- Inside Look at Processing Trends
- Wachovia Pipeline & MLP Symposium: Despite Questions, MLPs Still Look Strong
- Regency Delivers on Acquisition Talk
- Crosstex to Grow Organically
- ONEOK Eyes Growth Through NGLs
- MarkWest Focuses on Merger
- Midstream News
- Enterprise Continues to Target Piceance Basin
- Propanes Inventory Analysis
- Provident Increases Midstream Budget for 2008
- Inter Pipeline To Raise $150M
- Fractionation Spread
- With NGL Prices Holding Firm, Frac Margins Drop in Conway
Inside Look at Processing Trends
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Wachovia Pipeline & MLP Symposium: Despite Questions, MLPs Still Look Strong
The title of the MLP discussion at the 6th Annual Wachovia Pipeline and MLP Symposium, “Growing Pains,” aptly described participants’ ambivalent feelings about the pipeline MLP market.
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Regency Delivers on Acquisition Talk
Regency Energy Partners’ presentation at Wachovia’s 6th Annual Pipeline & MLP Symposium in New York City on Dec. 6 focused on the company’s relationship with GE Energy Financial Services. Because of its ties to a financially strong partner, the company’s business strategy is focused on increasing the cash available for distribution to unitholders.
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Crosstex to Grow Organically
Growth was the name of the game at last week’s 6th Annual Pipeline and MLP Symposium and nowhere was it more obvious then in Crosstex Energy LP’s presentation. The company’s CFO, Bill Davis, spoke with GPR following the symposium and explained how the company’s growth strategy has transitioned from one built on acquisitions to one focused on organic projects.
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ONEOK Eyes Growth Through NGLs
At this past week’s 6th Annual Pipeline & MLP Symposium, ONEOK Partners’ chairman, CEO and president John Gibson’s presentation centered on ONEOK’s greatest potential for growth being through internal growth projects.
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MarkWest Focuses on Merger
MarkWest Energy Partners’ presentation at Wachovia’s Pipeline and Energy MLP Symposium last week centered on the merger between MarkWest Hydrocarbon Inc and MarkWest Energy Partners LP. The $734 million agreement, announced in Sept. and is expected to close in Q1 2008, will see Hydrocarbon become a wholly-owned subsidiary of Energy Partners. The agreement also includes Hydrocarbon’s NGL marketing business.
Midstream News
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Enterprise Continues to Target Piceance Basin
Enterprise Products Partners LP (link) continued to target the Piceance Basin of northwest Colorado as an area for growth by signing an agreement with Marathon Oil Company for Enterprise’s first wellhead gathering system in the region.
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Propanes Inventory Analysis
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Provident Increases Midstream Budget for 2008
Provident Energy Trust announced a C$187 million (U.S. $186 million) budget for 2008, including a midstream budget of C$43 million (U.S. $42.8 million). The midstream budget is up from the 2007 budget of C$41 million (U.S. $40.8 million).
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Inter Pipeline To Raise $150M
Inter Pipeline Fund agreed to sell 15.3 million Class A limited partnership units at $9.80 per unit for gross proceeds of $150,038,000. The offering includes an over-allotment option to purchase 2,296,500 units for up to 30 days after closing. Should the over-allotments be exercised in full, it will result in total gross proceeds of $172,543,700.
Fractionation Spread
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With NGL Prices Holding Firm, Frac Margins Drop in Conway
Following a drop in NGL prices at Mont Belvieu, the hub’s margin for fractionating the whole barrel rose 1%. The NGL with the biggest gain in frac spread margin was pentanes-plus, which rose 4% from last week.
Current Frac Spread (Cents/Gal)
Date: December 12, 2007
Conway
Change from
Mont
last week
Belvieu
last week
Ethane
97.98
103.27
Shrink
44.02
41.50
Margin
53.96
-9.12%
61.77
-0.03%
Propane
148.38
150.26
Shrink
60.73
57.25
Margin
87.65
-2.90%
93.01
1.88%
Normal Butane
173.24
176.24
Shrink
66.10
62.31
Margin
107.14
-5.19%
113.93
-1.25%
Iso-Butane
183.35
176.78
Shrink
68.75
64.81
Margin
114.60
-4.62%
111.97
1.69%
Pentane+
200.53
201.73
Shrink
74.39
70.13
Margin
126.14
-3.25%
131.61
4.00%
NGL $/Bbl
61.32
0.20%
61.44
-0.92%
Shrink
24.23
22.84
Margin
37.09
-4.79%
38.60
1.38%
Gas ($/mmBtu)
6.63
7.84%
6.25
-4.80%
Gross Bbl Margin (in cents/gal)
84.71
-4.89%
90.64
1.39%
NGL Value in $/mmBtu
Ethane
5.39
-1.50%
5.68
-1.95%
Propane
5.15
1.50%
5.22
-0.67%
Normal Butane
1.95
-0.22%
1.98
-2.51%
Iso-Butane
1.10
0.05%
1.06
-0.69%
Pentane+
2.56
0.86%
2.57
0.94%
Total Barrel Value in $/mmbtu
16.14
0.09%
16.50
-1.08%
Margin
9.51
-5.32%
10.25
1.19%
Price, Shrink of 42-gal NGL barrel based on following: Ethane, 36.5%; Propane, 31.8%; Normal Butane, 11.2%; Isobutane, 6.2%; Pentane+, 14.3%, Fuel, frac, transport costs not included. Conway gas based on NGPL Midcontinent zone, Mont Belvieu based on Houston Ship Channel.
Shrink is defined as Btus that are removed from natural gas through the gathering and processing operation.
Box Score
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Prices Hold at Conway, Drop Again in Mont Belvieu
The downtrend trend for NGL prices continued at MontBelvieu this week, as the overall weighted NGL barrel price dropped 1% from last week to $61.44. This decrease was largely due to the drop in butane and ethane prices, as each were down 2%. Conway saw the weighted NGL barrel price remain relatively flat, with a 12¢ increase.
Mont Belvieu
Eth
Pro
Norm
Iso
Pen+
NGL Bbl
Dec. 5 - Dec.11, '07
103.27
150.26
176.24
176.78
201.73
$61.44
Nov. 28 - Dec. 4, '07
105.28
151.26
180.66
178.00
199.83
$62.00
Nov. 21 - Nov. 27, '07
106.95
157.58
187.30
187.40
209.30
$64.25
Nov. 14 - Nov. 20, '07
105.32
154.48
181.74
182.16
206.48
$63.01
November '07
106.19
156.20
185.19
185.15
206.66
$63.62
October '07
97.34
141.26
165.30
169.33
189.72
$57.87
3rd Qtr '07
81.06
122.05
144.00
148.75
166.70
$49.85
2nd Qtr '07
71.82
112.99
133.22
146.05
166.49
$46.70
1st Qtr '07
58.52
96.88
113.30
121.20
134.86
$38.87
4th Qtr '06
61.85
94.86
111.23
111.99
130.83
$38.52
Dec. 5 - Dec. 11, '06
63.78
99.74
111.54
116.80
132.35
$39.64
Conway, Group 140
Eth
Pro
Norm
Iso
Pen+
NGL Bbl
Dec. 5 - Dec.11, '07
97.98
148.38
173.24
183.35
200.53
$61.32
Nov. 28 - Dec. 4, '07
99.45
146.16
173.62
183.25
198.80
$61.20
Nov. 21 - Nov. 27, '07
97.00
149.70
173.50
175.20
197.00
$60.87
Nov. 14 - Nov. 20, '07
97.50
153.94
178.20
183.34
194.04
$61.72
November '07
97.83
151.65
177.00
182.17
197.59
$61.65
October '07
93.75
139.82
159.84
168.88
180.97
$57.19
3rd Qtr '07
76.45
121.62
138.10
142.10
173.34
$49.81
2nd Qtr '07
66.99
111.36
125.67
151.38
181.91
$47.23
1st Qtr '07
52.36
94.54
104.26
123.71
135.25
$37.79
4th Qtr '06
52.31
94.13
105.88
114.65
129.25
$37.17
Dec. 5 - Dec. 11, '06
51.50
97.84
109.80
119.25
138.00
$38.40
Data Provided by Intercontinental Exchange. Individual product prices in cents per gallon.
NGL barrel in $/42 gallons



