Energy Transfer Partners

Energy Services | Energy Transfer Partners | Industrywide Issues | Litigation | M&A | Williams

Merger Turns Sour: Williams Sues ETE/CEO Kelcy Warren
April 7, 2016April 7, 2016

It was a long courting period before Energy Transfer Equity finally cajoled, harangued, and eventually forced the board of Williams to agree to a merger/takeover. ETE’s billionaire CEO Kelsy Warren revealed he had been propositioning Williams for over six months–offering Williams $64 per share to buy the company, totaling $48 billion (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Williams resisted, but eventually they caved and agreed to the deal–although the deal price went down $10 billion by the time they accepted (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). But things changed. Prices for natural gas (and oil) went into the basement, and ETE/Kelsy Warren had second thoughts (see ETE Wants Out of Williams Merger/Takeover, Offering $2B Breakup Fee). Yesterday Williams sued ETE and Kelsy Warren over ETE’s issuance of private shares to select investors to help finance the deal, and they sued Warren for “interfering” with the merger by issuing said private shares. The upshot seems to be Williams feels as though their shareholders are getting shafted. Williams wants the deal done, and they want to get the agreed-to amount. That’s why they’re suing. ETE disputes Williams’ claims and says they will “vigorously defend” themselves. Looks like this marriage is already turning sour…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Michigan | Ohio | Pipelines | Public Opinion | Regulation | Statewide MI | Statewide OH

FERC Seeks Input on ET Rover Pipeline – MI Poll Shows 91% Favor
March 28, 2016March 28, 2016

The Federal Energy Regulatory Commission (FERC) wants to know what landowners and residents along the path of the proposed Energy Transfer Rover pipeline think about the project. ET Rover is a 711-mile Marcellus/Utica natural gas pipeline that will serve mostly U.S. customers. The pipeline will cost $3.7 billion to build and run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The bulk of the pipeline would run through Ohio (see ET Rover Pipeline Launches New Website, Updated Route Maps). We say ET Rover is “for the children” because the pipeline will generate $91 million in taxes for local schools–in its first year alone (see For the Children: ET Rover Pipeline $91M in School Taxes 1st Year). We spotted a story in a Michigan newspaper about the project. The story says FERC is eliciting feedback until April 11 (be sure to comment!). The story is running a poll of its readers asking them if they support or oppose the project. The results aren’t even close. Some 91% (at the time we wrote this) support the project. See a copy of the poll results below…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

ETE Wants Out of Williams Merger/Takeover, Offering $2B Breakup Fee
February 26, 2016February 26, 2016

It was a long courting period before Energy Transfer Equity finally cajoled, harangued, and eventually forced the board of Williams to agree to a merger/takeover. ETE’s billionaire CEO Kelsy Warren revealed he had been propositioning Williams for over six months–offering Williams $64 per share to buy the company, totaling $48 billion (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Williams resisted, but eventually they caved and agreed to the deal–although the deal price went down $10 billion by the time they accepted (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Like a lover who finally had his way and then finds out it wasn’t “all that”, it seems Warren is having second thoughts. The New York Times is reporting that the deal “has become a nightmare” and Warren wants out and is offering to pay Williams a $2 billion break-up fee…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Regulation | Statewide OH | Statewide PA | Statewide WV | West Virginia

FERC Says Rover Pipeline as Planned Negatively Impacts Environment
February 22, 2016February 22, 2016

In December 2014 Energy Transfer Partners filed their draft Resource Reports of environmental survey data with the Federal Energy Regulatory Commission (FERC) for the ET Rover pipeline (see ET Rover Pipeline’s 800-Mile Journey Begins with FERC Filing). Rover is an 800-mile, $4.4 billion pipeline that will connect Pennsylvania, West Virginia and Ohio, crossing pretty much the entire state of Ohio heading northwest before entering Michigan and eventually taking a dog-leg into Ontario. In February of 2015, exactly a year ago, ET filed a full application with FERC. Last week FERC responded with a Draft Environmental Impact Statement (DEIS)–and the news was not so good for Rover. FERC found “adverse and significant” impacts from the project as planned and delivered to ET nearly 25 pages of recommendations that ET will need to fix before they get an approval. Is this a fatal blow to Rover? Or just a speed bump? Time will tell…
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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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Energy Services | Energy Transfer Partners

Energy Transfer Lowers 2016 Capital Budget by $750M
January 28, 2016January 28, 2016

Energy Transfer Partners (ETP), a huge midstream company in the process of buying out Williams, another huge midstream company, announced yesterday they are scaling back capital spending in 2016. Last November ETP forecast they would spend on the order of $4.95 billion in 2016. That number is now $4.2 billion after ETP identified $750 million in further cuts it will make to the budget…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Williams Board “Unanimously” Committed to Selling to ETE
January 19, 2016January 19, 2016

Apparently somebody has been whispering nasty rumors that Williams isn’t really all that committed to completing a sale of themselves to Energy Transfer Equity (ETE). After six months of wooing Williams, ETE got tired of being rebuffed and went public with their bid to buy out Williams, one of the northeast’s biggest midstream companies (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). In the end Williams caved and decided to sell, but they did it too late. By the time they accepted ETE’s offer in September, the market (and stock prices) in the oil/gas sector had already started a downward spiral, and Williams ended up getting $10 billion less than originally proposed (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). It’s now January and the deal is still not closed. And apparently somebody has either been telling tales out of school, or simply spreading nasty rumors, because the entire board of Williams voted, unanimously, to tell the world they really do want to sell. Really. Williams felt compelled to issue a press release stating as much…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Looks Like a March 2016 Wedding for ETE & Williams
December 15, 2015December 15, 2015

In September Williams finally relented and accepted a buyout/merger offer from Energy Transfer Equity (see Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B). Deals like this one, with ETE paying $37.7 billion for Williams, take time to complete. There are lots of regulatory hoops to jump through. The two companies said in their original announcement they expect the deal will be done in “the first half of 2016.” Smart move on their part to not commit to a specific date too early. From an announcement issued yesterday, we now have a much better idea of the timing. The announcement says the two companies are complying with certain regulatory requests and that they won’t get hitched before March 18, 2016. Which means if all goes well in regulatory hell between now and then, we’ll have a March wedding…
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Energy Services | Energy Transfer Partners | Industrywide Issues | NEXUS Pipeline | Ohio | Pipelines | Research | Spectra Energy | Statewide OH

OH Grange Issues New Study, Supports NEXUS & Rover Pipelines
November 20, 2015November 20, 2015

The people who are most affected by pipelines being built across their property are farmers–that’s a fact. Farmers often have questions and concerns when a new pipeline project is proposed that will cross their land, rightfully so. They’re cautious, they’re careful, they have a vested interest in preserving their land. So it’s big news that the Ohio State Grange, part of the nation’s oldest national agricultural advocacy group, has endorsed both the Rover and NEXUS pipelines in the Buckeye State. Energy Transfer’s Rover is a big, $4.2 billion, 711-mile new pipeline project from the Midwest Hub near Defiance, OH to Livingston County, MI, connecting with the Vector pipeline. Spectra Energy’s NEXUS Gas Transmission pipeline project is a $2 billion pipeline that will carry Utica/Marcellus gas through OH, MI, and eventually connect to the Dawn Energy Hub in Canada. The Grange’s support of these two projects is a big deal. As part of their announcement, the Ohio Grange released a new report titled, “Natural Gas Pipeline Infrastructure and Its Impact on Michigan and Ohio Agriculture” (full copy below) which finds, among other things, that there is no SAFER way to transport natural gas than by underground pipeline…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH | Supply Chain

ET Rover Buys Largest-Ever Order of Cat® Gas Compression Engines
October 8, 2015October 8, 2015

In September MDN told you that the 711-mile ET Rover Pipeline, costing an estimated $3.7 billion to build, had awarded a contract to an Ohio company to build 39 compressor stations (see Rover Pipeline Awards OH Company $34M to build 39 Compressor Stns). The announcement makes a quick mention that “Rover Pipeline purchased a combination of Caterpillar natural gas engines and Ariel compressors.” We now have the details on the Cat engines being purchased, which according to Cat is “the company’s largest ever single-project order”…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Wayne County (OH)

Rural OH County Opposes ET Rover Pipeline in Letter to FERC
October 1, 2015October 1, 2015

In an unusual move, the Wayne County (OH) Board of Commissioners has written to the Federal Energy Regulatory Commission (FERC) to oppose having Energy Transfer’s ET Rover pipeline come through the southern portion of their county, as currently planned. ET Rover is a 711-mile Marcellus/Utica natural gas pipeline that will serve mostly U.S. customers that will cost $3.7 billion to build and run from PA, WV and eastern OH through OH into Michigan and eventually into Canada. The bulk of the pipeline would run through Ohio, including southern Wayne County. The Board of Commissioners’ objection is unusual because Wayne is a mostly rural county with farms. Farmers, while not always welcoming of pipelines running through prized hay fields and crops, can sure use the money that would come from such a project. Farmers typically do support pipelines–and drilling. The commissioners cite safety concerns and damage to farmland in their letter to FERC…
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Energy Services | Energy Transfer Partners | Industrywide Issues | M&A | Williams

Williams Accepts ETE’s “Indecent Proposal” – Price Went Down $10B
September 29, 2015September 29, 2015

In the end, Williams decided that the takeover/merger proposal from Energy Transfer Equities (ETE) wasn’t so indecent after all. In June, ETE’s billionaire CEO Kelsy Warren revealed he had been propositioning Williams for over six months–offering Williams $64 per share to buy the company, totaling $48 billion (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Sometimes life imitates art. Like the movie Indecent Proposal, Williams (Demi Moore’s character) played hard to get but in the end announced, yesterday, they would accept ETE/Warren’s (Robert Redford’s character) offer. The price, however, has changed. The final deal will now be $37.7 billion total, or $43.50 per share. It’s easy to Monday morning armchair quarterback, but obviously Williams should have taken the earlier offer. The question now is, what will investors (Woody Harrelson’s character) think in the morning?…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Ohio | Pipelines | Statewide OH | Supply Chain

Rover Pipeline Awards OH Company $34M to build 39 Compressor Stns
September 17, 2015September 17, 2015

ET Rover is a 711-mile Marcellus/Utica natural gas pipeline that will serve mostly U.S. customers and will cost $3.7 billion to build and run from PA, WV and eastern OH through OH into Michigan and eventually into Canada (see ET Rover Pipeline Launches New Website, Updated Route Maps). If you’re going to build a pipeline that long, you’ll need a lot of compressor stations along the pipeline’s route. Rover has just awarded a $34 million contract to Ohio-based Ariel Corporation to build 39 compressor stations for the Rover pipeline…
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Blue Ridge Mtn Res/Magnum Hunter | Crestwood Midstream | Energy Companies | Energy Services | Energy Transfer Partners | Eureka Midstream | Industrywide Issues | M&A | Summit Midstream

3 Potential Buyers Identified for Eureka Hunter Pipeline Deal
August 27, 2015August 27, 2015

Finally we know. In June Magnum Hunter Resources (MHR), majority owner of subsidiary pipeline company Eureka Hunter, said it was negotiating to sell all of its ownership of Eureka Hunter to an unnamed buyer for $600-$700 million (see Magnum Hunter Cuts Deal to Sell Eureka Hunter & 2 New JVs). Two weeks ago Magnum Hunter CEO Gary Evans continued to tease that the sale is imminent and will bring in around $550 million (see Magnum Hunter About to Close 2 Deals Worth $1 Billion Cash). Cash amounts and deadline dates seem to be “fluid,” shall we say, when it comes to MHR statements. We still haven’t heard who the potential buyer is. That is, until now. Bloomberg is reporting the potential buyer is…
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Energy Services | Energy Transfer Partners | Industrywide Issues | Kinder Morgan | M&A | Spectra Energy | Williams

More Suitors Line Up to Buy Williams – Spectra Energy Makes a Bid
August 19, 2015August 19, 2015

Early in the year, midstream giant Energy Transfer Equity began an attempt to woo another midstream giant Williams into a buyout. Williams resisted and the whole thing went public in June when ETE announced they would pursue a hostile takeover (see Energy Transfer Makes “Indecent Proposal” to Buy Williams for $48B). Williams has continued to spurn the overtures of ETE and has instead gone shopping for another suitor (see Williams Continues to Resist ET Offer, Talks with Other Suitors). We now know of one serious alternative suitor to ETE. Reuters published an exclusive, insider story revealing that Spectra Energy is now bidding to merge with/takeover Williams. Kinder Morgan is also interested and sniffing around, but at this point Spectra seems to be in the lead…
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Accidents | Energy Services | Energy Transfer Partners | Industrywide Issues | Pennsylvania | Pipelines | Tioga County (PA)

Sad Day: Pipeline Worker Killed in Tioga County, PA Accident
August 6, 2015August 6, 2015

It’s always a sad day when MDN has to report on the death of a worker related to the Marcellus/Utica Shale. On Tuesday, Ricky Dettman was operating a bulldozer on a steep grade in Tioga County, PA working on installing a pipeline for Energy Transfer Partners when the bulldozer rolled over, several times, killing Ricky. We’re not sure exactly which pipeline project it is Ricky was working on, but its a 36-inch pipeline (a big pipeline) that will flow Marcellus and Utica Shale gas, according to the PR agency working for ETP. Below are four news accounts of the accident. They all have slightly different accounts, including a discrepancy on Ricky’s age–he was either 54 or 55 years-old. Ricky hailed from Nebraska…
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