rover, Leach XPress Pipelines Become BFFs to Fix FERC Objection). Apparently that fix helped clear the path and FERC, last Friday, issued a final Environmental Impact Statement (EIS) favorable to ET Rover. About the only left now is for a final approval to be issued by FERC for the project, which is now pretty much a foregone conclusion…
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Columbia Pipeline Group | Energy Services | Energy Transfer Partners | Industrywide Issues | Monroe County | Ohio | Pipelines | Regulation

Rover, Leach XPress Pipelines Become BFFs to Fix FERC Objection
July 7, 2016July 7, 2016

This is how it works with adults, those who wear “big boy pants.” A few weeks ago the Federal Energy Regulatory Commission (FERC) told Energy Transfer that their 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, and Columbia Pipeline that their Leach XPress pipeline, running from Marshall County, WV through Ohio to Leach, KY, that a small section where the pipelines cross must be reworked or it’s a “no go” for both projects (see FERC Tells Rover, Leach XPress Pipes to Redesign Routes in SE OH). Faced with the prospect of not getting an approval, both companies got together in a conference room and figured out how to work together–fast. Both companies have just filed a detailed plan with FERC that says the two pipelines will co-locate their pipelines in the same trench for a 13-mile span in Monroe County, OH to avoid the problems outlined by FERC…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Williams Admits There Will be no Merger, Suing ETE for “Damages”
June 30, 2016June 30, 2016

Finally Williams has admitted, in writing, that the attempted buyout/merger by Energy Transfer Equity (ETE) is, as we said yesterday, dead (see Dead as a Doornail: ETE Terminates Merger with Williams). Williams has also admitted (in so many words) what we’ve been saying for more than a month: the vote by Williams “for” the merger and all of the recent goings on have been legal posturing. Williams says they are suing ETE “for monetary damages” for “its breaches.” Here’s the Williams admission issued yesterday in response to ETE’s termination of the deal…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Aborted Williams Merger/Shenanigans Take the Shine Off ETE’s CEO
June 30, 2016June 30, 2016

ETE CEO Kelsey Warren

Until now, Energy Transfer Equity (ETE) CEO Kelsey Warren has been the golden boy. By snapping up a series of small pipeline companies at just the right time, Warren has created the ETE empire and turned himself into a billionaire in the process. It seemed he could do no wrong when it came to midstream business deals. And then he bit off more than he could chew: Williams. Warren pursued Williams for more than six months before it became public (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). It took another three months after that before he finally got them to agree to a merger (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Whether it was rotten timing, or rotten planning, the natural gas market crashed and the deal turned from crowning jewel to albatross. Along the way Warren pulled some shenanigans, like creating a privileged class of stock that gave himself and his buddies a leg up on Williams shareholders (see Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren). A Bloomberg article chronicles the rise, and now fall, of the midstream’s golden boy…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Dead as a Doornail: ETE Terminates Merger with Williams
June 29, 2016June 29, 2016

As we previously reported, last Friday a Delaware court ruled that Energy Transfer Equity (ETE) has the right to terminate its merger agreement with Williams (see Court Says ETE Can Terminate Williams Merger; Williams Votes Today). But as we also said, at that time ETE had not officially announced they were terminating the merger. They now have. Yesterday ETE said they have filed the official paperwork to dump the merger/takeover of Williams. Williams is continuing to litigate to try and force ETE to do the deal by appealing the court’s decision (see Williams Shareholders Vote “For” ETE Merger; Appeal Court Ruling). This deal is as dead as a doornail and everyone knows it–including Williams. What’s going on is legal posturing so Williams can try and extract money from ETE over the now-abandoned takeover attempt. In some ways we don’t blame Williams–they resisted ETE’s overtures for nine months before caving and agreeing. Of course, Williams caved and agreed because there are evil corporate raiders on the board pressuring the company to do so. As we’ve maintained all along–no one comes out of this smelling pretty…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Williams Shareholders Vote “For” ETE Merger; Appeal Court Ruling
June 28, 2016June 28, 2016

Yesterday 63% of Williams Companies shareholders voted in favor of a merger with Energy Transfer Equity at a specially called meeting at Williams’ HQ in Tulsa, Oklahoma. Specifically, they voted to approve the merger and receive their proceeds in all cash, thank you very much. Not that it makes a hill of beans worth of difference–because the deal is dead. Last Friday ETE won the right to walk away from the deal not owing Williams anything (see Court Says ETE Can Terminate Williams Merger; Williams Votes Today). As we’ve maintained for some time, this is all window dressing and legal posturing. Williams also said yesterday they will appeal the courts decision from last Friday, maintaining they (Williams) believes ETE is still contractually bound to buy (and more importantly pay) the big investors of Williams. Below are a pair of announcements from Williams about yesterday’s vote, along with some analysis…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Court Says ETE Can Terminate Williams Merger; Williams Votes Today
June 27, 2016June 27, 2016

Big news happened in the Energy Transfer Equity (ETE) proposed merger/buyout of Williams to report. Last Friday a Delaware court ruled that ETE is contractually entitled to terminate its merger agreement with Williams. However, in a press release, ETE doesn’t say it has officially terminated the agreement. In commenting on the ruling, Williams said they still don’t think ETE has the right to wiggle out of the deal and Williams is pushing forward with holding a vote today by shareholders to approve (or not approve) the merger. As we have maintained now for a month or more, we don’t think the merger will happen–and we think all of the press releases and votes, etc. is posturing in preparation to launch lawsuits. The court’s decision essentially says ETE can terminate the agreement and won’t owe Williams any money for their trouble. ETE wanted this merger in the first place and pursued Williams for nearly a year to get it (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). But Williams is not lily white innocent in this ongoing soap opera. Lurking in the background pulling strings are corporate raiders on Williams’ board–people who want to line their pockets with cash from this deal (see Evil Corporate Raiders Double Investment (& Control) in Williams). Even though ETE wants out of the deal and even though (in our opinion) Williams is better off not merging, Williams will continue to push for a merger/takeover, so the raiders can get buckets of cash. Below we have a copy of the court opinion from Friday, along with a couple of analysts’ thoughts on what happens next…
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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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Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

ETE Makes Moves to Terminate Buyout/Merger with Williams
June 24, 2016June 24, 2016

As we’ve said for some time now, we don’t believe the Energy Transfer Equity (ETE) buyout/merger with Williams will ever take place. It’s been pretty plain that the blizzard of press releases by both companies saying “vote yes” on the deal has been legal posturing–so that when the deal is finally, completely, 100% dead–the lawyers can litigate for years to come, with each side trying to extract money from the other. The latest evidence comes from several news stories this week that Wall Street is betting that a judge is about to rule that a law firm (hired by ETE) to review the tax implications rendered their opinion “in good faith” that there will be significant tax implications arising from the deal. The way the agreement is structured, such a finding releases ETE from the deal. If the judge rules the opinion was in good faith, it’s 99.99999999% that ETE will announce the deal is dead–and the lawyers from Williams will be suing to extract boatloads of money from ETE…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

3 Outta 4 Proxy Firms Recommend “Yes” Vote for Williams Merger
June 22, 2016June 21, 2016

Yesterday MDN brought you a story of how the Williams/Energy Transfer Equity merger defies logic (see Williams/ETE Merger Defies Logic – Here’s Why). Part of that story deconstructs the support for the deal by proxy advisory firm Institutional Shareholder Services (ISS). The analyst we quote in that article says ISS is buying Williams’ line that Williams’ assets after a merger with ETE will produce boatloads of cash and profit for the newly merged company, while the very same assets apart from the merger won’t. Even though the merged company will have an enormous load of new debt following the merger. It defies logic. And yet, Williams has found two more proxy advisory firms who are now willing to go on the record, like ISS, in support of the merger. What do they see that we don’t? Tune in to this episode of As the (Midstream) World Turns…
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