Enable Midstream Is Planning an IPO - Bakken Gathering Assets Included

Enable Midstream's Gathering and Processing Assets
Enable Midstream's Gathering and Processing Assets

Enable Midstream (ENBL) has filed for an initial public offering and expects to raise net proceeds of $500 million to be used in expansion projects. The company will trade as a master limited partnership (MLP).

The deal includes Bakken gathering assets that were contributed by CenterPoint Energy.

The gathering system commenced operations in November 2013 and is expected to be in full operation in the third quarter of 2014. Enable Midstream estimates it could spend as much as $110 million on the Bakken system.

The company's Bakken system will have capacity of 19,500 b/d when fully operational and that entire amount is contracted through 2028. While only partially in service for most of the year, Enable estimates it will gather a little less than 10,000 b/d in 2014.

The company was formed in May of 2013 by affiliates of CenterPoint Energy, OGE Energy and ArcLight Capital Partners. The assets include CenterPoint's interstate pipelines and field services, as well as OGE's midstream business.

Enable Midstream is managed by a general partner whose governance is shared by CenterPoint Energy and OGE Energy on a 50/50 basis.

About Enable Midstream

Enable Midstream owns, operates and develops strategically located natural gas and crude oil infrastructure assets. Enable Midstream's initial assets include approximately 11,000 miles of gathering pipelines, 11 major processing plants with approximately 1.9 billion cubic feet per day of processing capacity, approximately 7,800 miles of interstate pipelines, approximately 2,300 miles of intrastate pipelines and eight storage facilities comprising 86.5 billion cubic feet of storage capacity.

Read the full press release at oge.com

Western Refining Investing in the Bakken Through Minnesota Refinery

Northern Tier Energy Asset Map
Northern Tier Energy Asset Map

Western Refining has agreed to acquire Northern Tier Energy's general partner from Acon Investments and TPG for total consideration of $775 million.

The acquisition gives Western ownership in an 89,500 b/d refinery in St. Paul Park, MN, an interest in a 455,000 b/d pipeline moving crude from Clearbrook to St. Paul Park, as well as other assets.

More than half of the feedstock used in the St. Paul Park refinery is considered light sweet and "most" of the light-sweet crude comes from the Bakken.

This investment further enhances our strategic goal of expanding our refining presence in areas with direct pipeline access to cost-advantaged crude oil resources...... Northern Tier Energy’s St. Paul Park refinery is a very successful refinery with pipeline access to cost-advantaged crude oil and refined product regions that historically have generated strong product margins.
— Jeff Stevens, Western's CEO

The CEO is referencing Bakken oil when he mentioned "cost-advantaged" crude oil. The refinery is strategically placed to benefit from future Bakken production growth.

Northern Tier's Assets Include:

  • St. Paul Park Refinery - 89,500 barrels per day refining capacity and processes 100% cost-advantaged crude oil - 75% light, 25% heavy
  • Pipeline access to Bakken and Canadian crude oil - 17% interest in a 455,000 barrel per day crude oil pipeline
  • Products terminals, storage tanks, rail facilities and Mississippi river dockage
  • Retail assets which include the SuperAmerica retail channel
  • 163 company operated convenience stores
  • 74 franchised convenience stores

Read the full story at jamestownsun.com

SaskEnergy & Mistral Midstream Partner To Build Bakken NGL Plant in Saskatchewan

Vantage Ethane Pipeline Map
Vantage Ethane Pipeline Map

SaskEnergy announced the company's subsidiary, Bayhurst Energy Services, has agreed to a joint venture with Mistral Midstream to build a NGL processing plant near Viewfield, Saskatchewan. The plant will separate NGLs from Bakken production.

The facility, or straddle plant, will be located alongside SaskEnergy's natural gas pipeline system. NGLs will be recovered and marketed to commercial and industrial customers, while the natural gas will will be re-injected into the transmission pipeline.

"This project with SaskEnergy provides the opportunity for Mistral Midstream, already a major investor in energy infrastructure in Saskatchewan, to play a unique role in our economy with a facility that develops ethane and other natural gas liquids that are in high demand by the market in Western Canada," said Doug Kelln, CEO of SaskEnergy.

Mistral Energy is also constructing the Vantage Pipeline that will be operational in late 2013. The Vantage Pipeline will transport 40,000-50,000 b/d of ethane from Tioga, ND, to Alberta, Canada. The JV with SaskEnergy in just one more advance in providing midstream solutions in the Bakken.

"As oil and gas producers develop the Bakken play, it is important that the infrastructure that supports this investment in Saskatchewan provides sustainable market access and value to all stakeholders," said Terry Killackey, CEO of Mistral Midstream.

Construction on the plant will begin in 2014 and in-service is expected in early 2015

Read the full press release at saskenergy.com