Distributions

Williams Partners LP on Monday agreed to pay $2.5 billion to buy Caiman Energy’s midstream business, giving it a much bigger footprint in the natural gas liquids (NGL) portion of the Marcellus Shale in northern West Virginia, southwestern Pennsylvania and eastern Ohio. The two companies also are teaming up to build a midstream business in the Utica Shale.

A Dallas man pleaded guilty last week to one count of mail fraud as part of a scheme that defrauded investors in interests in the Barnett Shale natural gas play in North Texas and elsewhere, the U.S. Department of Justice (DOJ) said.

Upstream master limited partnerships (MLP) have suffered from the credit crisis along with all high-yield securities, but the distributions from companies in this sector are backed by “solid” oil and natural gas production and cash flows, which will only increase over time, said energy analysts in a note to clients.

El Paso Energy Partners LP reaffirmed its earnings, cash flow and distributions guidance for the year and confirmed that it will buy the San Juan Basin gathering, compression, and treating system from general partner El Paso Corp., which intends to use the proceeds to strengthen its balance sheet. The San Juan assets include a 5,500-mile gathering system that is connected to 9,600 gas wells in northwestern New Mexico.

El Paso Energy Partners LP raised its first quarter and annual cash distributions to $0.65 and $2.60 per common unit, confirmed its quarterly and full-year earnings estimates, which are in line with Wall Street expectations, and signed a deal to build a gas production platform and gathering hub in Mustang Island block 103 in the Gulf of Mexico for Pioneer Natural Resources’ and Mariner Energy’s Falcon Field.