Clients

November natural gas is set to open 2 cents lower Tuesday morning at $2.51 as traders factor in a slight warming trend. Overnight oil markets were narrowly mixed.

U.S. Capital Advisors LLC (USCA) has made a $24.1 million preferred equity investment in newly formed Badger Midstream Energy LP. The investment from USCA clients combined with a “significant” investment from the company’s general partner and an additional outside investor allowed Badger Midstream to complete its acquisition of Midstream Energy Services LLC (MES), a private midstream company based in Tulsa, OK. MES and the contribution by High Point Energy LLC of 100% of Dry Trails Midstream Energy LLC will now form the base set of assets under Badger, the company said. “Our primary goal now is to increase the utilization, optimization, and performance of these combined assets, ” said Badger Midstream CEO Alex Bucher.

Crestwood Midstream Partners LP is a bit of an anomaly in the midstream sector as it is focused exclusively on shale plays, CEO Robert Phillips told financial analysts Tuesday. It’s the only partnership that does so, save for the much larger Chesapeake Midstream Partners, he said.

Futures rose but traders saw the advance as devoid of any directional factors and noted active spread trading. Trading of outright futures and options was light. At the close April had added 6.6 cents to $3.930 and May futures were up 6.2 cents to $3.986. April crude oil fell 64 cents to $104.38/bbl.

FERC has its doubts about granting Franklin Resources Inc. blanket authority to buy unlimited amounts of securities in U.S. traded utilities for its clients, the Commission revealed, recently labeling the investment firm’s application deficient and sending the company, generally known as Franklin Templeton Investments, a detailed and extensive list of questions to be answered (EC08-111).

FERC has its doubts about granting Franklin Resources Inc. blanket authority to buy unlimited amounts of securities in U.S. traded utilities for its clients, the Commission revealed, recently labeling the investment firm’s application deficient and sending the company, generally known as Franklin Templeton Investments, a detailed and extensive list of questions to be answered (EC08-111).

Looking to return what’s left of clients’ money after losing in excess of $6 billion on wrong-way natural gas bets during September, Amaranth Advisors LLC has hired Fortress Investment Group LLC to help sell its hedge-fund holdings, according to Associated Press reports. As part of the fallout, calls for the regulation of the over-the-counter (OTC) market and of hedge funds continue.

Looking to return what’s left of clients’ money after losing in excess of $6 billion on wrong-way natural gas bets during September, Amaranth Advisors LLC has hired Fortress Investment Group LLC to help sell its hedge-fund holdings, according to Associated Press reports.

Adding to its portfolio of energy management services clients, Cinergy Corp. on Tuesday said its marketing and trading affiliates will provide a number of services for generating facilities located in the Southeast that were recently sold by Duke Energy to KGen Power LLC. Terms of the services agreement were not disclosed.