Plains All American Pipeline, L.P. completes public offering of common units

Plains All American Pipeline, L.P. (NYSE: PAA) announced on March 9 that it has completed its previously announced underwritten public offering of common units representing limited partner interests. Including the overallotment option, which was exercised in full by the underwriters, the Partnership sold a total of 5,750,000 common units at a price to the public of $80.03 per common unit.

Total net proceeds from the offering, including the general partner's proportionate capital contribution and after deducting underwriting discounts and commissions and estimated offering expenses, were approximately $455 million.

The Partnership intends to use the net proceeds of the offering to fund a portion of the proposed acquisition of BP Canada Energy Co., a wholly owned subsidiary of BP Corp. North America, Inc.

MarkWest Energy offering of 5.9 million units priced at 3.2 percent discount

An offering of 5.9 million units by MarkWest Energy Partners LP (NYSE: MWE) was priced at a 3.2 percent discount to its March 12 closing price.

The natural-gas processor and distributor said on March 12 that it planned to undertake the offering to raise funds for its capital-expenditure program.

MarkWest had 95.9 million common units outstanding as of Feb. 17. (Source:  Mia Lamar, Dow Jones Newswires; 212-416-3207; mia.lamar@dowjones.com

Enterprise, Enbridge and Anadarko to develop Texas Express Pipeline

HOUSTON & THE WOODLANDS, Texas - Enterprise Products Partners L.P., Enbridge Energy Partners, L.P. and Anadarko Petroleum Corp. on March 6 announced that shippers have executed long-term contracts for capacity on the Texas Express Pipeline (TEP) being developed by the joint venture.

The shippers, which include unaffiliated shippers, have tendered 15-year, ship-or-pay transportation agreements containing volume commitments that total 232,000 barrels per day (b/d). The contracts also include an option provision allowing shippers to increase their volume commitment.

Originating near Skellytown in Carson County, Texas, the 20-inch diameter TEP mainline will extend approximately 580 miles to Enterprise's natural gas liquids (NGL) fractionation and storage complex at Mont Belvieu, Texas, and will provide access to other third-party facilities in the area.

The pipeline will provide much-needed takeaway capacity for producers in West Texas, the Rocky Mountains, southern Oklahoma and the Mid-continent area, giving them access to the largest NGL market along the Gulf Coast and the opportunity to maximize the value of their NGLs. Production from the Rockies, Permian Basin and Mid-continent will be delivered into TEP through Enterprise's existing Mid-America Pipeline System (MAPL) which extends north through Oklahoma into Conway, Kansas, and south into the Permian Basin.

"This joint venture with Enbridge and Anadarko brings together partners with unique and complementary strengths to provide an industry solution that addresses the need for flow assurance and market choices for producers, as well as reliable supplies of price-advantaged, natural gas-derived feedstocks to meet the increasing demand of petrochemical operators," said Michael A. Creel, president and chief executive officer of Enterprise's general partner. "For Enterprise, this project is a 'bolt-on' expansion that enhances the value of our integrated midstream network of assets, including the pipelines that will feed TEP, as well as our fractionators, storage facilities and distribution network at Mont Belvieu, which will be fed by the new pipeline."

The joint venture also includes two new NGL gathering systems. The first will connect TEP to natural gas processing plants in the Anadarko/Granite Wash production area located in the Texas Panhandle and Western Oklahoma. The second NGL gathering system will connect the new pipeline to Barnett Shale natural gas processing plants located in Central Texas. Wider access to multiple production areas, in addition to a competitive transportation fee structure, makes this an attractive option for producers and natural gas processors. Enterprise will construct and operate the pipeline, while Enbridge will construct and operate the new gathering systems.

EV Energy Partners announces full year, fourth quarter 2011 results

EV Energy Partners, L.P. (NASDAQ: EVEP) on Feb. 29 announced results for the full year and fourth quarter 2011 and the filing of its Form 10-K with the Securities and Exchange Commission. In addition, EVEP announced 2012 guidance and an update of its commodity hedge positions

Adjusted EBITDAX and distributable cash flow for 2011 were $212.4 million and $126.2 million, increases of 43 percent and 34 percent, respectively, over 2010. The increase in Adjusted EBITDAX and Distributable Cash Flow are primarily due to acquisitions made in 2010 and 2011 and higher realized oil and NGL prices partially offset by lower realized gas prices.

Production for 2011 was 29.2 Bcf of natural gas, 891 MBbls. of oil and 1,096 MBbls. of natural gas liquids, or 41.2 billion cubic feet equivalents (Bcfe). This represents a 47 percent increase over 2010 production of 27.9 Bcfe, primarily due to acquisitions in 2010 and 2011.

For 2011, EVEP reported net income of $102.6 million, or $2.71 and $2.68 per basic and diluted weighted average limited partner unit outstanding, respectively. Included in net income were $35.5 million of unrealized gains on commodity and interest rate derivatives, which includes a $5.3 million unrealized gain on derivatives acquired in conjunction with a 2010 acquisition and $9.8 million of non-cash costs contained in general and administrative expenses. Also contained in general and administrative expenses were approximately $2.9 million of due diligence and other transaction costs for acquisitions.

Other expenses incurred include $12.1 million of dry hole and exploration costs and $11.0 million of impairment costs related to divestitures of non-core oil and natural gas properties and assets held for sale. Also recognized, during the fourth quarter, was a $4.0 million gain on sale of assets related to Utica Shale acreage in an agreement with Total and Chesapeake.

For 2010, EVEP reported net income of $106.1 million, or $3.35 and $3.34 per basic and diluted weighted average limited partner unit outstanding, respectively. Included in net income were $3.0 million of unrealized gains on commodity and interest rate derivatives and $5.0 million of non-cash costs contained in general and administrative expenses. Also contained in general and administrative expenses were approximately $1.4 million of due diligence and other transaction costs for acquisitions. Also recognized was a $40.7 million gain on sale of certain unproved acreage and a $2.5 million non-cash charge to lease operating expenses related to oil in tanks purchased in connection with the Appalachian Basin acquisition closed in March 2010.

Adjusted EBITDAX for the fourth quarter of 2011 was $54.5 million, a 31 percent increase over the fourth quarter of 2010 and a four percent increase over the third quarter of 2011. Distributable cash flow for the fourth quarter of 2011 was $30.8 million, a 15 percent increase over the fourth quarter of 2010 and flat to the third quarter of 2011.

Kinder Morgan, Martin Midstream announce rail terminal joint venture in Texas

HOUSTON, Texas - Kinder Morgan Energy Partners, L.P. (NYSE: KMP)  and Martin Midstream Partners L.P. (Nasdaq: MMLP) on Feb. 27 announced a new joint venture, Pecos Valley Producer Services LLC, to develop a multi-commodity rail terminal in Pecos, Texas.

The new terminal will serve the growing oil and natural gas industries in the Permian Basin. The facility will be constructed and operated by a subsidiary of Watco Companies, Inc., the largest privately held short line railroad company in the United States. KMP holds a preferred equity position in Watco.

The terminal will offer a variety of services to producers in the Permian Basin including crude oil hauling, storage, transloading and marketing. It will also provide producers access to light Louisiana sweet crude oil markets. Kinder Morgan and Martin Midstream Partners will offer immediate NGL storage, takeaway, and fractionation services, and seek to develop natural gas and crude gathering and processing systems within the area. Additionally, the joint venture has held initial discussions to develop a frack sand unit train terminal to serve Reeves County and surrounding counties.

The first stage of the terminal is expected to be completed and operational by May 2012. Crude oil, natural gas liquids, frack sand, pipe, tube, structural steel, rig mats and other commodities can be railed in and out, and transloaded to truck for delivery to the surrounding area.

Once the terminal has been fully developed, it will encompass approximately 85 acres and will be able to support unit trains. Total railcar capacity is anticipated to be 300 to 600 per day based on demand. The terminal is strategically located along the Pecos Valley Southern Railway (PVS) and directly adjacent to the Union Pacific mainline in the city of Pecos, and will offer scalability and convenience for local area producers.

Once fully operational, the terminal will create up to 45 new jobs. Bill Oglesby, executive director of the Pecos Economic Development Corporation, said, "We welcome Kinder Morgan and Martin Midstream's announcement of this rail terminal in Pecos. This is a significant step for Pecos and Reeves County, and the development of our oil and gas resources."

Enbridge launches Open Season for Sanish Pipeline, Bakken expansion

HOUSTON, Texas, and CALGARY, Alta. - Enbridge Energy Partners L.P. (NYSE: EEP) and Enbridge Income Fund Holdings Inc. (CA: ENF), affiliates of Enbridge Inc. (NYSE: ENB) on Feb. 28 announced a second Open Season for its Bakken Expansion Program in conjunction with an Open Season for EEP's proposed Sanish Pipeline.

The Sanish Pipeline will transport crude oil production from Johnson's Corner to Beaver Lodge, N.D.

The Bakken Expansion Program Open Season will offer pipeline capacity on Enbridge's system from Beaver Lodge into Enbridge's terminal at Cromer, Manitoba, where it connects with the Enbridge Mainline System, which offers access to refineries throughout the Upper Midwest, eastern Canada, Mid-Continent and as far as the U.S. Gulf Coast.

The two open seasons are being conducted jointly to provide shippers with the option of contracting for capacity from Johnson's Corner to Enbridge's Beaver Lodge and Berthold Stations as well as to Cromer.

EEP's proposed Sanish Pipeline is a new 36-mile, 12-inch crude oil line capable of transporting a minimum 67,000 barrels per day (b/d) from Johnson's Corner into EEP's existing facilities at Beaver Lodge. The Bakken Expansion Program, currently under construction by EEP in the U.S. and by Enbridge Income Fund in Canada, will provide a total of 145,000 b/d of incremental pipeline capacity from Beaver Lodge to Cromer when it comes into service in Q1 2013. At Berthold, EEP is constructing a new 80,000 b/d rail export facility which is planned to be in-service at the same time.

"The Bakken and Three Forks formations have catapulted North Dakota into the position of being one of the leading oil producing states in the U.S. Along with this proposed Sanish Pipeline, we have increased the export capacity of our North Dakota system by almost 350 percent since 2008," said Stephen J. Wuori, president, Liquids Pipelines, Enbridge. "Sanish provides customers located south of the river with an entrance to Enbridge's expanded systems to access a total of 475,000 b/d of capacity out of North Dakota in 2013. Enbridge is developing other projects that will continue our significant capital investment in this prolific region to provide reliable, economical and secure access to a wide variety of refinery markets, including the U.S. Gulf Coast."

Through the open seasons, shippers will have the opportunity to secure space on the Sanish Pipeline, including 15,000 b/d of service from Johnson's Corner to Cromer.

The binding Open Seasons began on Feb. 28, and closes on April 11.