Midstream

Duncan Energy Partners LP, formed to own interests in some of Enterprise Products Partners LP’s Gulf Coast midstream assets, will launch its initial public offering (IPO) next week (see Daily GPI, Nov. 3, 2006). About 13.0-14.95 million common units will be offered, initially priced at $19-21/unit.

“Significantly lower” worldwide refining margins and poorer-than-expected results in midstream and chemicals operations will push ConocoPhillips’ earnings lower in 4Q2006, the producer warned last week. ConocoPhillips also blamed a combination of “declining well performance and drilling results” in Canadian Rockies Foothills’ natural gas exploration and development activities, which will result in a $90 million after-tax quarterly charge.

ConocoPhillips warned Thursday that “significantly lower” worldwide refining margins and poorer-than-expected results in its midstream and chemicals operations will push earnings lower in 4Q2006. The producer also blamed a combination of “declining well performance and drilling results” in Canadian Rockies Foothills’ natural gas exploration and development activities, which will result in a $90 million after-tax quarterly charge.

Dallas-based midstream operator Crosstex Energy LP said Wednesday it is reducing its previously reported first and second quarter net income by $0.9 million because of an accounting error related to a natural gas purchase.

Florida Gas Transmission did not extent an Overage Alert Day beyond Tuesday.

Duke Energy Income Fund, which was spun off from Duke Energy Corp. to hold various Canadian midstream assets, said it is buying interests in four raw gas processing plants and related gas gathering system in northeastern British Columbia from Duke Energy Corp. subsidiary Westcoast Gas Services Inc. (WGSI) for $145 million. The acquisition will be accomplished through the purchase of all the issued and outstanding shares of WGSI from Westcoast Energy Inc., a subsidiary of Duke Energy Corp. and the sponsor of the fund. Closing is conditioned on the approval of the fund’s unitholders and is expected to occur by Sept. 30. The fund also announced its intention, contingent on the closing of the acquisition, to increase its monthly cash distributions to $0.07 per unit from $0.067 per unit, or $0.84 per unit on an annualized basis. Doug Haughey, CEO of the fund’s manager, said the facilities “represent an excellent strategic fit for the fund and will serve to strengthen our platform for further growth. In addition, the transaction will be immediately accretive to unitholder distributions.”

Duke Energy Income Fund, which was spun off from Duke Energy Corp. to hold various Canadian midstream assets, said it is buying interests in four raw gas processing plants and related gas gathering system in northeastern British Columbia from Duke Energy Corp. subsidiary Westcoast Gas Services Inc. (WGSI) for $145 million. The acquisition will be accomplished through the purchase of all the issued and outstanding shares of WGSI from Westcoast Energy Inc., a subsidiary of Duke Energy Corp. and the sponsor of the fund. Closing is conditioned on the approval of the fund’s unitholders and is expected to occur by Sept. 30. The fund also announced its intention, contingent on the closing of the acquisition, to increase its monthly cash distributions to $0.07 per unit from $0.067 per unit, or $0.84 per unit on an annualized basis. Doug Haughey, CEO of the fund’s manager, said the facilities “represent an excellent strategic fit for the fund and will serve to strengthen our platform for further growth. In addition, the transaction will be immediately accretive to unitholder distributions.”

Constellation Energy said Wednesday that it’s new limited liability subsidiary, Constellation Energy Resources LLC, which focuses on the gas production and midstream business, filed a registration statement on Form S-1 with the Securities and Exchange Commission Wednesday regarding a proposed underwritten initial public offering (IPO) of common units.

Canadian Utilities Limited, a division of Alberta-based ATCO Ltd., will examine “strategic alternatives” for its gas gathering and processing and natural gas liquids midstream business. Options include reorganization into a business trust or newly created company, sale to a third party or continued operation under the existing corporate structure, the company said. Canadian Utilities has retained advisers to assist it in considerations. ATCO has more than 7,000 employees engaged in power generation, utilities and global enterprises.