U.S. natural gas is about to enter a cycle of structural oversupply and demand stagnation, which in turn should reduce prices, according to Morgan Stanley.
Articles from Stanley
With a definite shift in emphasis to its Permian Basin assets, Denver-based QEP Resources Inc. executives signaled on Thursday that the company is preparing to divest its Pinedale assets in Wyoming to focus on the Williston and Permian basins.
In the midst of reports of more losses in 2016, Denver-based QEP Resources Inc. senior executives said Thursday they have begun this year with more cash, less debt and improved assets focused on expected significant growth in their Permian Basin plays in 2017-2018.
After more than 17 years of trading for Morgan Stanley, TeamLevine has left the global financial services firm to form the independent brokerage, Powerhouse. Based in Washington, DC, the new company works with clients to protect profit margins and grow their business by designing and implementing hedging strategies, while focusing on price risk management using energy futures and related financial instruments. Powerhouse says its clients represent nearly all sectors of the energy supply chain, from producers to downstream distributors and retailers. Customers include gasoline marketers seeking to protect retail margins, diesel fuel distributors offering fixed and capped prices, and energy users who worry that the latest headline will affect their fuel bill. Powerhouse also serves natural gas marketers and electric utilities with risk from energy price uncertainty. Team Levine members Alan H Levine, Elaine E. Levin, David A. Thompson and Brendan Burke began trading as Powerhouse in January, and the brokerage added its hundredth new account in February. “Reactions from the marketplace have been overwhelmingly positive. As an independent firm, we can be more nimble, and offer more highly tailored services and support to our customers,” said Levin, president of Powerhouse. “This is especially important given recent volatility in gasoline prices.” The Powerhouse team, with 80 years of experience in the energy marketplace, is led by Chairman and CEO Levine, who has expertise in petroleum and natural gas pricing, transportation and supply in world energy markets. Levine was part of the group that initiated the heating oil contract for Nymex in 1977-1978. The company can be contacted at info@powerhouseTL.com or by phone at (202) 333-5380.
NuStar Energy LP’s planned acquisition of natural gas liquids (NGL) pipeline and fractionation assets could be in jeopardy as seller TexStar Midstream Services LP told the company in mid-February that it was terminating the sale. NuStar disclosed during a midstream conference presentation in early March that it was evaluating its legal options in the matter. “If NuStar does not complete this acquisition, we do not expect a material adverse impact on our results of operations,” the company said in a presentation to a Morgan Stanley midstream conference. Last November, NuStar said it was buying the Eagle Ford Shale NGL assets, as well as Eagle Ford crude oil pipeline, gathering and storage assets (see Shale Daily, Nov. 9, 2012). The crude oil asset transaction, worth about $325 million, has closed. The pending NGL asset transaction is worth about $100 million.
Windsor Energy Corp. has found itself on shaky ground in New Brunswick after it allowed a contractor to conduct seismic testing in a town without its consent, violating the province’s Oil and Natural Gas Act.
NuStar Logistics LP and TexStar Midstream Services LP plan to develop a pipeline to carry Eagle Ford Shale crude oil and condensate to Corpus Christi, TX, the partners said Tuesday. They are the latest to announce projects targeting crude oil production from the South Texas play, where development activity has been brisk.
MarkWest Energy Partners LP and MarkWest Liberty Midstream & Resources LLC have announced an acquisition as well as an infrastructure development deal to serve EQT Corp. and other producers in Appalachia.
Cisco, TX-based Frac Tech Services Inc. has filed with the U.S. Securities and Exchange Commission for an initial public offering of common stock to raise up to $690 million. The company said it intends to apply to list its shares on the New York Stock Exchange.
Denver-based Delta Petroleum Corp. has retained Morgan Stanley and Evercore Partners to evaluate and advise the board of directors on “strategic alternatives” that may include selling “some or all” of the company’s assets, entering into partnerships or joint venture opportunities, or selling the entire company. Delta said it would not comment until the board has approved a specific transaction or when there are “significant developments.” Delta’s core areas of operations are the Gulf Coast and Rocky Mountain regions, which comprise the majority of its proved reserves, production and long-term growth prospects (see Daily GPI, April 8; Dec. 24, 2008; Aug. 28, 2008).