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The Pipeline MLP sector, which ended August up 9.90% year-to-date and yielding 6.10%, finished September up 10.28% and yiedling 3.07%. For the month the sector prices rose 0.51% and yields fell 3 basis points. PAA fell 9% after selling 4.5 million new units at a sizable discount to July's ending price. MMLP was the sectors largest gainer rising 9.57% on news of an acquisition. The ten year treasury ended the month at 4.33% [vs 4.02% on 8-31 - a rise of 31 basis points]. The Pipeline MLP sector, which ended July up 14.20% year-to-date and yielding 5.87%, ended August up 9.90% and yielding 6.10%. For the month the sector prices fell 3.76% and yields rose 23 basis points. Some MLPs fell disproportionately out of fear that Katrina had damaged their facilities or the facilities of their upstream providers. To put August price movements into perspective, during August, large-cap banks fell 1.62% to a year to date loss of 6.20% from July's loss of 4.65% and yields rose 17 basis point to 3.71% from July's 3.54%. During August, mid-cap banks fell 2.74% to a year-to-date loss of 2.71% from June's year to date rise of 0.13% and yields ended at 3.44% [vs July's 3.32% - a rise of 12 basis points]. The ten year treasury ended the month at 4.02% [vs 4.28% on 7-29 - a fall of 26 basis points]. The Shopping Center REIT sector fell 4.19%, Malls fell 6.38%, Health Care REITs fell 6.81%, Hospitality fell 2.05%, Offices fell 3.37%, the Industrial sector fell 3.00% and Apartments fell 5.66%. Texas Production Falls Dan Piller, Fort Worth Star-Telegram 8-22 Statewide production of both crude oil and natural gas declined during the first six months of 2005 from the previous year, despite a 17% increase in production in the burgeoning Barnett Shale. Production figures from the Texas Railroad Commission show that from January through June of this year, Texas wells produced 171.1 million barrels of oil and 2.788 trillion cubic feet of natural gas. That compares with six-month production in 2004 of 175.8 million barrels of oil and 2.978 trillion cubic feet of natural gas from Texas wells. Texas annually is the largest single producer of both oil and gas among the 50 states. But production has declined steadily for three decades. The state's peak production for both crude oil and natural gas was 1972, when Texas produced 1.26 billion barrels of crude oil and 9.6 trillion cubic feet of natural gas. Last year, Texas produced 349.2 million barrels of crude oil and 5.8 trillion cubic feet of natural gas. The Barnett Shale natural-gas field in North Texas, which was opened to full production in 1999 and now has almost 4,000 wells, again stood out among Texas fields by increasing production by almost 17%. The field extends around Fort Worth from Wise to Johnson and Hood counties. Railroad Commission figures show that the field, concentrated in Wise, Denton and Tarrant counties, produced 210.2 billion cubic feet of gas through June of this year against 179.5 billion cubic feet a year ago, when the Barnett Shale field became Texas' largest producing field. In 2004, the Barnett Shale field produced 369 billion cubic feet of natural gas. Barnett Shale production is expected to keep growing as new pipelines and processing plants enable producers to pursue plans to drill in Johnson, Parker and Hood counties. The big Carthage Field in East Texas eked out an increase in natural gas production this year, to 79.1 billion cubic feet from 75.9 billion cubic feet a year ago. But other big Texas gas fields, led by the Freestone Field in Freestone County, the Giddings Field near Bryan-College Station, and the state's all-time top producer, the Panhandle West Field in Moore County near Amarillo, showed declines. The Permian Basin in West Texas was the center of Texas' crude oil production again this year. Through June, the three Railroad Commission districts in West Texas centered in Midland-Odessa produced 72% of the state's crude oil. Pacific Energy Announces Pricing of 4,550,000 Units Business Wire 9-08 Pacific Energy Partners announced today the pricing of 4,550,000 common units at a public offering price of $32.00 per unit. The offering is scheduled to close on September 14, 2005. Pacific Energy intends to use the net proceeds from this offering to fund a portion of the aggregate purchase price of certain pipeline and terminal assets to be acquired from Valero L.P. Pacific Energy Announces Sale of an Additional 682,500 Units Business Wire 9-15 PPX announced today that Lehman Brothers Inc., Citigroup Global Markets Inc., UBS Securities LLC, Wachovia Capital Markets, LLC, A.G. Edwards & Sons, Inc., RBC Capital Markets Corporation, Raymond James & Associates, Inc. and KeyBanc Capital Markets, a division of McDonald Investments Inc. have exercised their option to purchase an additional 682,500 common units in connection with Pacific Energy's recent equity offering. Lehman Brothers Inc. and Citigroup Global Markets, Inc acted as joint book-running managers of the offering. The common units will be sold to the underwriters at the public offering price of $32.00 per unit, less the underwriting discount. Martin Midstream to Acquire Natural-Gas Processing Company AP 9-06 Martin Midstream Partners LP, a distributor of liquefied petroleum gases, said Tuesday it agreed to pay $100 million for Prism Gas Systems I LP, a natural gas gathering and processing company based in Texas. Martin Midstream said the deal, expected to close in the fourth quarter, should add to its distributable cash flow per unit once Prism is fully integrated into the business. The company estimates Prism's earnings before interest, taxes, depreciation and amortization ranging from $10 million to $12 million in 2006. Related growth capital expenditures are expected to be $10 million to $15 million next year, with estimated maintenance capital expenditures of about $600,000 to $700,000 annually. Recent MLP IPO TransMontaigne Announces Results Business Wire 9-13 TransMontaigne Partners [TLP] on May 27, 2005, closed on the sale of 3,350,000 common units representing limited partnership interests in an IPO at a price of $21.40 per common unit, resulting in net proceeds of approximately $63.0 million, after underwriting discounts and offering expenses of approximately $8.7 million. There was an underwriters' over-allotment option to acquire an additional 502,500 common units. And an additional 450,000 subordinated units were sold s in a private placement transaction with an affiliate of Morgan Stanley Capital Group. On 7-20-05, TLP announced the declaration of a distribution of $0.15 per unit payable on 8-09-05, to the unitholders of record on 7-29-05. That distribution represents the pro rata portion of our minimum quarterly cash distribution of $0.40 per unit for the period from 5-27 through 6-30-05. At a closing price on 9-14 of 26.90, the distribution represents a 5.94% yield. Onshore Oil Facilities Struggle John Fialka, WSJ 9-17 With considerable storm damage to onshore oil facilities along the Gulf Coast, it will likely take three to four months to reach 90% of the pre-Katrina production level, the U.S. Interior Department's Mineral Management Service said. "We've reached a plateau," said Johnnie Burton, director of the service. In a briefing yesterday, she said the storm damage to most offshore oil rigs appears to be light, but more-extensive damage to onshore facilities including oil terminals, processing stations and refineries has halted shipments of much of the Gulf's production. In preparation for the storm, producers shut down 95% of oil and 88% of offshore gas production. As of Thursday, she said, companies reported that 56% of oil production and 34% of gas production had resumed. The work of inspecting offshore pipelines and platforms has been slowed by a shortage of boats, divers and helicopters as well as continuing electricity outages, she said. "It is incredible that there is so little damage to platforms," Ms. Burton said. One company, she said, reported sustained winds of 175 to 190 miles an hour and gusts of as much as 220 mph. Still, she said, special devices called "downhole safety valves" prevented oil and gas leakage from the Gulf floor. "We have seen nothing significant from any well." So far, Ms. Burton added, inspectors haven't found evidence of underwater landslides or other major damage to the network of underwater pipes that bring production onshore. Plains All American Prices 4,500,000 Common Units PRNewswire 9-22 Plains All American Pipeline announced today the issuance and sale by the Partnership of 4,500,000 Common Units at a public offering price of $42.20 per unit. Excluding the underwriters' over-allotment option, net proceeds from the offering, including the general partner's proportionate capital contribution and expenses associated with the offering, will be approximately $185.9 million. Concurrent with this public offering, the Partnership has agreed to sell 679,000 common units, also to be issued pursuant to its existing shelf registration statement, to Kayne Anderson MLP Investment Company and Kayne Anderson Energy Total Return Fund in a privately negotiated transaction. Net proceeds from this direct placement will be approximately $28.0 million. PAA intends to use the net proceeds to repay indebtedness incurred as a result of the recent acquisition by PAA/Vulcan Gas Storage, LLC of Energy Center Investments, which develops and operates underground natural gas storage facilities. The Underwriters were also granted an option to purchase up to an additional 675,000 Common Units. Kinder Morgan to Build 137-Mile Natural Gas Pipeline Through Lou. AP 9-22 Kinder Morgan Energy Partners said it plans to spend $490 million to build a 137-mile natural gas pipeline that would run through Louisiana. The pipeline would start at the Cheniere Sabine Pass liquefied natural gas plant under construction in Cameron Parish on Louisiana's western Gulf Coast and end in Evangeline Parish in south central portion of the state. The company said it has arranged agreements from a number of shippers for the project's initial capacity. Depending on shipper and regulatory approvals, the pipeline could be open as early as the first quarter of 2009. Atlas to Acquire Interest in NOARK Pipeline for $163 Million Business Wire 9-21 Atlas Pipeline Partners announces that it has entered into an agreement with a subsidiary of OGE Energy to acquire a subsidiary which owns a 75% operating interest in NOARK Pipeline System, L.P. ("NOARK"). NOARK's assets, which will be included within the Partnership's Mid-Continent operations, include a FERC regulated interstate pipeline and an unregulated natural gas gathering system. The Partnership expects this acquisition to be immediately accretive to distributable cash flow upon closing of the transaction and to provide additional significant fixed fee revenues, with substantially all of NOARK's gross profit generated from fixed fee arrangements. The Partnership expects the acquisition to generate $15 million to $18 million of cash flow in 2006, and to increase distributions to limited partners by $0.10 to $0.20 in 2006. NOARK, through its 100% ownership of Ozark Gas Transmission, L.L.C. ("OGT"), operates 565 miles of FERC regulated interstate pipeline, extending from eastern Oklahoma through central and northeastern Arkansas and into Missouri. OGT has throughput capacity of approximately 322,000 dth/d. OGT currently transports approximately 202,200 dth/d. In addition, NOARK, through its 100% ownership of Ozark Gas Gathering, L.L.C. ("OGG"), operates 365 miles of unregulated gathering pipeline in Oklahoma and Arkansas. OGG provides access to natural gas basins through approximately 400 receipt points that are then transported through OGT. OGG currently gathers approximately 36,400 mcf/d. Monthly Rating Changes On 9-05 KeyBanc Capital Mkts / McDonald Upgraded MMLP from Hold to Buy. On 9-05 AG Edwards Upgraded MMLP from Hold to Buy. On 9-06 Stifel Nicolaus initiated KMP at Outperform/Buy. On 9-09 KeyBanc Capital Mkts / McDonald upgraded MMLP from Hold to Buy. On 9-09 AG Edwards upgraded MMLP from Hold to Buy. On 9-21 Oppenheimer Initiated coverage of HEP at Neutral. On 9-21 Oppenheimer Initiated coverage of PAA at Buy. On 7-28 RBC Capital Mkts Downgradee MMP from Outperform to Sector Perform. On 7-26 Harris Nesbitt Initiated EPD at Neutral. On 7-21 RBC Capital Mkts Downgraded KMP from Outperform to Sector Perform. On 7-19 Goldman Sachs Downgraded NBP from Outperform to In-Line. On 7-18 Raymond James Upgraded MMP to Outperform from Strong Buy. On 7-08 Deutsche Securities initiated EPD and KMP at Hold. On 7-20 Wachovia Initiated APL at Outperform. On 7-08 Deutsche Securities Initiated KMP at Hold. NOTE: Please confirm through your own research any numbers on which you are to make a buy, sell or hold decision. The page is ment to be a supliment for those already getting monthly sector updates from their broker. It is the goal of this page to provide more timely data - and perhaps cover a wider array of stocks and different valuation metrics. Data entry errors sporadically happen. |