BBEP heavily invested in OK/Tx and California
Uneven effects seen from new Appalachian pipelines
HOUSTON, Sept. 15
By OGJ editors
Producers in the Appalachian basin will benefit unevenly from markets opening for natural gas from the Marcellus and Utica shales, according to a Canaccord Genuity analyst.
Pipeline projects due on stream soon will alleviate a surplus in the southwestern part of the basin, wrote Karl Chalabala in a mid-September report on an updated supply-demand model.
But the gas price will remain weak in the northeastern Appalachian basin until markets begin opening for supply there in 2016—unless operators ease drilling or curtail production.
Chalabala said pipeline capacity will begin to exceed need in the southwestern Appalachian basin at the end of this year. Overall system expansions beneficial to northeastern operators won’t occur until the second half of 2016, according to an analysis that focuses on takeaway capacity by omitting projects that will move gas largely within the region.
Most capacity expansions directly benefiting producers in the northeastern part of the play will occur after the first half of 2017, the analyst said.
Beyond 2016, new approvals for LNG exports, increased replacement of coal by natural gas in power generation, and growth in the industrial market paint “a robust and improving demand picture” for the basin, he said.
from Mickeyhorse on iv mlp board
Atlas Conference call highlights. "The deal is taxable like the KMI/KMP according to poster."
marklibera at yahoo • 3 hours ago
Conference call highlights
The deal is taxable like the KMI/KMP. They seemed to hint very strongly that either a deal to sell ARP or otherwise bring out the value. Cooperman suggested that they merge ARP and ATLS. They stated that the market is valuing the spinco entity at $9 for an entity with a $1.25 distribution that is slated to grow. The 50% IDR level for ARP is at 60 cents quarterly and they are paying 59 cents now, and they hinted that the distribution will be increased soon. They mentioned that Goldman thinks TRGP should be valued at $150-160. They said Goldman thinks that APL will be worth $50 in NGLS shares.
Next wave: derivative infrastructure
"...Armstrong says that supply infrastructure development is now approaching maturity but that getting new supplies to demand centers remains a wide-open prospect.
“The next [wave] is derivative infrastructure,” he explains. “With natural gas you’ve got to build out to the power plants, you’ve got to build out to the methanol plants, to LPG export sites. But you also have a tremendous wave coming behind that taking advantage of all the natural gas liquids we’re awash in. And getting those NGLs distributed to the olefinic plants, to the ethylene and propylene facilities, and then getting that ethylene and propylene moved around to where it’s utilized in the derivative infrastructure; we haven’t even really started that construction yet.”
Armstrong describes Williams’ role in the next phase as more than simply building the infrastructure. He sees the company acting as a broker between olefins consumers wanting to lock in low raw-material prices and suppliers looking for the long-term offtake security required to expand rapidly.
The company recently completed a 600-million lb/year ethylene capacity expansion at its Geismar, La., olefins plant and anticipates startup of the now 1.95-billion lb/year in total production in the “very near future.”
“We think about connecting the low-cost supplies in our nation to the very best markets and what that requires in infrastructure to make it happen,” says Armstrong regarding Williams’ future course. “There’s plenty of price signal out there from the international players saying, ‘Hey, I desperately want to build an ethylene cracker alongside yours. If you can get me that ethane supply, I can make that happen.’ We’d love to structure a deal with an Indian or Korean petrochemical company that wants the ethylene to make polyethylene and ship it by drybulk to their country, or ethylene oxide or ethylene glycol, whatever derivative they’d prefer; we’d love to be able to have this party make a contract say all the way back to the Rockies ethane producer, or a producer in the Marcellus-Utica, and we provide the infrastructure in between. We want to have the gathering and processing infrastructure, the NGL fractionation, the NGL transportation, and the ethane line and storage, all the way through our cracker.”
lot of fear for futures to drop over $3.00 bbl today
being a nat gas producer has nothing to due with this sector wide sell off. the infrastructure mlps are selling off also, even those with mostly fee based, volume protected revenues.
These are generally not casual or scouting type of law suits
LL&E Royalty Trust Announces Complaint for Legal and Injunctive Relief of QR Energy, LP
TROY, Mich., Oct. 15, 2014 /PRNewswire/ -- On October 3, 2014, the LL&E Royalty Trust (LRTR) (the "Trust"), by Roger D. Parsons, Trustee, filed a complaint against Quantum Resources Management, LLC; QR Energy (QRE), and QRE Operating, LLC ("Quantum") for legal and injunctive relief.
Quantum serves as the oil & gas operator for the Jay Field, located in Florida and Alabama, in which the Trust owns a Net Profits Interest. The Trust has not received Distributions from Quantum since 2008 despite the fact that Quantum is contractually required to make monthly payments to the Trust attributable to the Trust's interest. The Trust is seeking money damages, injunctive relief and an appointment of a receiver based on the alleged actions of Quantum.
The Trust has specifically alleged breach of contract, statutory conversion, fraud, breach of fiduciary duty, violation of the Racketeer Influenced and Corrupt Organization Act ("RICO"), accounting / injunctive relief and seeks the appointment of a receiver.
David fyi, demand in not down worldwide it is demand "growth" worldwide that is down
QR Energy, LP
5 Houston Center
1401 McKinney Street, Suite 2400
Houston, Texas 77010
NOTICE OF SPECIAL MEETING OF UNITHOLDERS
To the Unitholders of QR Energy, LP:
Notice is hereby given that a special meeting of unitholders of QR Energy, LP, a Delaware limited partnership (“QRE”), will be held on , 2014, at a.m., local time, at , solely for the following purposes:
• Proposal 1: to consider and vote on a proposal to adopt the Agreement and Plan of Merger, dated as of July 23, 2014 (as such agreement may be amended from time to time, the “merger agreement”), by and among QRE, QRE GP, LLC, the general partner of QRE (“QRE GP”), Breitburn Energy Partners LP (“Breitburn”), Breitburn GP LLC, the general partner of Breitburn (“Breitburn GP”), and Boom Merger Sub, LLC, a subsidiary of Breitburn (“Merger Sub”), pursuant to which, among other things, Merger Sub will merge with and into QRE, with QRE surviving the merger as a wholly-owned subsidiary of Breitburn;
It is the Mud (hectonite) that will actually be the catalyst to create long term shareholder value by generating cash flow; which will in the long run minimize the amount of interest/equity that has to be issued to a JV partner or in the open market to develop the Lithium and/or support borrowing at lower interest rates to develop the lithium. If the Mud cash flow pays for its direct costs plus overhead WLC can use that to borrow first and pay hopefully interest expense and that borrow first approach should minimize the amount of equity/JV interest given up by WLC /Shareholders to move forward with Lithium development. the Mud business line will also be the back stop for any delays in lithium start up, etc
Would be nice if dislike would post counter view rather than just a thumbs down s
science depends on where they are in the due diligence process. lt would be a surprise at the initial offering, but if bbep has completed its records due diligence search would not be a surprise. in offer letters and/ or purchase and sales agreement there is an "adjustments" clause for ownership problem discoveries, etc. In some agreements if the adjustment is material enough either party can back out if an agreement can not be reached on how to settle the major adjustment discovery but depends on how it is tied to the withdrawal penalty, etc
Start ups that can generate a cash flow will have a better negotiating posture with JV partners-equity deals for the Lithium project. Most of the time (not always) those start-ups with no cash flow and a need for significant upfront capital many times take what ever they can get from JV partners-equity deals. I presume WLC saw this also and why they they invested upfront capital and manpower into the hectonite process